Canada Pension Plan Investment Board (CPPIB), the largest among its peers in the North American nation, is in discussions to pick up a significant minority stake in renewable energy producer Mytrah Energy Ltd for about $300 million, The Economic Times reported.
Citing two people aware of the development, the report said that Mytrah is looking for a long-term investor.
Shirish Navlekar, chief financial officer at Mytrah, told the financial daily that the company was in the process of raising growth capital and that multiple investors had shown interest.
Mytrah has a portfolio of 1,743 megawatts of operational and under-development renewable power projects across the country.
In September 2017, the company raised $277 million (Rs 1,800 crore) from business conglomerate Piramal Group via non-convertible debentures. The company had delisted from the London Stock Exchange’s Alternative Investment Market in May.
CPPIB has been ramping up its exposure to India. Among its key new investments in 2017-18 is ReNew Power Ltd, where it made a total investment of $391 million in two tranches. It first invested $144 million in January and then put in $247 million in April.
Citing people aware of the development, the report said that the other likely suitors include global food and beverage companies Nestle, Danone, Mondelez, private equity major KKR, ITC Ltd and Hindustan Unilever Ltd.
Citing an official involved in the process, the report said Coca-Cola has already started the evaluation work even before the launch of the sale process. Citibank is advising Coca-Cola on this deal, according to the report.
GlaxoSmithKline had initiated a strategic review of milk drinks brand Horlicks and its other consumer healthcare nutrition products businesses in order to support its $13 billion deal to buy Novartis’ 36.5% stake in their consumer healthcare joint venture.
The majority of Horlicks and other nutrition products sales are generated in India. The strategic review will include an assessment of GlaxoSmithKline’s 72.5% stake in Mumbai-listed GlaxoSmithKline Consumer Healthcare Ltd.
Last week, Bloomberg reported that US-based food and beverage major The Kraft Heinz Company was looking to sell its milk-based nutritional beverage brand Complan in India.
Separately, The Economic Times reported that infrastructure firm Jaiprakash Associates Ltd is in talks with cement maker ACC Ltd to sell its residual cement business for about Rs 5,200 crore as part of efforts to cut debt and support unit Jaypee Infratech Ltd, which is facing bankruptcy.
The development comes after CK Birla group firm Orient Cement Ltd terminated a deal to buy two cement assets from Jaiprakash Associates in May.
The residual cement business has an installed capacity of 5.5 million tonnes per annum, the report said, citing two people aware of the development.
Jaiprakash Associates had, in 2016, completed the sale of a bulk of its cement business to UltraTech Cement Ltd for Rs 16,189 crore.
UltraTech had earlier acquired two units of Jaypee Cement in Gujarat at an enterprise valuation of Rs 3,812 crore.