The Chennai-based Chettinad Group, owned by M. A. M. Ramaswamy, has sold 25% stake in Chennai Container Terminal Pvt. Ltd, the special purpose vehicle that operates and manages a one million twenty-foot equivalent unit (teu) capacity terminal at Chennai Port.
Global Infrastructure Partners, a private equity firm focused on global infrastructure asset investments, has agreed to acquire the stake in Chennai Container Terminal through its firm International Port Holdings.
Global Infrastructure Partners is a $1 billion (Rs4,100 core) private equity joint venture formed by investment bank Credit Suisse and US conglomerate General Electric Co. The world’s third biggest container port operator, Dubai-government owned DP World, owns a majority 75% stake in Chennai Container Terminal.
Chennai is India’s second biggest container port after Jawaharlal Nehru Port in Mumbai. It handled 8.81 lakh teus in the 12 months to March 2007 and is expected to close the current fiscal with a million teus. Since its opening in 2001, the traffic at Chennai container terminal has grown at 18.7% a year, making it the second fastest growing container terminal in India.
(Source: LiveMint)
Saturday, June 30, 2007
Avesthagen acquires US ingredients supplier
Avesthagen, a Bangalore-based integrated biotechnology platform company, has acquired a US-based ingredients supplier for $11 million.
Refusing to name the company, Villoo Morawala Patell, vice-chairman and MD of Avesthagen, said it is a cross-border deal with a company that has presence in the UK, the US and Dubai.
The company, which supplies active nutritional ingredients (ANIs) to food majors Nestle and Danone, has also made progress on that front. “The food majors have taken the products that address the problems of osteoporosis and diabetes to the pre-clinical stage,” said Patell.
(Source: Business Standard )
Refusing to name the company, Villoo Morawala Patell, vice-chairman and MD of Avesthagen, said it is a cross-border deal with a company that has presence in the UK, the US and Dubai.
The company, which supplies active nutritional ingredients (ANIs) to food majors Nestle and Danone, has also made progress on that front. “The food majors have taken the products that address the problems of osteoporosis and diabetes to the pre-clinical stage,” said Patell.
(Source: Business Standard )
R-ADAG may pick up stake in Ultra
Home video major Ultra is in talks with the Reliance Anil Dhirubhai Ambani Group (R-ADAG) for a strategic equity partnership in the company.
However, he added that the talks were at a nascent stage. Agarwal said that the negotiations with the strategic players were aimed at raising around Rs 100 crore through sale of around 25 per cent equity. If the deal happens, it will value the company at around Rs 500 crore.
There has been a sudden rush of corporate biggies wanting to enter the home video industry after Delhi-based optical storage media maker Moser Baer entered the business last December with DVD and VCD prices at Rs 34 and Rs 28 respectively. Harish Thawani-promoted Nimbus Communications too has announced its plan to join the fray.
According to PricewaterhouseCoopers (PwC), the home video market is expected to grow at a compound annual growth rate (CAGR) of 31 per cent to Rs 2,500 crore by 2011. An additional boost will come from a growing domestic retail sector.
(Source: Business Standard)
However, he added that the talks were at a nascent stage. Agarwal said that the negotiations with the strategic players were aimed at raising around Rs 100 crore through sale of around 25 per cent equity. If the deal happens, it will value the company at around Rs 500 crore.
There has been a sudden rush of corporate biggies wanting to enter the home video industry after Delhi-based optical storage media maker Moser Baer entered the business last December with DVD and VCD prices at Rs 34 and Rs 28 respectively. Harish Thawani-promoted Nimbus Communications too has announced its plan to join the fray.
According to PricewaterhouseCoopers (PwC), the home video market is expected to grow at a compound annual growth rate (CAGR) of 31 per cent to Rs 2,500 crore by 2011. An additional boost will come from a growing domestic retail sector.
(Source: Business Standard)
TCS explores merger of group firms
The country's leading information technology (IT) services provider, Tata Consultancy Services (TCS), will explore the option of merging some of its group companies
Speaking at the company's second Annual General Meeting (AGM), Tata Group chairman, Ratan N Tata, said: "It makes sense merging some of the group companies. However, Tata Elxsi is into animation and will be a standalone business." He, however, did not specify any name. IT solutions provider CMC, Elxsi and Tata Technologies are the other IT companies of the group.
Answering a shareholder's concern on why Indian IT companies cannot be the next Microsoft or Cisco of the world, Tata remarked: "This is something that I have been discussing with Rama (Ramadorai). But I feel that products come from markets that are close to such market places and US provides that market. We might look at creating a product group in US and treat it as a venture capitalist activity by TCS." The Tata group company, he added, is aiming to become one of the top 10 global IT companies by 2010.
(Source: Business Standard )
Speaking at the company's second Annual General Meeting (AGM), Tata Group chairman, Ratan N Tata, said: "It makes sense merging some of the group companies. However, Tata Elxsi is into animation and will be a standalone business." He, however, did not specify any name. IT solutions provider CMC, Elxsi and Tata Technologies are the other IT companies of the group.
Answering a shareholder's concern on why Indian IT companies cannot be the next Microsoft or Cisco of the world, Tata remarked: "This is something that I have been discussing with Rama (Ramadorai). But I feel that products come from markets that are close to such market places and US provides that market. We might look at creating a product group in US and treat it as a venture capitalist activity by TCS." The Tata group company, he added, is aiming to become one of the top 10 global IT companies by 2010.
(Source: Business Standard )
Friday, June 29, 2007
Tatas in race for Cadbury business
The Tata group is back to deal making in the US beverage market. The salt-to-software group is likely to submit a bid for Cadbury Schweppes’ US beverages business in an attempt to capture the hugely-successful Snapple range of fruit, diet drinks and iced teas.
The group is in talks with private equity funds which are interested in the beverages business and could join US giant Blackstone, Lion Capital as a minor partner in their consortium. The UK-headquarted Cadbury Schweppes is looking to offload the US beverage business as part of a global restructuring that will separate confectionery and beverage businesses.
The audacious move is part of the Tata group’s efforts to emerge as a big global player in its key businesses.Tata Tea has been expanding its portfolio and diversifying its product range in order to insulate itself from sluggish growth in core businesses like tea and coffee. In the past two years, the company has bought specialist tea maker Good Earth and coffee firm Eight O’ Clock Coffee in the US, before making an attempt for Glaceau, the maker of enhanced water products such as vitamin water and smart water.
The Tata group is not interested in the entire beverages portfolio which also includes brands like Dr Pepper. It is keen on Snapple though, a 35-year-old brand launched in the Greenwich village area of New York by three childhood friends in 1972. If the Blackstone consortium emerges as winner, the Tata group wants the right to carve out Snapple and make it a part of its portfolio. The group’s financial exposure in the deal is estimated to be just over $2 billion, which could be funded by own funds and some borrowings.
(Source: Economic Times)
The group is in talks with private equity funds which are interested in the beverages business and could join US giant Blackstone, Lion Capital as a minor partner in their consortium. The UK-headquarted Cadbury Schweppes is looking to offload the US beverage business as part of a global restructuring that will separate confectionery and beverage businesses.
The audacious move is part of the Tata group’s efforts to emerge as a big global player in its key businesses.Tata Tea has been expanding its portfolio and diversifying its product range in order to insulate itself from sluggish growth in core businesses like tea and coffee. In the past two years, the company has bought specialist tea maker Good Earth and coffee firm Eight O’ Clock Coffee in the US, before making an attempt for Glaceau, the maker of enhanced water products such as vitamin water and smart water.
The Tata group is not interested in the entire beverages portfolio which also includes brands like Dr Pepper. It is keen on Snapple though, a 35-year-old brand launched in the Greenwich village area of New York by three childhood friends in 1972. If the Blackstone consortium emerges as winner, the Tata group wants the right to carve out Snapple and make it a part of its portfolio. The group’s financial exposure in the deal is estimated to be just over $2 billion, which could be funded by own funds and some borrowings.
(Source: Economic Times)
Capgemini bid media 'speculation': Infosys
Infosys Technologies, India's second-biggest software-maker, dismissed as "speculation" media reports on Friday that it will bid for Paris-based consultancy Capgemini, a firm with more than three times its annual sales.
Bangalore-based Infosys will use cash reserves amounting to Rs 62 billion ($ 1.5 bn) to fund the takeover bid for Capgemini, the Times of India reported, citing industry sources and people close to the matter.
Infosys will be able to reinforce its business in Europe by buying Capgemini; it will help build key relationships for its IT business. Still, Capgemini may be "too big" for Infosys to buy.The European consultancy had $ 10.35 billion in annual sales last year, compared with Infosys' $ 3.1 billion. But Capgemini made half the profit logged by Infosys and commanded less than half its market value of $ 27 billion dollars. The planned takeover of Capgemini is in line with a declared policy "to strike at the right target at the right time and the right place," The Times of India quoted sources close to the matter as saying.
The report comes less than three months after Infosys shuffled key management positions, promoting chief executive Nandan Nilekani to chairman and setting him free from day-to-day operations to map growth strategies. Chief operating officer Kris Gopalakrishnan was named chief executive. The company, a pioneer of the outsourcing boom in India's software industry, is preparing for greater competition amid rising wages and a strengthening rupee that is denting export earnings.
(source: Economic Times)
Bangalore-based Infosys will use cash reserves amounting to Rs 62 billion ($ 1.5 bn) to fund the takeover bid for Capgemini, the Times of India reported, citing industry sources and people close to the matter.
Infosys will be able to reinforce its business in Europe by buying Capgemini; it will help build key relationships for its IT business. Still, Capgemini may be "too big" for Infosys to buy.The European consultancy had $ 10.35 billion in annual sales last year, compared with Infosys' $ 3.1 billion. But Capgemini made half the profit logged by Infosys and commanded less than half its market value of $ 27 billion dollars. The planned takeover of Capgemini is in line with a declared policy "to strike at the right target at the right time and the right place," The Times of India quoted sources close to the matter as saying.
The report comes less than three months after Infosys shuffled key management positions, promoting chief executive Nandan Nilekani to chairman and setting him free from day-to-day operations to map growth strategies. Chief operating officer Kris Gopalakrishnan was named chief executive. The company, a pioneer of the outsourcing boom in India's software industry, is preparing for greater competition amid rising wages and a strengthening rupee that is denting export earnings.
(source: Economic Times)
Thursday, June 28, 2007
Dabur exits, Emami & Godrej enter fray
Even as Dabur dropped its $250-million acquisition plan of Malaysian consumer goods company Unza due to risk factors, two other Indian players Godrej and Emami are considering bidding for the company.
While Dabur group director PD Narang declined to comment, Godrej Consumer Products executive director and president Hoshedar Press said, “I cannot confirm or deny the move. We keep talking to several companies for potential acquisitions.” But Kolkata-based Emami Group, another keen contender for Unza was more forthcoming. Emami Group director Aditya Agarwal confirmed the move and said, “We are interested in Unza and in talks with them.” Dabur had been close to acquiring a controlling stake in Unza but talks with PE funds had to be suspended because of resistance from the company’s management. Apparently, the management wanted Actis and StanChart to sell their respective stakes to PE funds and not to a strategic investor. The two funds agreed to its condition but couldn’t find a suitable PE partner. Consequently, the two have now decided to put their 60% stake on auction and learnt to have invited bids.
Indian FMCG companies have shown interest for Unza for several reasons. Companies such as Dabur, Marico, Godrej Consumer and Emami believe that overseas buyouts will give them a foothold in foreign markets and be a key driver of their globalisation strategy. It can also act as a derisking strategy against a downturn in the domestic business. For instance, Indian FMCG company Marico’s international business has over the years grown more than 35%. The company acquired soap brands in Bangladesh—Camelia and Aromatic—which have a 1.5% market share in the country. It has helped Marico enter a category through existing brands and allows it to learn about a new segment. Recently, it bought post-wash hair care brands Fiancee and Haircode in Egypt and looking for more such acquisitions in Africa.
(Source: Economic Times)
While Dabur group director PD Narang declined to comment, Godrej Consumer Products executive director and president Hoshedar Press said, “I cannot confirm or deny the move. We keep talking to several companies for potential acquisitions.” But Kolkata-based Emami Group, another keen contender for Unza was more forthcoming. Emami Group director Aditya Agarwal confirmed the move and said, “We are interested in Unza and in talks with them.” Dabur had been close to acquiring a controlling stake in Unza but talks with PE funds had to be suspended because of resistance from the company’s management. Apparently, the management wanted Actis and StanChart to sell their respective stakes to PE funds and not to a strategic investor. The two funds agreed to its condition but couldn’t find a suitable PE partner. Consequently, the two have now decided to put their 60% stake on auction and learnt to have invited bids.
Indian FMCG companies have shown interest for Unza for several reasons. Companies such as Dabur, Marico, Godrej Consumer and Emami believe that overseas buyouts will give them a foothold in foreign markets and be a key driver of their globalisation strategy. It can also act as a derisking strategy against a downturn in the domestic business. For instance, Indian FMCG company Marico’s international business has over the years grown more than 35%. The company acquired soap brands in Bangladesh—Camelia and Aromatic—which have a 1.5% market share in the country. It has helped Marico enter a category through existing brands and allows it to learn about a new segment. Recently, it bought post-wash hair care brands Fiancee and Haircode in Egypt and looking for more such acquisitions in Africa.
(Source: Economic Times)
Why domestic M&As are few and far between.
You can read the full article at LiveMint.
Tha authors speak about the following issues:
Grant Thornton, an accounting firm known for its research in M&A activities, says there were 42 cross-border deals in May, valued at $4.11 billion (Rs16,851 crore), while 32 domestic M&As during the month had a value of a mere $0.26 billion.
Reasons:
1) Indian corporations are closely held, with promoter group having a large stake.
2) In sectors such as banking and oil and gas, the government is a large player and there is a lot of resistenace to mergers from the unions.
3) Third reason for domestic M&A activity not taking off is because banks in India are not allowed to lend for acquisitions. “Under the Reserve Bank of India (RBI) norms, banks cannot finance an M&A deal if the acquirer is buying the equity of a firm. However, we can finance a deal that involves asset buying. In most of the cases, companies are buying equities and not assets,” says a senior banker who does not wish to be identified. RBI norms, however, allow banks to finance overseas M&A deals. On the domestic turf, banks are allowed to finance the government’s divestment programmes and acquistions in the infrastructure space. In the case of all other deals they can only finance the purchase of assets and not equities.
