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Mumbai: Advent International has agreed to buy Eureka Forbes Ltd in a deal from Shapoorji Pallonji Group, which values India’s maker of ubiquitous water purifiers at 44 billion rupees ($600 million).
Eureka Forbes will be demerged from the parent Forbes & Co and listed on BSE Ltd, SP Group and Advent said in a joint statement on Sunday. The US-based private equity firm will then acquire 72.56% of the company’s shares, followed by an open offering as it receives regulatory approval.
The sale provides an opportunity for the SP Group, under Pallonji Mistry, to reduce debt and focus on core real estate operations, as its businesses were hit by the pandemic. The need for liquidity has been compounded by a dispute with the Tata Group, India’s largest conglomerate in which the SP Group is the largest minority shareholder. Tata Sons Pvt. SP is blocking the group’s efforts to use Tata-affiliated shares to raise funds.
“Eureka Forbes is the No. 1 player in the market poised for strong growth over the next several years,” Shweta Jalan, Managing Director, Advent’s India Unit, said in the statement.
Eureka is one of the 17 companies under the Shapoorji Pallonji Group, according to its Forbes website. Established in 1865, the SP Group is responsible for some of the most iconic structures in India’s financial center Mumbai, including the Reserve Bank of India building and the heritage tower wing of the Taj Mahal Palace Hotel. It is now building what the group says could be the world’s largest affordable housing project. –bloomberg
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