3 PE firms buy 14% in Catholic Syrian Bank

Three foreign private equity funds, AIF Capital, Gartmore and Siguler Guff, have together picked up a 14% stake in Thrissur-based Catholic Syrian Bank for Rs 33.3 crore.

The bank, with a capital adequacy of 9.58% at the end of FY07, has been struggling to raise capital.

The bank’s net worth at the end of FY07 was around Rs 229.39 crore against the minimum regulatory requirement of Rs 300 crore.

The bank earlier planned to raise fresh capital through a preferential allotment of about 15% stake to Asian private equity firm, AIF Capital Development.

However, the Reserve Bank of India’s (RBI) guidelines restrict any single private equity firm’s holding in a private sector bank to 5%.

AIF Capital, headquartered in Hongkong, is one of the largest Asia-based private equity firms with over $1 billion investments in power, infrastructure and banking on a pan-Asia basis.

Gartmore is a London-based independent asset manager with over $50 billion under management and Siguler Guff is headquartered in New York is a multi-strategy private equity investment firm with over $4.50 billion under management.

(Source: Business Standard)

Eicher founders may sell majority stake

Founders of truck maker Eicher Motors Ltd are exploring selling their majority holding to a global commercial vehicle maker, media reported on Monday quoting sources.

DaimlerChrysler, which already holds a 3.56 per cent indirect stake in the company, is tipped to be the front runner.

Daimler wanted a majority stake in Eicher as part of its long-term India strategy. Eicher's founders own about 58 per cent of the firm.

Eicher officials could not be immediately reached. The company last week said it plans to evaluate "strategic partnership opportunities."

It had clarified the plan was broadbased and it would evaluate all opportunities. Media reports have said global truck makers including Daimler and Hyundai Motor were eyeing a stake in Eicher.

Daimler, which also holds a 6.6 per cent stake in Tata Motors, imports the Actros range of trucks in India and also plans to assemble semi-knocked down trucks. It is building a plant in Maharashtra state to make 5,000 Mercedes cars a year.

Dabur Pharma plans overseas buys

India’s leading cancer medicine maker Dabur Pharma is on the lookout for overseas acquisitions, Mohit Burman, its newly appointed chairman, indicated.

In an exclusive interview, Burman, who took charge of Dabur Pharma on Thursday, told Business Standard that the change of guard, is in line with Dabur Group’s overall plan to engage the new-generation managerial heads throughout its business empire.

“The immediate thing to do is to chart a higher growth path by looking at global opportunities. Dabur Pharma is a speciality oncology company. It will continue to be so. Over the last 10 -15 years, we have established our credentials and have a global reputation,” he said.

Dabur’s acquisition of an over 14 per cent stake in Punjab Tractors and the acquisition of Balsara’s Home and Hygiene business were all driven by him. Burman is taking charge of Dabur Pharma at a stage when the company is consolidating its position in several South East Asian markets.

(Source: Business Standard)

FM's statement to accelerate India's global quest

Finance Minister P Chidambaram on Friday asked Indian industry to go global and assured that the government will help them in raising capital for acquiring businesses abroad.

"We must look beyond 9 per cent growth, which is possible only through inorganic way," he told captains of the Indian industry at the NDTV Profit business leadership awards here.

International Monetary Fund has revised upward its forecast for the growth of Indian economy to nine per cent and various other agencies were also estimating between 8.5-9.0 per cent GDP expansion, he added.

Chidambaram said while companies must grow organically in the domestic market, they would have to go out and buy businesses abroad for expanding.

"We all felt delighted when Tatas acquired Corus and all the major Indian companies should make efforts to become among the top five global brands," he said.

"If you (companies) want money or capital, the government will support in raising the required funds," he added.

The finance minister said Indians were already working with top global companies in advertising, public relations and many other sectors and it was time to realise that Indian industry will have to become globally competitive.

(Source: Economic Times)

ICICI Venture, Indivision pick up 20% in Tops for Rs 175 cr

ICICI Venture Funds Management, a leading private equity player, and Future group’s private equity arm — Indivision, have together picked up around 20% stake in Tops Security, the flagship of the Tops Group, for Rs 175 crore. ICICI Venture has invested Rs 110 crore while Indivision invested Rs 65 crore in the Mumbai-based security service provider.

The deal is the first-ever private equity investment in the company, majority of which is owned by the initial promoters, the Nanda family. Rakesh Jhunjhunwala, a leading investor holds 16% stake in the company.

When contacted by ET, senior Tops Group officials declined to comment on the deal. With a turnover in excess of Rs 260 crore, Tops Group is one of the leading brand in the Indian security industry, and is growing at CAGR of about 50%, compared to the average growth rate of 21% in the domestic security market.

Tops Group’s activities span across manned guarding, investigations, cash management services, special security squads for executive protection, event security management, copyright protection, facility management, advanced training, security audits, integration of security equipment and emergency response.

