Business Daily from THE HINDU group of publications
Tuesday, Oct 23, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Tuesday, Oct 23, 2007 ePaper | Mobile/PDA Version |
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Corporate
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Mergers & Acquisitions Markets - Foreign Institutional Investors Our Bureau New Delhi, Oct. 22 Global private equity major Warburg Pincus will invest $110 million to pick up 11.2 per cent stake in electrical equipment company Havells India Ltd. Havells would utilise the funds to partly retire debt raised by the company in March this year to acquire Dutch firm SLI Sylvania’s lighting business. The company will issue fresh shares and warrants to Warburg Pincus, representing approximately 11.2 per cent of the fully diluted share capital of the company. According to the Havells Managing Director, Mr Anil Gupta, of the $110 million investment from the PE major, $70 million would be used in retiring debt while the rest would be used for enhancing the company’s manufacturing capabilities. The equity placement would provide Havells with additional debt raising capacity, he said. Havells, which makes products ranging from building circuit protection, industrial and domestic switchgears, cables, energy meters, fans, CFL lamps, luminaries for domestic, commercial and industrial application, and modular switches, could also be eyeing acquisition in the future. Commenting on the deal, Ms Julie Johnson Staples, Head of Communications, Warburg Pincus, said: “Our investment in Havells is reflective of our confidence in the management team of the company, its strong brand and distribution capability, as well as in the growth potential presented by the electrical products and power distribution segment… We look forward to working together with Havells India’s management team to help the company achieve its long term vision.” Over a 12-year period, funds sponsored by Warburg Pincus have invested approximately $2 billion in India, making it one of the largest private equity investors in the country. The firm’s past and current investments in India include Ambuja Cements, Bharti Airtel, Dainik Bhaskar, Housing Development Finance Corporation (HDFC), Kotak Mahindra Bank, Max India, Moser Baer and Nicholas Piramal, among others. More Stories on : Mergers & Acquisitions | Foreign Institutional Investors | Electrical Goods
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