JSA AZB and Diwanji advise on acquisition and raising funds for Hero Group

Private Equity firms Bain Capital and the Government of Singapore Investment Corporation (GIC) will invest in Hero Investments Private Limited (HIPL). HPIL will use the funds to acquire Honda Motor Company Limited’s 26 percent stake, in its Indian joint venture Hero Honda Motors Limited for $851 million (Rs. 3,841 crore)..J. Sagar Associates advised Hero Group on acquisition of 26 percent stake and in raising funds from Bain and GIC. JSA’s team was led by Managing Partner Jyoti Sagar, Partner Venkatesh Raman Prasad along with Senior Associate Manvinder Singh and Associates Nalin Bawa and Tresa C J..AZB & Partners advised Bain Capital with a team led by Senior Partner Ajay Bahl and Partner Anil Kasturi along with Associates Nandita Govind, Arvind Lakhawat and Debanshu Mukherjee..GIC was represented by Desai & Diwanji with a team led by Partner Vishwang Y. Desai..Business Standard reports Bain will pay 70 percent of the total amount in return for fresh equity, while GIC will pay the rest. The two together will pay less than Rs. 4,500 crore for equity in HPIL, for which permission has been sought from the Cabinet Committee on Economic Affairs. Bain Capital has taken the assistance of Barclays, Standard Chartered Bank and Nomura Securities to structure the deal. Hero Investments will use the cash from the two investors to pay the short-term loans it had taken to buy Honda’s stake..VCCircle reports that the funds will be used to retire a significant portion of debt raised for the deal.