Sunil Mittal, founder of Bharti Airtel, and private equity firm Warburg Pincus have jointly bid $720 million for a 49% stake in the Indian arm of Haier, the Business Standard reported on Monday, citing sources.
Haier, a Chinese electronics maker, had initially sought a $2 billion valuation for the stake but received lower bids, the report said.
Warburg Pincus declined to comment. Haier and Sunil Mittal did not immediately respond to Reuters emails seeking comment.
Bloomberg News had reported in May that the company was exploring a potential $2 billion deal.
As part of the proposed deal, Haier India employees may be granted a 2% stake, the report said, adding that a stock market listing is being considered within two years to provide an exit route for the Chinese parent.
Valuation expectations have been dampened by high brand usage fees and royalty demands from Haier Group, the report added.
Haier India operates three manufacturing facilities in the country, producing air conditioners, refrigerators, washing machines, and other appliances.
The group, which currently owns the entire Indian unit, has been considering a partial exit and previously held early-stage talks with Reliance Industries, according to the report.
Reuters
