Temasek Buys 18% Stake in Visa Services Firm VFS Global

Temasek, a Singapore-based investment firm has signed an agreement to buy 17–18 per cent stake for $950mn in VFS Global, a visa application services company, as reported by Mint. The deal values VFS at $5bn in equity and $7bn in enterprise.

US-based alternative asset manager Blackstone was hoping to de-risk its investment in the company and take some money off the table, a source cited in the report said. It had acquired 75 per cent stake in VFS in 2021 from Swedish private equity company EQT AB for $1.8bn.

This comes after Blackstone explored multiple options to monetise its stake, ranging from 51 per cent stake sale to an initial public offering as VFS Global will eventually list, probably in two to three years, another source cited in the report mentioned.

A Bloomberg report in September suggested Temasek’s interest in the company.

Headquartered in Zurich and Dubai, VFS Global claims to operate 3469 application centres in 153 countries, having processed more than 297mn applications since its founding year 2001. It provides governments with administrative solutions for processing passport applications and provision of consular services.

Swiss-based Kuoni and Hugentobler Foundation is a minority shareholder in the company.

Sri Lankan Govt Accuses VFS of Corruption

Last month, Sri Lanka government ordered a forensic audit on VFS Global along with two Indian firms GBS Technology and IVS Global FZCO which were awarded a multimillion-dollar contract as a technology partner to process the visa applications of foreigners in April, as per a report by The Hindu.

This came after Sri Lanka’s Supreme Court issued an interim order suspending the government’s new visa scheme, run by the consortium, that earlier sparked controversy over allegations of corruption totalling over a billion dollars. The court ordered that the previously used online visa system be restored.

Tesamek Investment Plans

Meanwhile, Tesamek has filed a notice with the Competition Commission of India to invest in Rebel Foods, the parent company of Indian food delivery companies, Oven Story, Behrouz Biryani, Sweet Truth and Faasos. It is planning to invest in the company through its unit Jongsong Investments. Rebel Foods is about to close a $100–200mn funding round expected to be led by Temasek.