Temasek picks 17-18% stake in VFS Global for $950 million: Report

Singaporean state-owned investor Temasek has picked a stake in passport application and visa consular services company, VFS Global. An announcement regarding the same is likely to be made soon. 

According to a report in Livemint, the deal values the outsourcing and technology services company at $5 billion in equity and $7 billion in enterprise value. Reports about Temasek’s interest in VFS Global had first come out in September. 

US-based alternative asset manager Blackstone, who had acquired 75 per cent stake in VFS Global in 2021 from Swedish private equity company EQT AB for $1.8 billion, was looking to de-risk the investment and take some money off the table, the report added citing a source. 

Blackstone was exploring various options to monetise its stake in VFS Global, along with the possibility of an initial public offering. A source told the daily that VFS Global will eventually list, perhaps in another 2-3 years. 

VFS Global, founded in 2001 by Zubin Karkaria, is headquartered in Zurich and Dubai. The company had faced headwinds in 2020-21 due to COVID-19 and the subsequent travel restrictions. However, its performance gradually rebounded. 

In 2023-24, VFS Global’s total income from operations stood at Rs 634.74 crore in the first half, with an operating margin of 33.01 per cent.