For release: 19 Oct 2006
EDS Announces Open Offer to Acquire Additional Shares in MphasiS
PLANO, Texas – EDS announced today in India an open offer (the “Offer”) to acquire an additional 20 percent of MphasiS BFL Limited (“MphasiS”) (Bombay Stock Exchange: 526299 and National Stock Exchange of India: MPHASISBFL) for Rupees 204.5 per share in cash. At current exchange rates, the total purchase price for this Offer, assuming full acceptance, is approximately US$150 million. EDS expects this transaction to be completed by early first quarter 2007.
Earlier this year, EDS acquired a majority ownership stake (approximately 52 percent) in MphasiS through a conditional open offer for Rupees 204.5 per share. Due to the significant oversubscription of that offer, a portion of the shares tendered had to be returned pursuant to Indian securities regulations.
This Offer provides a follow-on liquidity opportunity for all shareholders, including those whose tendered shares were partially returned in the conditional open offer. The price and minimum offer size for this Offer are as prescribed by the Securities and Exchange Board of India (“SEBI”).
EDS' intent continues to be that MphasiS remain a public company. Assuming full acceptance of this Offer and the successful completion of MphasiS' pending merger with EDS India, EDS' ownership in MphasiS would be approximately 77 percent, which is below MphasiS' delisting threshold of 90 percent.
The public announcement will be available on SEBI’s web site (www.sebi.gov.in).
About MphasiS
MphasiS BFL Limited (Bombay Stock Exchange: 526299 and National Stock Exchange of India: MPHASISBFL), an EDS company, is a leading applications and business process outsourcing (BPO) services company based in Bangalore, India. It currently has about 12,000 employees, including 11,000 in India. MphasiS serves clients in multiple industries, including financial services, transportation, technology and healthcare, and is particularly strong in the retail banking sector serving the world’s top five banks. To know more, please visit www.mphasis.com.
About EDS
EDS is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry more than 40 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. Learn more at eds.com.
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