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Warburg eyes stake in Fusion Microfinance; Edelweiss may buy Engie India’s solar biz

Private equity firm Warburg Pincus is in discussions with Delhi-headquartered Fusion Microfinance Pvt. Ltd to pick up a significant minority stake for $80-100 million, The Economic Times reported citing two people aware of the development.

Warburg will invest fresh money into the entity and will buy the stake from existing investors, the report added.

Last week, VCCircle reported that Fusion was looking to raise money from a long-term investor.

In February, Fusion raised Rs 80 crore ($12 million) in a fresh round led by existing investors Creation Investments, Oikocredit and GAWA Capital.

The company’s loan portfolio jumped 88% to Rs 1,558 crore by the end of 2017-18 from Rs 827 crore a year earlier, according to a report by Microfinance Institutions Network (MFIN).

Engie India may sell solar biz

French multinational utility company Engie SA is in talks with Edelweiss Infrastructure Yield Plus Fund to divest its holding in its subsidiary Solairedirect’s India operations, a report in Mint stated, citing two people in the know.

Edelweiss Infrastructure Yield Plus Fund is managed by Edelweiss Alternative Asset Advisors Ltd, the alternative investment arm of financial services group Edelweiss. The fund had marked the first close of raising money at $297 million in March and said it will raise an additional $668 million. The fund aims to buy out operating assets from infrastructure developers.

In India, Solairedirect has a solar power capacity of around 810 megawatts, commissioned and under-construction.

The development comes after a deal between Engie and Dubai-based private equity investor Abraaj Group for a wind power platform in India fell through, prompting the French firm to look for a new partner.

Su-Kam’s new PE suitors

Debt-laden Su-Kam Power Systems Ltd has received expressions of interest from a bunch of suitors including private equity firms Carlyle Group, AION Capital and France-based Schneider Electric, Mint reported, citing two people aware of the development.

The deadline for submitting binding offers is 10 August, the report added.

Su-Kam, a Gurugram-based maker of power backup solutions, is currently undergoing bankruptcy proceedings at the National Company Law Tribunal.

Incorporated in 1998, Su-Kam manufactures power back-up devices, which include inverters and uninterruptible power supply systems for home and commercial use, and batteries.

It has six manufacturing facilities with one of them situated in Gurugram and the rest located at Baddi in Himachal Pradesh.

Su-Kam owes about Rs 370 crore to the lenders, according to the report.

In 2006, Reliance India Power Fund had acquired 20% stake in the company for Rs 45 crore. The fund is sponsored by Anil Dhirubhai Ambani Group and Singapore state investment firm Temasek.

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