The reports state that the Haier Group initially aimed for a valuation of USD two billion, but the received bids were significantly lower
Aimed at acquiring a 49 per cent stake in Haier India, Sunil Mittal’s family Office and United States-based private equity (PE) major Warburg Pincus have submitted a bid, as per the media reports. The bid is at a sharply reduced valuation of Rs 6,000 crore (USD 720 million).
The reports noted that the Haier Group initially aimed for a valuation of USD two billion, but the received bids were significantly lower. As the valuations have come down, the company is now evaluating whether to proceed with the deal or wait for improvement in market conditions, as per the reports.
Haier India employees may be granted a 2 per cent stake as part of the proposed deal, the reports highlighted, while adding that a stock market listing is being discussed within two years to facilitate an exit route for the Chinese parent.
High brand usage fees and royalty demands from Haier Group have impacted the valuation expectations, as per the reports. Three manufacturing facilities are operated by Haier India in the country, which produces refrigerators, washing machines, air conditioners and other such appliances.
The reports emphasised that the Group has been exploring a partial exit option and was engaged in early- stage talks with Reliance Industries previously.
