New York-based investment firm Avenue Capital Group is in advanced talks to invest about Rs 1,000 crore ($145 million) in Asset Reconstruction Co. (India) Ltd (Arcil) for a majority stake, The Economic Times reported.
Citing two people aware of the development, the report said that Avenue Capital will acquire the stake from State Bank of India, IDBI Bank, ICICI Bank and Punjab National Bank.
Avenue Capital’s primary focus is investing in distressed debt and other special situations investments in the US, Europe and Asia. As of 30 June 2018, it had about $9.6 billion assets under management, according to its website.
Arcil is the country’s oldest and one of the largest companies in the segment. In 2008, Singapore’s sovereign wealth fund GIC had picked up a 10% stake in Arcil.
Meanwhile, the Mint newspaper reported, citing two people aware of the development, that Malaysian sovereign wealth fund Khazanah Nasional Berhad is in talks to pick up a minority stake in the India unit of apparel maker Pepe Jeans.
The financial daily had earlier reported that US-based private equity firms Advent International, Carlyle Group and General Atlantic were shortlisted to acquire a controlling stake in Pepe Jeans India.
Pepe Jeans India posted a profit after tax of Rs 49.2 crore on net sales of Rs 427.6 crore for the financial year ended March 2017.
Founded in 1973 in London, Pepe Jeans Group operates through two main brands — Pepe Jeans and Hackett. In 2015, L Catterton Asia and Lebanese investment firm M1 Group acquired a majority stake in Pepe Jeans Group.
Separately, , The Economic Times reported that Novelis Inc., a wholly owned US subsidiary of Aditya Birla Group company Hindalco Industries Ltd, is closing in on the acquisition of US-based Aleris Corp from its private equity investors.
Aditya Birla Group chairman Kumar Mangalam Birla is leading the negotiations with PE investors of Aleris, the report said, citing people aware of the development. The estimated value of the deal will be around $2.3-2.5 billion, the report said.
The development comes after negotiations between China Zhongwang Holdings Ltd and Aleris hit a roadblock due to national security concerns in the US.
Aditya Birla Group has given the mandate to Goldman Sachs to advise on the deal, according to the report.
In another report, Mint said that Nekkanti Sea Foods Ltd, a Visakhapatnam-based seafood processing and exporting company, has raised $30 million (Rs 205 crore) in a pre-IPO placement.
Citing two people aware of the development, the report said that Motilal Oswal, New Horizon Investments, White Oak Capital and Madhusudan Kela participated in the round.
In March, Nekkanti had filed a draft proposal for an initial public offering. The proposal involved sale of fresh shares worth Rs 250 crore and a secondary sale of 8 million shares by promoters and other shareholders. The estimated size of the IPO is Rs 700-750 crore.
