Advent Intl, Temasek launch open offer to buy 26% stake in CG

Private equity investors Advent International and Temasek today launched Rs 1,695-crore open offer to acquire 26 per cent stake in newly listed Crompton Greaves Consumer Electricals (CGCEL) to become majority shareholders.
The open offer is to acquire "up to 162,953,997 equity shares constituting 26 per cent of the total share capital of the target company", Cromptom Greaves said in BSE filing.
"The open offer is made at a price of Rs 104 per offer share, the total consideration payable by the acquirer...Will be Rs 1,694.72 crore," it added.
Shares will be acquired through Advent International Corporation's Amalfiaco and Temasek Holdings (Private) Ltd's MacRitchie Investments Pte Ltd.

Crompton Greaves Consumer Electricals (CGCEL) was today listed on BSE and NSE post the requisite approvals.
Commenting on the development, CGCEL said: "The consumer electricals business has significant potential for growth... we will focus on investing and building the Crompton brand, developing consumer meaningful innovation in core categories, investing in our go to market, leveraging systems...To drive operational efficiencies and building organisational capabilities across the company."

In April last year, Avantha Group sold its entire holding of 34.37 per cent in demerged consumer products business of Crompton Greaves to private equity investors Advent International and Temasek for Rs 2,000 crore.

As per the terms of sale agreement, the two private equity firms had agreed to make an open offer for additional shares to gain ownership of CGCEL.
CGCEL's consumer products ranges from fans, lamps and luminaires to pumps and household appliances such as water heaters, mixer grinders, toasters, irons and electric lanterns.
Shares of Cromptom Greaves closed at Rs 61.95 apiece, down 2.52 per cent, from their previous close on the BSE.