Bain, GIC to invest in Hero, fund buy of Honda stake

MUMBAI, March 8 Tue Mar 8, 2011 4:14am EST

MUMBAI, March 8 (Reuters) - Private equity firms Bain Capital and the Government of Singapore Investment Corp have agreed to invest in Hero Investments to help it fund its acquisition of Honda Motors' 26 percent stake in its Indian joint venture.

The funds will be used to retire a significant portion of debt raised for the deal, Hero Group said in a statement.

Earlier on Tuesday, Hero Investments said it has agreed to buy Honda Motors Ltd's (7267.T) stake in Hero Honda Motors HROH.BO for around $851 million in a deal that will see the Japanese automaker exit its joint venture in India after more than 26 years.[ID:WNAS1255]

Hero Investments is buying the stake at 739.97 rupees a share, it said in a statement. (Reporting by Prashant Mehra; Editing by Jui Chakravorty)

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