TPG, GIC lead race to acquire 49% stake in Haier India: Report

Sources told Mint that PE funds bidding for the stake must ensure they have minimal exposure to Chinese investors or limited partners.

Global private equity firm TPG Capital and Singapore's sovereign wealth fund GIC are vying to acquire up to a 49 percent stake in the Indian operations of Chinese consumer durables giant Haier, Mint reported.

TPG has partnered with the Dabur's Burman family, while GIC has joined forces with the Goenka family of the Welspun Group, the report cited sources as saying.

The bidding process has advanced past the first round, with bidders conducting due diligence, the report said. Investment bank Citigroup Capital Markets has been engaged to manage the sale process. "Various structures are being discussed with different bidders," the reported quoted a source as saying. The deal is estimated to value Haier's Indian unit at around $2 billion.

Warburg Pincus, another global PE firm, has partnered with Sunil Mittal's family office, while Bain Capital has teamed up with Puneet Dalmia to bid for a substantial stake, the report added.

Spokespersons for Bain Capital, Citigroup Capital Markets, TPG Capital, and Warburg Pincus declined to comment. Queries sent to Haier India, GIC, Sunil Mittal, Dipali Goenka (Welspun Group), the Burman family, and the Dalmia family office remained unanswered, the report said.

Moneycontrol could not verify the report independently.

The potential stake sale is believed to be influenced by regulatory compliance with India's Press Note 3, which mandates government approval for investments from entities based in countries that share a land border with India. PE funds bidding for the stake must ensure they have minimal exposure to Chinese investors or limited partners, the report said.

“The reason they are looking for a strategic investor alongside PE funds is to facilitate a future public listing of the company," a source said. If Haier offloads a minority stake now, it could later conduct an offer for sale (OFS) during its IPO to further reduce its holding, the report said.