Hero Group is set to buy Honda Motors 26% stake in joint venture Hero Honda for about 1 bn USD.Shares of Hero Honda Motors have gone down 2%.The deal, likely to be announced before Christmas, Munjal family buying Honda's stake through a special purpose vehicle (SPV) by raising a bridge loan.
Hero Honda is India's largest motorcycle manufacturer.The Munjals will divest 60% to 70% stake in this SPV to a group of two to three private equity firms to pay back the loan, adding Carlyle, Kohlberg Kravis Roberts & Co, TPG, Bain Capital and Warburg Pincus were in the fray.
The deal has been structured in two phases as the joint venture partners have the first right of refusal in case one of them call it quits. The first phase of the transaction, which will be announced in the next few days, will also not trigger market regulator Sebi's takeover code for a mandatory open offer for buying 20%.
No comments:
Post a Comment