The family office of Indian industrialist and Bharti Airtel Chairman Sunil Mittal has withdrawn from talks to buy 49 percent stake in Haier Appliances (India) after failing to reach an agreement on valuation, Business Standard reported citing people familiar with the matter.
Haier India's Chinese parent company Haier Group sought a valuation of nearly $2 billion (around Rs 17,650 crore), but received significantly lower bids offering $600 million (nearly Rs 5,295 crore), the report added.
Haier India may also consider a public listing, although no final decision has yet been taken, the report further said, citing sources. The Chinese firm has been exploring a potential exit from the Indian unit for several months now, it added. This comes amid buzz over the prospective initial public offering of its Korean rival LG Electronics.
Moneycontrol couldn't independently verify the report.
Earlier this year, Bloomberg had reported that Sunil Mittal is in advanced talks to acquire a 49 percent stake in the Indian unit of China’s Haier Smart Home Co to tap the growing demand for goods such as home appliances in the South Asian country.
Haier entered the Indian market in 2004 and began manufacturing refrigerators in 2007. It currently holds a 14 percent share in the refrigerator segment, Business Standard said. Its presence in washing machines, televisions, and air conditioners remains in the single digits, it added.
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