TH Holdings along with Electronic Data Systems Corporation made an open offer to acquire 52 per cent stake in MphasiS at Rs 204.50 a share in a bid amounting to Rs 1,672 crore ($380 million).
The move by Jerry Rao, according to industry analysts, is seen as a move to step out of the company post open offer, if it sails through.
The management, however, stated that they intend to continue after EDS acquires a majority stake in MphasiS. Rao, of late, has been more than active in non-MphasiS matters, reportedly seeking exposure in a wine making firm.
According to a statement from EDS, the offer will be contingent upon EDS acquiring 83 million shares, representing approximately 52 per cent of current shares outstanding.
At current exchange rates, the total purchase price for the 83 million shares is approximately $380 million (Rs 1,672 crore). EDS expects the transaction to be completed by early third quarter.
After this sale, Rao will continue to hold around 45 lakh shares of the earlier 64 lakh shares (3.97 per cent) of MphasiS.
The MphasiS BFL group consolidated revenues for the year 2005-06 was Rs 940.11 crore (Rs 9.4 billion) with net profit of Rs 155.7 crore (Rs 1.55 billion).