Japan’s Mizuho Financial Group is poised to finalize an agreement within a month to acquire approximately 80% of Avendus Group, following a competitive bidding process that lasted over a year. Mizuho has outpaced other contenders, including Nomura and Carlyle, in its pursuit of a controlling interest in the Mumbai-based financial services firm, according to sources familiar with the situation.
The deal is contingent upon the approval of Avendus’s three founders—Gaurav Deepak, Ranu Vohra, and Kaushal Aggarwal—who each hold veto power over the transaction. If Mizuho’s offer is deemed insufficient, the founders may opt to forgo the sale and pursue a public listing instead. Despite a potential takeover, the current management, led by Deepak, is expected to remain in charge for the next decade.
Mizuho is anticipated to invest between $650 million and $750 million for the stake. The Japanese firm submitted a binding bid last December and has been negotiating with various stakeholders to finalize the agreement. Other bidders, including Nomura and Carlyle, appear to have fallen behind in the competition.
KKR, which initially invested $115 million to gain a controlling stake in Avendus in 2015, is the lead investor in this transaction. Discussions between Mizuho and KKR are ongoing, and once an agreement is reached, it will be presented to the other shareholders.