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Warburg Pincus set to buy into Indira IVF; Five firms eye partnership with McDonald’s

Private equity giant Warburg Pincus is in advanced talks to acquire a minority stake in fertility chain Indira IVF Hospital Pvt. Ltd, Mint reported citing two people aware of the development.

Warburg Pincus will buy close to 20% stake in Indira IVF for Rs 700 crore (about $110 million), valuing the company around Rs 3,500 crore ($546 million), the report added.

Udaipur-based Indira IVF was previously also in talks with other PE firms like Carlyle Group and TPG Growth, seeking a valuation of $600-800 million. “However, other PE funds uncomfortable with that valuation backed out... and Warburg is the only one left,” the report quoted one person as saying.

Indira IVF will use the funds raised through the stake sale to open more clinics in the country, the report said.

Established in 1988, the fertility chain has centres in 20 cities across the country, according to its website. In 2015-16, it registered a total income of Rs 75.48 crore and a profit after tax of Rs 6.43 crore.

 

At least five companies have expressed interest in running McDonald’s India's quick-service restaurant chains in North and East India as franchise partners, The Economic Times reported.

The five companies are fine-dining chain operator Speciality Restaurants, Domino’s Pizza and Dunkin Donuts franchisee Jubilant FoodWorks, Coca-Cola bottler Moon Beverages, Amit Burman-promoted Lite Bite Foods, and HardCastle Restaurants, McDonald’s franchise partner in West and South India.

“Details of the process are confidential. We have nothing to share at present,” the report quoted a McDonald’s India spokesperson as saying.

Last week, the London Court of International Arbitration had asked Vikram Bakshi to sell his entire 50% stake in the joint venture firm Connaught Plaza Restaurants Ltd (CPRL) to McDonald’s India Pvt. Ltd. In India, Bakshi challenged the termination of franchise license by McDonald’s at the National Company Law Appellate Tribunal (NCLAT). Simultaneously, McDonald’s India approached NCLAT against the order to reinstate Bakshi as managing partner of CPRL. The appeals filed by both the parties are slated for hearing on Thursday.

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