KKR in talks to buy Warburg Pincus' stake in Alliance Tire: report
12 Mar 2013
Private equity firm Kohlberg Kravis Roberts (KKR) is in exclusive talks to buy Warburg Pincus' majority stake in Alliance Tire Group (ATG), valuing the Mumbai-based tyre maker at about $600 million (Rs3,260 crore), Live Mint today reported, citing a person close to the transaction.
The report said that KKR yesterday signed an exclusivity agreement with Warburg Pincus to buy its entire stake as well as the minority stake held by some of the other stakeholders, including the promoters.
In January, Reuters had reported that KKR and Singapore's sovereign wealth fund Temasek Holdings were in the race to buy Warburg Pincus stake in ATG. (See: KKR, Temasek in the race to buy Warburg's stake in Alliance Tire for around $400 mn: report)
KKR will now conduct due diligence and expects the deal to close in the next two weeks.
New York-based Warburg Pincus had acquired a 70-per cent stake in ATG in 2007 for approximately $150 million.
ATG develops and manufactures a wide range of off-highway tyres, primarily for the agricultural, construction and earth-moving sector.