NIIT Ltd, the promoter of Delhi-based IT company NIIT Technologies, is looking to sell 25% in the company to a strategic investor. NIIT Technologies is a listed entity and a 25% stake sale would trigger an open offer for a further 20%, thereby giving the buyer management control of the company.
“Our position has been that the promoters will dilute 25% out of the nearly 40% stake held by them to a strategic investor. This will naturally lead to an open offer. However, at this point of time, we are not in discussions with any investors,“ said NIIT Technologies CEO Arvind Thakur.
Sources in the industry say the company has initiated discussions with investment bankers for the possibility of a stake sale to a global IT company.
The size of a possible deal could not be ascertained as it depends mainly on the premium that the company can get. Sources say the company is looking at a high premium for the significant stake sale to strategic investors. “The management is looking at a high premium and thus keen to have a deal with a strategic investor. A deal with private equity funds is unlikely due to the premium expectations of the management,” said an industry source.
Read more in The Economic Times article.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment