India Digest: PNB Housing, Essar Steel, Hotel Leelaventure, ReNew Power in M&A news

Punjab National Bank. Photo: Livemint

While General Atlantic and Varde are close to buying stake in PNB Housing Finance, BoFAML has emerged as a sole bidder for Essar Steel loans. Also, Brookfield is set to acquire Hotel Leelaventure even as Norway’s Equinor is eyeing a stake in ReNew Power.

General Atlantic, Varde close to buying 22% stake in PNB Housing

Private equity majors General Atlantic Partners and Varde Partners are close to acquiring 22% stake in PNB Housing Finance from Punjab National Bank for around Rs 3,500 crore, said a report in The Economic Times, quoting sources. PNB, which owns 32.79 per cent stake in the unit, has decided to stay invested with a 10.7% per cent stake and choose two buyers instead of selling the entire block to one suitor. This structure would avoid open offer for an additional 26 per cent of the company. Existing investor General Atlantic is likely to pick up an additional 12 per cent stake in PNB Housing to take its stake to around 22 per cent, while Varde is expected to pick up a 10 per cent stake.

BofAML emerges sole bidder for Essar Steel loans

Bank of America Merrill Lynch has come up as the sole bidder in State Bank of India’s auction of its loans to bankrupt Essar Steel, according to a report in The Economic Times, quoting sources. The investment bank is said to have bid for a part of the Rs 13,000-crore loans that was put up for sale by SBI offering around Rs 1,300-1,500 crore. It is unclear whether SBI would accept the bid as there was no competition, said the report.

Brookfield set to acquire Hotel Leelaventure

Canadian private equity firm Brookfield Asset Management has reached the final lap of acquiring Hotel Leelaventure and has finalised the terms and conditions for the same with lender JM Financial. According to a report in The Economic Times, quoting sources, Brookfield is set to acquire the hospitality chain for around Rs 4,500 crore. Brookfield is looking to pick up the majority of JM Financial Asset Reconstruction Company’s debt.

Norway’s Equinor looks to acquire stake in ReNew Power

Norway’s state-owned petrochemicals firm Equinor is reportedly in talks to acquire “a substantial stake” in Gurgaon-based renewable energy major ReNew Power. According to a Business Standard report quoting sources, Goldman Sachs, which owns 48.62 per cent stake in ReNew Power, and Abu Dhabi Investment Authority (ADIA), which holds a 15.92 per cent stake, are looking to exit by diluting their stakes. It was earlier reported that CPPIB was in talks to increase its stake in renewable energy company ReNew Power Ltd by purchasing some of the shares that larger shareholder Goldman Sachs has put up for sale.

Also Read:

Punjab National Banks revives plan to sell stake in home fin arm

PNB, Carlyle shelve housing unit sale

Brookfield close to acquiring India’s Leela hotels for $627m

Goldman’s ReNew Power stake sale to mark India’s biggest PE exit via IPO

CPPIB in talks to pick part of Goldman stake to hike its holding in ReNew Power