Essar Global Fund which operates a number of diversified businesses concluded the sale of its Business Process Outsourcing unit, Aegis to to Capital Square Partners (CSP) for $ 300 Million (approximately Rs. 2,000 crore). Net proceeds from this sale, which was announced on 3 April 2017, will be used to retire Essar's debt, the company said.
The closure of this transaction is in line with Essar's intent to reduce leverage that is complemented by an asset monetisation programme.
The proceeds from the sale of Aegis and Essar Oil have enabled Essar to retire almost Rs 75,000 crore of debt.
Essar had bought over Aegis Communication in 2003 and ever since has expanded its global footprint across 9 countries, namely India, South Africa, Australia, Saudi Arabia, UK, Argentina, Sri Lanka, Peru and Malaysia.
"I am thankful to the Essar management for incubating the BPO business and nurturing it through timely and strategic acquisitions. Essar's support and guidance helped us grow and reach a stage where we could dream bigger and strive higher. I am very excited to have CSP join us as our new partners in Aegis' growth journey," Mr Sandip Sen, Global CEO, Aegis, said.
In 2014, AGC had successfully sold its stake in Aegis USA Inc (comprising Aegis' operations in the USA, the Philippines and Costa Rica) to Teleperformance.
Essar's advisors in the transaction include Axis Capital as financial advisor, and Platinum Partners and Sidley Austin as legal advisors. Shearman & Sterling and Shardul Amarchand Mangaldas acted as legal advisors to CSP.
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