The Munjal family promoted Hero Group is looking to sell part of its stake in Hero Honda that it acquired from Honda to Government of Singapore Investment Corporation (GIC) and private equity firm Bain Capital, reports CNBC-TV18 citing sources.
After deciding to end its 26-year association with Honda late last year, the Munjal family promoted Hero Group is looking to sell part of its stake in Hero Honda that it acquired from Honda to Government of Singapore Investment Corporation (GIC) and private equity firm Bain Capital, reports CNBC-TV18's Kritika Saxena citing sources. GIC and Bain are likely to invest up to Rs 4,500 crore in Hero Investments.
Sources said the deal is valued at a premium to the current market price and is structured via a Singapore-based special purpose vehicle. The Munjal family, sources said, will hold at least 50% in the SPV.
Hero Investments has received approval from the Foreign Investment Promotion Board and the Rs 4500 crore transaction has been forwarded by the FIPB to the Cabinet, sources added.
Several PE players including KKR, Blackstone and Warburg Pincus were in the race, but GIC and Bain Capital emerged as the frontrunners in the deal.
Hero Motocorp stock price
On December 19, 2014, Hero Motocorp closed at Rs 3063.30, down Rs 3.75, or 0.12 percent. The 52-week high of the share was Rs 3271.80 and the 52-week low was Rs 1907.00.
The company's trailing 12-month (TTM) EPS was at Rs 120.45 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 25.43. The latest book value of the company is Rs 280.43 per share. At current value, the price-to-book value of the company is 10.92.
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