Tha authors speak about the following issues:
Grant Thornton, an accounting firm known for its research in M&A activities, says there were 42 cross-border deals in May, valued at $4.11 billion (Rs16,851 crore), while 32 domestic M&As during the month had a value of a mere $0.26 billion.
Reasons:
1) Indian corporations are closely held, with promoter group having a large stake.
2) In sectors such as banking and oil and gas, the government is a large player and there is a lot of resistenace to mergers from the unions.
3) Third reason for domestic M&A activity not taking off is because banks in India are not allowed to lend for acquisitions. “Under the Reserve Bank of India (RBI) norms, banks cannot finance an M&A deal if the acquirer is buying the equity of a firm. However, we can finance a deal that involves asset buying. In most of the cases, companies are buying equities and not assets,” says a senior banker who does not wish to be identified. RBI norms, however, allow banks to finance overseas M&A deals. On the domestic turf, banks are allowed to finance the government’s divestment programmes and acquistions in the infrastructure space. In the case of all other deals they can only finance the purchase of assets and not equities.
ONGC likely to offload 34% in Dahej project
The oil and gas major ONGC is likely to offload 34 per cent equity in its special purpose vehicle ONGC Petro-additions (OPaL) formed for the upcoming Rs 13,500-crore petrochemical project at Dahej.
The company has started talks with Japanese majors Mitsui and Mitsubishi, that have expressed an interest in the project.
According to sources, ONGC is keen to have both the Japanese firms as partners in the project.
ONGC currently holds 95 per cent stake in OPaL, with Gujarat State Petroleum Corporation (GSPC) holding the remaining 5 per cent stake.
(Source: Business Standard)
The company has started talks with Japanese majors Mitsui and Mitsubishi, that have expressed an interest in the project.
According to sources, ONGC is keen to have both the Japanese firms as partners in the project.
ONGC currently holds 95 per cent stake in OPaL, with Gujarat State Petroleum Corporation (GSPC) holding the remaining 5 per cent stake.
(Source: Business Standard)
CCBL to enter insurance sector with Aviva
Citizen's Cooperative Bank Ltd (CCBL), which has posted profits for the first time, has tied up with Aviva Life Insurance Co India Ltd to enter insurance sector.
(Source: Economic Times)
(Source: Economic Times)
Standard Life to up stake in HDFC JV to 26%
UK-based life insurance company Standard Life will increase its stake in HDFC Standard Life Insurance Company to 26% from 14%. The insurance company is a joint venture between the Housing Development Finance Corporation (HDFC) and a group company of Standard Life. HDFC holds 84.2% in the joint venture.Deepak Parekh, chairman, HDFC, said,''Standard Life will increase its stake in the life venture to 26% in a months' time by the return on equity formula.
For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
When asked if HDFC is considering listing of the life insurance venture, Parekh said, ''We don't see any need to list the company as the current preferential issue made to the Carlyle Group and Citigroup will bring in enough capital. We plan to invest around Rs 500 crore of the proceeds from the preferential offer in the insurance venture, and the balance of around Rs 1,300 crore will be invested in HDFC Bank's preferential offer.
(Source: Business Standard)
For the general insurance business, we are in talks with four or five international players. The partner will be finalised in a month or so. The partner for the general insurance business will come in at a premium as HDFC is a established brand, and has a set business and distribution network in the country.''HDFC recently bought out Chubb Corporation's 26% stake in HDFC Chubb General Insurance Company, following which it has been scouting for a joint venture partner for its general insurance business.
When asked if HDFC is considering listing of the life insurance venture, Parekh said, ''We don't see any need to list the company as the current preferential issue made to the Carlyle Group and Citigroup will bring in enough capital. We plan to invest around Rs 500 crore of the proceeds from the preferential offer in the insurance venture, and the balance of around Rs 1,300 crore will be invested in HDFC Bank's preferential offer.
(Source: Business Standard)
Wednesday, June 27, 2007
GAIL, China Gas to form gas joint venture
GAIL (India) Ltd. and China Gas Holdings Ltd. will form a joint venture to pursue gas sector business opportunities in India, China and other countries, a GAIL statement said on Tuesday.
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful.
In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest
(Source: Business Line)
Both companies will have equal equity participation in the proposed company, which will initially focus on city gas distribution and coal seam gas projects.
GAIL's expertise in the midstream and downstream gas sector and China Gas' track record in securing contracts and rapid expansion shall be leveraged to make the joint venture successful.
In May 2005, state-run GAIL made a strategic investment in China Gas, acquiring a 7 percent interest
(Source: Business Line)
Saudi Telecom buys 25% in Maxis, enters India
The proposed acquisition of a 25% stake in Malaysia's largest mobile operator, Maxis Communications, by Saudi Telecom Company (STC) will enable it to gain an entry into India.
The Saudi Arabian state-controlled company will get an 18.5% indirect stake in Chennai-based Aircel, which is the country’s fifth largest GSM operator.
According to a communique issued to the Riyadh Stock Exchange, the companies – STC and Maxis - will invest around $900 million in India. This will help Aircel expand its operations in the country and become a pan-Indian telecom player. Aircel, which has 6.40 million subscribers with a market share of around 4.97%, operates in nine circles including Tamil Nadu, Chennai, Himachal Pradesh, Assam, North East, Jammu & Kashmir, Orissa,West Bengal and Bihar. It has also recieved licences to operate in 14 more circles, and has been waiting for allocation of spectrum to start opearations.
STC has agreed to acquire a 25% stake in Maxis for $3.04 billion (11.4 billion riyals). This will also enable the company to get a 51% stake in Maxis' Indonesian operations, it said in the statement.
(Source: Business Standard)
The Saudi Arabian state-controlled company will get an 18.5% indirect stake in Chennai-based Aircel, which is the country’s fifth largest GSM operator.
According to a communique issued to the Riyadh Stock Exchange, the companies – STC and Maxis - will invest around $900 million in India. This will help Aircel expand its operations in the country and become a pan-Indian telecom player. Aircel, which has 6.40 million subscribers with a market share of around 4.97%, operates in nine circles including Tamil Nadu, Chennai, Himachal Pradesh, Assam, North East, Jammu & Kashmir, Orissa,West Bengal and Bihar. It has also recieved licences to operate in 14 more circles, and has been waiting for allocation of spectrum to start opearations.
STC has agreed to acquire a 25% stake in Maxis for $3.04 billion (11.4 billion riyals). This will also enable the company to get a 51% stake in Maxis' Indonesian operations, it said in the statement.
(Source: Business Standard)
Monday, June 25, 2007
Cadila Healthcare buys out Brazilian Nikkho
Cadila Healthcare Ltd has acquired 100 per cent stake in Quimica e Farmaceutica Nikkho do Brasil, a mid-sized, privately held company in Brazil, for $25 million. This is the company's second overseas acquisition this year.
The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly-owned subsidiary of the company. The Brazilian company reported sales of $26 million in 2006, a notice to the BSE said. The acquisition will boost Cadila's existing generic business in Brazil by providing enhanced reach and distribution. The company, which had set up its Brazilian subsidiary in 2002, has already registered 13 products which are being marketed as generics.
(Source: Economic Times)
The acquisition is being made through Zydus Healthcare Brasil Limitada, the step-down wholly-owned subsidiary of the company. The Brazilian company reported sales of $26 million in 2006, a notice to the BSE said. The acquisition will boost Cadila's existing generic business in Brazil by providing enhanced reach and distribution. The company, which had set up its Brazilian subsidiary in 2002, has already registered 13 products which are being marketed as generics.
(Source: Economic Times)
Minda close to acquiring 51% stake in Australia co
Auto component maker Ashok Minda Group is close to acquiring a 51% stake in Australian company NTS Global for around Rs 70 crore. This will be the group’s third acquisition in the last 18 months. The group is also considering consolidation of its operations into a single holding company.
The new company, to be re-christened as Minda NTS (MNTS), will set-up its greenfield tooling operations in India and another greenfield unit in Germany. Besides catering to Minda’s in-house tooling requirements, the company will also look at servicing other original equipment manufacturers (OEMs).
The Ashok Minda Group, with revenues of around $200 million is growing at a CAGR of over 40%. Over the past 18 months, the group has forged three joint ventures with Stoneridge, USA; Silca, Italy; Kaba, Switzerland. In addition, it has acquired a controlling stake in Valeo of France and in KTSN, a plastic injection company in Germany. It also bought back the 36.75% stake of its German partner Huf in its flagship company Minda Huf.
(Source: Economic Times)
The new company, to be re-christened as Minda NTS (MNTS), will set-up its greenfield tooling operations in India and another greenfield unit in Germany. Besides catering to Minda’s in-house tooling requirements, the company will also look at servicing other original equipment manufacturers (OEMs).
The Ashok Minda Group, with revenues of around $200 million is growing at a CAGR of over 40%. Over the past 18 months, the group has forged three joint ventures with Stoneridge, USA; Silca, Italy; Kaba, Switzerland. In addition, it has acquired a controlling stake in Valeo of France and in KTSN, a plastic injection company in Germany. It also bought back the 36.75% stake of its German partner Huf in its flagship company Minda Huf.
(Source: Economic Times)
Conference:Real Estate Structured Finance & Investment, Asia Pacific 2007
Real Estate Structured Finance & Investment
Date: 19 July, 2007
Location: Hyatt Regency, Mumbai, India
India's real estate market has been on the surge for the past 5 years. So far investments into India real estate have been accessible via direct investments or long-only funds.
In today's markets, the search for cheaper sources of funding, together with higher yields for investors across regions, has propelled the development of more efficient funding structures. In India where we are currently observing a bullish real estate market, it becomes ever moreimportant to be familiar with the more complex funding and hedging instruments that are available to help manage the real estate cycle.
The objective of the first annual Real Estate Structure Finance and Investment (RESFI) 2007 Conference in India aims to create a high level knowledge and networking platform for industry players to learn about the latest techniques and ideas available in the international capital markets in terms of financing innovations and real estate investments. The uniqueness of RESFI stems from the focus of the event which is to meet a key ingredient lacking in many real estate conferences which market players are keen to know – funding, linking projects to investors and what are the most efficient structures available.
Date: 19 July, 2007
Location: Hyatt Regency, Mumbai, India
India's real estate market has been on the surge for the past 5 years. So far investments into India real estate have been accessible via direct investments or long-only funds.
In today's markets, the search for cheaper sources of funding, together with higher yields for investors across regions, has propelled the development of more efficient funding structures. In India where we are currently observing a bullish real estate market, it becomes ever moreimportant to be familiar with the more complex funding and hedging instruments that are available to help manage the real estate cycle.
The objective of the first annual Real Estate Structure Finance and Investment (RESFI) 2007 Conference in India aims to create a high level knowledge and networking platform for industry players to learn about the latest techniques and ideas available in the international capital markets in terms of financing innovations and real estate investments. The uniqueness of RESFI stems from the focus of the event which is to meet a key ingredient lacking in many real estate conferences which market players are keen to know – funding, linking projects to investors and what are the most efficient structures available.
Conference: Private Equity World, India 2007
Private Equity World India 2007
Date: 26-28 June 2007
Location: JW Marriot Hotel, Mumbai, India
Exploring India Private Equity Opportunities!
Private Equity World India 2007 will explore the latest change of legislation and trends and its impact on the various sectors across India. Our panel of speakers will represent leading private equity firms who firmly believe the potential of India. This is the biggest and most important industry conference you MUST attend to ride on the emerging market waves!
Date: 26-28 June 2007
Location: JW Marriot Hotel, Mumbai, India
Exploring India Private Equity Opportunities!
Private Equity World India 2007 will explore the latest change of legislation and trends and its impact on the various sectors across India. Our panel of speakers will represent leading private equity firms who firmly believe the potential of India. This is the biggest and most important industry conference you MUST attend to ride on the emerging market waves!
Sunday, June 24, 2007
NTPC to take 44.6% in Kerala firm
NTPC, the country’s largest power generator, has taken its first step in the manufacturing business through an acquisition. The company will be buying 44.6 per cent stake in Transformers and Electricals Kerala (TELK), a Kerala government company, which manufactures and repairs transformers.
The state government and its undertakings currently hold 95.6 per cent equity of TELK.
TELK has over 40 years of experience in “manufacture, marketing and servicing of power transformers, current voltage transformers, circuit breakers, isolated phase bus ducts, shunt reactors etc and the deal will help make the company an integrated power major,” said a release from the company.
(Source: Business Standard)
The state government and its undertakings currently hold 95.6 per cent equity of TELK.
TELK has over 40 years of experience in “manufacture, marketing and servicing of power transformers, current voltage transformers, circuit breakers, isolated phase bus ducts, shunt reactors etc and the deal will help make the company an integrated power major,” said a release from the company.
(Source: Business Standard)
Jaiprakash group bids for Malvika Steel
Financial institutions seem to have finally found a taker for Malvika Steel with the New Delhi-based Jaiprakash group bidding for the company.
The Debt Recovery Tribunal (DRT) has put the Vinay Rai-promoted Malvika Steel under the hammer to clear off the over Rs 1,200 crore outstandings due to institutions led by IFCI.
Jaiprakash Industries’ managing director Manoj Gaur confirmed that his group has bid for the assets of Malvika. Although the size of his bid could not be ascertained, industry experts said Rai could not be contacted.
DRT could receive nearly Rs 600 crore from the unit, which has a sprawling plant with 740 acres in northern India.
It was not confirmed whether there is any second bid for Malvika. The country’s largest steel company, Steel Authority of India had previously expressed interest in acquiring the Amethi-based company. But its consultant Mecon advised against acquiring the entire assets of the company.
(Source: Business Standard )
The Debt Recovery Tribunal (DRT) has put the Vinay Rai-promoted Malvika Steel under the hammer to clear off the over Rs 1,200 crore outstandings due to institutions led by IFCI.
Jaiprakash Industries’ managing director Manoj Gaur confirmed that his group has bid for the assets of Malvika. Although the size of his bid could not be ascertained, industry experts said Rai could not be contacted.
DRT could receive nearly Rs 600 crore from the unit, which has a sprawling plant with 740 acres in northern India.
