Blackstone to buy majority of India's Mphasis in up to $1.1 billion deal

Reuters News
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Posted: Apr 04, 2016 12:23 AM

MUMBAI (Reuters) - Blackstone Group LP <BX.N> has agreed to buy a majority stake in Indian IT outsourcing services provider Mphasis Ltd <MBFL.NS> from Hewlett Packard Enterprise Co <HPE.N>, in a deal that will cost up to $1.1 billion.

Blackstone will pay 430 rupees per share for 84 percent of HP Enterprise Co's 60.5 percent stake in Mphasis, HPE said in a statement.

Under Indian laws, Blackstone will also need to make an open offer for a further 26 percent stake in Mphasis.

Depending on the response to the open offer, the deal price will vary between 54.66 billion rupees and 70.71 billion rupees ($825 million and $1.1 billion), Blackstone said in a separate statement.

(Reporting by Devidutta Tripathy; Editing by Sherry Jacob-Phillips and Gopakumar Warrier)