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Home > Business > PTI > Report

Citigroup to buyout e-Serve for Rs 550 crore

April 12, 2004 13:21 IST

Citigroup is to acquire the outstanding shares of e-Serve International Ltd, an IT-enabled services company, in a deal valued at Rs 550 crore (Rs 5.50 billion).

The move would integrate the ITES company with Citigroup's global operations, a Citigroup release said in Mumbai.

Citigroup, which holds 44.4 per cent stake in e-Serve through its subsidiary, Citibank Overseas Investment Corporation, intends to acquire all the outstanding shares at Rs 800 per share, a 27 per cent premium to closing price of Rs 630 on April 8.

The outstanding shares would be acquired through a shareholder-driven reverse book building process.

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Citigroup, e-Serve's largest shareholder and sole customer, said its move to obtain full ownership of the ITES company would provide the latter operational flexibility for business and meet the needs of the customers.

On the offer price, Citigroup said the price was higher than e-Serve's closing price over the last three years.

It would provide shareholders an opportunity to exit from a relatively illiquid investment, it said.

E-serve would be delisted from stock exchanges under the provisions of the Securities and Exchange Board of India (delisting of securities) Guidelines, 2003, it said.

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