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PE Major Advent Snaps Up Eureka Forbes For Rs 4,400 Cr, SP Group To Pair Debt

The valuation of Rs 4,400 crore for a 72.56 per cent stake is is at an enterprise level and subject to closing adjustments and also includes an open offer for the remaining stake after the demerger and listing of Eureka Forbes

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After a long wait, the Shapoorji Pallonji Group has closed the sale process of its consumer durables business under the Eureka Forbes label by picking the American private equity fund Advent International's Rs 4,400-crore offer for a 72 per cent stake. The sale process, which began in November 2019, will help the over 156-year-old SP Group pair the debt pile and sharpen the focus on the flagship construction and engineering business under Afcons. 

The valuation of Rs 4,400 crore for a 72.56 per cent stake is is at an enterprise level and subject to closing adjustments and also includes an open offer for the remaining stake after the demerger and listing of Eureka Forbes, the SP group said in a statement on Sunday. The 156-year-old-Shapoorji Pallonji Group, which owns over 18 per cent in the Tata Group, is sitting on a debt pile of over Rs 20,000 crore of which around Rs 12,000 crore are under the moratorium till 2023 allowed by the RBI to help borrowers tide over the cash flow issues arising from the pandemic. "Pursuant to a scheme of arrangement, Eureka Forbes, a 100 per cent subsidiary of Forbes & Company, will be demerged into a standalone company and will be listed on the BSE. Upon demerger and listing, Advent will purchase up to 72.56 per cent of Eureka Forbes then outstanding stock on a fully diluted basis from SP Group owned Forbes & Co, and will also make an open offer for the remaining stake.

"The transaction is subject to closing conditions and receipt of the relevant statutory and regulatory approvals," the statement said without offering a timeline for the demerger and listing. When contacted, Jai Mavani, executive director at Shapoorji Pallonji & Company told .

(PTI)