According to The Economic Times, Japan’s biggest investment bank and broking company, Nomura, has entered the competition to buy domestic startup Avendus, which is controlled by US equities behemoth KKR.
Nomura, who was first named as the deal’s sell-side adviser, has entered the race as a third possible bidder, according to sources cited in the report.The change coincides with Nomura’s increasing interest in Avendus, with US-based private equity company Carlyle and Japanese banking behemoth Mizuho emerging as top contenders.
As per the ET, KKR, the owner of 63 percent of Avendus, is anticipated to choose a new advisor in light of Nomura’s renewed interest in the acquisition.Moneycontrol was unable to independently confirm the report.
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For its investment, KKR is looking for a valuation of between Rs 5,500 and Rs 6,000 crore. However, the newspaper stated that potential buyers might suggest a lower worth, between Rs 4,500 and 5,000 crore.
The last round of proposals is anticipated before the end of the month, and the due diligence process has started.
It seems probable that Avendus’ minority stakeholder Gaja Capital will exercise its tag-along rights, which would let it sell its share on the same conditions as KKR. Depending on the ultimate deal arrangement, the company may be sold for up to two thirds of its total value.The last round of proposals is anticipated before the end of the month, and the due diligence process has started.
About Nomura
Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Wealth Management, Investment Management, and Wholesale (Global Markets and Investment Banking).
