New Delhi-based ADI BPO Services Pvt Ltd is planning to acquire a majority stake in Chennai-based, BSE-listed MPS Ltd. The total consideration for the proposed acquisition is Rs 37.37 crore. The latter company was earlier known as Macmillan India.
ADI BPO Services today told its shareholders that the company had entered into agreement with HM Publishers Holding Ltd to acquire 10 million equity shares in MPS, representing 61.46 per cent of the issued, subscribed and fully paid up share capital.
The sale shares were acquired pursuant to an open market block deal transaction on the National Stock Exchange at a price of Rs 36.15 per share payable in cash. Following the acquisition, the company made an open offer to the public shareholders of MPS Ltd for acquiring upto 3.4 million equity shares worth Rs 12.44 crore. After conclusion of the offer, assuming full acceptance of the offer, ADI BPO would hold 81.46 per cent in MPS Ltd.
MPS publishing-related services such as project management, copy-editing, proofreading on business process outsourcing (BPO) model. The company has reported a total income of Rs 136.43 crore for the year ended December 31, 2010 and loss of Rs 8.80 crore.
Post the acquisition, ADI BPO is planning to integrate its business with that of MPS with a view of building a consolidated and balanced domestic and international business, according to the open offer document.
ADI BPO said that the total fund requirement or the maximum consideration of the offer, assuming its full acceptance, would be Rs 12.44 crore and that the company had made arrangements to meet the obligations.
In addition, the company Eyumbs and Royal Bank of Scotland have entered into an open offer agreement and made a cash deposit of Rs 3.11 crore, which is equal to 25 per cent of maximum consideration in the MPS open offer escrow account.