TCS announces plan to acquire GE’s share in TCS Saudi Arabia

India’s largest software exporters- Tata Consultancy Services- has recently made it to the headlines ever since the firm announced taking over General Electric’s potential share in TCS Saudi Arabia for an outstanding amount of USD 12,471. In a report, TCS said that the anti-trust approval in the country is being required for the deal, which is likely to be closed within the span of upcoming 3 to 6 months.

TCS had in 2013 announced development of a first of its kind of All-Women Business Process Services Center in Riyadh province of Saudi Arabia, in alliance with GE. That said, the center has been observing tremendous expansion from about 20 to 1,000 women employees ever since and has also won several awards including the Future of Workplace Award for ‘Best women development and leadership programme’ in 2018 followed by the King Khalid Award 2019 for ‘Responsible Competitiveness’.

As per credible reports, Saudi Desert Rose Holdings BV boasts of 24% stake in TCS Saudi Arabia while the remaining 76% is being held by TCS Netherlands BV. It has been claimed that post the completion of the acquisition deal, TCS’s shareholding in the firm would rise to 100% over the next 3 to 6 months.

Moreover, on conclusion of required governance and business changes to affect this transition, the company would assume full responsibility of the Women’s Center, securing its availability in the longer term and enabling it to continue to serve as a source of opportunity and skills development for women in Saudi Arabia.  

Speaking on the novel initiative, a source close to the company reported that considering GE’s planned exit from the alliance, partners have decided to enter into a definitive pact subject to terminating conditions for transfer of GE’s share in the venture to Tata Consultancy Services.

Post the announcement of TCS acquisition, the shares of the company closed at Rs 3,172.85, down by 0.07%, against previous closing price of Rs 3,175.05 on the Bombay Stock Exchange.

Source Credit: https://www.businesstoday.in/current/corporate/tcs-to-acquire-general-electric-stake-in-tcs-saudi-arabia/story/427753.html