It was not confirmed whether there is any second bid for Malvika. The country’s largest steel company, Steel Authority of India had previously expressed interest in acquiring the Amethi-based company. But its consultant Mecon advised against acquiring the entire assets of the company.
(Source: Business Standard )
Saturday, June 23, 2007
Kalyani Steel forges JV with Gerdau of Brazil
Pune-based Kalyani Steel (KSL), makers of carbon and alloy steel, has entered into a joint venture agreement with Gerdau SA of Brazil. Both the companies will hold 45% each in the venture with the balance 10% being held by investors.The joint venture will hike the capacaity of SJK Steel, which was acquired recently by Kalyani Steel, from the current 2,75,000 tonne to 1.6 million tonne in the next few years.
The Gerdau Group is currently the 15th largest international steel producer with revenue of Brazillian$ 27.5 billion and presence in 12 countries.
(Source: Business Standard)
The Gerdau Group is currently the 15th largest international steel producer with revenue of Brazillian$ 27.5 billion and presence in 12 countries.
(Source: Business Standard)
Friday, June 22, 2007
Varun Shipping buys VLCC
Varun Shipping has acquired a Very Large Crude Carrier (VLCC), which is claimed to be India's largest LPG carrier. With this acquisition, Varun Shipping now owns nearly 80 per cent of the total LPG tonnage at present operating under Indian flag. The acquisition was financed partly out of the company's own resources and partly out of a long-term loan from ICICI Bank.
(Source: Business Line)
(Source: Business Line)
BoI acquires 76 per cent stake in Indonesian bank
Public sector lender Bank of India (BoI) on Friday said it has acquired 76 per cent stake in Indonesia- based PT Bank Swadesi for an undisclosed amount.
This is the first overseas acquisition by BoI, which has a representative office in Jakarta, and is expected to enhance its international operations in Indonesia. Bank Swadesi is a mid-sized bank, operating in Indonesia for the last 38 years and has 16 outlets. Bank Swadesi has a licence for forex business and is listed on the Jakarta Stock Exchange. Earlier in December 11, 2006, BoI had said that it would acquire 76 per cent stake PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.
This would be the second acquisition of a bank in Indonesia by an Indian lender after State Bank of India bought 76 per cent stake in Bank Indomonex. - PTI
This is the first overseas acquisition by BoI, which has a representative office in Jakarta, and is expected to enhance its international operations in Indonesia. Bank Swadesi is a mid-sized bank, operating in Indonesia for the last 38 years and has 16 outlets. Bank Swadesi has a licence for forex business and is listed on the Jakarta Stock Exchange. Earlier in December 11, 2006, BoI had said that it would acquire 76 per cent stake PT Bank Swadesi Tbk and had signed a conditional sale-purchase agreement for this purpose with majority shareholders of the Indonesian firm.
This would be the second acquisition of a bank in Indonesia by an Indian lender after State Bank of India bought 76 per cent stake in Bank Indomonex. - PTI
Trinity to pick up 1.66pc stake in Phoenix Mills
UK-based investment firm Trinity Capital Plc on Friday said it will pick up about 1.66 per cent stake in Phoenix Mills for Rs 59.2 crore. Trinity would acquire 3.7 lakh shares for an aggregate of Rs 59.2 crore at a price of Rs 1,600 per share, the company said in a filing to the London Stock Exchange (LSE). The price to be paid by Trinity would be at a discount against the market price of Rs 1,900.
Deutsche Bank and Americorp would also be investing in Phoenix Mills alongside Trinity, the statement said. The investment would help Trinity to participate in the growth of Phoenix Mills and invest in future projects and entity level financings, it said.
Phoenix Mills is currently involved in seven retail-led developments covering 15 million square feet and is a mall operator, who would be involved in the development and management of Trinity's own retail projects.
The seven market cities, which Phoenix Mills plans to develop are Mumbai, Chennai, Thane, Pune, Raipur and Bangalore.
(Source: Economic Times)
Deutsche Bank and Americorp would also be investing in Phoenix Mills alongside Trinity, the statement said. The investment would help Trinity to participate in the growth of Phoenix Mills and invest in future projects and entity level financings, it said.
Phoenix Mills is currently involved in seven retail-led developments covering 15 million square feet and is a mall operator, who would be involved in the development and management of Trinity's own retail projects.
The seven market cities, which Phoenix Mills plans to develop are Mumbai, Chennai, Thane, Pune, Raipur and Bangalore.
(Source: Economic Times)
MNC, local banks eye stake in Global Trade
Several MNC and Indian banks are looking at picking up stake in Mumbai-based Global Trade Finance (GTF), a big player in the factoring business. Interested investors include Standard Chartered Bank, National Bank of Dubai and a few public sector banks. Currently, Export Import (Exim) Bank of India and IFC (Washington) hold 40% and 12.5% equity, respectively, in GTF. Both are looking at exiting the firm. Other shareholders are FIM Bank Malta with a 38.5% stake and Bank of Maharashtra (9%).
The factoring business in India is attracting major interest from overseas players because of growing trade and businesses. Bibby Financial Services, an Australian company, recently kicked off operations in the country even as a couple of others are looking at starting off operations.
(Source: Economic Times)
The factoring business in India is attracting major interest from overseas players because of growing trade and businesses. Bibby Financial Services, an Australian company, recently kicked off operations in the country even as a couple of others are looking at starting off operations.
(Source: Economic Times)
Thursday, June 21, 2007
BEML close to Brazilian firm acquisition
The state-owned construction equipment company Bharat Earth Movers (BEML) is looking for 100 per cent buyout of Companhia Comercio E Construcoes (CCC) based in Brazil for a total consideration in excess of Rs 100 crore.
The company is expecting the take-over process to be complete by next year. The Indian giant, which is the second largest mining and construction (M&C) equipment supplier in Asia, currently has a joint venture agreement with CCC for manufacture and supply of rail wagons and bogies, mining and construction equipment and spares for the Brazilian market.
Source: Business Standard
The company is expecting the take-over process to be complete by next year. The Indian giant, which is the second largest mining and construction (M&C) equipment supplier in Asia, currently has a joint venture agreement with CCC for manufacture and supply of rail wagons and bogies, mining and construction equipment and spares for the Brazilian market.
Source: Business Standard
Wednesday, June 20, 2007
Citi seeks $750 mn for 80% of BPO arm
Citigroup is keen on selling an 80% stake in Mumbai-based captive business process outsourcing (BPO) arm Citigroup Global Services (formerly eServe International) for $700-750 million (Rs2,870-3,075 crore) and is in advanced negotiations with leading private equity investors for an all-cash deal.
a private equity investor is most likely to emerge as the buyer and strategic suitors, such as IBM Corp. and Tata Consultancy Services Ltd, (TCS) are likely to drop out of the race over terms being proposed by the seller. Unlike the Genpact deal, Citi is not willing to commit long-term business to the captive once a new shareholder comes in. Neither IBM nor TCS would be willing to put so much cash down without that commitment. When General Electric Co sold 60% in its Gurgaon-based captive BPO to PE firms General Atlantic and Oak Investment for $500 million, it also threw in a multi-year outsourcing contract as part of the deal.
(Source: Mint)
a private equity investor is most likely to emerge as the buyer and strategic suitors, such as IBM Corp. and Tata Consultancy Services Ltd, (TCS) are likely to drop out of the race over terms being proposed by the seller. Unlike the Genpact deal, Citi is not willing to commit long-term business to the captive once a new shareholder comes in. Neither IBM nor TCS would be willing to put so much cash down without that commitment. When General Electric Co sold 60% in its Gurgaon-based captive BPO to PE firms General Atlantic and Oak Investment for $500 million, it also threw in a multi-year outsourcing contract as part of the deal.
(Source: Mint)
Lehman Brothers may be in talks to buy the institutional business of Brics Securities, reports CNBC-TV18.
Sources say that Lehman Brothers are in talks to buy the institutional business of Brics Securities and the deal is likely to be at a significant premium. The deal could be over Rs 200 crore.
The existing institutional team of Brics Securities will move to Lehman Brothers. However, there has not been any comments from Brics Securities or Lehman Brothers. Lehman Brothers has been looking at expanding its team in India and for further consolidation in the Indian working space.
CNBC-TV18 Disclaimer
This information is source-based and has not been provided to the stock-exchanges.
The existing institutional team of Brics Securities will move to Lehman Brothers. However, there has not been any comments from Brics Securities or Lehman Brothers. Lehman Brothers has been looking at expanding its team in India and for further consolidation in the Indian working space.
CNBC-TV18 Disclaimer
This information is source-based and has not been provided to the stock-exchanges.
Thales in pact with Rudradev Aviation
India's Rudradev Aviation has inked a $60 million deal with European aviation electronics major Thales to acquire flight simulators for a centre that will train pilots for the country's booming aviation sector as well as Southeast Asia and West As ia.
The four simulators and other training devices will be installed in a new aviation training centre that Rudradev is building in Chennai.
(Source: Business Line)
The four simulators and other training devices will be installed in a new aviation training centre that Rudradev is building in Chennai.
(Source: Business Line)
IHC to invest $110 mn to set up hospitality firm
India Hospitality Corp (IHC) said it will acquire Mars Restaurants and airline catering firm SkyGourmet for around 110 million dollars to set up a diversified hospitality company in India.
IHC said in a statement it has entered into an agreement with private equity firm Navis Capital Partners and other shareholders of the two companies for the acquisition.
Under the agreement, the sellers would receive around 110 million dollars, of which about 91.6 million dollars would be paid in cash and the balance in IHC ordinary shares on completion of the transaction. Affiliates of Navis Capital and Sanjay Narang, the founder of both SkyGourmet and Mars, will continue to play an active role in the management, it added.
(Source: Financial Express)
IHC said in a statement it has entered into an agreement with private equity firm Navis Capital Partners and other shareholders of the two companies for the acquisition.
Under the agreement, the sellers would receive around 110 million dollars, of which about 91.6 million dollars would be paid in cash and the balance in IHC ordinary shares on completion of the transaction. Affiliates of Navis Capital and Sanjay Narang, the founder of both SkyGourmet and Mars, will continue to play an active role in the management, it added.
(Source: Financial Express)
Decision on Mittal's HPCL stake buy tomorrow
The Cabinet Committee on Economic Affairs (CCEA), on Thursday, will consider petroleum ministry proposal to allow steel baron Lakshmi N Mittal to pick up 49 per cent stake in state-run HPCL's Bhatinda refinery, Petroleum Minister Murli Deora said on Wednesday.
The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.
The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to up to 26 per cent. The current policy also restricts PSU holding to 26 per cent in such projects and makes it mandatory for the balance 48 per cent to be offered to public.
Mittal Investments will acquire 49 per cent stake in the refinery for Rs 3,365 crore through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.
(Source: Economic Times)
The petroleum ministry has granted project-specific approval to Mittal Investments Sarl, the holding company of L N Mittal, to pick up stake in Hindustan Petroleum's refinery.
The proposal was required as per the current policy, which restricts foreign direct investment in public-sector petroleum refineries to up to 26 per cent. The current policy also restricts PSU holding to 26 per cent in such projects and makes it mandatory for the balance 48 per cent to be offered to public.
Mittal Investments will acquire 49 per cent stake in the refinery for Rs 3,365 crore through its 100 per cent arm, Mittal Energy Investments Pte Ltd, incorporated in Singapore.
(Source: Economic Times)
Yahoo, Idea Cellular in distribution tie-up
Global Internet brand Yahoo on Wednesday said it has entered into a partnership agreement with Idea Cellular to distribute its mobile search service Yahoo!oneSearch in India.
Yahoo expects to leverage Idea Cellular's over 15 million subscriber-base through this partnership to have a leadership position in mobile search in the country.Yahoo!oneSearch is now available in 14 countries around the world.
(Source: The Economic Times)
Yahoo expects to leverage Idea Cellular's over 15 million subscriber-base through this partnership to have a leadership position in mobile search in the country.Yahoo!oneSearch is now available in 14 countries around the world.
(Source: The Economic Times)
Tuesday, June 19, 2007
Telekom Malaysia unit Spice will invest $140 mn
Telekom Malaysia, Southeast Asia's second-biggest telephone company, said its mobile-phone venture in India will invest 140 million dollar during the next two years to expand its networks.
Spice Communications will use the investment to boost coverage of its wireless networks in the Karnataka and Punjab areas, Abdul Wahid Omar, chief executive officer of Kuala Lumpur-based Telekom Malaysia, said on Tuesday.
"These two circles have a combined population of 80 million people, which is three times that of Malaysia," Abdul Wahid said in an interview at the CommunicAsia telecom show in Singapore. Spice is seeking licenses to operate in other areas of the country, he said.
(Source: The Economic Times)
Spice Communications will use the investment to boost coverage of its wireless networks in the Karnataka and Punjab areas, Abdul Wahid Omar, chief executive officer of Kuala Lumpur-based Telekom Malaysia, said on Tuesday.
"These two circles have a combined population of 80 million people, which is three times that of Malaysia," Abdul Wahid said in an interview at the CommunicAsia telecom show in Singapore. Spice is seeking licenses to operate in other areas of the country, he said.
(Source: The Economic Times)
RCOM in talks with Accenture for a JV
Telecom operator Reliance Communications (RCOM) is in talks with IT services and consulting giant Accenture to float a joint venture to manage and operate the Anil Dhirubhai Ambani Group’s IT infrastructure services and processes. The JV will be largely owned by RCOM and will have control over a business worth $1.5-2 billion, a person close to the negotiations said.
Telecom operators such as Bharti Airtel and Idea Cellular have shed non-core functions such as IT and network management to multinational giants such as IBM and Nokia in order to focus on the main function of selling services.
(Source: ET)
Telecom operators such as Bharti Airtel and Idea Cellular have shed non-core functions such as IT and network management to multinational giants such as IBM and Nokia in order to focus on the main function of selling services.
(Source: ET)
Wipro set to acquire German firm
Wipro Technologies, an information technology and outsourcing company, is poised to acquire the IT arm of a major company in Germany. The company has initiated talks with potential targets in Germany, even though the names were kept under wraps.
All major companies — BMW, Lufthansa, BASF and Siemens — have captive IT organisations in Germany. While automobile major BMW has an IT subsidiary, Softlab, with SAP capabilities, German airline major Lufthansa runs Lufthansa Systems, the third biggest IT vendor in Germany. BASF’s IT services division and a host of small companies could also be on the Indian IT major’s radar.
