India Digest: Samara eyes 3i Infotech; KKR, others may take control of CG Power

KKR
FILE PHOTO: Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., August 23, 2018. REUTERS/Brendan McDermid/File Photo

Samara Capital is in talks to acquire 3i Infotech, while KKR and other lenders are said to be looking to convert their loans to CG Power into equity to take control of the company.

Samara looks to acquire 3i Infotech

Private equity firm Samara Capital is in talks to acquire IT services firm 3i Infotech at an enterprise value of $140-150 million, according to a Times of India report quoting sources.

Per the news report, the deal has been triggered by lenders of the cash-strapped company, which has been undergoing debt restructuring since 2016 after it defaulted on foreign currency convertible bonds (FCCBs).

“The lenders have not indicated their desire to sell any stake in the company. Further, we do not comment on market speculation,” 3i Infotech told Times of India in response to a query.

KKR, other lenders may take control of CG Power

KKR is looking to convert its loans to CG Power and Industrial Holdings into equity after the promoters defaulted on payments, said a report in The Economic Times quoting sources.

Two other lenders, Yes Bank and BOI AXA, are also in the process of converting their loans into equity. The move is likely to render the Thapar family a minority shareholder in the company.

At present, KKR owns about 10.8 per cent of the firm and the combined stake of the lenders is set to touch 30 per cent if the conversion goes through. The Thapar family held about a 34.42 per cent stake in the capital goods firm till KKR’s conversion.

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