JSW in talks to buy out PE Everstone’s 8% in MG India

Sajjan Jindal-promoted JSW Group is understood to be in advanced negotiations with private equity fund Everstone Capital to buy out its 8% stake in MG India. According to sources with knowledge of the matter, the discussions are part of JSW’s interest in increasing its stake in MG India and the talks are now focused on valuations and the premium to be paid.

When contacted, JSW did not respond to an email query. The MG India spokesman said that the company does not have any comments. Everstone also did not comment.

Currently, JSW Group owns 35% stake in the company while Everstone Capital has 8% stake and another 8% is owned by MG dealers and employees. If the negotiations with Everstone go through, JSW will end up with 43% stake (including the PE firm’s 8%) which is still short of majority shareholding. At the moment it is not clear if JSW will make a bid to acquire more stake (from MG dealers and employees), should the negotiations with Everstone go through.

MG India’s Chinese parent SAIC holds the remaining 49% stake. The joint venture between JSW and SAIC – JSW MG Motor India – was formed in late 2023. At that point, MG India leadership had announced that the investors were putting in over Rs 5,000 crore in the company. Sources say the valuation of the 8% stake could be Rs 1,000-1,200 crore.