Bain Capital said on Wednesday it would launch an open offer on April 6 to purchase a 26 per cent stake in Indian non-bank lender Manappuram Finance from public shareholders.
Details and background:
* The open offer will close on April 20
* The US private equity firm is offering ₹236 ($2.51) per Manappuram Finance share, plus an additional ₹12.29 apiece as per regulatory requirement.
* The open offer follows Bain’s agreement last year to invest about ₹43.85 billion ($484.40 million) for an 18 % fully diluted stake in Manappuram at ₹236 apiece.
* Upon completion of that investment and if the open offer is fully subscribed, Bain Capital’s stake in the gold loan provider would rise to 41.66 per cent.
* Bain Capital, which plans to exercise control over Manappuram Finance and its units, has made the open offer to comply with India’s takeover regulations.
* Last month, Manappuram Finance said it had received final approval from the Reserve Bank of India for Bain Capital to acquire joint control and up to 41.66 per cent of the company’s equity and convertible instruments.