CVC Capital makes public offer to acquire 26% additional stake in Aavas Financiers
Aavas was valued at Rs 13,020 crore on Friday and the shares closed at Rs 1,645 per share. (Representative)
Private equity firm CVC Capital Partners has made an open offer for housing finance company Aavas Financiers to acquire an additional 26 per cent stake in the company for Rs 1,767 per share, according to a filing to stock exchanges.
Aavas was valued at Rs 13,020 crore on Friday and the shares closed at Rs 1,645 per share.
The open offer was made after CVC Capital acquired 26.47 percent stake in the company from existing shareholders, Kedaara Capital and Partners Group. The open offer will cost the company Rs 3,664 crore if all shareholders accept the offer. There were other private equity firms, including EQT, in the race to buy Aavas stake, according to media reports. If the offer is accepted by public shareholders, CVC Capital’s stake in the mortgage company will increase to 52.4 percent.
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 acquire 12,346,641 equity shares at Rs 1,635 per share. Another share sale agreement dated August 10, 2024 with Partners Group ESCL, one of the promoters, was signed, pursuant to which CVC will acquire 5,978,718 equity shares at Rs 1,635 per share.
In March this year, Kadaara Capital and Partners Group sold 12.6 per cent stake in the housing finance company for Rs 1,369 crore through open market transactions to a number of mutual funds. The shares were sold within the price band of Rs 1,370-1,370.20 per share, according to bulk data. CVC Capital is also an investor in Gujarat Titans, an Indian Premier League cricket team.
In addition, CVC India’s portfolio also includes HealthCare Global, Sajjan India and UnitedLex. India remains a crucial market going forward as CVC has invested heavily in the CVC Asia business and is looking to further expand its footprint in terms of investment professionals, offices, implementation, fund size and client base, according to an earlier statement from CVC.
First publication: Aug 11, 2024 | 10:13 AM IST