Blackstone set to exit Agile Electric with over 100% gains in 2 years

Japan's Igarashi to acquire US PE major's stake in the firm for $106 million

Japan's Igarashi Electrical Works, along with Bengaluru-based Mape Advisory Group, will acquire a 97.9 per cent stake in Chennai-based Agile Electric Sub Assembly from funds managed by global private equity (PE) giant Blackstone for $106 million. The transaction comes about 18 months after Blackstone along with partners and high net worth Indians paid $110 million to acquire the stake from various shareholders of Agile Electric Sub Assembly in July 2013.

The exit gives a healthy gain of 103 per cent for Blackstone, as it had come in with around $52 million during July 2013.

Agile Electric Sub Assembly owns 60 per cent in publicly-held Igarashi Motors in India and with Igarashi Japan acquiring indirect control over its listed entity in India, an open offer will be triggered. Agile Electric is the largest manufacturer of DC motors in the country and its customers include leading companies such as Delphi, Bosch, Ford and Continental. The company has eight manufacturing facilities in Chennai, seven of which are located within special economic zones.

According to information available, the offer price would be Rs 307-308 a share of Igarashi Motors. The entire size of the open offer will be $41 million and Religare Capital Markets has been appointed the manager to the open offer.