Private equity firm Advent International has stepped up negotiations to acquire BT’s stake in technology services provider Tech Mahindra.
According to an article on Business Standard, unnamed sources have claimed the negotiations between the two companies started a while after BT hired Credit Suisse to look for potential suitors for its stake in Tech Mahindra.
UK based telecom giant BT has had a stake Tech Mahindra since it was formed. The tech firm is owned by India’s Mahindra Group. BT, which contributes around 40 percent to Tech Mahindra’s revenue, has a 23.27 percent stake in the company.
BT started looking for suitors to sell its stake in Tech Mahindra after the Mahindra Group purchased 5 percent stake from BT for £63 million. This move gave Mahindra a majority stake in the company and that BT could freely sell its stake to a third party.
“Tech Mahindra is and will continue to be a key strategic supplier to BT. As we have said previously, we may however consider further share sales at some point in the future,” BT said in a statement.