The UK government-owned CDC Group and venture capital fund Sequoia Capital have declined to comment on reports they are bidding jointly to take a controlling stake in Indian organic food maker Sresta Natural Bioproducts.
According to The Times of India, sources close to Sresta claimed the deal could give Sequoia and CDC a stake of around 70% to 80% in the Hyderabad-based company for nearly INR6.8bn (US$100m).
However, a spokesperson for Sequoia declined to comment on the report and a spokesperson for CDC, which supports business investment in Africa and South Asia, told just-food: “We do not comment on speculation.”
Sresta, which is part-owned by private-equity funds Peepul Capital and Ventureast, did not respond to requests for comment.
Speculation about Sresta’s future follow reports last summer claiming the company had hired a firm to advise it over a potential sale. Sresta was said then to be in “early talks” with private-equity funds in a deal valued at around US$100m.
Sresta says it produces 200 individual products under its 24 Mantra Organic food brand which are sold in India, the US, Canada, the United Arab Emirates, Mauritius and the UK. The range includes rice, wheat, dal, chana, flours, spices, spice powders, culinary pastes, snacks, breakfast cereals, juices and cookies.