(Source: Economic Times)

ICICI Venture sells 5% in Subhiksha to ICICI Pru MF

ICICI Venture, which holds 30% stake in discount retail chain Subhiksha, has offloaded 5% to ICICI Prudential Mutual Fund for an estimated Rs 75 crore

This brings ICICI Venture’s shareholding in the company to 25%. When contacted, Subhikhsha managing director R Subramaniam confirmed the change in equity stakes, reports Benny Antony in Mumbai.

ICICI Venture had initially taken a 10% stake in the company in July 2000. It had increased its stake in the retail outlet with another round of funding worth Rs 25 crore in late 2004. Started in March 1997 in Chennai, the retail chain, which operates in four verticals namely fruits and vegetables, pharmaceuticals, FMCG and telecom, currently has 800 stores. The company was recently in the news following speculations that it might be acquired by Reliance Retail.

The company had, however, denied any such development. It is planning to increase retail presence across the country to 1,000 outlets by the year-end. The company, which had clocked revenues of around Rs 800 crore during FY07, is also looking to tap the capital market after reaching the 1,000-store mark.Subhiksha had raised Rs 80 crore through a rights issue recently and is planning to achieve a turnover of around Rs 3,500 crore by the year-end.

(Source: Economic Times)

General Atlantic to put in Rs 242 cr in IBS

General Atlantic, a private equity player, today announced an investment of $60 million (Rs 242 crore) in Kerala-based IBS Software Services -- which provides IT solutions for the transport and logistic industries -- to pick up a minority stake.

IBS is also building two campuses in India with an estimated cost of Rs 200 crore -- one in Thiruvananthapuram and another in Kochi with a capacity to accommodate 8,000 people. The campuses will be used for product development and support services for the travel, transport and logistics verticals. The first phase of the centre in Thiruvananthapuram will be operational in a few months time.

Meanwhile, IBS is looking at acquiring a US-based aircraft maintenance and repair solution company, and planning to foray into the shipping and ports vertical by designing customised solutions.

As part of the shipping vertical, IBS Software has already formed a core group of intelligence (CGI) by including representatives from various international ports and shipping companies.

(Source: Business Standard)

TPC, REL eyeing stake in power exchanges

Tata Power Company (TPC) and Reliance Energy (REL) are in talks with commodity exchanges, MCX and NCDEX, to pick up equity stake in two power exchanges proposed to be set up by them.

While MCX and its partner in the proposed exchange, Power Trading Corporation (PTC), have offered TPC minority stake, REL sources confirmed that the company is being approached by NCDEX, but it has not taken any decision yet.

(Source: Economic Times)

Infy acquires Philips BPO

Infosys Technologies, on Wednesday, took another step in increasing its footprint in Europe by signing a $250-million outsourcing contract with Royal Philips Electronics of the Netherlands. As part of the agreement, Philips will enter into a seven-year contract with Infosys BPO which will provide finance and accounting (F&A) services and the processing of purchasing orders.

The deal, structured like an acquisition, also includes the taking over of Philips’ three shared service centres in Chennai, Thailand and Poland with 1,400 people by Infosys BPO. The latter will make an upfront cash payment of $28 million to Philips. Infosys BPO chairman TV Mohandas Pai told ET, “The cash payment is because Philips had invested in setting up the centres, IP and processes.”

(Source: Economic Times)

Lehman, Warburg, Carlyle eye 20% of Angel Broking

Leading private equity investors Lehman Brothers, Warburg Pincus and Carlyle Group are in talks with Angel Broking to buy a 20% stake in the Mumbai-based retail broking firm.

Angel Broking is the latest to join the PE bandwagon after leading industry players like Motilal Oswal Securities, Edelweiss Capital and India Infoline roped in equity partners in the past. Angel is planning to raise about Rs 200 crore through the placement, pegging the broking firm’s valuation at around Rs 1,000 crore.

The funds will be used to finance Angel’s proposed expansion of branches. It also wants to launch new products such as loan against shares and margin funding, said the source. A 100% retail player, Angel Broking has chalked out an expansion plan under which it has identified 250 new locations in addition to its existing branch network of 70. It offers a range of services like broking, research, investment advisory, wealth management, e-broking and commodities trading to about two lakh clients. “Angel Broking records daily business volumes of Rs 1,500 crore and enjoys about 3% market share,” claimed Mr Thakkar.

(Source: Economic Times)

ONGC mulls takeover of US listed oil firm

Oil and Natural Gas Corporation (ONGC) is mulling a takeover of the US-listed oil firm, Transmeridian, that has 211-million-barrel reserves in Kazakhstan.

Transmeridian is listed on the AMEX Stock Exchange and independent valuers put its value at over $1.5 billion.

Transmeridian has been on the radar of ONGC Videsh Ltd (the overseas investment arm of ONGC) for sometime now. The company has done preliminary due diligence and it is expected to take a decision anytime now, industry sources said.

The sources said as per the US law OVL had two options to takeover Transmeridian — make offer directly to company shareholders for purchase of shares or make a merger proposal under which 100 per cent of the company is acquired with board and shareholder approving the OVL’s offer.

