PE funds seen in talks with dissenting Mirc promoters
Several PE funds including Actis and the Texas Pacific Group (TPG) are understood to be in talks with the dissenting promoters of Mirc Electronics - Sonu Mirchandani and Vijay Mansukhani - to buy their combined stake in Guviso, Mirc’s holding comp...
MUMBAI: Several PE funds including Actis and the Texas Pacific Group (TPG) are understood to be in talks with the dissenting promoters of Mirc Electronics — Sonu Mirchandani and Vijay Mansukhani — to buy their combined stake in Guviso, Mirc’s holding company. The promoters have chosen to sell their stakes owing to the absence of a clear succession plan and other differences with Gulu Mirchandani, Sonu’s brother. “We are in talks with PE funds. I cannot divulge any more details,” Sonu Mirchandani told ET. Vijay Mansukhani was unavailable for comment.
The move takes forward the dispute involving the Mirchandani brothers and their brother-in-law Vijay Mansukhani. But, it does little to allay doubts over whether a successful transaction can take place between members of the divided family and outside investors.
Because Gulu, the elder brother and public face of the company, is determined not to sell his stake. He holds about 33% in Guviso and could be a thorn in the flesh of any outside investor who does a deal with his estranged brother and brother-in-law. A bidder echoed the sentiment. “We need all parties to be on the table. Otherwise it could get messy,” he added.
Most PE funds have completed their first round of discussions and are currently studying the financials, it is reliably learnt. Vijay Mansukhani and Sonu are believed to be peeved over Gulu’s disinterest in chalking out a clear succession plan. Gulu had put his son Kaval in charge of the company’s plasma and LCD business without consulting the brothers, which triggered the fall-out.
“Both feel their children are far more capable in running the business. But with Kaval stepping into the picture, Sonu and Vijay have decided to now opt out,” said a source said. Recently, chairman Gulu offered to buy out co-promoter, Sonu’s 33% stake in the business. The offer was rejected by the latter on the ground that the offer price was abysmally low. Sonu, in turn, had offered to buy out Gulu’s stake at a price higher than offered by the latter.
The promoters are also concerned Mirc’s share price does not reflect the actual value of the company.
The move takes forward the dispute involving the Mirchandani brothers and their brother-in-law Vijay Mansukhani. But, it does little to allay doubts over whether a successful transaction can take place between members of the divided family and outside investors.
Because Gulu, the elder brother and public face of the company, is determined not to sell his stake. He holds about 33% in Guviso and could be a thorn in the flesh of any outside investor who does a deal with his estranged brother and brother-in-law. A bidder echoed the sentiment. “We need all parties to be on the table. Otherwise it could get messy,” he added.
Most PE funds have completed their first round of discussions and are currently studying the financials, it is reliably learnt. Vijay Mansukhani and Sonu are believed to be peeved over Gulu’s disinterest in chalking out a clear succession plan. Gulu had put his son Kaval in charge of the company’s plasma and LCD business without consulting the brothers, which triggered the fall-out.
“Both feel their children are far more capable in running the business. But with Kaval stepping into the picture, Sonu and Vijay have decided to now opt out,” said a source said. Recently, chairman Gulu offered to buy out co-promoter, Sonu’s 33% stake in the business. The offer was rejected by the latter on the ground that the offer price was abysmally low. Sonu, in turn, had offered to buy out Gulu’s stake at a price higher than offered by the latter.
The promoters are also concerned Mirc’s share price does not reflect the actual value of the company.
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While Sonu’s son is the director on the board of Onicra credit agency, Vijay Mansukhani’s son and daughter are studying abroad. Gulu’s younger son, Kaval is in charge of Mirc’s LCD and plasma division while Sasha, the elder son is a member of Mumbai Angels, a bunch of people investing in fledgling companies.Download
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