Private equity giant Kohlberg Kravis Roberts and Co. Ltd (KKR) is set to provide flexible partnership capital of around Rs 2,000 crore ($315 million) to the Analjit Singh-led diversified Max Group, The Economic Times reported citing multiple people aware of the development.
The fund infusion will help the Max Group get growth capital and rework debt at various promoter entities, the report added.
The above-mentioned persons said the investment will be structured over three to five years (similar to a convertible structure) and the transaction will be completed in the next seven to 10 days.
Max Group has three listed companies – Max Financial Services, Max India and Max Ventures and Industries.
Max Financial Services focuses solely on the group’s flagship life insurance business, while Max India houses investments in the health verticals, including hospital chain operator Max Healthcare, health insurance joint venture Max Bupa and Antara Senior Living.
Max Ventures and Industries is the holding company for its speciality films business, education business and real estate.
In a separate report, private equity firm Carlyle Group is reportedly the top contender to buy 15% stake in New Delhi-headquartered Mankind Pharmaceuticals for $500 million.
According to a report in The Economic Times which cited people aware of the development, private equity firms Advent International and Apax Partners are also in contention for the minority stake.
One of the above-mentioned persons was quoted as saying that final due diligence is underway and negotiations are at an advanced stage, with a deal expected to be finalised in the first quarter of the next financial year.
Global investment bank Moelis & Co has been given the mandate to find a buyer, according to the report.
Promoted by the Juneja family, Mankind Pharmaceuticals is best known for its over-the-counter (OTC) product portfolio and condoms sold under the Manforce brand. It is one of the largest privately-held companies in the sector.
A section of the promoter family will exit through a secondary sale of shares, according to the report.
In another report, Tata Trusts wants Tata Sons – the holding company of the diversified Tata Group in which it is the largest shareholder – to consider buying out Shapoorji Pallonji Group’s stake in the latter, The Economic Times reported.
The report quoted Tata Trusts’ senior counsel Sudipta Sarkar as saying at a hearing in the National Company Law Tribunal (NCLT) that the Shapoorji Pallonji Group has been exercising their rights in a disruptive manner which is not in the best interests of the company.
The hearing was held in connection with a petition filed by the Shapoorji Pallonji Group against Tata Sons and Tata Trusts on alleged oppression of minority shareholders.
The petition was filed after Cyrus Mistry, the scion of the Pallonji Mistry family, was unceremoniously ousted as Tata Sons chairman in October 2016. Cyrus and his brother Shapoor together own more than 18% in Tata Sons.
Tata Trusts includes a clutch of philanthropic organisations and holds a two-thirds stake in Tata Sons.