Singapore's GIC eyes control of India's Nirlon in up to US$197 million (S$261 million) deal

The logo of the Government of Singapore Investment Corp. (GIC) is displayed during GIC's 30th anniversary conference in Singapore in 2011. -- PHOTO: MUNSHI AHMED
The logo of the Government of Singapore Investment Corp. (GIC) is displayed during GIC's 30th anniversary conference in Singapore in 2011. -- PHOTO: MUNSHI AHMED

MUMBAI (REUTERS) - An affiliate of Singapore sovereign wealth fund GIC plans to take control of India's Nirlon Ltd in a deal estimated to be worth up to US$197 million (S$261 million) , the companies said on Tuesday.

Reco Berry Private Ltd has agreed to purchase up to 30.8 million shares, or a 34.2 per cent stake, from some shareholders of Nirlon at 222 rupees (S$4.63) a share, according to a joint statement.

Reco Berry will also make a tender offer for public shareholders of Nirlon, which owns an information technology office park in Mumbai, to buy a 28.4 per cent stake at the same price, the statement said.

If the tender offer is fully subscribed, Reco Berry will hold 62.6 per cent of Nirlon after the offer, the statement said.

Reco Berry said it had also signed definitive agreements with some other shareholders for a 5 percent stake in Nirlon, subject to conditions. Separately, it is in talks with another group of shareholders of Nirlon to buy about 2 per cent more, Reco Berry said.

Nirlon shares closed at 193 rupees in Mumbai trading on Tuesday, ahead of the announcement.