KKR digs for a billion-dollar fortune in industrial waste

livemint.com:

MUMBAI : KKR & Co. has set the stage for an exit from RE Sustainability Ltd, selling the municipal business back to its founders, and hiring bankers to find a buyer for the remaining industrial waste business. The global private equity firm is seeking a valuation of $1 billion for its entire stake, three people aware of the matter said on condition of anonymity.

“The sale of the municipal business back to its original promoters has been completed. KKR has appointed bankers to help it sell the remaining business of industrial waste management," one of the three people cited above said on condition of anonymity. KKR had acquired 60% in the company, then called Ramky Enviro Engineers Ltd, for $530 million in 2018, with the Alla Ayodhya Rami Reddy family holding the rest.

In preparation for KKR's exit, its municipality and industrial waste businesses were separated, with the founders taking full control of the former, and KKR owning the latter. “The initial outreach to private equity funds have been done. Investment banks Barclays and JP Morgan have been appointed for the same," the second person added.

This is the American private equity firm’s second attempt to the sell the business, after trying a sale in August 2021, and a public listing. According to the second person cited above, infrastructure funds and other buyout funds have been approached. “It is more palatable now.

We will need to discover the value of the business," he added. According to regulatory and NCLT filings seen by Mint, boards of the two RE companies -- RE Sustainability Ltd and Mumbai Waste Management Ltd approved the demerger on 18 January. The parties filed for approval at the NCLT, which approved it on 9 May.