Bain Capital, the U.S. private equity firm and the Government of Singapore Investment Corp are near to buying a marginal stake in India's largest motorcycle maker Hero Honda, as reported by the Financial Times recently.
The deal may possible be worth as much as $1.75 billion, the report on FT's website said, quoting unnamed people familiar with the matter. The buyers are expected to receive only one board seat, the report said.
Previous month ending a nearly 25-year-old partnership, Hero Group's founders consented to acquire Honda Motors' 26-percent stake in the Indian joint venture.
The Munjal family has asked prospective buyers to pay between 1,500 to 1,650 rupees a share, the paper said, adding the proceeds would go to the family and not the company or its shareholders.
The stake sale plan drew interest from several other global private-equity firms. The recent shares in Hero Honda, valued at $7.3 billion by the market, and closed 1.6 percent down at 1,630.50 rupees in a weak Mumbai market.
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