The company is on the lookout for acquisition that would help it gain a presence in the continent and embark on a much faster growth rate.
(Source: Business Standard)
All major companies — BMW, Lufthansa, BASF and Siemens — have captive IT organisations in Germany. While automobile major BMW has an IT subsidiary, Softlab, with SAP capabilities, German airline major Lufthansa runs Lufthansa Systems, the third biggest IT vendor in Germany. BASF’s IT services division and a host of small companies could also be on the Indian IT major’s radar.
The company is on the lookout for acquisition that would help it gain a presence in the continent and embark on a much faster growth rate.
(Source: Business Standard)
Mukesh zooms into Yashraj films for JV
Reliance Industries and Yashraj Films, the makers of hits such as Kabhie Kabhie and Dilwale Dulhaniya Le Jayenge, are in talks for a joint venture to set up multiplexes, run entertainment channels and produce soap operas for television.
People close to the negotiations say that Reliance Retail, an associate of Reliance Industries, will float a new company where Yashraj Films will hold close to 26%. The new company will use the space provided by Reliance Retail’s gigantic malls to set up a chain of multiplexes across the country.
The move ties in well with Reliance Retail’s plans of setting up mega malls in urban centres, replete with an array of entertainment, food courts and other services. Yashraj Films, with domain expertise in entertainment, will be a formidable partner for Reliance. In turn, Yashraj Films will get preferential access to prime real estate, a crucial ingredient of success in the multiplex space.
(Source: ET)
People close to the negotiations say that Reliance Retail, an associate of Reliance Industries, will float a new company where Yashraj Films will hold close to 26%. The new company will use the space provided by Reliance Retail’s gigantic malls to set up a chain of multiplexes across the country.
The move ties in well with Reliance Retail’s plans of setting up mega malls in urban centres, replete with an array of entertainment, food courts and other services. Yashraj Films, with domain expertise in entertainment, will be a formidable partner for Reliance. In turn, Yashraj Films will get preferential access to prime real estate, a crucial ingredient of success in the multiplex space.
(Source: ET)
Monday, June 18, 2007
Aptuit acquiring major stake in Laurus Labs
US-based contract drug development firm Aptuit is acquiring a majority stake in Hyderabad-based Laurus Labs by putting in more than $100 million (above Rs 400 crore) over the next four years.
Following the agreement, the two companies announced the formation a new entity called Aptuit Laurus.
Laurus Labs, a start-up company, is a knowledge resource and solutions provider with a research and development center near Hyderabad and a manufacturing plant in Visakhapatnam, which is currently under construction.
(Source: Business Standard)
Following the agreement, the two companies announced the formation a new entity called Aptuit Laurus.
Laurus Labs, a start-up company, is a knowledge resource and solutions provider with a research and development center near Hyderabad and a manufacturing plant in Visakhapatnam, which is currently under construction.
(Source: Business Standard)
Update: Spice Jet denies move to offload stake
Low-cost carrier SpiceJet, which is being eyed by other airlines including Vijay Mallya's Kingfisher, on Monday denied any move to offload stake and said it has adequate funds to fund its expansion plans.
"SpiceJet would like to reiterate there is absolutely no plan to sell any stake in the company to anybody. It is one of the best funded airlines in the country with a large cash reserve to fund its expansion," an airline spokesperson said in a statement.
(Source: ET)
"SpiceJet would like to reiterate there is absolutely no plan to sell any stake in the company to anybody. It is one of the best funded airlines in the country with a large cash reserve to fund its expansion," an airline spokesperson said in a statement.
(Source: ET)
BHP plans debut in India
BHP Billiton, the world’s largest mining company, is entering India through a joint venture with Mumbai-based mineral producer and exporter Ashapura Minechem.
Sources said the broad contours of the agreement suggest that the Australian giant will pick up 51 per cent in Ashapura Minechem’s Rs 2,500-crore alumina refining project in Orissa. Ashapura will hold the remaining 49 per cent.
Although BHP, which has a presence in 25 countries, has been doing business in India for over 30 years, it does not have an equity interest in any domestic project.
Recently, BHP had shown interest in acquiring Sesa Goa, the country’s second largest iron ore exporter, when its Japanese parent Mitsui put it on the block. It was later acquired by Anil Agarwal-controlled Vedanta Resources.
(Source: Business Standard)
Sources said the broad contours of the agreement suggest that the Australian giant will pick up 51 per cent in Ashapura Minechem’s Rs 2,500-crore alumina refining project in Orissa. Ashapura will hold the remaining 49 per cent.
Although BHP, which has a presence in 25 countries, has been doing business in India for over 30 years, it does not have an equity interest in any domestic project.
Recently, BHP had shown interest in acquiring Sesa Goa, the country’s second largest iron ore exporter, when its Japanese parent Mitsui put it on the block. It was later acquired by Anil Agarwal-controlled Vedanta Resources.
(Source: Business Standard)
Idea-Spice deal trips on pricing
Talks between Idea Cellular, India’s sixth-largest wireless operator, and the BK Modi-owned Spice Telecom on a merger have broken down due to differences in price. The two sides had held preliminary discussions on the possibility of a merger or an acquisition by Idea three-four weeks ago. Idea, which is present in 11 out of the country’s 23 circles, was keen on expanding its subscriber base. But it baulked at the price being demanded by Spice Telecom.
Spice, which offers cellular services in Punjab and Karnataka, had revenues of around Rs 553 crore in 2006. It was looking at a valuation of about $1.3 billion (over Rs 4,300 crore). Idea found it excessive, as Spice does not have a nation-wide presence and continues to make losses.
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ANALYSTS say that if Bharti Airtel’s valuation is taken as the benchmark, Spice would command a price of about $1 billion. But Spice is only present in two circles and is a pure-play mobile company compared with Bharti, an all-India integrated operator. Therefore, Spice’s valuation would be at a discount of 30%-35% to Airtel, or about $650 million-$700 million. Idea officials are also believed to have cited Spice’s weak presence in Karnataka as a dampener. It ranks sixth in the southern state with a share of around 7% despite having made an early start. While most operators have expanded footprint across India after starting with a few circles in the 1990s, Spice has confined to just two circles. It applied for pan-India licences only in September last year.
(Source: Economic times)
Spice, which offers cellular services in Punjab and Karnataka, had revenues of around Rs 553 crore in 2006. It was looking at a valuation of about $1.3 billion (over Rs 4,300 crore). Idea found it excessive, as Spice does not have a nation-wide presence and continues to make losses.
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ANALYSTS say that if Bharti Airtel’s valuation is taken as the benchmark, Spice would command a price of about $1 billion. But Spice is only present in two circles and is a pure-play mobile company compared with Bharti, an all-India integrated operator. Therefore, Spice’s valuation would be at a discount of 30%-35% to Airtel, or about $650 million-$700 million. Idea officials are also believed to have cited Spice’s weak presence in Karnataka as a dampener. It ranks sixth in the southern state with a share of around 7% despite having made an early start. While most operators have expanded footprint across India after starting with a few circles in the 1990s, Spice has confined to just two circles. It applied for pan-India licences only in September last year.
(Source: Economic times)
Intelenet sold in country’s largest management buyout
In the largest management buyout (MBO) in the country, the management team of BPO firm Intelenet, backed by PE firm Blackstone, has bought out the existing promoters, Barclays Bank Plc and HDFC. Under the terms of the deal concluded on Sunday morning, Blackstone will hold 80% in the firm and employees, including the current management team, will hold 20%.
Sources pegged the value of the deal in the region of $200 million. ET had reported the value of the deal and that Blackstone was close to clinching it on Saturday. No official confirmation was available on the deal value, because Blackstone is in the silent period. Around 300-400 employees in the senior management of Intelenet will become shareholders in the firm once the transaction is completed
The deal values Intelenet at over two times its FY07 sales of around Rs 380 crore, compared with the over 3x sales valuation of EXL (March 07 annualised) and WNS. In terms of the employees, the 6-year-old firm is the third largest thirdparty BPO firm in the country with around 17,000 employees.
Interestingly, Barclays, which will now exit firm as a shareholder, will continue as a ‘long term’ client for the businesses it currently outsources to Intelenet. It will also set up its own captive in the Delhi with the help of the Intelenet management team. HDFC, which was one of the original promoters, seems to have taken a strategic decision to exit the firm, unlike ICICI which took its BPO firm — Firstsource— to IPO this year. The value of HDFC stake has increased nearly three times since 2004. In 2004, Tata Consultancy Services’ 50% stake in Intelenet got it $35 million.
(Source: Economic Times)
Sources pegged the value of the deal in the region of $200 million. ET had reported the value of the deal and that Blackstone was close to clinching it on Saturday. No official confirmation was available on the deal value, because Blackstone is in the silent period. Around 300-400 employees in the senior management of Intelenet will become shareholders in the firm once the transaction is completed
The deal values Intelenet at over two times its FY07 sales of around Rs 380 crore, compared with the over 3x sales valuation of EXL (March 07 annualised) and WNS. In terms of the employees, the 6-year-old firm is the third largest thirdparty BPO firm in the country with around 17,000 employees.
Interestingly, Barclays, which will now exit firm as a shareholder, will continue as a ‘long term’ client for the businesses it currently outsources to Intelenet. It will also set up its own captive in the Delhi with the help of the Intelenet management team. HDFC, which was one of the original promoters, seems to have taken a strategic decision to exit the firm, unlike ICICI which took its BPO firm — Firstsource— to IPO this year. The value of HDFC stake has increased nearly three times since 2004. In 2004, Tata Consultancy Services’ 50% stake in Intelenet got it $35 million.
(Source: Economic Times)
Chandigarh’s IT cos are acquiring firms abroad and vice-versa
The buzz is getting louder in Chandigarh. Now, the city’s myriad small software and hardware firms are consolidating through mergers and acquisitions and pushing for the next phase of growth. It’s not just foreign firms acquiring Chandigarh-based companies; IT firms in the city and in satellites like Mohali and Panchkula are also stretching themselves out in the M&A space.
Last week, the Chandigarh-based animation entertainment company Compact Disc India bought out UK-based animation firm Mobsoft for $2-million. CDI has more acquisitions up its sleeve and plans to float another company under its fold, Media One, in the UK with an investment of $50 million. CDI chairman Suresh Kumar says he is in talks with a few big Hollywood production houses like Pantheon Entertainment, Hide Park Film and Canyon Films. The range of the deal can be anywhere between $20-30 million. “We needed to invest in a country with free flow of exchange, so we chose the UK,” he says about the Mobsoft deal.
Barely a day earlier, Singaporebased $2-billion IT company eSys announced it will make Chandigarh its global headquarters. The IT component distribution major, which produces 5,000 personal computers a month and supplies more than 25,000 PCs to leading international computer brands each year, will make Chandigarh its global backoffice from where it will provide round-the-clock services to its 40 offices across the globe. This is just the tip of the iceberg. Other companies like Nvish Solutions, Mobera Systems, SAP are all planning to up the ante soon. Chandigarh-based business process management company Nvish Solutions recently acquired the US-based Avaap. A few months ago, German Software major SAP had taken over Virsa Systems, a privately-held leading supplier of cross enterprise compliance solutions. Founded in 1966 by Jasvir Gill,Virsa Systems then had over 300 enterprise customers. SAP offices are located in the US, the UK, Germany, France, India (Chandigarh), Singapore, Australia and Japan. Prior to Virsa takeover by SAP, the company, through its Indian arm Virsa Systems, had been in operation in Chandigarh since the past year and had recently shifted to its new premises in the upcoming Chandigarh Technology Park (CTP) in a complex having over 13,000 sq ft of space developed by DLF. Software exports from the region have buoyed up to Rs 550 crore during 2006-07 up from Rs 423.04 crore in the previous year. Expect this to go up after the recent round of consolidation.
Last week, the Chandigarh-based animation entertainment company Compact Disc India bought out UK-based animation firm Mobsoft for $2-million. CDI has more acquisitions up its sleeve and plans to float another company under its fold, Media One, in the UK with an investment of $50 million. CDI chairman Suresh Kumar says he is in talks with a few big Hollywood production houses like Pantheon Entertainment, Hide Park Film and Canyon Films. The range of the deal can be anywhere between $20-30 million. “We needed to invest in a country with free flow of exchange, so we chose the UK,” he says about the Mobsoft deal.
Barely a day earlier, Singaporebased $2-billion IT company eSys announced it will make Chandigarh its global headquarters. The IT component distribution major, which produces 5,000 personal computers a month and supplies more than 25,000 PCs to leading international computer brands each year, will make Chandigarh its global backoffice from where it will provide round-the-clock services to its 40 offices across the globe. This is just the tip of the iceberg. Other companies like Nvish Solutions, Mobera Systems, SAP are all planning to up the ante soon. Chandigarh-based business process management company Nvish Solutions recently acquired the US-based Avaap. A few months ago, German Software major SAP had taken over Virsa Systems, a privately-held leading supplier of cross enterprise compliance solutions. Founded in 1966 by Jasvir Gill,Virsa Systems then had over 300 enterprise customers. SAP offices are located in the US, the UK, Germany, France, India (Chandigarh), Singapore, Australia and Japan. Prior to Virsa takeover by SAP, the company, through its Indian arm Virsa Systems, had been in operation in Chandigarh since the past year and had recently shifted to its new premises in the upcoming Chandigarh Technology Park (CTP) in a complex having over 13,000 sq ft of space developed by DLF. Software exports from the region have buoyed up to Rs 550 crore during 2006-07 up from Rs 423.04 crore in the previous year. Expect this to go up after the recent round of consolidation.
Sunday, June 17, 2007
Mallya approaches SpiceJet cautiously
Liquor baron Vijay Mallya’s thirst for low-cost airlines seems to have become insatiable. Kingfisher is now planning to spread its wings once again, by targeting SpiceJet.
After gulping down 26 per cent of the country’s largest low-cost airline, Air Deccan, the promoter of Kingfisher Airlines has dropped hints that he is interested in acquiring a stake even in Delhi-based budget carrier SpiceJet.SpiceJet is India's second largest low-cost airline with a market share of nine per cent. SpiceJet operates over 83 daily flights in 14 cities with 11 Boeing 737-800 aircraft.
