Singapore’s GIC partially exits Hero MotoCorp

By Team DealStreetAsia

November 12, 2014

Singapore’s sovereign wealth fund GIC has made a partial exit from Hero MotoCorp by selling about 1% stake in the company for about $81.3 million through an open market transaction; and pocketing over 2x returns (in rupee terms) on its three-year-old investment, a report said.

GIC had invested an estimated amount of between $178.8 million-$220 million (Rs 1,100 crore – Rs 1,350 crore) in Hero, and its remaining stake in the company is estimated to be worth around $260 million (Rs 1,600 crore), according to a report in India’s VCCircle.

In March 2011, GIC (through Lathe Investment Pvt Ltd) had joined Bain Capital to invest around $550 million in India’s biggest manufacturer of motorcycles and scooters, enabling the Hero Group to buyout Honda Motor Co’s 26% stake in Hero Honda Motors Ltd, since renamed Hero MotoCorp. A bulk of this investment came from Bain, while GIC is estimated to have contributed about 25%, equivalent to a little over $130 million.

Last Week, Bain Capital had sold 4.27% stake in Hero MotoCorp Ltd for $400 million in an open market transaction; and is now left with about 1.5% stake in the company. Prior to that, in June this year, Bain had sold another 2.8%, equivalent to a third of its holdings in Hero MotoCorp for around $248 million.

The VCCircle report further said the sale of Hero MotorCorp shares by the Singapore fund had made it GIC’s second part-time exit from an Indian company his fiscal. Earlier, it had sold a part of its holdings in the Marico Group. The report added that the Singapore fund had also part exited Adani Ports & Special Economic Zone Ltd last year for just under $50.8 million.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
APPLY NOW