Economic Times 8 April 2013
NEW DELHI: American private equity company KohlbergKravis Roberts (KKR) will purchase a 90 per cent stake in specialised tyre maker Alliance Tire Group from rival PE fund WarburgPincus and owner Yogesh Kumar Mahansaria for an enterprise value of about $650 million, including a debt of $125 million, according to two people familiar with the transaction.
“The deal is likely to be announced this week as all the three sides have agreed on the financial terms and have more or less completed the legal formalities,” said one of the persons quoted above. ET reported on March 12 that KKR had emerged as the frontrunner to acquire Warburg Pincus’ 80 per cent stake in Alliance Tire Group. Warburg Pincus will exit the company by selling its 80 per cent stake while Mahansaria will own a 10 per cent stake after selling 10 per cent to KKR.
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