Bain, KKR target 30% stake in Lanco power business - report

Lanco told the Business Standard that Macquarie has been hired to run the sales process for the stake.

Lanco is one of the largest private sector power manufacturers, with an installed capacity of 4,480 megawatts across coal, natural gas and hydro power. A total of 51% of its turnover comes from this sector. The company has around 8,800 MW of new capacity under development and has previously said it wants to use the funding as equity for these projects.

In addition to power, Lanco operates across the infrastructure sector, including roads, engineering, procurement and construction, property development and natural resources such as coal mines in India and overseas.

The company is also hoping to monetize its wind portfolio and roads business, and in June it was reported that Morgan Stanley Infrastructure Partners, a $4-billion global infrastructure fund, was in early talks to purchase its 401 kilometers of highway projects.

Other infrastructure-focused private equity players have also undertaken due diligence on Lanco's road assets, which have been valued at between INR10 billion ($180 million) and INR12 billion. Ernst & Young is advising Lanco on the sale of that part of the business.

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• Topics
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• South Asia
• KKR
• Bain Capital Asia
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• India