Hinduja Global Solutions sold its healthcare unit to Baring Private Equity on an enterprise value of $1,200 million, subject to closing adjustments
The deal was originally announced in August 2021.
Hinduja Global Solutions has transferred all client contracts and assets, including infrastructure related to its healthcare services business.
Over 29,000 employees in the US, India, Jamaica, and the Philippines will join the new organization.
A Strategic Move By HGS
YM Kale, Chairman, Hinduja Global Solutions, stated, ‘This divestiture helps HGS unlock value and makes the capital available to grow the business of all the other verticals and divisions. It is the right time to refresh HGS’ value proposition and evolve as a comprehensive digital and CX services partner to clients.’
Kale further added, ‘Completion of the transaction unlocks significant value for the shareholders and is a recognition of the path-breaking work that HGS has been doing in the last two decades in building its domain capabilities. The Board has approved an interim/ special dividend of ₹ 150/share and a bonus issue of 1 share for every share held, subject to necessary approvals.’
Partha DeSarkar, HGS Global CEO, said ‘HGS will now pivot to building its Digital Customer Experience Transformation Practice, focusing on the triple A’s of Automation, Analytics, and Artificial Intelligence, to create industry-specific solutions for the top global brands that HGS services. The acquisition of required talent for the above sectors is being planned. In the last two years, HGS has significantly expanded its footprint in the UK.’
HGS will use the funds generated to build its technology capabilities for the future growth of the organization. HGS has been working with its Board to chart this new path of technology leadership. HGS is also exploring several acquisition candidates for the inorganic growth of its business.”
Interim dividend and Hinduja Global Solutions hits 20% lower circuit
The board of directors of HGS also declared a third interim dividend of ₹ 150/share in the nature of special dividend, and recommendation of issue of new Equity Bonus Shares in the proportion of 1 Equity Share of ₹ 10 each for every 1 Equity Share of ₹10 each.
Shares of Hinduja Global Solutions hit the 20% lower circuit, as investors were disappointed on lower-than-expected dividend.
The stock touched a low of Rs 2,855.54 on BSE, down 20% from its previous close.