HP has announced plans to divest its stake in the Indian software company MphasiS, which could be worth about $1bn.
HP currently has about 60.5% stake in the company and owns about 210 million shares.
The US-based PC maker owns the stake in MphasiS since 2008, when it acquired MphasiS from its parent company Electronic Data Systems.
Currently, HP is MphasiS’ largest client, which was responsible for more than half of the company’s $1bn revenue it recorded last fiscal.
According to reports, HP is divesting its stake in the Indian company as it could be cost effective if it outsources work to a third party companies in India compared to its Indian units.
Sources told Reuters that private equity company Carlyle Group and Blackstone Group, as well as Advent International and Bain Capital, are keen to acquire the stake.
Reports also added that India-based L&T Infotech, Tech Mahindra, Cognizant Technology Solutions and Tata Consultancy Services are also interested in buying the stake.
MphasiS was formed in 2000 and it competes against other Indian outsourcing companies including Tata Consultancy Services, Infosys and Wipro.
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