Buyout major Blackstone and General Atlantic-backed IIFL Wealth are among the top bidders to acquire L&T Mutual Fund with Rs 3,000 crore and Rs 2,650 crore bids ($394 million and $348 million at current exchange rate), respectively, persons briefed on the matter told The Times of India.
However, L&T Finance — which owns L&T Mutual Fund — is expecting about Rs 4,500 crore ($590 million) from the sale, the persons said.
Several other PE firms like Carlyle and ChrysCapital have also evinced interest in the business, but the contours of their bids could not be ascertained, they added.
It was previously reported in April that a few Indian asset managers are in the fray to acquire a majority stake in the company.
While IIFL Wealth has roped in Axis Capital to help with financing options for its bid, Blackstone is working with law firm Cyril Amarchand Mangaldas to strengthen its case before the capital market regulator, they said.
Blackstone has bid to acquire over 60% stake in the company, the persons added.
Meanwhile, Vedanta group company Hindustan Zinc has put its non-core wind energy assets worth Rs 1,500 crore (about $200 million at current exchange rate) on the block, persons aware of the matter told The Economic Times, adding that two renewable energy players backed by multilateral financial institutions are vying for the business.
The wind power plants are located in five states — Rajasthan, Gujarat, Maharashtra, Karnataka and Tamil Nadu.
The Udaipur-headquartered company had previously attempted to sell the wind energy business four years ago but shelved the plan because it did not get the price it was looking for at the time.
The funds may be used for the delisting process of Indian unit Vedanta Ltd announced by parent Vedanta Resources, which will need around $2.5 billion for the process.
In another development, promoters of Analjit Singh-led Max Group plan to sell their stakes in the healthcare and financial services companies for Rs 2,300 crore (about $300 million at current exchange rate), two people aware of the matter told Mint.
The promoters are looking to sell up to 15% of their 28.31% stake in Max Financial Services Ltd for close to Rs 1,500 crore (about $200 million) through a block or bulk deal on the stock exchange, one of the persons said.
Singh is also planning to sell his 7% residual stake in Max Healthcare for close to Rs 800 crore ($105 million). In December 2018, Radiant Life Care announced the acquisition of a majority stake in Max Healthcare to create a combined entity.
The promoters have already sold prime land at London’s Mayfair for Rs 800 crore ($105 million), the persons added.
They are also trying to sell some more overseas real estate and hospitality assets and the cumulative proceeds will be used to pay off all the debt, which stood at Rs 3,400 crore ($446 million) as of December 2019, the persons said.
