KKR, Blackstone may acquire stake in Shriram Group for $3 billion: Report

With 160 deals, IT and ITES was the busiest sector followed by manufacturing and healthcare (47). The banking, financial services and insurance (BFSI) space was third, recording 41 deals. Let's take a look at the biggest mergers and acquisitions in India this year. (Representative image)

KKR & Co and Blackstone Group have expressed interest in acquiring stake in Ajay Piramal’s finance conglomerate Shriram Group, sources told Bloomberg. The investment could be worth about $3 billion, they added.

The two private equity firms have held discussions in the past few months on picking up a stake in Shriram Group, the report stated.

As per the report, before the deal, Shriram Capital, the group holding company, would have to finalise plans for a three-way merger with its publicly traded arms: Shriram Transport Finance and Shriram City Union Finance.

The interested firms want to invest in a single listed entity, which would include all the group’s businesses, the report said, adding they are unwilling to take a long term exposure to an illiquid holding company.

In 2018, the finance industry has seen acquisitions worth $7 billion by buyers like Actis to Singapore-based Temasek Holdings. Media reports earlier suggested that Aditya Birla Capital may spend $1 billion with US investment firm Varde Partners on distressed assets through a joint venture.

These negotiations have hit pause after the market turmoil caused by the default of Infrastructure Leasing & Financial Services (IL&FS) and may resume after the situation stablises, the report said.

Piramal was approached by KKR last year but no price agreement has been reached yet, it stated. If it does go ahead with the deal, KKR would team up with other investors and also approach Blackstone for a potential deal, it added.

There is no certainty the parties will reach an agreement, sources told the wire.