Temasek close to acquiring stake in Blackstone-controlled VFS: Report

Temasek Holdings Pte is close to finalizing a deal to acquire a significant minority stake in VFS Global, which could value the visa outsourcing and technology services company at approximately $7 billion, including debt, according to sources familiar with the situation.

The Singapore state-owned investor is expected to purchase around 20% of the privately held VFS, which is controlled by the US alternative asset manager Blackstone Inc. The discussions are ongoing, and the parties involved have requested anonymity due to the confidential nature of the negotiations. Temasek and Blackstone are currently finalizing the details of the transaction, which could be announced as early as Monday.

Following the deal, Blackstone will retain its position as the majority shareholder of VFS. It was reported that Blackstone has been considering various options, including a full or partial sale of its stake in VFS, after receiving interest from potential investors such as sovereign wealth funds. One strategy under consideration involves bringing in a minority investor to raise capital and promote growth.

VFS Global, headquartered in Zurich and Dubai, offers administrative solutions for governments to process passport applications and visa consular services. Founded in 2001 by Zubin Karkaria, who serves as CEO, the company has processed over 294 million applications and approximately 141 million biometric enrollments since 2007.

In India, VFS has a significant presence, providing visa application services for the US consulate in various cities across the country.

In 2022, Blackstone acquired a majority stake in VFS from EQT AB for an undisclosed amount, while the Swedish investor retained a minority stake along with the Kuoni and Hugentobler Foundation.

As of March, Temasek's net portfolio value reached S$389 billion ($288 billion), an increase from S$382 billion the previous year, with investments spanning both publicly traded and privately held assets worldwide.

(With inputs from Bloomberg)