NewQuest eyes IDG stake in 4 firms; Orix, ADIA may buy controlling equity in IL&FS
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Private equity firm NewQuest Capital Partners is in preliminary talks with venture capital company IDG Ventures India to buy its stake in four portfolio companies, The Economic Times reported, citing two people aware of the development.

The four companies are baby products retailer FirstCry, womenswear e-tailer eShakti, medical device company Forus Health and mobile advertising firm Vserv.

On Tuesday, VCCircle reported that TPG-backed NewQuest, focused on secondaries deals, is in discussions to acquire the limited partner interest of venture capital firm New Enterprise Associates in its India arm.

Separately, Japanese financial services group Orix Corp. and sovereign wealth fund Abu Dhabi Investment Authority (ADIA) are looking to pick up a controlling stake in Infrastructure Leasing and Financial Services Ltd (IL&FS), Mint reported.

Citing two people, the report said Orix and ADIA are in talks to raise their combined shareholding to 75% from 36.1%.

The equity infusion from ADIA and Orix will be used to manage the short-term liquidity crisis in IL&FS, according to the report.

Earlier, Mint had reported that IL&FS was looking to sell a majority stake in its wholly-owned IL&FS Financial Services to pare debt.

Last week, VCCircle reported that Blackstone is in talks with IL&FS to buy its IL&FS Financial Centre at the Bandra Kurla Complex in Mumbai .

As on 31 March, Life Insurance Corporation of India held 25.34% stake in IL&FS and Orix Corp. 23.54%.

Other shareholders include ADIA (12.56%), home loan firm HDFC (9.02%), public sector lenders Central Bank of India (7.67%) and State Bank of India (6.42%), and IL&FS Employees Welfare Trust (12%).

In another development, global alternative investment firms Blackstone and Goldman Sachs, and Chinese consumer durables major Haier, are looking to make offers for the consumer electronics business of debt-ridden Videocon Industries Ltd, The Economic Times reported, citing people aware of the development.  

Videocon’s consumer electronics business is valued at around $2 billion, the report said.

Videocon, with a debt of around Rs 20,000 crore, is currently undergoing insolvency proceedings at the National Company Law Tribunal.

On Tuesday, the bankruptcy-resolution professional of Videocon had called for a resolution plan from prospective buyers.

Videocon is engaged in manufacturing, assembling and distribution of consumer electronics and home appliances. It has facilities at Aurangabad, Shahjahanpur, Warora and Bharuch. It also holds oil and gas assets in India and abroad.

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