(Bloomberg) – Sunil Mittal is acquiring a 49% stake in the Indian unit of China’s Haier Smart Home Co. in senior talks as billionaires hope to capitalize on demand for goods such as household appliances in South Asian countries, a growing demand in South Asian countries, according to people familiar with the matter.
The founder of Bharti Airtel Ltd. has partnered with private equity firm Warburg Pincus to purchase shares in Haier Eppliances (India) Pvt. People say there is about $2 billion, and the demand is uncertain because the information is not public. The people said the agreement could be signed within a few weeks, awaiting approval.
People say that deliberations are underway and Haier may decide not to sell, while other buyers may also appear.
Representatives for Mittal and Warburg Pincus declined to comment. Haier did not immediately respond to a request for comment.
The Economic Times of India reported in October that Haier is considering selling 25% to 49% of its shares in the unit. By November, it attracted initial interest from potential investors, including Temasek Holdings PTE, GIC PTE and Abu Dhabi Sovereign wealth fund Mubadala Investment Co.
Haier’s revenue in the first quarter increased by more than 30% from the same period last year, with its side-by-side refrigerators having a market share of 21% in India, the company said in an April 29 filing.
According to the Bloomberg Billionaire Index, Mittal and his family have a net worth of $28 billion.
