Deals Buzz: Five PE firms in race to buy 10% stake in Hero FinCorp for Rs800 crore

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Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

Tata Steel halts UK asset sale process on Brexit concern

Tata Steel Ltd has put the sale of its UK assets temporarily on hold in the fallout of Britain’s vote to exit the European Union (EU), reported Mint. Tata Steel, whose board will meet on Friday, is postponing the sale until clarity emerges in the UK political landscape after the 23 June Brexit vote. The company wants to ensure that UK authorities are still committed to offering incentives to potential buyers of the assets. Friday’s board meeting will discuss the road ahead for the sale post Brexit. Read more

Five private equity firms in race for 10% stake in Hero FinCorp for Rs.800 crore

Private equity (PE) firms Multiples, ChrisCapital, Creador Capital, Baring Asia and Partners Group are in race to buy a 10% stake in Hero FinCorp, the vehicle finance arm of top two-wheeler maker Hero Moto-Corp., reported The Economic Times. All the five PE firms submitted their non-binding bids for the stake about a week back. Hero is expecting to fetch around $120 million, or little more than Rs.800 crore, from the stake sale and the deal would value Hero FinCorp at about $1.2 billion, or more than Rs.8,000 crore. Read more

In November, Mint had reported that Hero FinCorp had started the process for raising at least $100 million (Rs.650 crore) by selling a minority stake to PE funds to fuel its expansion into new areas. Read more

Home First Finance looking to sell 30% stake for Rs.250 crore to fund operations

Mumbai-based private lender Home First Finance Co. is looking to sell 30% stake for Rs.250 crore to fund operations, valuing the company at Rs.850 crore, reported The Economic Times. Founded by former Mphasis chairman Jaithirth Rao and Bank of Baroda managing director P.S. Jayakumar, the Mumbai-based company provides loans of Rs.1-30 lakh, mostly to first-time home buyers. Read more

Finance giants, PEs & tech companies eye GE’s SBI Card stake

Japanese financial services firm Credit Saison, consortium of PE fund Carlyle Group and Cognizant Technology are among the final contenders for GE’s stakes in SBI Card in a deal that values India’s third-largest credit card player at $750 million-1 billion, reported The Economic Times. Bulge-bracket PE firm Warburg Pincus and a combine of General Atlantic and NYSE-listed payments giant Tsys are the other two shortlisted from among diverse strategic and financial suitors. The final four contenders are due to submit binding offers next week, though the deadline may be postponed by a few days. Read more

In March, Mint had reported that as many as eight investors, including global PE funds KKR and Co., Bain Capital and General Atlantic Llc had been shortlisted for the purchase of GE Capital Corp.’s stake. The value of GE Capital’s stake in SBI Card is estimated at about $400 million (Rs.2,680 crore) Read more

Suryoday Micro Finance raises Rs.100 crore

Small finance bank licensee Suryoday Micro Finance has raised Rs.100 crore of fresh equity capital from a clutch of domestic investors, including IDFC Bank, HDFC Standard Life and a couple of other family offices, reported Financial Express.

While existing investor Aavishkaar Goodwell used the opportunity to completely exit the company, Lok Capital sold a part of its stake in the Navi Mumbai-based microfinance company. Suryoday is one of the 10 companies that have won the licence to start a small finance bank.