(Source: Business Standard)

Patni Acquires Life Sciences Services Company Taratec for $27 million

Patni Computer Systems, a global IT services provider, announced the acquisition of Bridgewater, N.J.-based Taratec Development Corp. through Patni Computer Systems Inc. a wholly owned subsidiary of the Company, for an aggregate price of $27.2 million in cash including contingent consideration. With more than $20m in annual revenues, Taratec is a leading consulting company in the life sciences industry providing integrated business, information technology, and regulatory compliance products and services.

This acquisition is in line with Patni’s strategy of enhancing its market specific services and provides additional capability to support thegrowing and diverse requirements of the Life Sciences market, from pharmacovigilance to demand-driven supply chains. Patni can now offera global delivery model that provides end-to-end capabilities complete with established, life science expertise in specific, high-demand areas

(Source: Patni Press Release)

GE buys 15% in Titagarh Wagons

General Electric (GE) has picked up 15% stake in Kolkata-based wagon manufacturer Titagarh Wagons (TWL). While the deal amount stands undisclosed, it is estimated that GE has picked up the stake for more than $20 million. TWL is also looking to come up with an initial public offer in the near future.

The equity investment from GE marks the entry of GE’s Equipment Services business in India. GE Equipment Services, in turn, is part of GE Industrial, which is the second largest revenue generator for the $163-billion conglomerate.

Last year, private equity firm ChrysCapital had picked up 10% stake in TWL for about $10-15 million. Given this valuation, a 15% stake today would have fetched more than $20 million to the promoters. The revenues of the company shot up significantly over the past year to hit the Rs 330-crore mark with a net profit of Rs 29 crore.

(Source: Economic Times)

ICICI may offer stake in holding company

With the government yet to approve foreign holding in ICICI Financial Services, ICICI Bank may look at options to rope in domestic investors in the holding company. An application for offering a slice of the holding company’s equity to overseas investors is stuck with the Foreign Investment Promotion Board (FIPB). Sources said the bank had sensed interest among local institutional proprietary investors in the holding company. The bank had applied to the FIPB to get 24% foreign investment in ICICI Financial. It is also looking at listing this entity in the future. ICICI Bank had also received firm commitments of Rs 2,650 crore ($650 million) for a 5.9% stake in ICICI Financial. This put the holding company’s valuation at $10.94 billion. The investors, who have agreed to pick up stakes, include Goldman Sachs, Swiss Re and Nomura, along with two more overseas investors. Of this, Goldman Sachs has agreed to pick up a 2.02% stake. Over 70% of the value of ICICI Holdings is expected to come on account of ICICI Prudential — the largest private life insurance company in India. Although it’s yet to show profits, the high growth in the insurance business and a 7% market share have helped in the valuation of the holding company

India Mergers & Acquisitions Forum - 2007

India Mergers & Acquisitions Forum

Date: 26 to 27 July 2007
Venue: Hotel J W Marriott Mumbai, India

Conference Highlights:

Need For M& A- To Develop a Value Active Framework
Financing Of M& A
Legal & Regulatory Issues For Cross Border M&A
Antimonopoly Control over the Market
Tax Structure for the M & A Deal
CROSS BORDER M&A
The Importance of Due Diligence in M&A

UB planning to sell 20% stake in its aviation business

United Breweries (Holdings) is planning to sell about 20% stake in its consolidated aviation business—comprising Kingfisher Airlines and Air Deccan—to private equity investors. It hopes to raise around $250 million through the equity dilution. Four private equity giants, including Cerberus Capital, TPG and Blackstone, have initiated talks. Cerberus is believed to be the front-runner.

The stake, sources said, is being sold in a subsidiary of UB (Holdings), which owns 83% of Kingfisher Airlines and 100% of Kingfisher Radio. Kingfisher Radio, in turn, holds 26% in Deccan Aviation, the parent of the low-cost airline. The proposed open offer, if successful, will take Kingfisher Radio’s stake in Deccan Aviation to 46%.

The UB Group has already raised Rs 550 crore as debt from IDFC, HDFC and IL&FS for its purchase of Deccan Aviation. It is currently in the process of raising another Rs 430 crore to fund the open offer.

This will take its debt to around Rs 1,000 crore. Sources said the plan is to pay back the expensive debt through private equity funds. UB is waiting for Sebi’s clearance for the open offer at Rs 155 per share. Sources said the group is confident of getting participation from major shareholders, including ICICI Bank and Capital One.

NCDEX in JV with NTPC, NHPC to launch power exchange

Commodity bourse National Commodity and Derivatives Exchange Ltd (NCDEX) is setting up a power exchange in joint venture with leading power players like NTPC and NHPC at an estimated cost of Rs 15-20-crore.

Other partners for the exchange include Power Grid Corporation of India Ltd and Power Finance Corporation.

NCDEX has applied for necessary clearances from the Central Electricity Regulatory Commission (CERC) and is hopeful of getting the same by September, he said.

