BT talks Tech Mahindra sale
BT is in talks with private equity firms about the possible sale of its 31% share of Indian IT services firm Tech Mahindra.
The UK incumbent is in discussions with Apax Partners, Providence Equity and Goldman Sachs Private Equity about the deal, which could be worth up to $800 million (€577 million), FT.com reported.
BT has reportedly been weighing an exit from Tech Mahindra - which it co-founded 24 years ago – for the past two years.
The telco’s Indian business is now focused on its global services unit, which is pursuing telecom and IT services contracts in the booming Indian economy.
However, sources told the FT private equity executives see the deal as risky because Tech Mahindra depends on BT for over half its revenues.
It has also just acquired Satyam, the Indian outsourcing firm that admitted to accounting fraud last year and may face fraud and investor lawsuits.