Citigroup to buy out Indian affiliate

Citigroup to buy out Indian affiliate

BOMBAY: U.S. banking giant Citigroup said on Monday it plans to buy out its Indian affiliate, e-Serve International, an IT- enabled services company, for some 5.5 billion rupees (US$127 million).

Citigroup now holds a 44.4 percent stake in e-Serve and plans to acquire the rest of the stake held by the public at a price of about 800 rupees per share.

"The price of 800 rupees per share presents a compelling opportunity for e-Serve's shareholders to tender their shares," Citigroup said.

The offer price represented a 27 percent premium to the closing price April 8, the last trading day before the offer was made, and a premium of 26 percent to the 52-week average price, it said.

"The price will provide e-Serve's shareholders with an opportunity to exit from a relatively liquid investment that has appreciated substantially in recent years," Citigroup said.

After the acquisition, Citigroup would delist the company from Indian bourses.

Since 1999, e-Serve has provided transaction processing, customer care solutions and technology services to Citibank India and Citigroup businesses in Europe, Africa, North America and South Asia.

The company has more than 5,000 employees.--AFP