Final binding bids for Avendus Capital come through

Avendus Capital

In what seems to be the finale in KKR’s stake-sale process in Avendus Capital, final bids have started to come through, people familiar with the matter told Moneycontrol on December 18.

Nomura may have expressed its interest in a valuation of Rs 5,000 – 6,000 crore to take full control of Avendus Capital, one of the sources said. Bids from Mizuho, another interested bidder, are expected later this week.

“It would be right to call this as the final round of bidding,” the person quoted above said.

On November 11, Moneycontrol wrote that final bids for Avendus Capital are likely to come through by the end of November or early December.

Carlyle has also expressed interest in picking up a controlling stake in Avendus along with a large south-based family office. These bids haven’t come through yet and sources said it’s not clear whether they would make it to the final list of bidders.

Emails sent to Avendus Capital, Nomura and Mizuho remained unanswered. The article will be updated once the responses come in.

Bid values

Nomura’s bid was submitted on December 17 evening. “The valuation offered by Nomura in its final bid is similar to what was in the non-binding bids that came through in July this year,” one of the sources said.

It is anticipated that Mizuho will also put in its final offer during the day or latest by December 20. Mizuho’s valuation for Avendus will likely be around Rs 6,000 – 6,500 crore, similar to what it quoted in its non-binding bid.

A source, however, cautioned that while Mizuho seemed to be well-placed, much will depend on how soon the Japanese lender makes the bid.

Though this round of bidding will be final, there will likely be further discussions on leadership and management continuity factors.

KKR, which holds a controlling stake of over 60 percent, along with a few other investors such as Gaja Capital and Yogesh Mahansaria, founder and CEO of Alliance Tire Group, have offered their shares for sale.

This amounts to around 80 percent stake in Avendus Capital. Further, Ranu Vohra, Gaurav Deepak and Kaushal Aggarwal, the founder promoters of Avendus, may have also tendered their stake for sale. Each of them roughly holds 7– 9 percent in Avendus.

(This is a developing story. Please check back for updates)