Clairvest discloses $56M exposure to new Indian investment

Clairvest Group Inc. (TSX: CVG) disclosed that there has been a material adverse regulatory development with respect to its investment in Head InfoTech India Pvt. Ltd. based in Hyderabad, Telangana.

Clairvest’s exposure to this investment, on a pre-tax basis, is equal to 11% of Clairvest’s most recently disclosed book value, or $56 million. The negative impact on the value of Clairvest’s investment in Head InfoTech from this development is currently uncertain and potentially material, said Clairvest.

On April 28, 2017, Clairvest Group announced that together with limited partnerships controlled by it, it made a US $73.7 million investment in Head InfoTech India Pvt. Ltd. Clairvest’s portion of the investment will be approximately US $40 million or $56 million.

Indian’s Telangana State government has issued ordinance to ban online gaming. Anyone caught playing online games, rummy and online gambling in Telangana will have to face severe punishment.

photo credit: Clker-Free-Vector-Images via pixabay

Ted Liu

Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.