US private equity firm Bain Capital is reportedly all set to sell half of its holding in Hero MotoCorp, worth up to $393 million. Bain will offload 4.29% stake in the Delhi-based company, by selling 8.57 million shares through an accelerated book building offering. The stake will be sold through open market transactions on Friday and Citibank is the banker to the deal.
Bain has been an investor in Hero MotoCorp for about three and half years. As of March 31, 2014, Bain held 17.14 million shares in Hero MotoCorp - a stake of 8.58%. Excluding the company's promoters, BC India Pvt Investors II, Bain Capital's domestic outfit, is the single-largest shareholder in Hero MotoCorp. Even after the stake sale, it will continue to hold this position.
Hero MotoCorp is the World’s single largest two-wheeler motorcycle company. Honda Motor Company of Japan and the Hero Group entered a joint venture to setup Hero Honda Motors in 1984. Hero Honda Motors changed its name to Hero MotoCorp following the exit of its erstwhile Japanese promoter, Honda, from the company.
