Khazanah and Baring in joint bid for Aegis: report

08 Jun 2012

Malaysian sovereign fund Khazanah and Baring Private Equity Asia have joined hands to offer $800 million (over Rs 4,400 crore) for Aegis, an Esar Group-owned business process outsourcing (BPO) firm, according to a report in The Times of India.

Their bid is higher than the bid put in by Kohlberg Kravis Roberts & Co (KKR), which is another contender in the fray to acquire Aegis the report said.

Khazanah and Baring Asia are expected to rope in another Malay investor into the consortium as they bid at a valuation that was below the initial asking price topping $1 billion, the report added.

The Ruias are being advised by Standard Chartered Bank on the potential divestment process, which started nearly four months ago.

Malaysia's state owned companies as also investment firms are seen to be increasing their footprint in the BPO industry, on government encouragement  after Asian neighbour Philippines built a successful model for its BPO industry.

The move by Essar, comes as a part of a larger strategy to unlock value to cut down the group's debt estimated at $12 billion according to analysts.