October 2010
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Mudra to sell 25% stake to E-Land

Mudra Lifestyle today said it will issue 1.2 crore equity shares, constituting 25 per cent equity in the company, to South Korea-based textile chain E-Land for around Rs 72 crore. “The Board of Directors at its meeting held on October 15 has decided to issue 1.2 crore equity shares of face value Rs 10 each, at a price of Rs 60 per share,” the company said in a statement to the Bombay Stock Exchange. An extra ordinary general meeting of the shareholders of the company will be held on November 13 for approval. The entry into the above transactions would result in the investor being required to make an open offer under provisions of the Securities and Exchange Board of India. […]

Carlyle, KKR, Warburg Pincus in talks to buy stake in Hero Honda

US private equity firms Carlyle, KKR and Warburg Pincus could buy a stake of between 15% and 18% in India's motorcycle maker Hero Honda Motors (BOM:500182), the Economic Times said Monday citing unnamed sources. According to the paper, the transaction would be part of a two-stage deal, which could end up with Japanese Honda Motor (TYO:7267), which owns 26% of Hero Honda, exiting the Indian company. As part of the plan, Hero is currently in advanced talks with the investments firms to sell them 60% to 70% in a special purpose vehicle (SPV), which will acquire Honda's entire stake in Hero Honda with bridge loans. If the deal is successful, the Hero group will control up to 36% of Hero Honda, while the buyout funds will control up to 18% indirectly. Honda, Hero and KKR were unavailable for comment, while Warburg Pincus and Carlyle declined to comment. […]