On Friday, Aavas was valued at Rs 13,020 crore and its shares closed at Rs 1,645 per share. (Representative)
Private equity firm CVC Capital Partners has made an open offer for housing finance firm Aavas Financiers to acquire an additional 26 per cent stake in the company at Rs 1,767 per share, according to a filing to the stock exchanges.
Aavas was valued at Rs 13,020 crore on Friday and its shares closed at Rs 1,645 per share.
The public offer was made after CVC Capital acquired 26.47 per cent stake in the company from existing shareholders Kedaara Capital and Partners Group. The public offer will cost the company Rs 3,664 crore if all the shareholders accept the offer. There were other private equity firms, including EQT, that were in the race to buy Aavas’ stake, according to media reports. If the offer is accepted by the public shareholders, CVC Capital’s stake will increase to 52.4 per cent in the home lending company.
The statement said the transaction was triggered following a share sale agreement dated August 10, 2024, with Lake District Holdings Limited, pursuant to which CVC will purchase 12,346,641 equity shares for Rs 1,635 per share. Further share sale agreements dated August 10, 2024, were signed with Partners Group ESCL, one of the promoters, and pursuant to which CVC will purchase 5,978,718 equity shares for Rs 1,635 per share.
In March this year, Kadaara Capital and Partners Group sold 12.6 per cent of the housing finance company for Rs 1,369 crore through open market transactions to a group of mutual funds. The shares were sold within the price range of Rs 1,370-1,370.20 per share, as per the large-scale data. CVC Capital is also an investor in Gujarat Titans, an Indian Premier League cricket team.
Additionally, CVC India’s portfolio also includes HealthCare Global, Sajjan India and UnitedLex. Going forward, India will remain a crucial market as CVC has invested heavily in the CVC Asia business and aims to further expand its presence in terms of investment professionals, offices, deployment, fund size and client base, according to an earlier statement by CVC.
First published: August 11, 2024 | 10:13 a.m. IS
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