The regulator was finalising the norms for setting up the exchanges, after which a formal approval for the power exchanges may be given. Power exchanges have been proposed by the government to develop a transparent market for power trading.

The CERC had in February issued guidelines for grant of permission to operators wanting to set up and operate a power exchange in the country. It proposed multiple power exchanges in the country.

(Source: Economic Times)

Alcan sells Utkal stake to Hindalco

Canadian metal giant Alcan today announced an agreement to sell its 45 per cent stake in Utkal Alumina to the Aditya Birla group’s Hindalco Industries for an undisclosed sum.

The Utkal joint venture was established in 1992 between the Birlas and Alcan, with the Birlas owning the remaining 55 per cent of the equity. The venture involved the development of a new bauxite mine and alumina refinery in Orissa.

In its statement, Hindalco said the conclusion of the transaction marked the complete exit of Alcan from the Utkal project. “Alcan will have no surviving rights or obligations as Hindalco becomes the 100 per cent owner of the Utkal project,” it said. The Indian company expects the deal to be closed in the next 30 days.

Hindalco and Alcan will continue to have a cordial business association, given that Alcan has ongoing contracts with Novelis. It is also the technology provider to the Utkal alumina project and some other alumina projects of Hindalco.

The project has been marred by controversy, with local residents opposing its construction on the plea that it will displace three villages and at least 200 families. Local critics have estimated that as many as 22,000 people could be affected. In December 2000, there was a clash between villagers and police in Maikanch over land acquisition. Three tribals were killed in the police firing that followed. Utkal was initially established as a joint venture between Hindalco, Alcan and Hydro Norsk. The shareholding was shared between Indal, now a part of Hindalco at 20 per cent; Alcan at 35 per cent and Norsk Hydro with 45 per cent. Norsk Hydro later sold its stake to the other two partners.

(Source: Business Standard )

Biocon plans M&As to boost bio-pharma biz

Bangalore-based biotech major Biocon, which is expecting to get $97 million upfront through the sale of its enzymes business to Denmark-based Novozymes, is looking at acquisitions to strengthen its bio-pharma business.

“We are looking at investing in bio-pharma companies or making acquisitions to strengthen our business with the sale proceeds,” said Kiran Mazumdar-Shaw, chairman and managing director of the company. Shaw, however, did not identify the target companies. Biocon divested its enzymes business by selling it to Denmark-based Novozymes for $115 million.

Novozymes is expected to utilise Biocon’s production and formulation facilities under lease and service agreements. After completing this divestment, Biocon will focus on its bio-pharma business verticals that include APIs, biologicals and proprietary molecules, both commercialised and under development.

(Source: Business Standard)

Tata Tea competes with Coke for beverage buys

Tata Tea, the world's second-biggest branded tea firm, has conditionally agreed to sell its 30 per cent stake in Energy Brands - which it bought last year - for $1.2 billion to Coca-Cola Co. But the company is also competing with Coca-Cola in other markets where it is looking to buy specialty teas and beverages.

"We increasingly bump into them (Coke) and compete with them," Peter Unsworth, chief operating officer at Tetley Group, a unit of Tata Tea, said late on Tuesday. He mentioned the example of Brazilian tea and beverage maker Leao Junior, which Coca-Cola bought in March, that Tata Tea was also considering.

"If you look at Coke's recent acquisitions, like Fuze and Glaceau, they're buying them for the same reasons that we consider," he said, referring to the juice and tea company and the vitamin-water brand owned by Energy Brands, respectively. Coke has lagged rival PepsiCo Inc in offering alternatives to the sugary soft drinks that young consumers are increasingly avoiding, but its recent acquisitions indicate it is focused on closing the gap.

Tata Tea, which has acquired herbal and fruit tea brands in eastern Europe and the United States, recently bought almost 26 per cent in India's Mount Everest Mineral Water and has made an open offer to buy a further 20 per cent.

A local news report recently said Tata Tea was also evaluating a bid for Cadbury Schweppes Plc's Snapple range of beverages which, Coke is also evaluating.

(Source: Economic Times )

Bajaj chasing Ducati, Triumph

Two-wheeler major Bajaj Auto is looking for a big-ticket acquisition in the European motorcycle market. According to sources in the auto industry, cult bike companies Ducati Motor Holding of Italy and Triumph Motorcycles of the UK are among the possible targets. When contacted, Bajaj Auto MD Rajiv Bajaj refused to comment.

Bajaj Auto—the market leader in the performance segment in India, thanks to the Pulsar twins and Avenger—has been looking for an alliance or acquisition to possess enough engineering and product development expertise to crank out cruisers and higher displacement bikes in the 200 cc plus range.

A big-ticket European brand like Ducati or Triumph will not only give Bajaj products in the premium lifestyle range in India but also a vehicle to drive export growth in the developed markets.

Ducati, the e305-million ($420 million) Italian icon that clocked about e10 million in operating profits in the first quarter of the calendar year. Its product roster includes such ever-green classics as the Monster (dubbed the ‘original naked bike’), the Multistrada and the 1098 super bike. Nearly all its products are in the 700 cc and above range and the brand has a formidable reputation in the MotoGP series as well.

