Temasek reportedly close to acquiring stake in Blackstone-owned VFS

Temasek Holdings is near a deal for a significant minority stake in VFS Global, people familiar with the matter said, in a transaction that could value the visa outsourcing and technology services firm at about $7 billion including debt, according to a report by Bloomberg.

The Singapore state-owned investor is set to acquire about 20 per cent in closely held VFS controlled by US alternative asset manager Blackstone Inc., the people said, asking not to be identified because the deliberations are private. Temasek and Blackstone are hammering out the details of a deal that could be announced as soon as Monday.

Blackstone will retain the majority stake in VFS after the deal, according to the people. The deliberations are ongoing and no final decisions have been made, they said.

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Representatives for Blackstone and Temasek declined to comment.

Blackstone has been considering alternatives, including a full or partial sale in VFS after receiving interest from investors, including sovereign wealth funds, Bloomberg News reported on Friday. One of those options was said to be the addition of a minority investor to help raise cash and boost growth, the people said.

Headquartered in Zurich and Dubai, VFS Global provides governments with administrative solutions to process passport applications and visa consular services, its website says. Founded in 2001 by its chief executive officer, Zubin Karkaria, the company has processed over 294 million applications since its inception, with around 141 million biometric enrollments since 2007.

VFS has a big presence in India, processing visa applications for the US consulate across cities.

In 2022, Blackstone acquired a majority stake in VFS from EQT AB for an undisclosed amount. The Swedish investor retained a minority stake in the business, along with the Kuoni and Hugentobler Foundation.

Temasek's net portfolio value reached S$389 billion ($288 billion) as of March, from S$382 billion a year earlier, with its investments comprising listed as well as unlisted assets worldwide.