German construction group Hochtief AG is in talks with the owners of Indian infrastructure company Coastal Projects and private equity investors to buy a majority stake in the Hyderabad-based company, a newspaper reported on Friday.
The deal, which may value Coastal Projects at more than $500 million, could see the exit of PE investors Sequoia Capital, Baring Asia, Fidelity Investment Management and Deutsche Bank, who together hold about 35% stake in the company, the paper said, citing people familiar with the process.
Coastal Projects chairman and managing director S Surendra said that the company was discussing a proposal, but it was premature to disclose further, the paper said.
"It is correct that Hochtief has been considering to expand activities in India....Hochtief has taken no decision," the paper quoted head of media relations Christian Gerhardus as saying.
Hyderabad-based Coastal Projects and Hochtief could not immediately be reached by Reuters for comment.
Coastal Projects was exploring bringing in a strategic investor after shelving the proposed plan for an initial public offering, the newspaper reported, adding Hochtief is the frontrunner to buy a stake.
