Singapore sovereign wealth giant Temasek is reported to be in talks with Actis to buy Bangalore-based retail chain Nilgiris Dairy Farm, although a dispute between the emerging markets investor and the company’s promoters is threatening to derail any potential deal.
Actis is understood to have hired HSBC to sell the business, India’s Business Standard reported, although the promoters, the Mudaliar family, are not interested in selling their 33 per cent stake.
Actis bought a 51 per cent stake in Nilgiris for INR3bn ($65m) in 2006 and recently increased its interest to 67 per cent.
The firm is looking to reap sizeable returns on its investment, which coincides with an impending decision on foreign direct investment, the report added.
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