Hero Honda's motor stalled

According to local reports, Hero Honda's promoter, the Munjal family, has been in talks with a range of PE firms to acquire Honda's minority stake, including Kohlberg Kravis Roberts & Co., TPG Capital, the Blackstone Group, Carlyle, Clayton Dubilier Rice and Temasek Holdings. Reports suggest that the Munjals would form a special purpose vehicle to buy out Honda's entire stake in the venture, which would then be offloaded to a private equity player. As of its last trading price, Honda's stake is worth more than INR9,000 crore ($1.94 billion), yet PE firms have reportedly been reluctant to make parallel bids because the company is poised to trade much lower following Honda's exit.

Hero Honda is a joint venture launched in 1984 between India's Hero Group and Japan's Honda Motor Company. The company claims to be the largest two-wheeler manufacturing company in India and the ‘World No.1' two-wheeler company in terms of unit volume sales in a year by a single company.

 

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• Topics
• Exits
• South Asia
• KKR
• The Blackstone Group
• The Carlyle Group
• Temasek Holdings
• TPG Capital