A group of private equity firms are planning to buy a 15 per cent stake in the Hero Honda joint venture, as Honda, the world's largest manufacturer of motorcycles seeks to reduce its stake in its 26 year-old Indian JV with the Hero Group.
According to various media reports, global private equity firms, Kohlberg Kravis Roberts & Co, TPG Capital, Carlyle Group and Bain Capital are reportedly vying to acquire at least 15 per cent interest, valued at $1.1 billion, of Honda's 26 per cent stake in Hero Honda Motors.
Two of the US-based private equity firms, TPG Capital and the Carlyle Group have already moved ahead and have spoken to Honda, but the Japanese company is reportedly looking for a better offer.
Hero Group promoters, the Munjal family, which holds a 26.1 per cent stake in Hero Honda, may buy 5 per cent of Honda's stake in the JV.
Source: Domain B