Bidders eye up Tech Mahindra

September 9, 2016

A number of potential bidders are eyeing up BT’s stake in its India-based telecoms software company Tech Mahindra.

Private equity firm Kohlberg Kravis Roberts & Co. (KKR) are expected to place the highest bid, although at least four other international private equity companies, including Apax Partners, Carlyle, Temasek, and Texas Pacific Group are likely to be interested.

The bidding for BT’s 31% stake in Tech Mahindra, a 22 year old joint venture between BT and Mahindra & Mahindra, will open in 10 days.

BT has priced its stake at over $800 million, giving Tech Mahindra an approximate valuation of $3 billion. The current market value of the company is $2.2 billion.

Tech Mahindra posted revenues of $934.7 million for the 2016 financial year, up 44% on year.

It employs 24,000 people in India, and BT has assured the company that current management will remain in place despite the sale.