As for Triumph, this cult bike company is all British with a plant in Hinckley. Its roster includes everything from the iconic Bonneville of the 60s to the latest range including the Rocket III and the Speed Triple. The £165-million ($336 million) company has cruisers, urban sports bikes and other lifestyle products in its range including apparel and accessories, as does Ducati.

(Source: Economic Times )

Tata Motors invests in Thailand automobile plant

India's Tata Motors has invested in a 1.3 billion baht (around $39 million) joint venture to manufacture and assemble one-ton pickup trucks in Thailand, media reports confirmed Thursday.

Tata Motors (Thailand) Company, a joint venture between India's Tata Motor (70 per cent) and Thailand's Thonburi Automotive Assembly Plant (30 per cent), was granted Board of Investment BoI tax incentives Wednesday to assemble and manufacture parts for 35,000 pickups a year bearing the Tata logo, the Bangkok Post reported.

Thailand is currently the world's second largest manufacturer of one-ton pickup trucks, an all-purpose utility vehicle popular among farmers and provincial businesses that claims about 60 percent of the country's automotive market and is a major export item for the kingdom.

Industry sources told the Bangkok Post that the Tata brand pickups will be sold in Thailand for between 400,000 to 500,000 baht ($12,000 to $15,000), below the 600,000 to 1,000,000 baht (18,000 to 29,000 dollars) of other pickups currently sold on the Thai market. About 20 percent of the annual production will be exported.

(Source: Economic Times)

Tata, M&M may bid for Jaguar & Land Rover

Tata Motors, India’s biggest automobile company, and tractor and utility vehicle major Mahindra & Mahindra are understood to be exploring the possibility of bidding for Jaguar and Land Rover, owned by the Ford Motor Company. The deal size is being estimated at about $1.5 billion (£735 million) for the two-storied brands that epitomise the British automobile industry.

Industry analysts said that the Tatas may finance the bid in conjunction with Fiat, which has the Ferrari and Alfa Romeo brands in its portfolio. The two automobile majors recently entered into an alliance to jointly market and manufacture Fiat models in India.

According to sources in the auto industry, the bids are due soon and both Indian players see considerable value in these cult luxe marques. However no final decision has been made by either player. Sources also say that Tata Motors may also be looking to team up with private equity players for the deal, apart from the possibility of bidding with Fiat. Indeed the Tata-Fiat combine could even team up with a private equity player, though there is no confirmation of this.

As for M&M, its real interest is in Land Rover, say analysts, but since the two brands are being offered as a package deal, it is looking at a combined bid. Although there is no confirmation on the size of the deal, international media is pegging it at around $1.5 billion, significantly more than the $848 million that the Dearborn (Michigan)-based Ford got for its other British bespoke brand Aston Martin this March.

(Source: Economic Times )

GE Shipping acquires modern Supramax

Great Eastern Shipping Company Ltd (GE Shipping) on Wednesday announced it has contracted to buy a modern Supramax dry bulk carrier.

"The 2001 built ship of about 52,179 dwt (deadweight tonnage) is expected to join the company's fleet during Q3 FY 2007-08," the shipping and offshore service provider said in a filing to the Bombay Stock Exchange.

GE Shipping planned to purchase this ship to consolidate its dry bulk segment and to participate in the increasing opportunities arising out of strong global commodity demand.

The company's current fleet of 46 ships with an average age of 12.2 years aggregates to 3.22 mn dwt. The new building order book comprises five product tankers to be delivered in the next two years.

(Source: Economic Times)

Credit Suisse to check in to Park Hotels with $55 m deal

Credit Suisse is picking up a minority stake for $55 million (Rs 220 crore) in the Park Hotels chain. The deal puts the valuation of the closely-held Apeejay Surrendra Hotels, which owns and manages The Park chain in six cities, among the top five hotel companies in the country. (see table).

Sources close to the development said Credit Suisse’s real estate fund would acquire anything between 10 and 15 per cent in Kolkata-based Apeejay Surrendra Hotels in a structured deal. This deal values the company at Rs 1,500-2,200 crore.

This is Credit Suisse’s second investment in the real estate sector, the first being its acquisition of 75 per cent in a Rs 300-crore infotech park-cum-five-star-hotel project of developer Vascon Engineers, based in Pune.

(Source: Business Standard)

Mastek buys US-based TPA for $9mn

Mastek, a Mumbai-based IT services firm, has acquired Vector Insurance Services (Vector) - a US-based technology solutions provider and third party administrator that focuses on the North American life & annuity insurance industry.

According to a release issued by Mastek to the BSE today, MajescoMastek, the company's wholly-owned US subsidiary, will hold 90% stake in Vector. Vector will operate as VectorMastek.

The consideration for the acquisition will be paid partly in cash ($4.5 million) and partly by way of future cash earn outs ($4.5 million) over two years, the release added.

