Hero Group to sell 29 per cent stake

Hero Group to sell 29 per cent stake

Earlier in the month, the Group had signed definitive agreements with Private Equity firms BC India Private Investors II, an affiliate of Bain Capital LLC, and Lathe Investment Pvt Ltd, a wholly-owned subsidiary of Government of Singapore Investment Corporation (Ventures) Pvt Ltd.

“Subject to all necessary clearances, these two investors shall collectively invest around Rs 3,650 crore for approximately 29 per cent stake in HIPL, which will own 43.33 per cent of Hero Honda Motors Ltd post acquisition of Honda’s stake,” a senior Hero Group official said.

HIPL is one of the main shareholders of the country’s largest two-wheeler maker Hero Honda. It holds 17.33 per cent stake in the company as on December 31, 2010.

The Foreign Investment Promotion Board (FIPB) had recommended the proposal to the Cabinet Committee for approval as it involves foreign investment exceeding Rs 1,200 crore.