By
Samara Capital eyes 3i Infotech; KKR, lenders may gain controlling stake in CG Power
Photo Credit: Thinkstock

Mid-market private equity firm Samara Capital is in discussions to buy IT firm 3i Infotech for an enterprise value of $140-150 million, The Times of India reported, citing two persons in the know.

To ease its liquidity crunch, 3i Infotech has been in the process of a debt restructuring scheme since 2016, initiated by its lenders after the company failed to repay foreign currency convertible bonds, the report added.

The company undertook a debt-restructuring scheme (DRS) in the 2015-16 financial year and has now prepaid Rs 98 crore of principal debt to its lenders that represents 20.8% of its outstanding debt pegged at Rs 469 crore, the firm’s annual report states.

3i Infotech’s lenders have brought on board financial services firm Edelweiss to oversee the transaction.

CG Power’s promoter may cede control

Global alternative asset manager KKR has converted its loans into equity in electrical equipment maker CG Power and Industrial Holdings, part of the Avantha Group, after the company failed to repay dues. The payments default may also see Gautam Thapar, who owns the Avantha Group, cede control of the entity, a report in The Economic Times stated.

Lenders Yes Bank and BOI AXA are also close to converting their loans in the company, which will increase their combined holding and further reduce Thapar’s stake to a minority, said the report. While KKR holds about 10.8% stake in the firm, Yes Bank and BOI AXA, if their process goes through, will have a combined holding of 30% in CG Power. Prior to KKR’s equity conversion, the Thapar held a 34.42% stake in the firm, the report added.

Creditors have also asked CG Power’s board to replace its director and group chief financial officer B Hariharan with former AstraZeneca top executive Narayan Seshadri as promoter-nominee, said the report.

Leave Your Comment(s)