British private equity firm Apax Partners Holdings Ltd and its US peer Bain Capital LLC are interested in buying Oak Hill Capital Partners LP and General Atlantic Partners’ joint 41% stake in Indian business process outsourcing (BPO) company Genpact Ltd (NYSE:G), according to a report on Tuesday by the Times of India.
The buyers are expected to pay a market price of USD1.4bn (EUR1.1bn) for a stake and not a premium, valuing the entire Genpact at USD3.4bn, the report cited informed banking sources as saying.
According to one of the sources, Bain Capital and Apax Partners are seeking partners for a bid, while a second source said that the two private equity bidders may split the 41% stake.
Oak Hill and General Atlantic, leading Genpact shareholders since 2004, have been looking for ways to exit their investment and hired Morgan Stanley (NYSE:MS) and Citigroup Inc (NYSE:C) to advise on a potential sale, the paper said.
Private equity firm Carlyle Group and strategic buyers such as Cognizant Technology Services (NASDAQ:CTSH) have been looking at Genpact, but have decided against making an offer, the report said.
Oak Hill, General Atlantic and Genpact made no comment to the Times of India.
Genpact, with delivery centres in India, China, Guatemala, Hungary, Mexico, Morocco, the Philippines, Poland, the Netherlands, Romania, South Africa, Spain and the US, offers a variety of business processes services covering the transactional, managerial, reporting and planning needs of their customers.