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Macmillan Group is set to sell its Indian technology solutions and BPO firm MPS. Macmillan holds 61% stake in MPS. The company employs around 1,000 people and undertakes publishing services work for the UK-based parent as well as third-party clients. Ernst & Young has been mandated to find a suitor for MPS. The deal-making has faced valuation challenges due to Macmillan's expectations and its depressed stock price. The underperforming stocks of the mid-sized and small IT services firms have been a major hurdle for some of these firms looking to sell stake or raise funds. Potential suitors would also seek long-term outsourcing work from Macmillan, which the publishing group has been cagey about in the past, sources added. MPS stock moved up 3.63% closing at Rs.37.15 on BSE. Macmillan was looking at offloading shares at nearly 40% premium, factoring in the real-estate assets in Bangalore. This could peg the deal valuation at around $30 million reflecting its annualized billings. Macmillan's move to divest stake comes at a time when deal-street has been active with investment activity in the publishing BPO industry. |
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