Birla group buys Canada BPO firm

Aditya Birla Group will acquire Canada's BPO provider Minacs Worldwide Inc for $125 million (Rs 562 crore).

TransWorks, a wholly-owned subsidiary of Aditya Birla Nuvo, will acquire 46.5 per cent stake of Minacs family, the promoter of the Canadian company, for Canadian dollar 5.50 a share.

This will be followed by an open offer, priced at the same rate, for the shareholders holding the balance stake in Minacs. The cost of acquisition, if 100 per cent stake of Minacs is acquired, will be $125 million.

Aditya Birla Group Chairman Kumar Mangalam Birla said the group wanted to acquire entire stake in Minacs and merge it with TransWorks.

It expected that the entire process"� from acquisition of the non-promoters stake in Minacs and merger with TransWorks"� would be complete by August. The combined business of TransWorks, post merger, would be $300 million.

ReichmannHeuer Capital Partners intended to co-invest in the acquisition. In return, it would have a maximum of 10 per cent stake in TransWorks, post merger.

TransWorks CEO Atul Kunwar said the price of acquisition was higher than 30-day average rate of Minacs at Canadian dollar 5.30.

The company is listed on the Toronto Stock Exchange. Transworks and Aditya Birla Nuvo would fund the acquisition to the tune of $ 105 million and the balance would be financed by debt.

This is the group's third acquisition in Canada. It has two companies"� Atholville Pulp Mill and Nackawic Pulp Mill in the country. In India, the group has two Canadian JVs, with Sun Life and Alcan.

TransWorks, which was acquired by the Birla company three years ago for $ 13 million, would have a "global footprint with a right shore solution to clients in the US, Aanada, Europe and Asia", Kunwar said.