TCS, Tech Mahindra in race for IT arm of S Korea’s KT Corp

Top Indian IT companies, TCS and Tech Mahindra are expected to slug it out for a piece of KT Corporation’s IT services arm in South Korea, sources with direct knowledge said. KT Corp is said to have put on the block 45% stake in its IT arm before going for a public offer of the division.

TCS and Tech Mahindra are expected to submit their bids on Nov 25, a source with direct knowledge shared. Turnover of the IT services company of KT Corporation is $500 million. KT Corporation will hold 55% of the company post sale and then via listing bring their holding to 45%. People familiar with the development said some of the global IT firms may also be interested in bidding for the company.

“TCS has a small presence in the Korean market and is looking at ways to expand, for Tech Mahindra it will be a foray in the region if the deal fructifies” an industry expert said.

TCS in it’s e-mail response to the query said, “We do not comment on market speculations.” Tech Mahindra spokesperson also declined to offer a comment on the development.