Private equity firm Warburg Pincus plans to sell its 50.12 per cent stake in business process outsourcing firm WNS Global Services, according to a report by the Economic Times.
WNS, India’s second largest BPO firm, is listed on the New York Stock Exchange and expected to achieve a valuation of around $800m. This price would provide Warburg with an exit payout of $400m.
Warburg paid just $40m when it acquired a 64 per cent stake in WNS from British Airways in 2002.
The Blackstone Group and Bain Capital are reportedly among the private equity funds Warburg has been speaking to regarding a sale and there has been speculation that IT services firms such as Cognizant might be in the running as well.
Merrill Lynch is believed to be advising Warburg on the possible sale and a due diligence process is likely to be kicked off in the next couple of days.
Source: Alt Assets