**Summary: Haier India Stake Sale**
Global private equity firms are vying for a stake in Haier India’s operations, potentially valuing the company at $2 billion.
### Haier India Stake Acquisition
**Who is Involved?**
Global private equity firm TPG Capital and Singapore’s sovereign wealth fund GIC are competing to acquire up to a 49% stake in Haier India’s operations. TPG is collaborating with the Burman family, while GIC is partnering with the Goenka family of the Welspun Group.
**What is Happening?**
The bidding process for the stake has commenced, with due diligence currently underway. Investment bank Citigroup Capital Markets has been appointed to facilitate the sale.
**When is the Deadline?**
Binding bids are expected to be submitted by the end of next month.
**Where is the Company Based?**
Haier India, a subsidiary of the Chinese consumer durables maker Haier, was established in 2003.
**Why is the Stake Being Sold?**
The sale is likely a response to compliance with the Indian government’s Press Note 3, which restricts investments from entities in countries sharing a land border with India. This regulation necessitates that such investments be made through government approval.
### Complications in the Deal
– The deal is complex due to the requirement that private equity funds involved should not have significant Chinese entities as investors.
– Strategic buyers may enter as minority investors, with private equity firms contributing the majority of the capital.
– A strategic investor could facilitate a future IPO for Haier India, allowing for an offer for sale (OFS) to increase stake post-IPO.
### Conclusion
As the bidding process unfolds, how will the involvement of private equity firms shape the future of Haier India?
**FAQ:**
**What is the potential valuation of Haier India in the ongoing stake sale?**
The deal may value Haier India at approximately $2 billion.
