9th Oct 2015 11:11
LONDON (Alliance News) - Electra Private Equity PLC Friday said it has agreed to sell its 23% stake in Indian-listed IT services company Zensar Technologies Ltd to private equity firm Apax Partners for about GBP84.0 million based on current exchange rates
Electra originally invested USD9 million in 1997 in the equity of an unquoted subsidiary of a Mumbai-listed manufacturer of computer hardware. In 2001 the listed parent closed down its operations and the unlisted subsidiary performed a reverse merger and was then renamed Zensar Technologies. This resulted in Electra owning shares in the listed entity.
The company said inclusive of dividends and proceeds from the sale of shares in Zensar, the deal will generate a return 19 times larger than the original cost to Electra over the 18 years that it held the stake.
It added the internal rate of return on the investment is around 18%, representing an uplift of GBP12.4 million, or 18%, on the valuation of Zensar at the end of March, implying an increase in diluted net asset value per share of 31.0 pence, it said.
Electra shares were up 1.4% to 3,371.56 pence on Friday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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