Gautam Thapar family may lose control of CG Power and Industrial Holdings after it defaulted on payments forcing private equity giant KKR to convert its loans into equity. Two other lenders including Yes Bank and BOI AXA are in the process of doing the same in a move that that will reduce the Thapar family to a minority.
KKR now owns about 10.8% in the firm and the combined stake of the lenders is set to touch 30% if YES and others go ahead with their conversion. The Thapar family held about 34.42% in the capital goods firm till KKR’s conversion. In addition, the creditors have nudged the board of CG Power to remove B Hariharan, director and group CFO of Avantha Group as a promoter-nominee and appointed Narayan Seshadri, former chairman of AstraZeneca India and former partner of KPMG India as Independent Director.
The CG Power Board has also constituted an empowered operating sub-committee chaired by an independent director to drive operational improvements. Read More