Mining tycoon Anil Agarwal and Centricus Asset Management team for turnaround fund
They have started approaching potential investors for the proposed India Direct Investment fund, which can buy stakes in government companies being sold as a part of the country’s 2.1 trillion-rupee ($29 billion) divestment program
Anil Agarwal (Photographer: Simon Dawson/Bloomberg)
Indian commodities tycoon Anil Agarwal, who made a fortune buying state companies and fixing them up, is preparing to boost an investment fund targeting turnaround opportunities within the country, people with knowledge of the matter said.
Vedanta Resources Ltd’s billionaire founder is functioning with Centricus Asset Management Ltd on the plans, consistent with the people, who asked to not be identified discussing private information. they need started approaching potential investors for the proposed India Direct Investment fund, which can buy stakes in government companies being sold as a part of the country’s 2.1 trillion-rupee ($29 billion) divestment program, the people said.
The fund also will target companies restructuring under India’s bankruptcy regime, the people said. it’ll check out both private and public firms, they said. Agarwal and London-based Centricus decide to contribute the maximum amount as 10% of the capital, consistent with the people.
Prime Minister Narendra Modi is putting a number of India’s corporate icons on the block during a bid to plug budget holes and fund infrastructure spending. Agarwal is seeking to seek out the gems among the handfuls of companies being sold and tap his industry connections to show them around, as he tries to repeat his success in build up a metals and mining powerhouse.
Deal Spree
Deliberations are at an early stage, and details of the fund could change, the people said. A representative for Agarwal couldn’t immediately comment, while a representative for Centricus declined to comment.
Agarwal features a net worth of about $2.5 billion, consistent with the Bloomberg Billionaires Index. the previous metal trader built his business through a series of ambitious acquisitions over the past few decades, including a 2001 deal to require control of government-owned Bharat Aluminium Co in one among the primary tests of India’s efforts to dump state holdings.
He followed that up with the acquisition of another government entity, Hindustan Zinc Ltd, and in 2007 successfully bid for what was India’s largest ore producer, Sesa Goa Ltd. In recent years, his commodities company acquired control of insolvent Electrosteel Steels Ltd from its lenders.
The self-made billionaire also went abroad for investment. Until last year, he was the most important shareholder of Anglo American Plc, triggering speculation that Agarwal was getting to push for a serious change, like a takeover or breakup. within the end, the tycoon decided to exit his investment as he said his returns were “achieved even before expected.”
Agarwal’s Volcan Investments Ltd took his London-listed Vedanta Resources private in 2018 because the entrepreneur sought to simplify the company structure of his resources group. This year, he proposed to shop for the 49.9% stake in India-traded Vedanta Ltd that he doesn’t own and delist the commodities giant.
Centricus oversees $27 billion in assets, consistent with its website. The firm was founded in 2016 by Nizar Al-Bassam, a former underwriter at Deutsche Bank AG, and ex-Goldman Sachs Group Inc partner Dalinc Ariburnu. Centricus advised SoftBank Group Corp on the creation of its $100 billion Vision Fund and also worked on its $3.3 billion takeover of Fortress Investment Group LLC.
