The reports note that EQT and Bain Capital are performing due diligence, with binding offers expected by August
After Havells, Reliance Industries, KKR, TPG have withdrawn from the race, EQT and Bain Capital are now the frontrunners in acquiring a 31 per cent controlling stake in Whirlpool of India, the local arm of the United States appliances major, as per media reports.
The reports noted that EQT and Bain Capital are performing due diligence as the deadline for a binding offer approaches. While retaining 20 per cent, US parent is looking to sell a 31 per cent stake in the Indian unit. The reports noted that the equity in India is held through Whirlpool Mauritius.
The company is looking to raise net proceeds of around USD 550 to 600 million through the stake sale transaction. The reports added that the transaction will trigger an open offer for an extra 26 per cent stake in the company as well. The incoming investor could end up having their hands on 57 per cent stake in the company, if fully subscribed, the reports highlighted.
Havells India, which was interested in the stake to expand its market presence, has reportedly backed out due to the high valuation as well as its decision to focus on the Lloyd business. The bid-ask gap has forced Reliance Industries to back out as well, atleast for now, as per the reports.
In an attempt to boost its presence in India’s fast-growing consumer durables sector, Reliance Retail has acquired Kelvinator, a brand which pioneered electric refrigeration for home use globally. This acquisition strategically aligns with the company’s aim of democratising aspirational living.
By integrating Kelvinator’s legacy of innovation with Reliance Retail’s expansive retail network, the company is looking to unlock substantial consumer value and accelerate growth in the rapidly expanding premium home appliances market across India, it said in a regulatory filing.
