IL&FS Investsmart: SAIF Partners To Exit; Edelweiss Missed Out On The Deal

May 17, 2008 | by Sahad P V

Private equity fund SAIF Partners, which owns 12 per cent stake in IL&FS Investsmart, will exit the company through the open offer to abe announced by the acquirer HSBC Plc. The British banking giant, on Saturday announced that it would acquire 73.21 per cent stake in Mumbai retail broking firm IL&FS Investsmart for $241.6 million (at a price of Rs 200 per share). The sellers are the promoters of the company, E*Trade (43.85 per cent stake) and IL&FS (29.36 per cent). IL&FS will also get $19.4 million as three-year non-compete fee. HSBC is likely to announce the open offer for 20 per cent shares early next week. Sources told VC Circle SAIF Partners will participate in the tender process (open offer), which is expected to be announced next week.
SAIF Partners had acquired shares in IL&FS Investsmart at close to Rs 50 a share three or four years ago. The exit will give the PE fund about 4.5-5 X returns.