(Source: Business Standard )

Bajaj may join hands with Renault

Nissan Renault boss Carlos Ghosn’s pet $3,000 car project could trigger off a new partnership for Renault in India with Bajaj Auto (BAL). BAL MD Rajiv Bajaj will meet top Renault officials in Paris shortly to discuss a possible partnership.

The small car partnership could be part of a larger alliance between Renault and Bajaj Auto covering commercial vehicles as well. Initial discussions on this front have already begun. When contacted Mr Bajaj refused to comment. Carlos Ghosn has already announced that the combine would develop a $3000 small car using Indian expertise. The car is Renault’s big pitch for global volumes after the Logan and will be positioned below it.

Renault’s current partner in India is Mahindra & Mahindra with which the French company has two separate joint ventures. Mahindra Renault, a largely marketing company, is in charge of selling Renault’s global low-cost sedan Logan in India. Sources say M&M is not interested in the $3000 car project because it’s long-term strategy is to be a global player in the SUV market.

(Source:Economic Times)

VSoft buys Coopman Consultancy

Hyderabad-based VSoft, a provider of financial technology solutions, has acquired Coopman Consultancy Services, a Bangalore-based software development and consultancy firm, for an undisclosed amount.

Following the acquisition, Coopman’s core banking software, a product designed for use in cooperative banks, regional rural banks and credit societies, will come under the VSoft umbrella. It will add 30 banks to VSoft’s customer base besides opening up opportunities for its other products such as cheque truncation, document imaging and management information system tools in this segment.

VSoft sees substantial growth in the cooperative banking sector and this acquisition is part of the growth strategy. The potential business in the cooperative banking segment is approximately Rs 400 crore and VSoft expects to capture at least 25 per cent of this in the next three years.

(Source: Business Standard)

Indonesian invite for Tata Steel

The Indonesian government has invited Tata Steel and Arcelor Mittal to take part in the privatisation process through which the government is selling 35 per cent in PT Krakatau Steel.

Confirming this, sources said talks are at a preliminary stage. A spokesperson for Tata Steel, the world’s sixth largest steel maker, said the company has not approached anyone to acquire a stake in Krakatau Steel.

The broad contours of the plan suggest that the government will dilute another 30 per cent through a public offer later.

The proposed privatisation plan is a part of the government’s aim to scale up the country’s annual steel production capacity to 10 million tonne in three years from 6 million tonne now. For this, the government wants Krakatau to increase its capacity to 4 million tonne from the existing 2.5 million .

(Source: Business Standard)

Essar Steel bidding for Stelco

Essar Global, the overseas investment arm of the Essar Group, has been shortlisted along with two other bidders for the acquisition of North American steel maker Stelco. The other two companies in the race are Metinvest of Ukraine and Russian steel maker OAO Severstal.

Going by its stock price, the acquisition of Stelco could cost over $700 million (Rs 2,800 crore).

Stelco is one of the largest Canadian steel producers with 4,300-odd employees and an estimated 16 per cent share of the domestic market. It has two steel making units with 4.8 million tonnes of raw steel production capacity, four steel processing facilities and ownership in three iron ore mines which have combined reserves of 480 million tonnes for a reserve life of over 25 years.

Industry experts said a Stelco acquisition would help the Essar Group cater to the North American automotive industry better as more than half of Stelco’s shipments are meant for the automotive industry. An auto capacity of nearly 3 million vehicles a year is located in the vicinity of Stelco units.

A successful acquisition of Stelco would mean the third purchase by the Essar Group. It recently acquired Canadian steel maker Algoma, which supplies sheets to US car makers, including General Motors and Ford, in an all-cash deal of $1.6 billion (Rs 6,400 crore).

It also purchased Minnesota Steel, a US-based privately held company, for Rs 200 crore. The group is also investing $1.65 billion to develop the foreign company’s iron ore reserves of 1.4 billion tonne.

(Source: Business Standard )

Dubai firm buys 2.87% of ICICI Bank

State-owned Dubai International Capital said on Thursday it had bought 2.87 per cent of ICICI Bank, India's second-largest lender with more than $79 billion in assets.

The agency was now one of the largest investors in the Indian bank, Dubai International said in a statement, without saying how much it paid. The stake was worth Rs 30.03 billion ($741.5 million) at Thursday's closing price. "The strategic investment in ICICI supports the global diversification and growth mandate for DIC and its parent company, Dubai Holding...," Dubai International's chief executive, Sameer al-Ansari, said in the statement.

Dubai Holding is owned by the government of Dubai, which says it wants to build two of the world's largest financial institutions by 2015. Dubai International Capital and other state-owned agencies have bought into Deutsche Bank AG, HSBC Holding Plc and Standard Chartered Plc in the past 12 months.

ICICI Bank raised $4.9 billion in India's biggest share sale in June, pricing it at the upper end of a range after funds scrambled to get a piece of the financial sector in the world's second most populous country. By assets ICICI is second only to government-run State Bank of India and built its business by chasing consumer loans when India opened its economy in the 1990s and spurred rapid economic growth.

