The Hindu Business Line : EDS offer now more meaningful for MphasiS shareholders

The crash has resulted in EDS' offer price of Rs 204.5 becoming more attractive for the existing shareholders of MphasiS than the current market price of Rs 187.

Bangalore , May 22

For Electronic Data Systems (EDS) waiting to acquire a majority stake in MphasiS BFL Ltd, the crash in stock markets could not have come at a more opportune time.

The crash has resulted in EDS' offer price of Rs 204.5 becoming more attractive for the existing shareholders of MphasiS than the current market price of Rs 187.

The MphasiS shares, which opened at Rs 190.15 on Monday, hit an intra-day high of Rs 192 before closing lower at Rs 187. On Monday, the BSE Sensex closed lower by 456.84 points at 10481.77

Over the past week, MphasiS shares have declined by about 4.15 per cent. The shares were down about 7 per cent compared with a month ago prices. When EDS came out with the open offer announcement in early April, the MphasiS shares were ruling at a high of around Rs 215.

EDS' open offer to acquire 52 per cent stake in Mphasis shares opened on May 17 and will close on June 5. Citigroup Global Markets India Pvt Ltd acting on behalf of TH Holdings along with EDS advanced the open offer schedule recently.

The offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52 per cent of current shares outstanding. If at least 83 million shares are not tendered in the offer, EDS will not accept any shares tendered.

MphasiS clocked a consolidated net profit of Rs 149.86 crore on revenues of Rs 940 crore for the year ended March 31, 2006, a growth of 20 and 23 per cent respectively over the corresponding previous year.

Among the private corporate bodies, Barings India Investments Ltd owns 34.79 per cent in MphasiS BFL, while Investek Mauritius Ltd owns 4.25 per cent as of March 31, 2006.

The MphasiS Chairman, Mr Jaithirth Rao, owns 3.97 per cent stake in personal capacity.

More Stories on : Open Offers | Outsourcing

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page