India's Hinduja picks Deutsche to weigh sale of Saudi venture - sources

DUBAI Tue Nov 27, 2012 7:59am EST

DUBAI Nov 27 (Reuters) - A unit of family-owned Indian conglomerate Hinduja Group has hired Deutsche Bank to evaluate the potential sale of its 49-percent stake in a Saudi Arabian lubricants venture that is valued at up to $700 million, three sources said.

Jeddah-based Petromin is a joint venture between Gulf Oil International Group, a unit of Hinduja, and family-owned Dabbagh Group in Saudi Arabia, with the Saudi partner holding a 51-percent stake.

The two partners have had differences over strategy, prompting Hinduja to hire an advisor and consider options for exiting the stake, the sources said, speaking on condition of anonymity as the matter has not been publicly disclosed.

A Hinduja spokesman in Mumbai declined to comment as did Deutsche Bank. Calls and email to Petromin went unanswered.

A potential deal will most likely involve a third party coming in to buy out the Indian partner, one of the sources said, adding the entire business had an equity value of between $600-$700 million. (Reporting by Dinesh Nair; Editing by Amran Abocar)

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