New York-listed WNS, India’s second-largest back-office firm, may fetch a valuation of around $800 million providing Warburg Pincus with an exit payout of $400 million, the report said citing investment banking sources.
Due diligence is likely to be kicked off in the next couple of days, the report said.
“We are not aware of any such developments,” a spokeswoman for WNS told Reuters.
In 2002, Warburg had paid $40 million to buy a 64 percent stake in WNS from British Airways, the paper said.
Merrill Lynch was believed to be advising Warburg Pincus on the possible deal, the report added.
A spokeswoman for Merrill Lynch in India declined to comment when contacted by Reuters.
Warburg Pincus was quoted by the paper as saying: “The firm is bound by internal operational policies that does not allow discussion of its investment activities in its portfolio companies in India. Warburg Pincus is unable to share any comments on your queries regarding WNS.”
Warburg and Blackstone officials could not be immediately contacted by Reuters.
Bain Capital said it would not comment on whether it is interested or not interested in specific transactions, the paper said.
(Reporting by Janaki Krishnan; Editing by Himani Sarkar)