Advent's $1.b deal talks for Whirlpool India stake collapse

MUMBAI, Dec 07 (Reuters): Global private equity firm Advent International's talks to acquire US giant Whirlpool's India unit for up to $1.0 billion have collapsed due to disagreements over valuation, four people familiar with the matter told the news agency.

Advent had emerged as the frontrunner to acquire a 31 per cent stake in Whirlpool of India from its Michigan-based parent, Whirlpool Corp, which would have triggered a mandatory open offer to acquire a majority stake, the sources said.

In January, the US-listed home appliance maker said it had a 51 per cent stake in its India unit and wanted to pare that to about 20 per cent to pay off a major chunk of its debt amid a major rejig of its global assets. Tt had said it could get net cash proceeds of $550 million to $600 million from the sale.

If Advent had acquired the 31 per cent stake, it would have triggered a mandatory open offer for an additional 26 per cent under Indian regulations, giving it a controlling 57 per cent stake.