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01-03-2010, 06:16 PM #1
Bain Capital to invest up to USUSD 124 mm in Himadri Chemicals
Bain Capital, one of the oldest global private investment firms, will invest up to USUSD 124 mm in Himadri Chemicals and Industries Limited, making it one of the largest private equity investment over the past year, claimed the company Saturday.
"Consequent to Board of Directors of Himadri Chemicals and Industries Limited ("Himadri") approving an issuance of 6.31mm shares to Bain Capital India Investments ("Bain Capital") on a preferential basis, both parties entered into an agreement for the same at a price of Rs 400 per share ("Issue Price"), resulting in an equity raise of Rs 252 crores (USUSD 54mm) ("Preferential The issuance is subject to shareholders' approval, for which an EGM has been called for on January 29, 2010," said a company statement.
Upon issuance of such shares, Bain Capital will own 15.39pc of the fully diluted and expanded share capital.
Bain Capital will be making a mandatory tender offer for 20pc of the expanded equity base in accordance with the takeover regulations, amounting to a further investment of up to Rs 328 crores (USUSD 70mm), which together with the Preferential Offering would make this one of the largest Private Equity investments in India over the past year .
Commenting on the investment, Anurag Choudhary, CEO, Himadri, said: "Himadri is today the clear leader in its business segments in India. We welcome Bain Capital into Himadri family, and hope to leverage their investment and value addition expertise, proven with a number of leading global companies, to help take Himadri to a global leadership position."
The issue proceeds will be used to augment the Company's capacity in current line of businesses as well as to further forward integrate into other value added downstream products including expanding capacity in power generation, besides expansion in China and other global markets.
Bain Capital's spokesman said: "We are excited about having Himadri as our first investment in India. We are particularly impressed with the quality of visionary leadership provided by the family and the depth of a truly high quality professional management team that ensures high standards of operational excellence."
UBS Investment Bank and Enam are respectively acting as financial advisors to Himadri and Bain Capital on this transaction.
Argus Partners and AZB and Partners are respectively acting as legal advisors to Himadri and Bain Capital. Kirkland and Ellis LLP is acting as international legal counsel to Bain Capital.
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