Search Now


Wednesday, February 12, 2014

CARE to be acquired by PE Firms

Global PE firms like Actis, General Atlantic, Baring, Apax are in talks with key shareholders of CARE to acquire a controlling stake in the rating agency.

The key shareholders IDBI, Canara and SBI are looking at exiting their investment in the company and planning to raise funds to strengthen their balance sheets before the fiscal ends as the lock in period post IPO ceased in December.

A report in ET further states that these investors may be joined by IL&FS in their divestment.

The shareholders have been in talks with potential investors for reducing their stake offering a minimum of 32% and a maximum of 38%. However the acquisition by the PE firm would result in triggering the open offer with the incoming PE player holding a 51% stake if the open offer gets fully subscribed.

The lenders are expecting a price of R900 a piece, a premium of 24% on the CMP. However there are regulatory hurdles which the shareholders need to tackle for winding up their divestment before the fiscal end.