The Indian aviation industry has already seen several mergers with Jet Airways taking over Air Sahara and the Indian Airlines being merged with Air-India. Mallya’s latest move is part of the consolidation taking place in the Indian skies.
(Source: CNN IBN)
(Contributor: Varun Gupta, Irevna Research Services)
After gulping down 26 per cent of the country’s largest low-cost airline, Air Deccan, the promoter of Kingfisher Airlines has dropped hints that he is interested in acquiring a stake even in Delhi-based budget carrier SpiceJet.SpiceJet is India's second largest low-cost airline with a market share of nine per cent. SpiceJet operates over 83 daily flights in 14 cities with 11 Boeing 737-800 aircraft.
The Indian aviation industry has already seen several mergers with Jet Airways taking over Air Sahara and the Indian Airlines being merged with Air-India. Mallya’s latest move is part of the consolidation taking place in the Indian skies.
(Source: CNN IBN)
(Contributor: Varun Gupta, Irevna Research Services)
Friday, June 15, 2007
Jet eyes stake in SpiceJet
Barely two months after the Air Sahara acquisition, Jet Airways, the country’s largest private airline, is interested in SpiceJet, the Delhi-based budget carrier.
Sources close to the developments said Jet is eyeing the stake of the Kansagra family-promoted Royal Holding Services and Gulf-based investment house Istithmar PJSC, which hold around 13 per cent each in the airline.
Jet Airways combined with JetLite (earlier known as Air Sahara) has a 29.3 per cent market share, but trails behind the Kingfisher Airlines and Air Deccan combine.
An acquisition of SpiceJet, which has a market share of 8.2 per cent, could push up Jet’s share to 37.5 per cent, which would be way ahead of the Kingfisher-Air Deccan combine’s 30.2 per cent.
Besides domestic coverage, a SpiceJet acquisition would result in synergy of engineering, pilots, maintenance, training and other operations.
(Source: Business Standard)
Sources close to the developments said Jet is eyeing the stake of the Kansagra family-promoted Royal Holding Services and Gulf-based investment house Istithmar PJSC, which hold around 13 per cent each in the airline.
Jet Airways combined with JetLite (earlier known as Air Sahara) has a 29.3 per cent market share, but trails behind the Kingfisher Airlines and Air Deccan combine.
An acquisition of SpiceJet, which has a market share of 8.2 per cent, could push up Jet’s share to 37.5 per cent, which would be way ahead of the Kingfisher-Air Deccan combine’s 30.2 per cent.
Besides domestic coverage, a SpiceJet acquisition would result in synergy of engineering, pilots, maintenance, training and other operations.
(Source: Business Standard)
RPG Life eyes allies to enter US market
RPG Life Sciences is in talks with seven global drug companies, including two domestic firms, to form pacts to enter the US market.
RPG Life already has marketing tie-ups with Israel’s drug major Teva for the EU market and with the US-based Apotex for the Canadian market.
(Source: Business Standard)
RPG Life already has marketing tie-ups with Israel’s drug major Teva for the EU market and with the US-based Apotex for the Canadian market.
(Source: Business Standard)
Mahindra auto parts arm on buying spree
Mahindra Systems and Automotive Technologies (MSAT), the auto components arm of Mahindra and Mahindra (M&M), is on an acquisition spree.
MSAT is in an advanced stage of negotiations for acquisition of at least four overseas companies in the areas it operates – stamping, composites, forging and gear box. The total acquisition cost may be around Rs 1,000 crore.
Sources close to the development said the acquisitions would help MSAT to register sales of $1 billion, way ahead of its target of achieving this level by 2010. The company last year registered sales of $800 million.
(Source: Business Standard)
MSAT is in an advanced stage of negotiations for acquisition of at least four overseas companies in the areas it operates – stamping, composites, forging and gear box. The total acquisition cost may be around Rs 1,000 crore.
Sources close to the development said the acquisitions would help MSAT to register sales of $1 billion, way ahead of its target of achieving this level by 2010. The company last year registered sales of $800 million.
(Source: Business Standard)
Thursday, June 14, 2007
Amtek lines up $125 m for buying US component firms
Amtek Auto Ltd said it has lined up around $125 million primarily to acquire US auto component companies in the "coming three to six months". This comes in the wake of its series of acquisitions, the most recent being the UK-based JL French's (Witham) Ltd this week.
Apart from this, in the past few years it has taken over Aluminium Foundaries UK, Zielter, a turbo charger manufacturing company in Europe, GWK in the UK and Smith Jones in the US.
The company is in talks to buy US component companies to augment its forging and machining capacity. Till date, the company has 90 per cent of oversees revenues from the European market and is now gearing up to expand its presence in the US automobile market, one-third of the global market.
"We are expecting many more deals in the coming months. We are looking to buy companies in the US in the range of $50-500 million depending on our business requirements," said Mr Santosh Singhi, Director, Finance, Amtek Auto Ltd.
At present, the company has presence in the ring gear segment in the US with over 50 per cent of the US market share and 35 per cent of the global market, said Mr Singhi.
In the domestic market, Amtek Auto would be investing about Rs 100 crore in capacity expansion and new facilities in Pune, Dharuhera, Baddi and Bhiwadi over the coming three months. It is also increasing its forging capacity to 2,80,000 tonnes from 100,000 tonnes, machining capacity to 30 million from 15 million and casting capacity to 175 tonnes from 75 tonnes over the coming six months.
The Rs 1,100-crore Amtek Auto Ltd is part of the Rs 4,000-crore Amtek Group. At present, Rs 2,000 crore revenue of the Group is accrued from the overseas market, while the remaining comes from its domestic operations, including exports worth Rs 500 crore.
(Source: Hindu Business Line)
Vivimed Labs close to buying European firm
Vivimed Labs, a specialty chemicals and home & personal care (HPC) product company, has firmed up plans to acquire a mid-sized company in Europe to expand its global reach and product portfolio.
The Hyderabad-based company has raised $12 million through foreign currency convertible bonds (FCCB). It intends to use the funds along with internal accruals for acquiring a specialty chemicals company abroad this fiscal, according to Mr Sunil Arab, Vice-President (Corporate Strategy & Business Development).
"We have identified a couple of European companies and are confident of completing the buy, after due diligence. The target companies typically should have sound product line, marketing network and regulatory expertise," he told Business Line here.
The acquisition is to get market and regulatory advantages in Europe. We will shift the acquired company's manufacturing base to India, where Vivimed Labs has four units in Hyderabad, Bidar (Karnataka), Hardwar (UP) and Kashipur (Uttaranchal) to manufacture specialty chemicals. It is a major supplier of these active ingredients to global majors.
Vivimed has a robust pipeline of at least 23 products such as Triclosan (oral care), Avo Benzone (sunscreen), and skin, hair care, etc. It is the country's top producer of the active ingredients that are necessary to manufacture these H&PC as well as industrial care products. With the market for these products growing substantially in the country, the company has set itself on a consolidation and expansion mode, Mr Sunil said.
The global market for active ingredients in H&PC is estimated to be about $25 billion, out of the total cosmetic care industry size of about $250 billion. Vivimed plans to expand its presence to 50 countries by 2010 from the existing 25-30. Japan, China, Korea and the Gulf countries are new destinations contemplated.
Marico still hungry for acquisitions
After acquiring a slew of brands recently, Marico is in restructuring mode even as it hunts for more buys in its segment.
"Marico would always be looking out for acquisitions. Some proposals are under active consideration," Mr Milind Sarwate, chief for HR and strategy, told Business Line.
He added that most of the recent acquisitions have already started yielding results.
After restructuring, Marico now comprises three strategic business units (SBUs): consumer products business, Kaya business and international business, all of which are profit centres, and three support units - technology, finance and IT and HR and strategy.
This has been carried out as a proactive measure and to accelerate growth.
Mr Sarwate said that certain segments have been modified and the business units have now become more cohesive.
He added that Marico expects growth in sales of its domestic business to be led by flagships Parachute (coconut hair oil) and Saffola (edible oil).
"We believe that growth in one business unit does not come at the cost of growth in another unit. Thus, we can keep firing on all cylinders, be it domestic or international business."
He added that the company's recent acquisition, Nihar (an oil brand), boasted of a turnover of about Rs 120 crore during 2006-07.
The two brands which the company acquired from a company in Egypt, Fiancee and HairCode, have been integrated into its portfolio completely.
The company expects to generate a turnover of about Rs 90 crore during 2007-08 from these two brands.
However, the growth of the recently acquired soap brands, Manjal in India and Aromatic and Camelia in Bangladesh, have been moderate.
"We expect that the soap brands will take some time to perform because we are still new to the soap category," Mr Sarwate said.
During the fourth quarter of 2006-07, the Group recorded net sales (plus services) of Rs 397 crore, posting a 33 per cent rise over the same period last year, 21 per cent of which came organically and 12 per cent inorganically.
Mr Sarwate said with the company raising equity through the qualified institutional placement route, Marico expects the funds situation to be under control, "such that a further equity issue may not be required."
Marico raised funds worth Rs 150 crore through private placement of 29 lakh equity shares at Rs 522 a share in December 2006.
Mr Sarwate also said that the interest costs went up in 2006-07 and may go up further during the current fiscal with the increase in the average level of debt.
Jubilant completes acquisition of Hollister-Stier
Jubilant Organosys Ltd on Friday announced that it has completed the acquisition of Hollister-Stier Laboratories.
The purchase price of $122 million and the reimbursement for the capacity augmentation programme of $18.7 million has been financed through cash-on-hand from an earlier FCCB issue and also by leveraging Hollister's balance sheet.
The purchase price of $122 million and the reimbursement for the capacity augmentation programme of $18.7 million has been financed through cash-on-hand from an earlier FCCB issue and also by leveraging Hollister's balance sheet.
Javelin Tech buying 51% in Manasa Organics
Javelin Technologies Ltd, a Mumbai-based, biotech and software company, is set to pick up 51 per cent equity in Manasa Organics Ltd, a manufacturer of dye intermediates based in Visakhapatnam.
(Source: Business Line)
(Source: Business Line)
Reliance Life Sciences looking out for acquisitions
Reliance Life Sciences (RLS) and its fledgling subsidiary Reliance Pharmaceuticals Ltd (RPL) are looking at options, including roping in a strategic partner or an outright acquisition. The company is reported to be scouting for a potential acquisition in the US, an industry source told Business Line.
RLS had picked up 74 per cent equity in the UK-based biotech firm GeneMedix earlier this year. And this was followed up with RLS partnering with the US-based global investment management firm MPM Capital LP. The partnership envisaged RLS becoming a strategic partner in MPM Capital's newest fund, MPM BioVentures IV, with a corpus of $650 million.
(Source: Business Line)
RLS had picked up 74 per cent equity in the UK-based biotech firm GeneMedix earlier this year. And this was followed up with RLS partnering with the US-based global investment management firm MPM Capital LP. The partnership envisaged RLS becoming a strategic partner in MPM Capital's newest fund, MPM BioVentures IV, with a corpus of $650 million.
(Source: Business Line)
OVL set to pick 33% in Egyptian bloc
ONGC’S foreign arm ONGC Videsh (OVL) is all set to acquire around 33% stake in Shell’s high-prospective block in the Northeast Mediterranean deepwater (Egypt).
The Union Cabinet may approve OVL’s proposed investment of $380 million to pick up the stake in the block which has estimated gas reserves of around 14 trillion cubic feet (tcf). The size is stated to be approximately the same as Reliance’s approved gas find in the KG Basin. The block is expected to start production by 2012.
The block is currently held by Shell (84%) and Petronas of Malaysia (16%.
(Source: ET)
The Union Cabinet may approve OVL’s proposed investment of $380 million to pick up the stake in the block which has estimated gas reserves of around 14 trillion cubic feet (tcf). The size is stated to be approximately the same as Reliance’s approved gas find in the KG Basin. The block is expected to start production by 2012.
The block is currently held by Shell (84%) and Petronas of Malaysia (16%.
(Source: ET)
Two VCs invest in Kreeda
IDG Ventures and SoftBank China & India Holdings have invested in Kreeda Games, a company focused on massively multiplayer online games (MMOGs). The investment is learnt to be less than $10 million. The VCs bring international experience to Kreeda — IDG’s portfolio includes VinaGames, a gaming company in Vietnam, while SoftBank has invested in the South Korea-based Gravity.
Planned revenue streams are monthly membership subscriptions, hourly charges, in-game advertising and in-game item sales. The revenue model would depend on each game. Their first game, Dance Mela, is free to sign up and play.
The VCs and Kreeda’s CEO quote the success stories from China and Vietnam to underline their belief in the Indian market. The Chinese market for MMOGs grew from $1 million in the first year to $80 million by the end of the second year. Within six years, he says, the Chinese market touched $1 billion. IDG has experience in Vietnam where a million subscribers were introduced to MMOGs within a year.
(Source: ET)
Planned revenue streams are monthly membership subscriptions, hourly charges, in-game advertising and in-game item sales. The revenue model would depend on each game. Their first game, Dance Mela, is free to sign up and play.
The VCs and Kreeda’s CEO quote the success stories from China and Vietnam to underline their belief in the Indian market. The Chinese market for MMOGs grew from $1 million in the first year to $80 million by the end of the second year. Within six years, he says, the Chinese market touched $1 billion. IDG has experience in Vietnam where a million subscribers were introduced to MMOGs within a year.
(Source: ET)
Aurobindo Pharma setting up R&D arm: Targets $1-b revenue; eyeing acquisitions in Europe
Aurobindo Pharma Ltd is setting up a wholly owned subsidiary for collaborative research here and is planning to hire over 2,000 scientists by 2008.
The company is also targeting to cross $1-billion mark in revenue over next two to three years and is scouting for acquisitions in Europe.
"We are looking to acquire smaller entities in Europe which can serve as launch pads for our growth." Mr P.V. Ram Prasad Reddy, Chairman, Aurobindo Pharma Ltd, told newspersons here on Wednesday. The firm is currently in talks with a small domestic firm for acquisition, he said, refusing to give further details.
(Source: Business Line)
The company is also targeting to cross $1-billion mark in revenue over next two to three years and is scouting for acquisitions in Europe.
"We are looking to acquire smaller entities in Europe which can serve as launch pads for our growth." Mr P.V. Ram Prasad Reddy, Chairman, Aurobindo Pharma Ltd, told newspersons here on Wednesday. The firm is currently in talks with a small domestic firm for acquisition, he said, refusing to give further details.
