MUMBAI Godrej Industries (GODI.NS) said on Monday Singapore's Temasek TEM.UL will buy 20 percent stake in the former's agriculture business unit for 5.72 billion rupees to fund the unit's expansion plans.
This is Temasek's second investment in India's Godrej group this year after it invested $136 million for a 4.9 percent stake in Godrej Consumer Products Ltd (GOCP.NS) early this year.
The agriculture business unit Godrej Agrovet Ltd generated 24.6 billion rupees in sales during the financial year ended March 2012. The company has interests in animal feed, oil palm, agri-inputs and poultry, Godrej Industries said in a statement.
HSBC was the sole adviser to the transaction.
Private equity investments in India have fallen 17 percent this year to about $3.3 billion, according to Thomson Reuters data as lack of returns hampered investment sentiment.
Temasek, which manages about $198 billion globally, has investments in India's top mobile operator Bharti Airtel (BRTI.NS) and No.2 Indian lender ICICI Bank (ICBK.NS).
(Reporting by Indulal PM; Editing by G.Ram Mohan)
Trending On Reuters
Greece Debt Crisis
Greece's outspoken finance minister resigned on Monday, removing a major obstacle to any last-minute deal to keep Athens in the euro zone after Greeks voted resoundingly to reject the austerity terms of a bailout. Read | Opinion: Greece will struggle to stay in euro