Private equity firm Warburg Pincus is planning to sell off its remaining 29% stake in offshore BPS pure play WNS, selling its remaining 14.5m ADSs (American Depository Shares) in an underwritten secondary public offering. This includes a 1.9m share provision for any over-subscription, and should net Warburg c$193m at WNS' current share price (c$13.2).
The move will see Warburg complete its 'orderly exit' from WNS after announcing its intention to do so back in October 2011 (see Warburg looking for orderly exit from WNS).
This has proved a shrewd move on Warburg’s part. Warburg reduced its stake from 48% to 29% in early 2012 in a secondary public float priced at $9.25 per share. WNS’ shares have since been on the rise, and following more positive results announced last month (see WNS Q3 looking better, but challenges remain), they are up c25% year to date. Warburg appears to be cashing in at the right time.