KKR & Co LP has entered into an agreement to acquire a controlling stake in Alliance Tire Group. The US buyout firm would be purchasing the shares from Warburg Pincus LLC.
The announcement was made last Friday, but there was no disclosure as to details on the transaction. Rest assured, this deal will be listed as the largest private equity transaction in India to date. The deal replaces the US$1 billion purchase by Bain Capital of business process provider Genpact last August 2012.
According to sources with direct knowledge of transaction told Reuters that KKR would be paying US$500 million for the stake from Warburg. Of the full amount, KKR would be putting up nearly US$300 million of its own finances to purchase a 75% share in Alliance.
This purchase by KKR would be the central piece in the new debut of the firm's Asia Fund. This fund is valued at US$4 billion that began to be raised back in 2007 and is now estimated to be near US$6 billion to become one of the largest buyout funds raised for the area.
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