The Hindu Business Line : EDS India to merge with MphasiS

The MphasiS board also approved the share swap ratio of 5:4 (five equity shares of MphasiS of face value of Rs 10 each for every four equity shares of EDS India) for the merger.

As a result of the expanded paid-up equity base post-merger, the EDS stake in MphasiS would increase to 61.8 per cent from about 51.4 per cent at present.

EDS recently acquired about 52 per cent stake in MphasiS for over $380 million.

MphasiS's paid-up equity base would increase to around Rs 204 crore post-merger, up from Rs 161 crore now, as the company would issue 43 million fresh shares of Rs 10 each for the swap, said Mr Alok Mishra, CFO.

Following the announcement, the MphasiS scrip closed 17 per cent higher at Rs 157.30 on the BSE, after touching an intra-day high of Rs 164.45.

The merger is also expected to be EPS accretive to MphasiS and will enhance shareholder value. The process of operationally integrating EDS India into MphasiS is expected to complete by the end of the calendar year.

"The combined entity will help us achieve an optimal business model in India and provide clear career paths and opportunities for all employees as we also enhance the service offering to our clients," said MphasiS CEO Mr Jerry Rao.

Mr Steve Heidt, Chairman of MphasiS and Vice-President (Service Delivery Operations) of EDS, said: "This is the next step toward the integration of the operations of MphasiS and EDS. Essentially, we are creating a new family with EDS and MphasiS as one entity, with combined operations and one voice, to provide greater efficiency."

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