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Apax leads race for Healthium; ex-Bain principal launches PE firm focused on tech

05 March, 2018

Global private equity firm Apax Partners LLP is running ahead of PE player Carlyle Group LP in a race to acquire India’s largest surgical and wound-care products maker Healthium Medtech Pvt. Ltd in a deal estimated to be $400 million (Rs 2,600 crore), The Times of India reported, citing two people aware of the development.

Healthium was earlier known as Sutures India.

The report cited a source as saying that, although Apax and Carlyle were shortlisted, Apax has emerged as a frontrunner.

Private equity firm TPG Capital, which holds a 73% stake in the company through TPG Growth, had given the mandate to Goldman Sachs to find a buyer, according to the report.

VCCircle reported last year that TPG was looking for a strategic buyer rather than a financial investor.

In another development, Nikhil Raghavan, a former principal with US-based alternative investment firm Bain Capital, has launched PE firm Marathon Edge Partners focused on technology investments, Mint reported, citing two people aware of the development.

One person said Marathon’s first offshore fund would aim for first close at $75 million and a final close at $125-150 million.

Prakash Chellam, who heads Singapore operations at JM Financial, is also part of Marathon, the report added.

Raghavan has confirmed the development to the financial daily.

Separately, Mauritius-based investment vehicle called Numetal may revise its bid for bankrupt Essar Steel and drop Rewant Ruia’s Aurora Investments as a consortium partner if it is found to be in violation of the Insolvency and Bankruptcy Code, The Economic Times reported, citing Russia’s VTB Capital, the largest shareholder in Numetal.

Makram Abboud, vice-chairman, international, VTB Capital, told the financial daily that steel maker ArcelorMittal, the only other bidder for Essar Steel, was involved as a promoter in defaulting companies, making it ineligible to make a bid.

According to recent changes to the Insolvency and Bankruptcy Code, promoters or sister concerns of companies with non-performing loans of more than a year are prohibited from bidding for these companies.

ArcelorMittal recently sold its 29.05% promoter stake in bankrupt Uttam Galva Steels Ltd to Miglani family.

In another development, the promoters of software firm KPIT Technologies Ltd have raised Rs 425 crore in structured credit from KKR India Financial Services, the non-banking financial company promoted by private equity giant KKR, to finance an open offer for acquiring minority shareholders of the company, Mint reported citing two people aware of the development.

KPIT and Birlasoft promoters will launch an open offer for KPIT’s minority shareholders, according to a stock-exchange disclosure by KPIT in January.

In a two-tier deal, CK Birla Group-owned Birlasoft and KPIT will be merged to create a $700 million entity, before splitting it into two independent listed companies – Birlasoft, a $500 million enterprise IT services company, and KPIT Technologies, a $200 million company providing automotive engineering and mobility solutions.

A KPIT spokesperson confirmed to the financial daily that KPIT promoters had raised the funds to finance the open offer.

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Apax leads race for Healthium; ex-Bain principal launches PE firm focused on tech

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