Temasek, Bain in race for TPG's Shriram Transport stake - report
Temasek Holdings, Bain Capital and Piramal Group, a conglomerate run by Ajay Piramal, are reportedly leading the race to acquire TPG Capital's 20% stake in Shriram Transport Finance Corp (STFC), one of the leading commercial vehicle lenders in India.
The transaction is expected to close next month once court approval is given for the merger of STFC and its unlisted parent and largest shareholder Shriram Holdings Madras, two people familiar with the negotiations told The Economic Times.
In 2005, TPG invested $100 million for a 49% stake in Shriram Holding Madras through its Newbridge Fund, with conglomerate Shriram Group owning the remaining 51%. Shriranm Holding currently has a 41% stake in STFC.
Given the arrangement, the upcoming merger would bring TPG a 20% indirect stake in the listed company, which has total market capitalization of $2.6 billion, according to Bloomberg.
TPG is said to have been looking to exit STFC since early last year. At that time, the deal estimated to be worth as much as $1 billion, representing an 8x return on the private equity firm's initial investment.
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