Advent, Temasek to sell 26% stake in CG Consumer

Industry:    December, 2019

US private equity firm, Advent International and Singapore’s Temasek Holdings are set to sell up to $185 million (Rs 1,328 crore) worth of shares in Crompton Greaves Consumer Electricals on Tuesday as the global investors are taking advantage of a stock market rally and making a near three-times return on a four year old investment.

Advent International Corp’s Amalfiaco and Temasek’s MacRitchie Investments Pte Ltd are selling up to 5.54 crore shares in the company, according to the terms of the deal seen by ET.

The global investors, which together hold 34.36 per cent stake in the firm, will be diluting roughly 26 per cent of their holding through the block deal. Advent and Temasek have set a floor price of Rs 240 a piece, which is up to 4.8 per cent discount to Crompton Greaves Consumer’s Monday’s closing price of Rs 252. Citigroup is running a formal sales process. When contacted, Advent declined to comment. Temasek was not immediately available for comment.

Advent and Temasek teamed up and acquired Crompton Greave Consumer Electricals from Gautam Thapar and his family, the promoters of the diversified Avantha Group in 2015, roughly paying Rs 105 per share, valuing the company at around Rs 2,000 crore.