The Hindu Business Line : Vedior of Netherlands to pick up 76 per cent stake in Ma Foi

VEDIOR of the Netherlands, a leading staffing services company, will pick up a 76 per cent stake in the Chennai-based Ma Foi Management Consultants Ltd.

The Foreign Investment Promotion Board is believed to have approved Vedior's proposal.

The deal is worth about Rs 30 crore. Vedior is paying a price of Rs 60 per share to acquire the 76 per cent stake in the Rs 6 crore equity of the company (60 lakh shares of Rs 10 each).

Once this deal is completed, the stake of Mr K. Pandia Rajan, Managing Director, Ma Foi, and his wife, Ms Hemalatha Rajan, Director, will be 24 per cent.

When contacted, Mr Pandia Rajan told Business Line that Ma Foi had looked at three foreign human resources services companies - Manpower, Adeco and Vedior - before deciding on selling equity to Vedior. "The pull for us was to take the company international and scale up Ma Foi's operations," he said.

He said the company would retain its name and brand and he would be the Chairman and Managing Director of the Ma Foi. Apart from him and Ms Hemalatha Rajan, Ma Foi would nominate another person to the five-member board post the acquisition by Vedior. The other two board members would be Vedior's nominees.

Mr Pandia Rajan said there were 270 investors in Ma Foi, including friends and family. Three venture capital firms - Canbank Ventures, Usha Martin Ventures and Metdist of the UK - also held a stake in Ma Foi. All these investors would sell their stake in Ma Foi to Vedior. Besides, Mr Pandia Rajan and Ms Hemalatha Rajan would also dilute their holding in their company.

Vedior has a presence in 33 countries and reported revenues of 6 billion euro in 2003. Ma Foi reported revenues of Rs 78.8 crore and a profit after tax of Rs 2.4 crore in 2003.

Mr Pandia Rajan said the Ma Foi brand was likely to be used across Asia. Vedior would bring in about 2 million euro in the first year itself. There was also an option to go in for a public listing.

Ma Foi had five subsidiaries including one that was involved in human resources business process outsourcing. Mr Pandia Rajan expected funds to be pumped into the BPO subsidiary as it would become the back office for Vedior, over time.

More Stories on : Mergers & Acquisitions | Consulting | Human Resources

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page