(Source: "The New Look" Economic Times )

Yash Birla Group buys Kennametal JV

Yash Birla Group has hiked its stake in Birla Kennametal to 88.48 per cent.

Shearson Trading & Investment Company Pvt Ltd, a firm of the Yash Birla Group, has purchased 14.20 lakh equity shares of Birla Kennametal from US-based Kennametal Inc, pursuant to which shareholding of the Yash Birla group now stands at 88.48 per cent.

As a consequence to Kennametal Inc, off-loading its entire shareholding of the company to Yash Birla group, the joint venture agreement between Kennametal Inc and Birla International Pvt Ltd, a company of the Yash Birla group has also come to an end.

Birla Kennametal is a joint venture company between Yash Birla Group and US-based Kennametal Inc. The company manufactures wide range of precision metal working and mining cutting tool products.

(Source: "The New Look" Economic Times )

DLF to pump Rs 1,250 cr in DT Cinemas

Real estate behemoth DLF is likely to invest about Rs 1,250 crore on expanding its multiplex business, DT Cinema, by adding about 500 screen in the next four to five years.

"Currently, we are at a pre-operative stage with about seven screens. In another four to five years time the target is to have 500 screens across India," DT Cinema CEO Kajal Aijaz said.

By September this year, two DT Cinema complexes in Delhi and one in Chandigarh would be operational, she said, adding that 35 screens are expected to be functional in the next seven months.

On an average, setting up a screen can costs anything between Rs 2 crore to Rs 2.5 crore. Apart from north Indian cities, DT Cinema plans to set up multiplexes in Hyderabad, Chennai, Kochi, Bangalore, Mumbai, Pune, Ahmedabad, Goa and Kolkata. The size of each multiplex could be between 35,000 sq ft to 90,000 sq ft, she said.

(Source: Economic Times )

Natco acquires US drug store

Hyderabad-based Natco Pharma (NPL) has acquired SaveMart Pharmacy, a multi-utility drug store based in Pennsylvania in the US for an undisclosed amount.

The acquisition was carried out through Natco Pharma Inc, a Delaware-registered corporation, which is a wholly owned subsidiary of NPL. The revenues and profits of SaveMart Pharmacy will accrue to NPL. The acquisition was funded partly through internal accruals and debt. SaveMart, voted as a top store in Lancaster Country in Pennsylvania, clocked $18 million sales last year.

(Source: Business Standard)

Megasoft to acquire US company for Rs 260 cr

Chennai-based Megasoft and US-based Boston Communications Group (BCGI) today announced a definitive agreement, whereby Megasoft would acquire the Nasdaq-listed company for around $65 million (around Rs 260 crore) — $3.60 a share — that works out to 83 per cent of the total equity shares of the entity. The offer price includes a premium of 80 per cent compared with the traded value of $2 a share on Saturday.

The two companies are into products and services, including real-time charging, billing, pre-paid products and managed services catering to the wireless telecom space.

The acquisition will not only double our revenue, but also offer a great strategic value in terms of access to North American and Latin American markets, besides the big-ticket clients the BCGI has on its rolls.

(Source: Business Standard)

M&A marketshare limit be 40%: BSNL

State-owned BSNL has suggested lowering of the market share limit to 40 per cent from the current 67 per cent following the merger and acquisitions of two entities in the telecom sector to avoid monopolistic situation.

cellular company Vodafone Essar, which has recently acquired number two slot in terms of subscriber base, said "We are of the opinion that the 67 per cent limit is appropriate when applied to a narrow mobile market definition.

CDMA player Tata Teleservices wants this cap to be at 45 per cent. "We recommend a maximum market share of 45 per cent for the merged entity," the company said.

The PSU also wants fixing a maximum spectrum limit that would be held by a merged entity be. It also does not want any merger to be allowed between a CDMA and a GSM company. Vodafone Essar said the merged entity should have a spectrum limit.

(Source: Economic Times)

L&T goes to Hazira for manufacturing JVs

Larsen & Toubro (L&T), India’s largest engineering company, is likely to set up two manufacturing facilities — for turbines and boilers — at Hazira in Gujarat. L&T has joined hands with Japan’s Mitsubishi to float a joint venture that will build the Rs 350-crore boiler factory, while its other JV, with Toshiba for manufacturing turbines, will spend another Rs 350 crore.

The two JV agreements are likely to be signed soon, said company sources. “We had three locations in mind, including port cities of Hazira and Chennai. Now, we have almost zeroed in on Hazira, where the company’s heavy engineering complex is situated in a 200-acre property.

The company is slated to commence boiler manufacturing by 2009. The new subsidiary, L&T Power Projects, will own 51% stake in the JV company and Mitsubishi will hold 49%. Initially, the JV will start with 50 employees, to be expanded to about 1,250 people, once production gets into full swing. The joint venture with Toshiba is likely to be in 51:49 equity sharing, and the investment for setting up the plant may go up to Rs 350 crore.

