TPG exits from Gemalto

When it invested in Gemplus (now Gemalto) in 2000, Texas Pacific Group had been identified by the French Government as a threat for the company’s independence, and was suspected of trying to capture the company’s technology. In 2000, the investment fund had invested US$ 550 million (EUR 578 million by mid 2000) for 25% of Gemplus shareholder’s equity.

In June 2009, TPG sold 55% of its shares for EUR 160 million (cf. Smart Insights Weekly #09-23) to the French government sovereign investment fund “Fonds Strategique d'Investissement” (FSI). Combining June 2009 sale with the last one, TPG sold its investment for EUR 339.7 million, less than 60% of its 2000 investment value. However, computed in US Dollars, the result looks better: June 2009 sale yielded US$ 228 million, and this week sale US$ 247.5 million, giving a total of US$ 475.5 million, or 86.5% of TPG’s 2000 investment.