Barings Private Equity has indicated that it is not averse to divesting its substantial stake in software solution and BPO service provider MphasiS BFL Ltd.
Barings, which is the largest shareholder in the company, has in a notice to the Bombay Stock Exchange, sent through MphasiS, intimated that it had appointed a merchant banker to advise it on offers for its 35.63 percent stake in the company.
"Given the current valuation of the company, there has been a lot of unsolicited interest in the company at significant premiums," Rahul Bhasin, Partner of Barings Private Equity, was quoted in the notice.
"With a view to exploring the potential opportunity to maximise shareholder value, we have retained an investment bank to advise us," Bhasin said.
Barings has a stake in the Bangalore-based MphasiS for the last eight years.
MphasiS Chairman Jerry Rao, quoted in the same statement said the company would support all ways to enhance shareholder value, including an overseas listing at "the appropriate time."
"It is the fiduciary responsibility of executive directors and the management team to aid, facilitate and support all initiatives which enhance shareholder value. The company will continue to facilitate the same. The company will also explore other shareholder value optimisation mechanisms such as an overseas listing at the appropriate time," Rao said.
Rao had in an interview with rediff.com indicated that one reason why the company may not immediately look at an overseas listing in US was because of the cost of adhering to regulatory compliances like Sarbanes-Oxley Act.
"The cost of compliance could run into more than a couple of million dollars and as a company we do not think we will want to invest that kind of money at this point in time."
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