A deal to sell 43 per cent stake in Tata Technologies to Warburg Pincus has been called-off. The deal worth around Rs 2,320 crore has been called off due to “delays in securing regulatory approval and the recent performance of the company not meeting internal thresholds because of market challenges,” the company informed BSE. Following this, Tata Motors will continue to explore strategic options to sell its stake in Tata Technologies, the company added.
As per an announcement in June 2017, New York-based private equity firm Warburg Pincus was set to acquire stakes in Tata Technologies from Tata Motors and Tata Capital. The proceeds from the deal will likely help Tata Motors cut total debt that stood at Rs 793.2 billion.
Tata Technologies deals in engineering services outsourcing and product development IT services to the global manufacturing industry. It is headquartered in Singapore with a total workforce of 8,500.
Warburg Pincus investments
In December 2017, Bharti Airtel announced that Warburg Pincus was to buy up to a 20% stake in its direct-to-home (DTH) TV arm for $350 million. Of this, 15% stake was from Bharti Telemedia and remaining 5% from another Bharti entity.
In September, Warburg Pincus also invested Rs 192 crore in e-commerce logistics solutions provider Ecom Express. Earlier that year, in January, the private equity firm also acquired 14% stake in PVR Cinemas for Rs 820 crore, through an open market transaction.