Private equity firm Advent International has agreed to acquire a majority stake in Eureka Forbes for an enterprise's value of Rs- 4,400 crores. The Indian water purifier and Vacuum cleaner brand is a subsidiary of Forbes and Company Ltd. The organization will spin off into a standalone company and be listed on BSE.
Upon its listing, Advent International will have a stake of around 72.56% of the organization. This will subsequently make an open offer to acquire the remaining shares of the company with the institutions.
Deal Details
- The Eureka Forbes will be demerged into a standalone company and then listed on the BSE
- After listing the Advent will purchase a 72.56% stake of the organization then outstanding stock on a fully diluted basis from the Shapoorji Pallonji Group
- Advent will make an open offer
- Forbes & Co. had a total market cap of 150 crores as of September 17
- The transaction is subject to closing conditions and relevant statutory and regulatory approvals
This deal will enable SP to reduces its Rs-30,000- crore debt and sharpen its focus on its mainstay construction business. This group is also looking to sell Sterling & Wilson Solar, Afcons Infrastructure, and some real estate assets.
Sharpoorji Pallonji group had been looking to sell Eureka Forbes for some time. It is reported that the SP group is planning to divest states in other companies like Sterling & Wilson Solar. The groups have to look for these options to raise funds after pledging a portion of its 18% holding in TATA Sons.
Shapoorji Pallonji and Company Pvt Ltd executive director, Jai Mavani said-“we are pleased that Eureka Forbes Ltd has found a new home with Advent, while at the same time unlocking the value for the shareholders. He also added that the transaction reflects our stated objective & strategy of significant de-leveraging and focusing on our core competencies & Business.
