Signs definitive agreement with Minacs; deal valued at $125 m
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Deal to be completed by August
Acquisition to be made through TransWorks
RHCP intends investing in the combined entity
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The Aditya Birla Group on Saturday announced that it has entered into an agreement to acquire Minacs Worldwide Inc, Canada's leading BPO (business process outsourcing) provider, for a total cost of $125 million.

The Aditya Birla Group entered into a definitive agreement with Minacs Worldwide to offer Canadian $5.50 per share in cash for all outstanding common shares of Minacs on a fully-diluted basis. The acquisition will be made through TransWorks, a leading Indian BPO provider and a wholly owned subsidiary of Aditya Birla Nuvo Limited. The total expected cost of the acquisition would be $125 million, including payment for all common shares, and in-the-money option and warrant securities of the company. The combined business will have a revenue base of about $300 million.

"The acquisition demonstrates our commitment to emerge as a leading global BPO services provider and expand our global footprint," said Kumar Mangalam Birla, Chairman of the Aditya Birla Group, here on Saturday, while addressing a press conference.

According to him the integrated expertise of both companies will create and provide more powerful and compelling BPO solutions to clients. "Importantly, even as the transaction offers many longer term opportunities to deliver enhanced services to existing and new clients, the top priority in the near-term will be to ensure consistent and reliable services to existing clients,'' said Sanjeev Aga, Managing Director of Aditya Birla Nuvo.

ReichmannHauer Capital Partners (RHCP), a Toronto-based private investment firm, partnered the Aditya Birla Group in evaluating the transaction and intends to invest in the combined entity. "The combination of Transworks and Minacs creates a BPO provider well positioned for industry leadership.

"The resulting firm will have an outstanding global delivery footprint, superior solutions offerings, and strong brands and customer relationships,'' said Philip Reichmann, co-founding partner of RHCP.

The deal is expected to be completed by the end of August, subject to necessary approvals and other conditions.

This is the Aditya Birla Group's third venture in Canada. The group operates two companies in Canada, the Atholville Pulp Mill and the Nackawic Pulp Mill in the Province of New Brunswick.

In India, the group has a joint venture in financial services with Sun Life of Canada and a joint venture in aluminium business with Alcan.

AV Birla group already owns a few paper companies in Canada.

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Speech by Thomas Friedman of The New York Times....

"When we were young kids growing up in America, we were told to eat our
vegetables at dinner and not leave them. Mothers said, 'think of the
starving children in India and finish the dinner.' And now I tell my
children: 'Finish your maths homework. Think of the children in India
who would make you starve, if you don't.'"