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

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Subscribe to enjoy similar stories. Singapore's Temasek Holdings Pte. Ltd has signed an agreement to buy 17-18% in Blackstone Inc.-backed VFS Global Services Pvt.

Ltd for $950 million, three people aware of the matter said. The deal values the visa outsourcing and technology services company at $5 billion in equity value and $7 billion in enterprise value, the people said on the condition of anonymity. “The deal has been signed.

An announcement is likely soon," the first of the three people said. Bloomberg had reported on the Singaporean state-owned investor's interest in VFS Global in September. In 2021, the US-based alternative asset manager Blackstone acquired a 75% stake in VFS Global from Swedish private equity company EQT AB for $1.8 billion.

“The idea for Blackstone is to de-risk the investment and take some money off the table, and as for Temasek, it gives them a play in a well-managed profitable company," the person cited above added. The deal comes after Blackstone explored various options to monetize its stake in VFS Global, ranging from a 51% stake sale to an initial public offering. “VFS will eventually list," the second person said, adding an initial pubic offering is still two to three years away.

Spokespersons for Blackstone and Temasek declined to comment. 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 the chief executive, VFS has processed over 294 million applications and approximately 141 million biometric enrollments since 2007.