Blackstone, TPG eye stake in Kirloskar Oil; Vedanta top bidder for Electrosteel
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Kirloskar Oil Engines Ltd is in separate talks with private equity firms Blackstone Group Lp and TPG Capital to sell a controlling stake, Mint reported, citing two people aware of the development.

The company is looking at an enterprise valuation of $500 million and has mandated investment bank Ambit Capital to advise on the deal, the report said.

Incorporated in 1946, Kirloskar Oil Engines is the flagship company of the Kirloskar group. It makes diesel engines, agricultural pumpsets and electrical generators.

In 2016-17, the consolidated income of the company was Rs 2,963.3 crore and net profit was Rs 173.8 crore.

As on 31 December 2017, Nalanda Capital, an India-focussed PE-style investor in public equities, held a 9.61% stake in the company. The promoters hold a 59.33% stake.

Meanwhile, The Economic Times reported that debt-laden Electrosteel Steels Ltd's creditors have approved a resolution plan submitted by diversified natural resources firm Vedanta Ltd. The lenders were led by State Bank of India.

The National Company Law Tribunal will make a final decision on the bid.

The report said Abhishek Dalmia-led Renaissance Steels, one of the bidders, may approach the court challenging the decision of the lenders. The report cited a top executive of Renaissance Steel as saying that they are evaluating legal options.

Electrosteel is one of 12 large loan defaulters identified by the Reserve Bank of India in its first list for debt resolution under the Insolvency and Bankruptcy Code.

The company’s total secured outstanding debt was Rs 12,376.61 crore as on 31 March 2017, according to its annual report.

In another report, Mint said that billionaire Mukesh Ambani-led Reliance Industries Ltd and its partner BP Plc are looking to sell their oil and gas block in Gujarat’s Cambay basin.

The financial daily cited an executive at Oil and Natural Gas Corp as saying that the state-run explorer has seen the block’s data and yet to make a decision on whether to bid.

Reliance Industries holds a 70% participating interest in the block CB-ONN-2003/1. BP owns the remaining. The block is spread across 1,17,622 acres.

The joint venture had submitted field development plans for eight discoveries on the block and second phase of exploration is in the process, according to Reliance’s annual report.

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