Situation at the time R3 stepped in
- Multiple auctions without any success
- Valuation was too high and unsustainable in view of bidders
- Also there were three companies for which no single buyer was ready
- Liquidator needed assistance to attract potential buyers
- At this stage R3 was appointed as 'Sale side Advisor' by the Liquidator
R3 Value Addition
- Formulation of Strategy - Convinced liquidator team to put the auction under separate buckets for three companies as well as port stock
- Also, decided as a strategy to take forward private sale with permission of NCLT as multiple auctions failed in the past
- Discussed with many potential bidders in India and abroad
- One to one meetings with the potential bidders to apprise them of the asset/ business
- Successfully attracted 2 buyers who submitted bid
End Result
- One of the two potential buyers successfully acquired the asset (flagship company out of the three companies)
- Subsequently, other company also was acquired by another buyer