Monday, September 3, 2007

Blue River buys 10.22% in Rane Holdings

Private equity firm Blue River Capital has acquired 10.22 per cent stake in Rane Holdings (RHL), the holding company of Chennai-based auto component manufacturer, Rane Group. The acquisition has been transacted through the secondary market via Blue River’s Mauritius-based investment company.

Rane Group Chairman L Ganesh said, “We believe the investment will enhance the shareholders’ value in Rane companies.”

A representative of Blue River, which has $140 million under management in the country, will now join the Rane Group’s board of directors. The Rs 1,400-crore company is currently undertaking a restructuring exercise to consolidate its shareholdings across group companies through the holding company RHL, which is likely to emerge as the group’s vehicle for mopping up capital for upcoming ventures. Ernst & Young is serving as advisor on the proposed restructuring scheme.

(Source: Business Standard"

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