Advent, Bain, TPG, others drawn to Whirlpool India

Advent International, Bain Capital, TPG, EQT, Carlyle and KKR are among private equity funds that have been sounded out on buying into Whirlpool's India business as the US parent looks to pare its stake in the listed subsidiary, said people aware of the matter.

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Whirlpool Corp. is looking to sell a 31% stake in Whirlpool of India Ltd, which generates 85% of its Asia revenue, while retaining a 20% holding, they said. It's looking to raise net cash proceeds of $550-600 million (Rs 4,684-5,110 crore) from the transaction. A formal stake sale process was launched earlier this month by the company's advisor Goldman Sachs.

The executives said the deal could involve two funds jointly acquiring the stake, since Whirlpool Corp. has indicated it wants to remain the largest shareholder in the Indian arm. An entity getting a stake of 26% or more would also trigger an open offer. However, most of the buyout funds are keen on getting a controlling stake.

Talks are in the initial stage with management meetings just kicking off. Many of the funds have started the process of roping in industry advisors.