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GE to sell Genpact shares worth $100 mn

By BS Reporter in Mumbai
December 17, 2007 16:18 IST
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General Electric Co. (GE) has agreed to sell $100 million (about Rs 400 crore) of Genpact Ltd shares in a private deal, the companies announced on Saturday.

GE is selling the shares to "an affiliate of a limited partner in one of Genapct's other shareholders," the companies said in statement.

Genpact, one of India's largest business process outsourcing firms by revenue, started out in 1997 as the India-based BPO division of GE Capital.

"Genpact is a good partner and continues to provide valuable support to our operations," a GE spokesman said. "The transaction is simply a part of our normal and on-going portfolio management activities and we look forward to a long and productive relationship."

According to one report, at Genpact's closing price on Friday of $14.32, the $100 million indicates a stake of nearly 7 million shares which is about 3.6 per cent of Genpact's share capital.

Prior to the sale, GE held a 23 per cent stake in Genpact.  The other shareholders General Atlantic and Oak Hill Capital Partners together hold a total of 52 per cent in Genpact.

The shares sold will be subject to the same lock-up agreement that GE entered into with the underwriters of Genpact's initial public offering. No shares will enter the public trading market as a result of the transaction.

Pramod Bhasin, president and chief executive officer of Genpact, said, "We welcome this diversification of our ownership base. We continue to have an excellent relationship with GE both as a client and as a shareholder. Our continuing significant revenue growth from GE is a reflection on the quality of this relationship."

Genpact, which was a GE captive till 2004, got listed on the NYSE in August this year, with an initial public offering of 35.3 million common shares, which enabled the company raise $494 million. 

Genpact manages business processes for companies around the world. The company combines process expertise, information technology and analytical capabilities with operational insight and experience in diverse industries to provide a wide range of services using its global delivery platform.

It has delivery centres in India, China, Hungary, Mexico, the Philippines, the Netherlands, Romania, Spain and the US.

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BS Reporter in Mumbai
Source: source