Japan's Mizuho May Ink $650-750 Mn Deal to Buy Avendus

After a bidding battle lasting more than a year, Japan's Mizuho Financial Group has edged ahead of others such as Nomura and Carlyle in its bid to acquire a controlling stake in Mumbai-headquartered Avendus Group, according to three people with knowledge of the development.

- Sneha Shah & Ranjani Raghavan

Japan's leading financial services group is likely to sign a definite agreement in a month to buy around 80% stake in the KKR-backed Indian financial services firm if all shareholders agree, the people cited above said on the condition of anonymity.

However, the deal, which is in its final lap, will need a go-ahead from each of its three founders—Gaurav Deepak, Ranu Vohra, and Kaushal Aggarwal—who wield individual vetoes on the transaction and the buyer.

"If the terms offered by Mizuho are not lucrative, the founders may decide to junk the share sale and directly aim at a public listing," the first person cited above said, adding that the current management, headed by Deepak, is likely to continue running the business over the next decade even if Mizuho takes over.