CVC Capital secures Aavas Financiers deal, outbidding EQT

CVC's bid values Aavas at approximately Rs 13,019.67 crore, with CVC offering Rs 1,635 per share.

Global private firm CVC Capital Partners has emerged as the winning bidder for Aavas Financiers (formerly AU Housing Finance), surpassing rival EQT. The formal announcement of CVC's successful bid was made on Saturday, August 10 evening.

On July 3, Moneycontrol was the first to report that the promoters of Aavas Financiers, Kedaara Partners and Partners Group were eyeing an exit.

Current promoters in Aavas, Kedaara Capital and Partners Group, are poised to exit their investment after eight years. Kedaara and Partners, who collectively hold a 26.47% stake in Aavas, will see their exit trigger an open offer for an additional 26% of shares from public shareholders, leading to a change in control of the company.  The open offer is priced at Rs 1766.69 per share, as compared to the firm's closing share price of Rs Rs 1,645 per share on August 9.

Should the open offer be fully subscribed, CVC is set to acquire a controlling 52.47% stake in Aavas. As of Friday, August 9, 2024, Aavas Financiers had a market capitalisation of Rs 13,011.75 crore.

On July 10, Moneycontrol was the first to report that CVC was in the race to pick up a majority stake in Aavas Financiers