How much stake the company wants to sell?
Higher Appliances India is at number three after LG and Samsung. The company plans to sell its 25% to 51% stake. This company wants to create a structure like MG Motors in which an Indian company becomes the largest shareholder.
According to sources, the valuation of Higher Company is being estimated at $ 2-2.3 billion. It also includes a premium to control the company. Higher Company has been talking about sales with large family offices and private equity funds in collaboration with the CITI since last year.
Connection is related to tariff
Chinese companies are now ready to sell stake in India since the tariff of US President Donald Trump. This is because the prices of their product will increase in the US due to tariffs. Therefore, Chinese companies now want to grow their business in India.
What is the plan of both companies?
Reliance entered the race after offering non-binding offers earlier this year. According to sources, Reliance advisors have approached Higher’s Headquarters, Chingdao directly. Two industry executives said that Mittal also went to China to meet Higher’s Top Management a few weeks ago.
It is understood that Reliance Retail Unit will be a medium for this possible acquisition. According to sources, Reliance wants to move forward alone. Reliance is already increasing its business in electronics with licensed brands such as BPL and Calvinator. However, the brand, reconciliation and wisor installed by Reliance have not achieved much success.
How much will you get equity?
Most Indian companies and private equity firms do not want to become a junior partner in any alliance. Therefore, Higher Company is considering giving 45–48% equity to a local partner. In addition, 3-6% equity will be kept for Indian employees and local distributors, while the rest of the company will keep it with it. According to sources, the final structure is expected to be decided in the next few weeks.