Reports: KKR close to Alliance Tire Group buyout

Reports from India suggest private equity firm KKR and Co. is in the last stage of talks to buy as much as an 80 per cent stake Alliance Tire Group. The latest news, which follows a couple of months of speculation about the deal, values the company at around US$600 million. According to livemint.com, KKR will buy out the stake currently held by another private equity firm, Warburg Pincus Llc, as well as the minority stake held by certain other stakeholders.

According to the reports, which cited sources close to the transaction, KKR signed the so-called exclusivity agreement with Warburg Pincus ensuring the company is the only remaining suitor on Monday 11 March. This is expected to mean that Warburg has roughly a fortnight for talks to reach a successful conclusion before other parties are allowed to re-enter negotiations.