Singapore state fund Temasek Holdings is a frontrunner to buy a $200-million stake in the about to be demerged consumer products business of India-based Crompton Greaves, which is controlled by billionaire Gautam Thapar, a media report said, quoting ‘multiple sources directly familiar with the matter’.
According to the Times of India, the Singapore fund has entered into exclusive negotiations with Crompton Greaves’ promoter, to acquire around 20 per cent stake in the company, ahead of rivals such as General Atlantic Partners and Bain Capital.
The report further said that the Temasek’s competitors for for this deal had valued Crompton Greaves at around $900 million.
Crompton Greaves makes fans, appliances, luminaires, home automation and integrated security systems, and has registered sales of Rs 748 crore for fiscal 2014 with operating profit estimated at 11.8 per cent.
Last year, Crompton Greaves had demerged its consumer business and promoter Thapar, who has a 42.7 per cent stake in this entity is now looking at bringing in a financial investor and is believed to have turned down offers to buyout the company. Even post the deal, the consumer business is slated to remain a listed entity, and the promoters’ holding will come down to around 25 per cent.
If Temasek picks up an equity stake in Crompton Greaves, it will mark the latest in the Singapore fund’s India deal spree. It recently led a $60 million investment round in Bangalore-based analytics and Big Data firm Manthan Software Services Pvt Ltd. The Singapore fund also boosted its investments in India’s Mahindra & Mahindra Ltd’s (M&M) non-banking finance company Mahindra & Mahindra Financial Services Ltd (MMFSL) recently, and had invested between $40-45 million in the NBFC, through secondary market purchases. Besides, late last month, it had also bought 100 per cent stake in in SVB India Finance Private Limited, the specialty lending arm of Silicon Valley Bank, for about $45 million.
Temasek buys 18% stake in Medanta from Punj Lloyd
In January, the Singapore fund bought out the entire 17.74 per cent holdings that infrastructure firm Punj Lloyd had in Gurgaon-based multi specialty hospital Medanta. While Punj Lloyd’s stake was valued at $105 million based on the previous 2013 transaction, some media reports pegged valuation round $113 million.
The Gurgaon-based hospital, which has about 1,250 beds, is majority owned by Sunil Sachdev and Naresh Trehan who together have a 54 per cent stake. This is also the second major deal in Medanta following the exit of private equity from Avenue Capital in December 2013 after selling its ts 26 per cent stake to The Carlyle Group for around Rs 960 crore.
In the health care space in India, Temasek has also invested inBangalore-based HealthCare Global Enterprises Ltd (HCG).
Other private equity players who have made recent investments in India include UK’s CDC that recently put in $48 million into Narayana Health (formerly Narayana Hrudayalaya), WestBridge, Sequoia and Singapore’s GIC who have devoted $50 million in Vasan Healthcare, and Olympus Capital and IVFA who have put in additional $60 million more Aster DM Healthcare.