Clifford Chance has advised Asia Outsourcing Gamma Ltd, a company controlled by private equity firm CVC, on its agreement to purchase a majority stake in SPi Global Holdings, a business outsourcing unit of Philippine Long Distance Telephone Co (PLDT), for about $320 million including debt.
Reuters reported that PLDT, Manila's second-most valuable listed company, had put an 80 percent stake in SPi Global on the block last year as it looked to shed non-core businesses. The auction attracted interest from global buyout firms including Bain Capital and Carlyle Group as well as CVC.
The deal is expected to close in March 2013, subject to government approvals. PLDT will reinvest 20 percent of the proceeds from the sale into Asia Outsourcing Gamma Ltd and continue to participate in the growth of the business as a partner with CVC.
The Clifford Chance team was led by partner Neeraj Budhwani. “We are delighted to have advised our longstanding client CVC on their second investment in the Philippines in as many years,” said Budhwani in a statement. “This latest buyout is further evidence of the attractive opportunities our clients are seeing in the Southeast Asia region."
In 2011, Clifford Chance advised CVC on the $115 million acquisition of approximately 15 percent of the share capital of Rizal Commercial Banking Corporation (RCBC), a listed company in the Philippines.
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