(Source: Business Line)
Wednesday, June 13, 2007
Compact Disc to float subsidiary in UK
Animation outsourcing company Compact Disc India will float a wholly-owned subsidiary, Media One, in the United Kingdom at an investment of $50 million, for handling global motion and animated film projects.
The Chandigarh-based company, which has recently acquired the UK-based mobile gaming company Mobsoft for USD two million, also plans to produce a film called 'Guru of Sex', based on the life of Osho Rajneesh.
(Source: ET)
The Chandigarh-based company, which has recently acquired the UK-based mobile gaming company Mobsoft for USD two million, also plans to produce a film called 'Guru of Sex', based on the life of Osho Rajneesh.
(Source: ET)
Apollo eyes UK's Bupa chain buyout
The Apollo hospitals group is on an acquisition mode. The group wants to acquire UK based Bupa chain of hospitals, which is valued at an estimated $2.4 billion.
Apollo's recent plans to acquire other hospitals in the US and UK fell through primarily on account of valuation issues. In a bid to expand its IT and healthcare arm, the group plans to acquire a healthcare BPO unit in the US for about $100 million.
(Source: ET)
Apollo's recent plans to acquire other hospitals in the US and UK fell through primarily on account of valuation issues. In a bid to expand its IT and healthcare arm, the group plans to acquire a healthcare BPO unit in the US for about $100 million.
(Source: ET)
Fujitsu eyes Mumbai BPO
After its exit from a partnership with RPG company Zensar, Fujitsu India CEO Mikito Kiname said his company will start from scratch to rebuild its presence in India. The company is believed to be interested in buying Mumbai-based BPO Intelenet, in addition to having plans to scale organically.
Vinod Dham picks up 25% stake in ISGN
NRI venture capitalist Vinod Dham’s New Enterprise Associates (NEA) has picked up a minority stake in KK Birla-promoted mortgage BPO ISGN for about $25 million. According to market sources, the VC has picked up about 22-25% in ISGN, valuing it at about $100 million.
ISGN is the third largest mortgage servicing KPO in US after Fidelity and Fiserve. In the US loan origination software market, however, it claims to the largest in with a share of 18%.
ISGN said it will use the proceeds from New Enterprise Associates to help it expand inorganically. ISGN is on an acquisition spree. In May, this year, ISGN bought US-based Dynatek. In March, the company acquired the mortgage division of US-based Fair Isaac Corporation for an undisclosed sum. The company is looking for buyouts in mortgage servicing and default management space in India.
(Source: ET)
ISGN is the third largest mortgage servicing KPO in US after Fidelity and Fiserve. In the US loan origination software market, however, it claims to the largest in with a share of 18%.
ISGN said it will use the proceeds from New Enterprise Associates to help it expand inorganically. ISGN is on an acquisition spree. In May, this year, ISGN bought US-based Dynatek. In March, the company acquired the mortgage division of US-based Fair Isaac Corporation for an undisclosed sum. The company is looking for buyouts in mortgage servicing and default management space in India.
(Source: ET)
ICICI Venture buys out US pharma R&D firm
In what is arguably the first buyout led by an Indian private equity firm in the international market, ICICI Venture — the private equity arm of ICICI Bank— has acquired majority control in US-based clinical research company Radiant Research
ICICI Venture, one of the most active private equity funds in India managing funds in excess of $2 billion, has multiple exposure in the life sciences business. Its investment portfolio includes Arch Pharmalabs, Malladi Drugs, Bharat Biotech, I-Ven Pharma, RFCL, Metropolis, Perlecan, Avesthagen, Biocon, Medicorp and Intas Pharma.
source: economic times
ICICI Venture, one of the most active private equity funds in India managing funds in excess of $2 billion, has multiple exposure in the life sciences business. Its investment portfolio includes Arch Pharmalabs, Malladi Drugs, Bharat Biotech, I-Ven Pharma, RFCL, Metropolis, Perlecan, Avesthagen, Biocon, Medicorp and Intas Pharma.
source: economic times
Apollo-DKV JV to launch health insurance by Aug
The newly formed Apollo DKV Insurance Corporation, a joint venture between Apollo Group of Hospitals and DKV, a European insurance company, will launch its first bouquet of five health insurance products by the end of August 2007, Pratap C Reddy, chairman, Apollo Group, said.
Apollo will hold 74% equity in the company while DKV, a subsidiary of Munich Re, a re-insurance company, will hold the remaining 26%, initially. As and when the existing norms are relaxed, Apollo would increase the DKV's equity participation in the company to 49% by reducing its stake to 51%.
Tuesday, June 12, 2007
GV Films hunting for more..
The Chennai-based G V Films says it's interested in acquiring a 10 per cent stake in another city-based animation firm Sanrasoftware Ltd, which recently bagged orders for production work of cartoon films from Hollywood. A Venkatramani, Director, GV films, earlier said his company would like to have 10 per cent stake in Sanra.
Tamilnadu Mercantile Bank Stake Sale
Here are more details on the stake sale in Tamilnad Mercantile Bank, the bank in which Tamil Nadu's powerful Nadar community had been refusing to give up control. According to the latest information made available by The Economic Times, non-Nadars have picked up 24.93 per cent in TMB. They include six foreign investors and two Indians.
It seems the curtains are finally down on Sivasankaran's stake sale at TMB, which was earlier opposed by Nadar members. Reserve Bank has also reportedly the stake sale.
(source: vccircle)
It seems the curtains are finally down on Sivasankaran's stake sale at TMB, which was earlier opposed by Nadar members. Reserve Bank has also reportedly the stake sale.
(source: vccircle)
Vivimed Labs close to buying European firm
Vivimed Labs, a specialty chemicals and home & personal care (HPC) product company, has firmed up plans to acquire a mid-sized company in Europe to expand its global reach and product portfolio.
The Hyderabad-based company has raised $12 million through foreign currency convertible bonds (FCCB). It intends to use the funds along with internal accruals for acquiring a specialty chemicals company abroad this fiscal, according to Mr Sunil Arab, Vice-President (Corporate Strategy & Business Development).
The global market for active ingredients in H&PC is estimated to be about $25 billion, out of the total cosmetic care industry size of about $250 billion. Vivimed plans to expand its presence to 50 countries by 2010 from the existing 25-30. Japan, China, Korea and the Gulf countries are new destinations contemplated.
The Hyderabad-based company has raised $12 million through foreign currency convertible bonds (FCCB). It intends to use the funds along with internal accruals for acquiring a specialty chemicals company abroad this fiscal, according to Mr Sunil Arab, Vice-President (Corporate Strategy & Business Development).
The global market for active ingredients in H&PC is estimated to be about $25 billion, out of the total cosmetic care industry size of about $250 billion. Vivimed plans to expand its presence to 50 countries by 2010 from the existing 25-30. Japan, China, Korea and the Gulf countries are new destinations contemplated.
Yash Raj Films, Blackstone JV likely
Filmmaker Yash Chopra is believed to be engaged in talks with private equity investor Blackstone to form a joint venture for movie exhibition initiative. The movie exhibition business will strengthen Yash Raj Films’ presence in the media and entertainment space.
Chopra is planning to buy single-screen theatres and convert them into multi-screen theatres, depending on their viability. The new business is unlikely to operate under the Yash Raj Films banner. Yash Raj Films, the production house owned by Chopra, has already acquired two properties in Mumbai, Bahar Cinema in Andheri and Capitol Cinema in south Mumbai, according to sources. The production house is also looking at other metros, including Kolkata, Ahmedabad, Hyderabad and Bangalore.
Formed in 1970, the production house has come a long way from running a studio to distributing movies. It launched the music label called Yash Raj Music some years ago. The company also produces DVDs under the Yash Raj Films Home Entertainment label and started movie distribution last year with the Bollywood film, Krrish, followed by Kabhi Alvida Naa Kehna.
(Source: Business Standard)
Chopra is planning to buy single-screen theatres and convert them into multi-screen theatres, depending on their viability. The new business is unlikely to operate under the Yash Raj Films banner. Yash Raj Films, the production house owned by Chopra, has already acquired two properties in Mumbai, Bahar Cinema in Andheri and Capitol Cinema in south Mumbai, according to sources. The production house is also looking at other metros, including Kolkata, Ahmedabad, Hyderabad and Bangalore.
Formed in 1970, the production house has come a long way from running a studio to distributing movies. It launched the music label called Yash Raj Music some years ago. The company also produces DVDs under the Yash Raj Films Home Entertainment label and started movie distribution last year with the Bollywood film, Krrish, followed by Kabhi Alvida Naa Kehna.
(Source: Business Standard)
L&T Infotech plans buyouts
Mumbai-based L&T Infotech, a part of the Larsen &Toubro group, is evaluating acquisitions of $50-200 million (close to Rs 200-820 crore) in the US, Europe and India in a bid to boost revenues.
The company also plans to spend Rs 500-600 crore over three to four years to expand its Bangalore, Chennai and Mumbai centres. It also plans to increase its headcount to 20,000 by the end of 2010 from the current 7,200. To accommodate this growth, the company today inaugurated a 1,900-seat software development centre at Mhape in Navi Mumbai.
The focus of the company would be to grow its five verticals — manufacturing, BFSI, product engineering services and energy. Currently, BFSI and energy contribute 30 per cent each to its revenues, and manufacturing 20-25 per cent.
(Source: Business Standard)
The company also plans to spend Rs 500-600 crore over three to four years to expand its Bangalore, Chennai and Mumbai centres. It also plans to increase its headcount to 20,000 by the end of 2010 from the current 7,200. To accommodate this growth, the company today inaugurated a 1,900-seat software development centre at Mhape in Navi Mumbai.
The focus of the company would be to grow its five verticals — manufacturing, BFSI, product engineering services and energy. Currently, BFSI and energy contribute 30 per cent each to its revenues, and manufacturing 20-25 per cent.
(Source: Business Standard)
Geometric buys PLM adapters
Geometric Software Solutions Co Ltd said on Tuesday it has bought product life cycle adapters for enterprise integration from MeritSpring Technologies AG of Switzerland. These adapters are used in aerospace and other engineering industries, the company said in a statement.
(Source: ET)
(Source: ET)
Reliance Capital Plans To Enter Investment Banking
Here is something to worry for investment bankers. Reliance Capital, the financial arm of the Reliance-Anil Dhirubhai Ambani Group (R-ADAG), is looking at entering the investment banking space. Media reports suggest that Reliance Capital could be in talks with global biggies like Bear Stearns and Paine Webber (acquired by UBS in 2000; will UBS partner with Reliance Capital?) for a partnership for its i-banking foray. Reliance Capital honcho Amitabh Jhunjhunwala is believed to be "overseeing the initiative". They have even initiated talks to hire key executives. Reliance Capital currently straddles the entire financial space. It has presence in asset management (Reliance Mutual Fund), retail broking (Reliance Money) and insurance businesses. Reliance Capital wants to ride the boom in the capital raising and M&A activities. Reliance Capital is already a big investor in India, and it picks up stakes in various entities. The company may use the relationships to further its investment banking business. This may be a threat to medium sized investment banks for sure.
source: vccircle
source: vccircle
GV Films interested in investing in Sanra
G V Films Ltd has evinced interest in investing in animation firm Sanra, a top company official said on Monday. It plans to pick up 10% stake in Sanra.
Sanra, which had bagged orders for production work of some cartoon films from Hollywood, would decide very soon on the offer, Sanra's CEO Sukumar Subramanian told reporters.
GV had bagged a six million USD order for producing an animation film from the United States, besides 12 million order from a UK company, Venkatramani said adding Sanra's expertise would be used in producing both the films. The company was also exploring the possibilities for a tie up with Universal Studios in the Hollywood for production of animation films, he said.
(Source:ET)
Sanra, which had bagged orders for production work of some cartoon films from Hollywood, would decide very soon on the offer, Sanra's CEO Sukumar Subramanian told reporters.
GV had bagged a six million USD order for producing an animation film from the United States, besides 12 million order from a UK company, Venkatramani said adding Sanra's expertise would be used in producing both the films. The company was also exploring the possibilities for a tie up with Universal Studios in the Hollywood for production of animation films, he said.
(Source:ET)
Strides buys Grandix Pharma for Rs 100 cr
Strides Arcolab Ltd on Monday said it has acquired Grandix Pharmaceuticals Ltd and its subsidiary Grandix Laboratories Ltd on a cash and debt free basis at Rs 100 crore.
Grandix primarily focusses on South India.
(Source: ET)
Grandix primarily focusses on South India.
(Source: ET)
ESPN acquires Cricinfo
In a major sports media merger, leading broadcaster ESPN has acquired pioneering cricket website 'Cricinfo'.
"Growing our business in the on-line world is vital for us to serve sports fans. Cricinfo is a tremendous property with a great fan base and it will be a strong addition to ESPN," Russell Wolff, managing director of ESPN International, said in a statement on 'Cricinfo' on Monday."
Cricinfo has developed into a significant cricket brand in its own right, combining huge global popularity with strong commercial success. ESPN is a major sports broadcaster and international rights holder and will provide the perfect environment for Cricinfo to further realise its enormous potential," Mark Getty, director of the Wisden Group which owns the website, said.
Cricinfo had its inception in 1993 as an on-line community of cricket fans supplying cricket-related information on a voluntary basis.
(Source: Economic Times)
"Growing our business in the on-line world is vital for us to serve sports fans. Cricinfo is a tremendous property with a great fan base and it will be a strong addition to ESPN," Russell Wolff, managing director of ESPN International, said in a statement on 'Cricinfo' on Monday."
Cricinfo has developed into a significant cricket brand in its own right, combining huge global popularity with strong commercial success. ESPN is a major sports broadcaster and international rights holder and will provide the perfect environment for Cricinfo to further realise its enormous potential," Mark Getty, director of the Wisden Group which owns the website, said.
Cricinfo had its inception in 1993 as an on-line community of cricket fans supplying cricket-related information on a voluntary basis.
(Source: Economic Times)
Monday, June 11, 2007
Equity deals till May race past $50 bn
An article in today's Economic Times summarizes India Inc's performance till now in the field of M&A.
