CVC Capital makes open offer to acquire 26% more stake in Aavas Financiers

Private equity firm CVC Capital Partners has made an open offer for home finance firm, Aavas Financiers to acquire an additional 26 per cent stake in the company at Rs 1,767 a share, as per a statement to the stock exchanges. 

Aavas was valued at Rs 13,020 crore on Friday with its shares closing at Rs 1,645 a share.

The open offer was made after CVC Capital acquired 26.47 per cent stake in the company from existing shareholders, Kedaara Capital, and Partners Group for Rs 3,425 crore.  The open offer will cost the company Rs 3,664 crore if all shareholders accept the offer.  There were othe private equity including EQT were in the race to buy Aavas stake, as per media reports.

The statement said the transaction was triggered after a share sale agreement dated August 10, 2024, with Lake District Holdings Limited, pursuant to which CVC will buy 12,346,641 equity shares for Rs 1,635 a share. Other share sale agreements dated August 10, 2024, with Partners Group ESCL, one of the promoters was signed and pursuant to which CVC will buy 5,978,718 Equity Shares for Rs 1,635 per equity share. 

In March this year, Kadaara Capital and Partners Group sold 12.6 per cent in the housing finance company for Rs 1,369 crore through open market transactions to a clutch of mutual funds. The shares were disposed of within the price range of Rs 1,370-1,370.20 a share, as per bulk data. CVC Capital is also an investor in Gujarat Titans, an Indian Premier League cricket team. 

Besides, CVC India’s portfolio also includes HealthCare Global, Sajjan India, and UnitedLex. Going forward, India remains a crucial market as CVC has invested heavily in the CVC Asia business and aims to further expand its footprint across investment professionals, offices, deployment, fund size, and client base, as per an earlier statement by CVC.