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Apax, Carlyle eye Royal Sundaram; Suzlon may sell stake in subsidiary to pare debt

16 November, 2017

Private equity firms Apax Partners and Carlyle Group are considering bidding for a stake in Royal Sundaram General Insurance Co. Ltd, a subsidiary of Chennai-based Sundaram Finance Ltd, Bloomberg reports citing people aware of the development.

Sundaram Finance has initiated a process to sell 49% stake in the general insurance company for about $500 million. Other foreign PE firms have also shown interest, the report adds.

As on 31 March 2017, Sundaram Finance held 75.9% stake in the subsidiary. The rest is held by TVS Group companies and individuals.

In 2015, Sundaram Finance had acquired a 26% stake in then Royal Sundaram Alliance Insurance Company Ltd from joint venture partner RSA Group for Rs 450 crore ($72.4 million).

In another development, Suzlon Energy Ltd is looking to sell a large minority stake in wholly-owned subsidiary Suzlon Global Services Ltd to raise up to $250 million, Mint reports citing people aware of the development.

Suzlon Global is in talks with several global PE firms for selling as much as 40% stake, and the main purpose of the fund-raise is repayment of Suzlon Energy’s debt, the report adds.

Suzlon Global provides operation and maintenance services for wind-turbine generators installed by Suzlon Energy Ltd in India.

Steel makers ArcelorMittal and Tata Steel have upped efforts to take over debt-laden Bhushan Steel Ltd and Essar Steel Ltd, says a report in The Times of India.

Bhushan and Essar Steel are among the 12 large non-performing asset accounts identified by the RBI for loan resolution under the Insolvency and Bankruptcy Code.

ArcelorMittal and Tata Steel face tough competition from PE firms and other steel companies, the report adds.

Besides, promoters of Bhushan Steel and Essar Steel may also bid to regain control of their companies.

ArcelorMittal has roped in Goldman Sachs to prepare bids for the two assets while the promoters of Essar Steel have tied up with Russian investment bank VTB Capital to retain assets.

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Apax, Carlyle eye Royal Sundaram; Suzlon may sell stake in subsidiary to pare debt

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