The Hindu Business Line : Mascon promoter in talks to buy ICICI’s 5% stake

New Delhi, Dec. 24 In a bid to strengthen his holding in the IT firm, Mascon Global Ltd’s Promoter and Chairman is learnt to be in discussions with ICICI Bank to buy out the latter’s existing five per cent stake in the company.

The move comes on the heels of Mascon announcing a private placement to Greater Pacific Capital (GPC), for about 7-8 per cent stake through a combination of shares and warrants for a total consideration of about $15 million.

GPC hopes to pick up another up to 7 per cent stake from the market, taking its intended holding in the company to about 14.99 per cent.

Sources said that Mascon’s Chairman and CEO, Mr Sandy K. Chandra, is currently in talks to acquire ICICI’s five per cent stake in the company for about $7.5 million.

Mr Chandra, whose current shareholding in the company is pegged at 10-12 per cent, has the Right of First Refusal (RoFR) over ICICI’s stake; and exercising this option would allow him to shore up his holding in the company.

ICICI, on the other hand, may look at converting debt of Rs 22 crore into equity.

When contacted, Mr Chandra did not comment on the ongoing negotiations but said that, “The company has broken out of difficult phase and we expect topline to touch Rs 1,000 crore this year. The company clocked a turnover of about Rs 500 crore last year.” ICICI officials could not be contacted for comments.

Mascon, which has its facilities in Chennai, Bangalore, Hyderabad and Delhi, focuses on verticals such as financial services, life science and healthcare, manufacturing, media and publishing, education and travel and hospitality.

The company has also recently announced a $50-million Foreign Currency Convertible Bonds (FCCB) issue, the proceeds of which would be utilised for acquisitions in the financial services, manufacturing and healthcare domains.

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