Singapore’s state investment firm, Temasek Holdings Pte, is close to finalising a deal to acquire a significant minority stake in VFS Global, a visa outsourcing and technology services company controlled by US-based Blackstone Inc, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that the transaction could value VFS at approximately $7bn, including debt.
Temasek is set to purchase around 20% of VFS, although the deal is still being finalised. Blackstone is expected to retain its majority stake in VFS following the transaction.
Both parties declined to comment on the potential deal.
Blackstone has been exploring various options for VFS Global, including a full or partial sale, after receiving interest from several investors, including sovereign wealth funds. One option under consideration was bringing in a minority investor to support future growth and raise capital.
VFS Global, founded in 2001 by CEO Zubin Karkaria, provides administrative solutions for passport and visa consular services to governments around the world. The company, headquartered in Zurich and Dubai, has processed over 294 million applications and more than 141 million biometric enrolments since 2007.
Blackstone acquired a majority stake in VFS from Swedish private equity firm EQT AB in 2022, with EQT and the Kuoni and Hugentobler Foundation retaining minority interests.
Temasek’s portfolio value stood at SGD389bn ($288bn) as of March 2024. The investment firm holds stakes in both publicly traded and privately held companies across the globe.
