Blackstone to buy majority stake in Indian IT firm R Systems for $359 mln (updated)

R Systems International

17/11/2022 04:17

(Adds details, share movement)
       Nov 17 (Reuters) - U.S. investment fund Blackstone Inc
 BX.N  said on Thursday it would buy a 52% stake in India's R
Systems International  RSYS.NS  from the IT services company's
promoters for $359 million.
    Blackstone said it would pay 245 rupees per R Systems share,
a premium of around 4% to the closing price on Wednesday. But, R
Systems' shares shot up about 17% to 275.25 rupees in morning
trading on Thursday.
    "R Systems is well-positioned to benefit from digitalization
tailwinds, shorter product launch cycles and increased openness
to outsource product development," Blackstone Senior Managing
Director Mukesh Mehta said in a statement.
    Blackstone said it would launch a conditional de-listing
offer at 246 rupees per share and that it was seeking regulatory
approval from the Indian market regulator.
    Satinder Singh Rekhi, one of R Systems' promoters selling
their stake, will be a non-executive advisor to Blackstone.
    R Systems' shares had shed a quarter of their value so far
this year until Wednesday, after surging about 168% last year.
 (Reporting by Shivani Tanna and Akansha Victor in Bengaluru;
Editing by Savio D'Souza)
 ((ShivaniJayesh.Tanna@thomsonreuters.com;))