Exhilway Executes Merger With EGW Capital Inc.
Exhilway has merged into EGW Capital Inc. and is planning to list on the US markets by the end of this year.Tweet
-- Twelve months after California based Exhilway called off its business operations in India on account of its failed India focused private equity fund, the company has successfully executed the merger with EGW Capital Inc.
EGW Capital Inc. focuses on the P2P loans and PIPE investments. Last week, the company has entered into the definitive term sheet with the investors to raise US $24.5 million or ₹159 crore against 7% equity dilution. The announcement of the successful fund raise may be done in the next two weeks.
EGW Capital Inc. is seeking a initial valuation of US $350 million or ₹2,275 crore when it will list on the US markets by the end of this year. The company has already started with the listing process.
As a part of the merger agreement, Exhilway management will own nearly 30% in the EGW Capital Inc. which values their stake at US $105 million or ₹682 crore. Exhilway as a part of the legal settlement will transfer shares worth US $5 million or ₹32 crore to its beleaguered India based private equity fund clients. This is the highest amount being paid by any private equity fund on account of its non-performance.
"Exhilway has suffered a lot in the last few years. The company never had any intentions to withdraw its private equity fund and the settlement equity which we are offering is an evidence to this fact. The company is committed to restore its glory. We have finally achieved the much awaited merger which has cleared our way for the listing," said Greg Chandler, the current non-executive chairman of Exhilway.
Notes to Editor
EGW Capital Inc. is an emerging P2P loans and PIPE investments company operational in the United States.