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Home arrow News arrow Business News arrow Cabinet Committee on Economic Affairs clears Rs 4500cr FDI in Hero Investments
Cabinet Committee on Economic Affairs clears Rs 4500cr FDI in Hero Investments Print E-mail
Written by Vivek   
Wednesday, 30 March 2011
New Delhi: The The Cabinet Committee on Economic Affairs approved the proposal of Hero Investments Private Limited (one of the main shareholders in Hero Honda) to receive FDI amounting to Rs.4500 crore (approximately) from two private equity firms. The proposal was recommended by Foreign Investment Promotion Board in February, 2011.

The two private equity firms - Bain Capital and Lathe Investment Private Limited - are expected to pick up a pick up a 29 per cent stake in Hero Investments Private Limited.

Hero Investment Private Limited and Hero Group company have entered into a Memorandum of Understanding with Honda Motors, Japan to acquire 26 per cent equity shares in Hero Honda Motors Limited from Honda Motors for Rs 3,841.83 crore.

After this Hero Investment Private Limited will own 43.33 per cent of Hero Honda Motors Limited.

The funds raised from the PE firms will be used to retire a significant portion of the debt that was raised by HIPL recently for financing the acquisition of Honda Motor Company’s stake in Hero Honda.

 
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