Blackstone acquires majority stake in Gokaldas Exports from Hindujas

22 August 2007

Private equity giant Blackstone Group LP will acquire a majority 50.1-per cent stake for $165 million (Rs682 crore) in India's largest garment exporter, the Bangalore-based Gokaldas Exports Ltd, promoted by the Hinduja Group.

Blackstone will have representation on the board of directors of Gokaldas Exports after the acquisition, while the Hindujas will continue to manage the business.

The Rs275-per share deal will see the promoter group's holding decline 20 per cent. The transaction automatically triggers a mandatory public offer of at least 20 per cent that the US investor would be required to buy from the public at the same price.

Earlier in June this year Blackstone had invested in Indian back-office services provider, SKR BPO Services, which had bought over business process outsourcing firm Intelenet Global Services from Barclays Bank and Housing Development Finance Corp.

Prior to that it had invested $275 million in the media business Ushodaya Enterprises in January this year.