A total of $46.8 billion worth of strategic mergers & acquisitions (M&As) and $5.1 billion worth of private equity (PE) deals were announced in the country during January-May 2007. Compare this with M&As worth $10.8 billion and $3.5 billion of PE deals struck during January-June 2006.
Update: Cross Border M&A's
India Inc is showing a distinct foreign flavour in its M&A deals, with the cross-border deal value going up nearly 16 times at $4.11 billion as compared to the value of domestic deals in May, a latest report shows.
A total of $46.8 billion worth of strategic mergers & acquisitions (M&As) and $5.1 billion worth of private equity (PE) deals were announced in the country during January-May 2007. Compare this with M&As worth $10.8 billion and $3.5 billion of PE deals struck during January-June 2006.
Update: Cross Border M&A's
India Inc is showing a distinct foreign flavour in its M&A deals, with the cross-border deal value going up nearly 16 times at $4.11 billion as compared to the value of domestic deals in May, a latest report shows.
Carborundum Universal buys Russian carbide abrasives firm
Carborundum Universal (CUMI) has entered into a memorandum of understanding to pick up 84.14 per cent stake in Volzhsky Abrasives Works (VAW) located in Volzhsky of Volgograd region in Russia.
VAW is the largest producer of silicon carbide abrasives in Russia, with an installed capacity of 65,000 tonnes a year. VAW also produces bonded abrasives and refractories. VAW’s sales in 2006 were about $54 million.
CUMI, a flagship of the Rs 8,000-crore Murugappa Group, has operations in Australia, Canada, China, West Asia, the US and India. The company has been a pioneer in the manufacture of coated and bonded abrasives in India and has made forays into other materials such as ceramics and electrominerals.
(Source: Business Standard)
VAW is the largest producer of silicon carbide abrasives in Russia, with an installed capacity of 65,000 tonnes a year. VAW also produces bonded abrasives and refractories. VAW’s sales in 2006 were about $54 million.
CUMI, a flagship of the Rs 8,000-crore Murugappa Group, has operations in Australia, Canada, China, West Asia, the US and India. The company has been a pioneer in the manufacture of coated and bonded abrasives in India and has made forays into other materials such as ceramics and electrominerals.
(Source: Business Standard)
Temptation buys HUL's marine foods business
Mumbai-based Temptation Foods (TFL) has acquired the marine foods business of FMCG major Hindustan Unilever (HUL) for an undisclosed sum.
The size of the business that includes manufacturing facilities is estimated to be around Rs 250 crore. The deal had already been sealed, sources close to the developments said.
Temptation Foods, the Rs 39-crore, listed, fruit and vegetables export company, will get direct access to HUL’s customers across the world. HUL’s marine foods division is the largest single export vertical in the country. HUL had decided to sell it as it wanted to get out of all non-core businesses.The company had already sold its seafood processing plant in Andhra Pradesh and shut down operations in Gujarat.
(Source: Business Standard)
The size of the business that includes manufacturing facilities is estimated to be around Rs 250 crore. The deal had already been sealed, sources close to the developments said.
Temptation Foods, the Rs 39-crore, listed, fruit and vegetables export company, will get direct access to HUL’s customers across the world. HUL’s marine foods division is the largest single export vertical in the country. HUL had decided to sell it as it wanted to get out of all non-core businesses.The company had already sold its seafood processing plant in Andhra Pradesh and shut down operations in Gujarat.
(Source: Business Standard)
iLabs invests Rs 42 cr in VSoft
iLabs Private equity fund, a $300 million India-centric fund promoted by former COO of Satyam Computer Systems Srini Raju, has invested Rs 42 crore (over $10 million) in VSoft Corp.
VSoft is a global information technology and solutions provider of cheque imaging and data management software. Founded by former consultants with Unisys, VSoft has expertise in the financial services industry and has a reputation for providing cost-effective, functional technology and services. VSoft started operations in 1996, and is based in Atlanta, US. The offshore development center at Hyderabad was set up in 2004.
(Source: Business Standard)
VSoft is a global information technology and solutions provider of cheque imaging and data management software. Founded by former consultants with Unisys, VSoft has expertise in the financial services industry and has a reputation for providing cost-effective, functional technology and services. VSoft started operations in 1996, and is based in Atlanta, US. The offshore development center at Hyderabad was set up in 2004.
(Source: Business Standard)
Sunday, June 10, 2007
Reliance Capital may sell minority stake
Anil Ambani has been on a buying spree all these months picking up stakes in diverse companies through his financial services arm Reliance Capital.But now it seems he is looking for a buyer who will acquire minority stake in his insurance ventures. And foreign players waiting for a foothold in India are queuing up for a piece of the action.
NDTV has learned that ADAG group company Reliance Capital is planning to rope in a partner for the insurance business. The group is likely to sell 26 per cent each in its life and non-life insurance businesses.
Reliance's insurance businesses are valued at around $1.2-1.75 billion and contribute about 25-30 per cent of the price of the Reliance Capital share. Reliance ranks second in general insurance and fifth in life insurance among the private players.For private insurance players like Reliance it is now the investment stage where they have to pump in money to build their distribution network and also meet regulatory requirements.It will take a while for many of them to break even in the life insurance segment though ADAG group is not short of cash it may want to realise value when the going is good and when other players like ICICI Prudential and SBI Life are also looking at diluting the group holdings.
(Source: NDTV profit)
NDTV has learned that ADAG group company Reliance Capital is planning to rope in a partner for the insurance business. The group is likely to sell 26 per cent each in its life and non-life insurance businesses.
Reliance's insurance businesses are valued at around $1.2-1.75 billion and contribute about 25-30 per cent of the price of the Reliance Capital share. Reliance ranks second in general insurance and fifth in life insurance among the private players.For private insurance players like Reliance it is now the investment stage where they have to pump in money to build their distribution network and also meet regulatory requirements.It will take a while for many of them to break even in the life insurance segment though ADAG group is not short of cash it may want to realise value when the going is good and when other players like ICICI Prudential and SBI Life are also looking at diluting the group holdings.
(Source: NDTV profit)
Saturday, June 9, 2007
Realty consultant TCM in merger talks with global players
With India’s real estate sector growing fast, property consultant Trammell Crow Meghraj (TCM), which claims a 15% share in the domestic market, has initiated talks with two global players for a possible merger to expand its presence.
US-based Jones Lang LaSalle and a UK-based real estate adviser, believed to be Savills, are the two entities with which TCM is in touch for a merger or alternatively, a partnership in India, according to industry sources.
A top official of TCM claimed that they were also talking to the world’s largest commercial real estate services firm CB Richard Ellis (CBRE), but CBRE officials declined to comment.
(Source: LiveMint)
US-based Jones Lang LaSalle and a UK-based real estate adviser, believed to be Savills, are the two entities with which TCM is in touch for a merger or alternatively, a partnership in India, according to industry sources.
A top official of TCM claimed that they were also talking to the world’s largest commercial real estate services firm CB Richard Ellis (CBRE), but CBRE officials declined to comment.
(Source: LiveMint)
Tatas offload 10% in Tata Sky to Temasek
The Tata Group has divested 10% stake in its direct-to-home (DTH) venture Tata Sky to the Singapore government's investment arm Temasek for $56 million.
Temasek has the option to increase its stake further to the permissible limit of 26%. With this move, Tatas' stake in the company has come down to 70%.Incorporated in 2004, Tata Sky started off as a 80:20 joint venture between the Tata Group and television network Star. The DTH service was launched last year.
Tata Sky has a total subscriber base of over half a million, and intends to take the number to one million by August this year.The competition in the DTH space is hottening up with the proposed entry of cash-rich companies like, Reliance, Bharti and Sun TV, the source said. Tata Sky is the market leader at present.At the current rate of the growth, India would have anything between 15 to 20 million DTH subscribers in the next five to six years.
(Source: Business Standard)
Temasek has the option to increase its stake further to the permissible limit of 26%. With this move, Tatas' stake in the company has come down to 70%.Incorporated in 2004, Tata Sky started off as a 80:20 joint venture between the Tata Group and television network Star. The DTH service was launched last year.
Tata Sky has a total subscriber base of over half a million, and intends to take the number to one million by August this year.The competition in the DTH space is hottening up with the proposed entry of cash-rich companies like, Reliance, Bharti and Sun TV, the source said. Tata Sky is the market leader at present.At the current rate of the growth, India would have anything between 15 to 20 million DTH subscribers in the next five to six years.
(Source: Business Standard)
Essar set to acquire Canada-based Algoma
Essar Global has received approval from the Canadian government for acquisition of Algoma Steel for Canadian $1.85 billion (Rs 7,100 crore), as required under the country's foreign- investment rules.
(Source: Business Standard)
(Source: Business Standard)
BoM planning non-life insurance foray with Shriram-Sanlam
State-owned Bank of Maharashtra (BoM) is planning to foray into the non-life insurance business by picking up a 15 per cent stake for Rs 15 crore in the proposed non-life venture of Chennai-based Shriram Group and South Africa's Sanlam.
Apart from IRDA approval for the joint venture, BoM would also require a clearance from the Reserve Bank for the venture.
(Source: Business Line)
Apart from IRDA approval for the joint venture, BoM would also require a clearance from the Reserve Bank for the venture.
(Source: Business Line)
Temasek to pick up 28% stake in First Flight
Temasek is picking 27.74% equity stake in courier and express delivery firm First Flight in a deal worth Rs 107.5 crore. Mumbai-based First Flight, which is a public limited unlisted company promoted by the Saboo family, is the second largest domestic courier company with revenues of around Rs 300 crore. It is the largest domestic private equity deal in the courier and logistics space.
Friday, June 8, 2007
SFC buys stake in Deccan Chronicle
Foreign brokerage firm Swiss Finance Corp has acquired 5.41 lakh shares of the Deccan Chronicle Holdings, publishers of Deccan Chronicle, through the conversion of Foreign Currency Convertible Bonds (FCCBs) into equity shares.
In a communique to BSE, Deccan Chronicle said its Share Allotment Committee in a meeting on Friday approved the allotment of 5,41,410 equity shares of Rs 2 each (face-value) as per the terms of the bonds.
In a communique to BSE, Deccan Chronicle said its Share Allotment Committee in a meeting on Friday approved the allotment of 5,41,410 equity shares of Rs 2 each (face-value) as per the terms of the bonds.
Foreign investors pick up 16.47% stake in TMB
Foreign investors have picked up 46,862 shares of Tamilnad Mercantile Bank Ltd (TMB), which works out to 16.47 per cent of the paid-up equity of the bank, sources in the know told Business Line today.
Avigo Capital invests $5 mn in Spykar
New Delhi-based private equity fund manager, Avigo Capital Partners has invested $5 million in Spykar Lifestyle, the brand that promotes Spykar Jeans, even as it is close to buying stakes in a cold-chain company and in the allied infrastructure and engineering space.
Avigo made the investment in Spykar out of its second fund called ‘The Avigo SME Fund II’, which has a corpus of $125 million. The fund is registered in Mauritius and the money was raised from Southeast Asia, Europe, India and the US.
Spykar Lifestyle also plans to tap the capital market before September 2009.
(Source: Business Standard)
Avigo made the investment in Spykar out of its second fund called ‘The Avigo SME Fund II’, which has a corpus of $125 million. The fund is registered in Mauritius and the money was raised from Southeast Asia, Europe, India and the US.
Spykar Lifestyle also plans to tap the capital market before September 2009.
(Source: Business Standard)
Foreign bank picking up stake in Repco Home Fin
A large foreign bank" is on the verge of picking up minority stake (up to 49 per cent) in Repco Home Finance Ltd, the housing finance subsidiary of Repco Bank, the Chennai-based multi-state co-operative bank.
Mr M. Balasubramanian, Managing Director of Repco Home Finance did not disclose the name of the investing foreign bank because Repco Home has signed a non-disclosure agreement with the party, but said that it was a very large bank with operations in many parts of the world.
As per the terms of a MoU signed at the beginning of the negotiations, the foreign bank has an option of acquiring up to 49 per cent. Soon after the bank gets on board, Repco Home Finance intends to come out with an IPO, Mr Balasubramanian said.
(Source: Hindu Business Line)
Mr M. Balasubramanian, Managing Director of Repco Home Finance did not disclose the name of the investing foreign bank because Repco Home has signed a non-disclosure agreement with the party, but said that it was a very large bank with operations in many parts of the world.
As per the terms of a MoU signed at the beginning of the negotiations, the foreign bank has an option of acquiring up to 49 per cent. Soon after the bank gets on board, Repco Home Finance intends to come out with an IPO, Mr Balasubramanian said.
(Source: Hindu Business Line)
Educomp acquires a Singapore based company
Educomp Solutions announced that it has acquired Singapore-based 'Ask n Learn', an education technology company, which will add 100 schools to Educomp's portfolio. The acquisition consideration is $3.88 million, besides options worth $0.68 million. In a related development, Educomp has also floated two arms - Educomp Infrastructure Pvt Ltd (Edu Infra) & Educomp School Management (Edu Manage) - in which the parent will pick up 69.38 per cent and 68 per cent, respectively.
Source: www.vccircle.com
Source: www.vccircle.com
StanChart PE sells 5% in Aurobindo Pharma
Standard Chartered Private Equity has sold half of its 5 per cent stake in Aurobindo Pharma for about Rs 95 crore ($21 million), reports The Economic Times. That's a little less than 100 per cent return on its investment made three years back. StanChart PE had picked up 4.5 per cent for Rs 89 crore, and later added another 0.5 per cent for Rs 12 crore. Now the company has sold shares in open market through block deals. The company is left with Rs 2.5 per cent in the company which is currently valued at Rs 96 crore.
M&M in talks to buy Italian gearbox maker
Mahindra & Mahindra (M&M), India’s largest tractor and utility vehicle maker, is believed to be looking at acquiring a gearbox company in Italy in a deal valued between Rs 350-400 crore, people familiar with the situation said.
Talks with an investor in the Italian company who wants to exit are in an advanced stage, they added. The company that is being planned for acquisition is said to be more than 50 years old. It manufactures products such as fully assembled transmission shift rails.
Talks with an investor in the Italian company who wants to exit are in an advanced stage, they added. The company that is being planned for acquisition is said to be more than 50 years old. It manufactures products such as fully assembled transmission shift rails.
