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Actis may sell Super-Max stake after dispute with founders; Quadria, DEG to exit Medica
Photo Credit: VCCircle

Amid a legal battle with the founders of Super-Max, British private equity firm Actis has hired Morgan Stanley to sell its stake in the world’s second-largest shaving products maker after Gillette, people in the know told The Economic Times.

In March 2011, Actis had invested $225 million for a 29.17% stake, valuing Super-Max at $700 million. It raised the stake to 40%. Actis also holds preference shares. Founders Rakesh Malhotra and his family own the rest of the firm. People in the know told The Economic Times that Actis had hired forensic accountants for Super-Max after finding questionable accounting practices at the firm.

In 2017, Actis passed resolutions to dismiss Rakesh Malhotra and two other nominees of the founders from the firm’s board.

Separately, two people in the know told The Economic Times that healthcare Asian private equity firm Quadria Capital and Europe-based DEG and Swedfund are set to hire an investment banker to sell their stakes in Medica Superspecialty Hospital. The investors hold about 67% in the eastern entity, and the sale is expected to value Medica at Rs 500-600 crore, said one of the persons.

In 2013, the investors had acquired the stake from ICICI Venture for Rs 160 crore, valuing Medica at Rs 240 crore.

In another development, two people in the know told Mint that Fortis Healthcare Ltd is set to hire Kotak Mahindra Bank to help private equity investors exit SRL Diagnostics, where it holds 57% stake.

Resurgence Fund holds 7.5% stake, International Finance Corporation (IFC) 7.5% and Jacob Ballas 16%.

SRL was planned to be bought by Malaysian firm IHH Healthcare Bhd but Fortis’ new owner decided against it, said the people, citing as the reason the legal battle between Japanese drug maker Daiichi Sankyo Co. Ltd and the founders of Fortis, who are the Singh brothers.

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