Actis, the Britain-based private equity major, is exiting its five-year-old investment in Sandhar Locking Devices. Actis had invested about Rs 105 crore in Sandhar in 2005 by acquiring a minority stake. According to sources, Edelweiss has been appointed to advise the deal.
The Gurgaon-based Sandhar Group is into component making for both two-wheeler and four-wheeler manufacturers. Its products include locking devices, rearview mirrors, door handles, etc. The group has collaboration with Honda of Japan. Sandhar supplies all leading original equipment makers (OEMs) in India and also exports to major Japanese OEMs.
According to sources, Actis is in serious talk with two other PE majors to sell the stake in Sandhar. However, the names couldn’t be ascertained. The deal size could be Rs 125-150 crore, sources said. Mails sent to Jayant Davar, managing director, Sandhar Group, and J M Trivedi, Head- South Asia, Actis, did not elicit any response. An Edelweiss spokesperson said the company would not respond to market speculation.
|ACTIS’ MAJOR EXITS|
|2010||Paras Pharma||Reckitt Benckiser||M&A||457|
|2003||Axis Bank||HSBC Asia Pacific||M&A||91|
According to sources, Actis’ stake in Tema India Pvt Ltd is also on the block. Actis has 35 per cent stake, having invested Rs 50 crore in April 2005. Tema designs and manufactures heat exchangers.
Actis’ major investments in India include $76 million in GVK Energy, $100 mn in IDFC, $77 mn in TRIL Roads and $50 mn in Integreon.
Actis had launched two India-dedicated funds, the $325-mn Actis India Fund 2 (investments in Halonix, Damia Bharat, SML Izuzu) and the $300-mn Actis India Real Estate Fund (investment in Vaishnavi Infra).
There were media reports about Actis plans to sell out Halonix, maker of halogen lamps for the automotive sector. Actis started investing in Halonix since 2006 and currently holds above 60 per cent.
Through a blockbuster deal in the Indian private equity space, Actis sold its controlling stake in Paras Pharma for about $726 mn, along with Sequoia Capital to Reckitt Benckiser, last year. Actis had invested about $45 mn in Paras in 2006 for around 25 per cent stake. Actis bought more stakes later, with total investment touching $150 mn.
According to experts, there will be more exits in 2011 as compared to previous years. “The majority of investments made in portfolio companies in 2003-05 have grown enough to provide good returns for investors, which will cause a higher number of exits in 2011,” an industry veteran said.
Currently, Actis invests in India from its $2.95-billion, Actis Emerging Markets III fund, which also invests in emerging markets such as China, Africa and Brazil.