The value of the transaction is set at US $ 300 Million (around Rs.2,000 crore)
Wholly owned portfolio company of Essar Global Fund Limited (Essar Global), AGC Holdings Limited (AGC) Mauritius, has completed the sale of 100% of its stake in ESM Holdings Limited, the holding company of Aegis to Capital Square Partners (CSP) for US $ 300 Million (around Rs.2,000 crore). Essar’s debt will be reduced by net proceeds from this sale.
Essar’s intent to reduce leverage that is complemented by an asset monetization program is consistent with the closure of this transaction. Almost Rs 75,000 crore of Essar’s debt has been reduced by the proceeds from the sale of Aegis and Essar Oil.
After creating significant value through organic growth and strategic acquisitions that helped diversify customer offerings, the transaction also marks Essar Global’s complete exit from the BPO business.
Aegis has grown over tenfold to become a significant player in the outsourcing industry, since the acquisition of Aegis Communication by Essar Group in 2003. The company has expanded its global footprint across 9 countries, through a prudent mix of organic growth and strategic acquisitions. With a 100% success ratio, Aegis has concluded over 19 acquisitions, in contrast with the 30% success rate of M&As prevalent in the BPO industry.
Sanjay Chakrabarty and MukeshSharda, Managing Partners of CSP, said, "With this acquisition now complete, we are keenly looking forward to working with the Aegis management team to grow its global footprint and enhance its capabilities and excellence in service to its customers.”
“The closure of this transaction is yet another validation of Essar Global Fund’s commitment to reduce its leverage by monetizing the non-core businesses in its portfolio,” said UdayGujadhur, Director - AGC Holdings. “I congratulate CSP for investing in a high quality asset, like Aegis, in the BPO space and adding to its breadth of expertise.”
“I am thankful to the Essar management for incubating the BPO business and nurturing it through timely and strategic acquisitions. Essar’s support and guidance helped us grow and reach a stage where we could dream bigger and strive higher. I am very excited to have CSP join us as our new partners in Aegis’ growth journey,” said Sandip Sen, Global CEO, Aegis. PWKD29112017