SPI Technologies positions itself in India with creation of 3 subsidiaries

Business process outsourcing firm SPI Technologies Inc. has set up four new wholly-owned subsidiaries, three of which are India, the company told the Philippine Stock Exchange.

The proposed local unit, SPI Transact Inc., will have an authorized capital of P25 million and initial paid-in capital of P6.25 million.

SPI Transact will be involved in the operational, technological and administrative requirements of banks, insurance companies and financial services firms. The major services to be offered include data entry, maintenance, payment processing, document management, loan administration, account maintenance, payment processing, claims processing, database analysis and other related ancillary activities.

Meanwhile, the three new companies to be formed in India are SPI Litigation Direct India Pvt. Ltd., SPI Healthcare Documentation India Pvt. Ltd., and SPI Technologies India Pvt. Ltd. Each company will be capitalized at five million Indian rupees (equivalent to approximately $110,000) and will operate in Tamil Nadu, India.

The majority of the capital stock of each of these companies will be owned by SPI India Holdings (Mauritius) Ltd., a wholly-owned subsidiary of SPI.

SPI has earlier this year received an offer from New York-based TH Lee Putnam Ventures for the acquisition of its outstanding shares at $87 million (approximately P4.87 billion).

THLPV is a technology-focused private equity firm, specializing in later-stage venture transactions and middle market buy-outs, headquartered in New York, with offices in London and Boston.

It is affiliated with Thomas H. Les Partners, a leading buy-out firm and Putnam Investments, a leading global money management firm managing over $1 billion in capital commitments.

THLPV offered to acquire SPI shares for P15.60 each share, based on the assumption the fully-diluted share capital of SPI is 312.21 million shares and the peso-dollar exchange rate pegged at P56 to the dollar.

SPI has agreed to give THLPV an exclusivity period to allow the conduct of due diligence and other activities in relation to the proposed transaction and to reimburse THLPV’s costs under certain circumstances.

Subject to the fulfillment of various conditions, a tender offer to acquire all of the issued and to be issued share capital of SPI will be made through a newly-incorporated company to be established in the Philippines by THLPV.

SPI is a Board of Investments-registered firm and an ISO 9002 certified entity engaged in computer database conversion. It is a premier provider of world-class, diversified Information Technology services to companies in the United States, Europe and Asia.

It is the first Philippine company to engage in data base manufacture solely for export and the first IT firm to be listed in the Philippine Stock Exchange.

SPI’s end-users include corporations, educational institutions, government agencies, hospitals, libraries, utilities and other institutions located in North America, Europe and Asia.