Thursday, June 7, 2007
Take Solutions looking for acquisitions in US and Europe
HR Srinivisan, Vice Chairman, Take Solutions has said that they are looking at acquisitions to double their size. They will be scouting the US and European markets for acquisitions. He says, their client concentration is unlikely to change.
They are in talks with investors to place 9 lakh shares. Out of the IPO proceeds, 60% will used for acquisition, 15% for product development and 15% for development of infrastructure.
The IPO size is between 75-82 crores, effectively giving Take Solutions a corpus of 45-49.2 crores for the desired acquisitions.
They are in talks with investors to place 9 lakh shares. Out of the IPO proceeds, 60% will used for acquisition, 15% for product development and 15% for development of infrastructure.
The IPO size is between 75-82 crores, effectively giving Take Solutions a corpus of 45-49.2 crores for the desired acquisitions.
IFC to take 5.8 pc stake in Lanco subsidiary
International Finance Corp (IFC), the private sector arm of World Bank, will take 5.84 per cent stake in Lanco Infratech's subsidiary - Lanco Amarkantak Power Pvt Ltd - for $8 million (about Rs 32.5 crore).
ICICI to sell 5% in Arcil
ICICI Bank will sell 5% of its equity stake in Asset Reconstruction Company of India (Arcil) to an African Bank, First Rand Bank, for little less than Rs 40 crore.
Last year ICICI had decided to sell 10% of its stake to British bank Barclays Bank. However, this was rejected by Reserve Bank of Indioa (RBI) on the grounds that the bank would overstep its capital market exposure limit.
Last year ICICI had decided to sell 10% of its stake to British bank Barclays Bank. However, this was rejected by Reserve Bank of Indioa (RBI) on the grounds that the bank would overstep its capital market exposure limit.
SAP Looking At Acquisitions In India ; Targets Should Have Smart IP
Leading global business software maker SAP said that it's looking at acquisitions in India. Speaking at the inaugural day of the three-day SAP Summit '07 in Mumbai on Wednesday, Geraldine McBride, President of SAP Asia Pacfic Japan (APJ), said that the company is open to making acquisitions, essentially for acquiring smart technologies. "There are some companies with very smart IP. We are interested in looking at them," McBride
She, however, added that the acquisitions are not meant to acquire revenues or market share. The aim is to acquire IP. The company calls it "tuck-in" acquisition strategy. McBride also revealed that SAP has already identified two companies as potential targets in India. "There are two companies under our radar," she said, without revealing what sector they belonged to or their revenues.
McBride also announced that the company would invest $1 billion over the next three years (by 2010). Its focus area of growth in India will be small and medium enterprises
She, however, added that the acquisitions are not meant to acquire revenues or market share. The aim is to acquire IP. The company calls it "tuck-in" acquisition strategy. McBride also revealed that SAP has already identified two companies as potential targets in India. "There are two companies under our radar," she said, without revealing what sector they belonged to or their revenues.
McBride also announced that the company would invest $1 billion over the next three years (by 2010). Its focus area of growth in India will be small and medium enterprises
Wednesday, June 6, 2007
Tata Steel eyes acquisitions in SE Asia
Tata Steel, India's largest steelmaker, may expand by buying firms in Southeast Asia after two major deals already this year including a takeover of Anglo-Dutch firm Corus, a report said Wednesday. Managing Director B Muthuraman told the business daily that his company was interested in buying mines as well as factories to expand its range of products.
Tata is among several steel companies seeking to consolidate the fragmented industry and last month announced it has taken a minimum 65 per cent stake in a Vietnamese steel plant joint venture estimated at $3.5 billion.
Tata is among several steel companies seeking to consolidate the fragmented industry and last month announced it has taken a minimum 65 per cent stake in a Vietnamese steel plant joint venture estimated at $3.5 billion.
Tuesday, June 5, 2007
Amtek Auto buys J.L. French assets
Vehicle parts maker Amtek Auto Ltd said on Tuesday that it had acquired the assets of UK-based J.L. French (Witham) Ltd. The unit is capable of generating revenue of $120 million, Amtek said in a statement.
(Source: Blonnet.com)
(Source: Blonnet.com)
Hindalco shares rise 4% on takeover buzz
The Aditya Birla group-promoted Hindalco industries, the country’s largest aluminium producer, surged by about 4 per cent on the bourses to Rs 146.60 on market buzz that it could be a takeover target of the Alcan-Sterlite combine.
The Birla Group holds about 30 per cent stake in Hindalco with foreign institutional investors (FIIs) and institutions holding 20 per cent and 12 per cent, respectively. About 10 per cent is in GDRs, while the remaining is with retail investors.
Sources in the Birla Group said the consolidation in the metal industry was taking place across the world where an identifiable promoter is not present. In Hindalco’s case, there is an identifiable promoter who holds 30 percent stake and would not sell under any circumstances.
The Birla Group holds about 30 per cent stake in Hindalco with foreign institutional investors (FIIs) and institutions holding 20 per cent and 12 per cent, respectively. About 10 per cent is in GDRs, while the remaining is with retail investors.
Sources in the Birla Group said the consolidation in the metal industry was taking place across the world where an identifiable promoter is not present. In Hindalco’s case, there is an identifiable promoter who holds 30 percent stake and would not sell under any circumstances.
Seventymm acquires DVD rental player Madhouse
Bangalore-based VCD/DVD rental service company Seventymm has acquired 100 per cent equity of the New Delhi-based Madhouse for an undisclosed amount.
Madhouse is the first Indian company to offer movie DVD rental services via multiple channels - web, SMS, phone and kiosks - for home delivery. Seventymm chief operating officer Subhankar Sarkar declined to comment on the Madhouse acquisition.
Heavyweights such as the Anil Ambani-promoted ADAG, Nimbus and Moser Baer are entering the largely unorganised sector, which is expected to grow to Rs 2,000 crore by 2010.
(Source: Business Standard)
Madhouse is the first Indian company to offer movie DVD rental services via multiple channels - web, SMS, phone and kiosks - for home delivery. Seventymm chief operating officer Subhankar Sarkar declined to comment on the Madhouse acquisition.
Heavyweights such as the Anil Ambani-promoted ADAG, Nimbus and Moser Baer are entering the largely unorganised sector, which is expected to grow to Rs 2,000 crore by 2010.
(Source: Business Standard)
Goldman snaps up 5% in IL&FS arm
Goldman Sachs will pick up a 5 per cent stake in IL&FS Transportation Networks Ltd, a subsidiary of Infrastructure Leasing & Financial Services Ltd. Sources said Goldman Sachs would route the investment through its Mauritius-based wholly owned subsidiary — GS Strategic Investment Ltd. GS Strategic Investment will acquire 83.30 lakh shares of IL&FS Transportation, comprising 5.13 per cent of the equity, for Rs 83 crore.
(Source: indiape.com)
(Source: indiape.com)
Monday, June 4, 2007
ONGC inks swap deal with Brazil’s Petrobras
Oil and Natural Gas Corp has offered Brazilian oil firm Petroleo Brasileiro SA (Petrobras) a stake in its east coast blocks in exchange for getting a 15 per cent stake in a Brazilian exploration acerage.
ONGC and Petrobras today signed the swapping agreement that "marks an increased presence of ONGC Videsh Ltd (the overseas arm of ONGC) in Brazil and the entry of Petrobras in India," an ONGC press release said here.
(Source: ET)
ONGC and Petrobras today signed the swapping agreement that "marks an increased presence of ONGC Videsh Ltd (the overseas arm of ONGC) in Brazil and the entry of Petrobras in India," an ONGC press release said here.
(Source: ET)
Paramount Airways woos GoAir for buyout
Update: GoAir may be open to divesting around 40% stake even as the south-based Paramount Airways has placed a $100-150 million cash buyout proposal to the former. The Chennai-headquartered premium service carrier could lace it with a stake offer to the Wadias in the merged company, sources said.
(Source: ET)
-------------
Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.
Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.
Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.
GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.
GoAir's Wadia calls this a baseless speculation.
(Source: Business Standard)
(Source: ET)
-------------
Madurai-based Paramount Airways is interested in acquiring the Mumbai-based budget carrier GoAir, promoted by the Wadia group.
Sources close to the developments said the investment bankers of Paramount Airways have expressed their interest and initiated discussions with GoAir representatives. The talks, however, have not made much headway as yet as GoAir is reluctant to move ahead.
Paramount Airways, which currently operates only in south India, has firmed up plans to enter the western region. GoAir has only four leased aircraft but Paramount is more interested in its slots, parking bays, pilots and other infrastructure, sources said.
GoAir had earlier indicated its plan to dilute 26-40 per cent equity through a private equity placement.
GoAir's Wadia calls this a baseless speculation.
(Source: Business Standard)
Lehman, Spinnaker pick up stake in Spice Telecom
Lehman Brothers and Spinnaker Investments have picked up a small stake in Spice telecom for about $30 million, as a part of the pre-IPO placement. It is estimateed that these investors will pick up a fifth of the nearly 138 million shares that will be issued in the IPO at about Rs 45 per share.
Sunday, June 3, 2007
India’s Rain Calcining to buy US firm
India’s Rain Calcining Ltd said it had agreed to acquire US-based CII Carbon LLC. for $595 million in an all cash deal, making the combined entity the world’s largest maker of calcined petroleum coke.
Citi and India’s top private lender ICICI Bank Ltd. were financing the deal, the company said but did not give any further details. In a separate communication to the stock exchange, Rain said it would use proceeds worth $92 million, raised through an issue of preference shares to parent Rain Commodities Ltd, to part fund this acquisition.
Citi and India’s top private lender ICICI Bank Ltd. were financing the deal, the company said but did not give any further details. In a separate communication to the stock exchange, Rain said it would use proceeds worth $92 million, raised through an issue of preference shares to parent Rain Commodities Ltd, to part fund this acquisition.
France Tele set to buy GTL's IT biz
France Telecom is set to acquire network service provider GTL’s IT business for about Rs 250-300 crore. The acquisition, to be made through France Telecom’s business arm, Orange Business Services, would mark the group’s first acquisition in India.
France Telecom is set to acquire network service provider GTL’s IT business for about Rs 250-300 crore. The acquisition, to be made through France Telecom’s business arm, Orange Business Services, would mark the group’s first acquisition in India.
France Telecom is the No 3 mobile operator and No 1 provider of broadband internet services in Europe and a leading global telecom service provider. Orange Business Services represents the business communications solutions and services provided by the group including converged voice, data & mobile services and IT expertise and managed services.
(Source:ET)
France Telecom is set to acquire network service provider GTL’s IT business for about Rs 250-300 crore. The acquisition, to be made through France Telecom’s business arm, Orange Business Services, would mark the group’s first acquisition in India.
France Telecom is the No 3 mobile operator and No 1 provider of broadband internet services in Europe and a leading global telecom service provider. Orange Business Services represents the business communications solutions and services provided by the group including converged voice, data & mobile services and IT expertise and managed services.
(Source:ET)
Foriegn investorschase Ratnakar bank
Interestingly, this small scheduled commercial bank is attracting interest from a whole lot of foreign investors. Kolhapur, Maharashtra-based Ratnakar Bank is the bank in question. State Bank of Mauritius (SBM) has bought a 4.8 per cent stake in this bank, which primarily caters to the districts of Sangli and Kolhapur in Maharashtra. The Economic Times reports that besides SBM, Indocean Fund may have also picked up possibly one per cent stake in the bank, which is raising capital to boost its networth to the Reserve Bank stipulated Rs 300 crore from the current Rs 54 crore. Centrum group has also raised its stake in the bank to about 6.5 per cent. The bank has reportedly priced the share at a premium of Rs 350, which has a face value of Rs 100. These entities have picked up stake in the bank by subscribing to the shares renounced by the existing shareholders in the rights issue. Ratnakar Bank was set up in 1943, and became a scheduled commercial bank in 1956. It currently has 78 branches. RBI rules stipulate that all old private banks need to raise their networth to Rs 300 crore. According to ET, there are more banks that have not achieved networth of Rs 300 crore. They include Catholic Syrian Bank, City Union Bank, Dhanalakshmi Bank and Nainital Bank.
(Source: vccircle.com)
(Source: vccircle.com)
Friday, June 1, 2007
TVS Electronics sells contract mfg unit to Finnish co
Printer-manufacturer TVS Electronics has sold off its contract manufacturing services business at Tumkur for Rs41.12 crore to Incap Contract Manufacturing Services, a 100% subsidiary of Finland based Incap Corporation.
TVS Electronics, a leading contract manufacturing service provider in the country, through it CMS business served global original equipment manufacturers by making box assemblies as well as PCB assemblies in its QS 9000-certified facility at Tumkur (near Bangalore).
TVS Electronics, a leading contract manufacturing service provider in the country, through it CMS business served global original equipment manufacturers by making box assemblies as well as PCB assemblies in its QS 9000-certified facility at Tumkur (near Bangalore).
Tata Tea to acquire majority stake in Mt Everest
Everest will be making a preferential allotment to Tata Tea, reports CNBC-TV18. The company’s promoters also plan to sell 11% stake to Tata Tea. With this, Tata Tea is set to acquire majority stake in the company.
Tata Tea will also make an open offer to Mt Everest shareholders at Rs 145-150 per share. The board will convene on June 1 to approve the acquisition. It will invest nearly Rs 250 crore for the stake buy.
Post open offer, Tata Tea aims to hold 42% stake and get management control of Mt Everest. CNBC-TV18 reported on Tata Tea's bid for Mt Everest in November 2006.
Tata Tea will also make an open offer to Mt Everest shareholders at Rs 145-150 per share. The board will convene on June 1 to approve the acquisition. It will invest nearly Rs 250 crore for the stake buy.
Post open offer, Tata Tea aims to hold 42% stake and get management control of Mt Everest. CNBC-TV18 reported on Tata Tea's bid for Mt Everest in November 2006.
BNP Paribas picks 50% in SREI Infra arm
French bank BNP Paribas has bought a 50% stake in the equipment finance arm of SREI Infrastructure Finance for Rs 775 crore. This is the largest transaction so far in the country’s non-banking finance space.
The development reflects a larger trend where foreign entities have been buying into NBFCs. In the absence of stringent regulations to expand as a bank, NBFCs offer a way to make inroads into the asset financing market.
The development reflects a larger trend where foreign entities have been buying into NBFCs. In the absence of stringent regulations to expand as a bank, NBFCs offer a way to make inroads into the asset financing market.
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