Tech Mahindra eyes Hutchison Whampoa's Indian call centre business: report
04 Sep 2012
IT services firm Tech Mahindra, part of the $7.1-billion Mahindra & Mahindra Group (M&M), plans to buy Hutchison Whampoa's Indian call centre business Hutchison Global Services Pvt Ltd, for close to $100 million, The Economic Times yesterday reported, citing sources with direct knowledge on the deal.
The potential move comes a week after London-based £21-billion telecom giant British Telecom sold around 5 per cent stake in Tech Mahindra for about $100 million (Rs556 crore). (See: BT sells part stake in Tech Mahindra for Rs556 crore)
As part of the deal, Hutchison Whampoa, run by Hong Kong billionaire Li Ka-shing, has also made a revenue commitment of $1 billion over the next 5-7 years to Tech Mahindra, said the report.
Tech Mahindra, set up as a joint venture between M&M and BT in 1986, said that it would hold a press conference today to make a "strategic announcement."
Last week, The Times of India reported that Li Ka-shing's is planning to offload Hutchison Global Services and has hired Goldman Sachs to advice on the deal. The report added that Tech Mahindra and London-listed Serco are among the several suitors in the race.
Hutchison Global Services has around 12,000 employees spread across five locations in Mumbai and Pune, and has revenues of more than $160 million estimated profit of around $30million.