Cerberus Capital, IFC to fund Madhvani group's Hindusthan National Glass buyout

Cerberus Capital and World Bank arm, International Finance Corporation ( IFC), have provided Madhvani group a Rs. 1600 crore loan for its planned takeover of Hindusthan National Glass and Industries Limited ( HNG), according to people aware of the matter.

The planned takeover involves an investment of around Rs. 2,600 crore by the Uganda-based conglomerate that operates multiple businesses in Africa.

Cerberus Capital is said to be contributing about three quarters of the loan amount.

The Madhvani group is acquiring HNG through its company Independent Sugar Corporation Limited. Out of the total investment of Rs. 2,600 crore, the Madhvani's will bring in equity of Rs. 875 crore. IFC may also make a small equity contribution. The remainder will be funded through the loan.

Queries to IFC and Cerberus Capital had not elicited a response. Madhvani Group declined to comment.

Hindusthan National Glass and Industries Limited (HNG) was admitted for insolvency proceedings in October 2021 at the behest of DBS Bank, a financial creditor. Protracted litigation has delayed its insolvency resolution process by years. Typically, companies undergoing insolvency need to find a resolution within 330 days.

Madhvani group company Independent Sugar Corporation Limited’s resolution plan for HNG was approved on 14 August.

The group helmed by Shrai Madhvani has announced its intent to invest Rs. 10,000 crore in India.