Global PE firms Blackstone, KKR, Apax and TPG Capital have entered the race with Advent and Crompton Greaves Consumer to acquire Eureka Forbes, a Shapoorji Pallonji Group company, reported The Economic Times, citing people aware of the development.
According to the report, the Shapoorji Pallonji Group is in preliminary discussions with the potential suitors for a possible transaction. The talks centre around the sale of control or an outright takeover.
The sources told the paper that the urgency for a stake sale was due to the liquidity crisis at the SP Group and the need to pay off the debt raised from Sterling & Wilson.
Earlier on Tuesday, SP Group’s listed unit Forbes & Company announced its plan to unlock value of subsidiary Eureka Forbes Ltd that may include listing, dilution/sale or combination thereof.
In a regulatory filing, the company announced that its board has authorised the management of the company to evaluate a scheme of arrangement and other appropriate mechanisms to enable an eventual listing of Eureka Forbes.
First Published: IST