LogicaCMG, the IT services group, is in discussions to buy the 40 per cent it does not own of Edinfor, its problematic Portuguese IT services business.

A deal could be unveiled with the group’s annual results on Wednesday, the first such presentation to the City from Andy Green, its new chief executive.

LogicaCMG, which will also drop the “CMG” from its name this week, paid an enterprise value of €135m ($200m, £102m) for 60 per cent of the business to Edinfor, the IT business of Energias de Portugal (EDP), in early 2005.

As part of the deal, EDP has a put option requiring Logica to buy out the minority interest.

Logica has a similar call option but it is not exercisable until four years after the acquisition date. However, the ultimate consideration is dependent on the performance of the business and is subject to a floor and a cap.

EDP has decided to exercise its rights and the two parties are concluding discussions.

The Edinfor business has proved a drag on Logica, in spite of an outsourcing deal with EDP worth €510m ($756m, £359m).

Logica set aside £130m of the £265m it received from the sale of its Telecom Products business a year ago specifically to help pay for the buy-out of existing minority interests. Edinfor also lost its chief executive last week after just eight months in the job. Logica said Raul Mascarenhas had left to join Deloitte.

It is widely hoped that Mr Green’s debut presentation to the City will contain the first seeds to revitalise the group, although he has played down hopes that the results of the strategic review will be announced.

Meanwhile, analysts are hoping that it will see a similar pattern as that at sector peer Capgemini, which said this week that it was not yet seeing a market slowdown and that booking momentum had been sustained in the fourth quarter.

Mr Green has already told City analysts that one of his first priorities is to boost Logica’s operations in India which he discloses lack scale.

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