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Citi to buy 100% stake in e-Serve
By siliconindia staff writer
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Thursday, 15 April 2004, 19:30 IST
MUMBAI: US-based banking major Citigroup has announced that it intends to buy out the 55.6 per cent public shareholding in its publicly listed subsidiary, business process outsourcing company e-Serve International, for Rs 550 crore.
Citigroup is looking at offering e-Serve's existing shareholders up to Rs 800 per share for buying their holding in the company. This puts the enterprise value of e-Serve at more than Rs 1,000 crore.
Citigroup is the largest shareholder with its current stake of 44.4 per cent. Citigroup is also the sole customer of e-Serve which makes it a captive unit of the banking major.
After Citigroup, mutual funds own 15.87 per cent, FIIs own another 7.10 per cent, public own another 25.51 per cent the remaining 6.75 per cent is held by employees.
Citigroup wants to fully own e-Serve as integrating it into its global operations will provide the company with increased operational flexibility to support its business and meet the needs of its customers, a press release from Citigroup says.