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Despite the gloom around, shares of Hinduja Global Solutions (HGS) hit record high on Wednesday after it announced plans to hive off its healthcare services business to Barings Private Equity Asia for an enterprise value of $1.2 billion.
The company’s stock opened at a record high of ₹3,397.60 on the BSE, up ₹161.75 or 5.00 per cent as against the previous close of ₹3,235.85. It was locked in the five per cent upper circuit post opening.
On the NSE, it was trading at ₹3,390.75, up ₹161.45 or 5.00 per cent.
Hinduja Global sells healthcare services business to Barings for $1.2 billion
The BPO company on Tuesday announced that it has entered into definitive agreements to divest its Healthcare Services business to funds affiliated with Baring Private Equity Asia (BPEA), based on an enterprise value of $1.2 billion.
“The proposed transaction is subject to completion of conditions precedent including regulatory approvals and approval of the shareholders of the company,” HGS said in a stock exchange filing.
Unlocking shareholder value
The healthcare service business accounted for 53 per cent of HGS revenues and 23 per cent of its net worth. The company said that the sale was part of a plan to unlock value for stakeholders.
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The healthcare services vertical has over 20,000 employees across four geographies — India, the Philippines, the US and Jamaica — and recorded revenues of approximately $400 million in FY2021. Post completion of the transaction, HGS will transfer all client contracts, employees, and assets, including infrastructure related to the healthcare services business.
HGS said that it will focus on strengthening its Consumer Engagement Solutions (CES), HGS Digital and HRO/Payroll businesses that support several top global brands across its nine verticals. Services to healthcare clients delivered by the HGS Digital and HRO/Payroll businesses will continue to be part of HGS’ portfolio.
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