Singapore fund buys 9.4% in NIIT, Citigroup ups stake

Singapore fund buys 9.4% in NIIT, Citigroup ups stake
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First Published: Wed, Jun 27 2007. 07 30 PM IST
PTI
New Delhi: Singapore-based investment group Orient Global has acquired a 9.4% stake in IT-education firm NIIT Ltd for $48 million, while Citigroup Global Mkts Mauritius raised its holding from 1.32% to 8.55% at an estimated Rs159 crore.
Richard Chandler-founded Orient Global purchased 2.06 million shares held by Intel Capital, the venture capital arm of Intel, from the secondary market, sources said.
In a separate transaction, Citigroup acquired 15.87 lakh equity shares in NIIT, increasing its holding to 8.55% said.
Calculated at closing share price of NIIT of Rs1,003.55 on the BSE on 27 June, Citigroup is estimated to have paid about Rs159 crore for the acquisition.
Before the acquisition Citigroup owned about 1.32% stake in NIIT.
NIIT offers learning and knowledge solutions to individuals and corporations, training 500,000 people annually in over 3,300 education centres in 30 countries, including China, Vietnam, Indonesia, Botswana, Nigeria, Ghana, Kazakhstan, Colombia and Peru.
NIIT is the only Asian education and training organisation to feature among the IDC Top 20 Global IT Training leaders.
“We are delighted to be investing in the next stage of the company’s development,” Orient Global president James Tooley said in a statement.
NIIT posted a 107% increase in its profit after tax at Rs17 crore for the fourth quarter ended 31 March. Net revenues during the quarter grew by 123% to Rs256.60 crore.
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First Published: Wed, Jun 27 2007. 07 30 PM IST