* General Atlantic, Oak Hill look to exit after 8 years
* GA, Oak Hill selling 40 pct stake for $1.5-$2 billion
* Apax Partners competing to buy Genpact stake
By Indulal PM and Sumeet Chatterjee
MUMBAI, July 13 U.S. private equity firm Bain
Capital is in advanced talks with the Government of Singapore
Investment Corp (GIC) to make a joint bid for a 40
percent stake in IT outsourcing company Genpact for $1.5
billion to $2 billion, three sources with direct knowledge of
the matter said.
Private equity firm Apax Partners LLP is also
competing for the stake in New York-listed Genpact, the sources
said, declining to be identified because they were not
authorised to speak to the media.
Most of Genpact's employees are in India, where IT
outsourcing firms have thrived by providing Western firms with
services such as processing insurance claims, managing payrolls
and customer support at sharply lower cost.
Private equity firms General Atlantic LLC and Oak Hill
Capital Partners, the two top shareholders of Genpact with
stakes of 20.1 percent each, are looking to exit the company,
the sources said.
A deal is expected to be completed by the year-end, two of
the sources said.
Genpact, GIC and Bain declined to comment, while Apax
Partners, Oak Hill and General Atlantic could not immediately be
reached for comment.
General Atlantic may sell its full 20 percent holding in
Genpact or retain a small stake and sell it later through
secondary share deals in the United States, the sources said.
Genpact, which has a market value of about $3.7 billion, was
set up by General Electric Co in 1997 in the north Indian
city of Gurgaon to provide back-office services to its group
In 2004, General Atlantic and Oak Hill together bought a 60
percent stake in the company from General Electric and it became
an independent service provider.
Genpact, the seventh largest IT and back-office employer in
India according to industry group Nasscom, was listed on the New
York Stock Exchange in August 2007. The stock fell 0.5 percent
on Thursday to $16.37.
Citigroup and Morgan Stanley are managing the
stake sale process, the sources said.
Bain, the private equity firm co-founded by Republican
presidential hopeful Mitt Romney, has completed fundraising for
its second Asia fund, closing at $2.3 billion, one of its senior
executives said on Tuesday.
It had previously talked with other would-be partners about
joining it in a bid for the Genpact stake, sources said.
U.S.-listed software firm iGate, backed by Apax
Partners, last year bought a majority stake in India's Patni
Computer Systems for $1.2 billion.