(Source: Economic Times)

PTC to pick up 26% stake in MCX's Energy exchange

Power Trading Corporation (PTC) is likely to pick up 26% stake in the Indian Energy Exchange, the country’s first power exchange floated by multi-commodity exchange MCX. The power exchanges have been proposed by the government to develop a transparent market for power trading. Besides MCX, NCDEX, the other commodity exchange, is also likely to float a company to set up a power exchange.

MCX has offered us 26% in the proposed power exchange being operationalised by MCX. We have agreed in-principle to partner them and are evaluating the offer. We would soon decide on the level of our participation in the power exchange,” PTC chairman TN Thakur told ET.

Apart from MCX and PTC, the exchange may also get equity participation from financial institutions and power sector utilities, an official said.

Orange acquires GTL’s IT services biz

Orange Business Services, the business communications arm of France Telecom, has acquired GTL Ltd’s enterprise network services and managed services business, in an all cash deal.

The acquisition would help Orange grow its business in India, and facilitate the delivery of network management services to its global customer base. The acquisition will also help Orange to reinforce its local presence and to serve better European, American and Asian multinationals which need network related services in India and in the region.

(Source: Economic Times)

CWT gets majority stake in AFL

Carlson Wagonlit Travel announced the acquisition of additional 26 per cent stake in its Indian joint venture from AFL Private Ltd on Monday, a release said.

The current stake would give CWT a majority control of the joint venture with a 76 per cent stake. AFL will continue to be the remaining shareholder, the release said.

The joint venture between the two companies took place in 2000. CWT has 12 offices across 10 cities and more than 800 employees in India. Specialising in business travel management, the company has presence in nearly 150 countries.

(Source: Business Line)

Nalco looks for JV partners

Aluminium major National Aluminium (Nalco) has decided to diversify into cement manufacturing and is looking for global joint venture partners to float a medium to large sized cement plant. Nalco’s proposed cement venture is part of its decision to use fly ash generated at its captive power plant at Angul in Orissa and convert it into sale-able products.

Nalco is primarily looking at the possibility of manufacturing Pozzo-lana Portland Cement (PPC). A byproduct of coal-fired power plants, fly ash can replace a proportion of the clinker used in cement plants. However, the company is also open to any other form of utilisation of fly ash in the JV.

(Source: Economic Times)

Tishman, ICICI Vent JV to raise 2nd realty fund

TSI Ventures, a Tishman Speyer and ICICI Ventures joint venture, may look at raising resources from the overseas markets for setting up a second realty development fund for building office and residential space in India.

On its own part, ICICI Ventures may be looking at raising up to $5 billion from global markets by 2012. TSI Ventures’ mandate is to develop properties with cumulative asset value of over $2 billion over the next five years.

(Source:Economic Times)

Tecnova scouts for European firm

Boutique consulting firm Tecnova is looking to acquire a market research firm in eastern Europe in what could be a multi-million dollar deal. The Gurgaon-based firm is also planning to get into tie-ups for the Asian markets.

Tecnova chairman and CEO Abhey Yograj said: “We can handle market research for the US and the UK out of India. But for Europe and Asia, which are multilingual, there is a language issue. There are a few good market research firms in the Czech Republic and Hungary, with expertise in French and German, which we want to acquire.”

Tecnova India started out as an affiliate of a French consulting firm Tecnova SA, focusing on technology transfers from foreign companies into India. When the French parent went bust in the 1980s, the local partner in the Indian 60:40 joint venture, Abhey Yograj, acquired the remaining stake of the JV and also bought the worldwide rights to use the Tecnova brand name.

The firm used to advise multinational firms planning to enter India. Now, it is also advising mid-sized Indian firms that are planning to go global. This includes setting up partnerships or greenfield operations abroad as well as small and mid-sized mergers & acquisition deals.

(Source: Economic Times)

Lehman-led team to pick 5% in Edelweiss

A clutch of high-profile investors, led by Lehman Brothers and Holcim Group chairman Thomas Schmidheiny, are together buying a 5% stake in Edelweiss Capital—a leading financial services company in the country—in a pre-IPO placement of equity.

Edelweiss Capital is close to signing deals worth $50 million with the global investors, which value the Mumbai-based broking and investment banking group at about $1 billion, according to sources. The valuation is almost on a par with those of top investment bankers such as DSP Merrill Lynch and JM Financial, and is believed to be much higher than that of large domestic brokerage houses such as Motilal Oswal Securities and Sharekhan.

Mr Schmidheiny is buying a stake through his family investment firm. The three other investors include existing equity partner and New York-based hedge fund Galleon Partners, Middle East-based asset management company (AMC) Shuaa Capital, and Sequoia Capital. The Edelweiss board is meeting next week to finalise the deals, said sources.

The Indian broking and investment banking space has been witnessing an accelerated flow of foreign investments amid extremely bullish market conditions in the past 3-4 years. This has resulted in significant improvement in their valuations, prompting an increasing number of players to take the private equity route and/or go for an IPO.

(Source: Economic Times)

Australia's IAG in JV talks with HDFC

Insurance Australia Group Ltd is in talks to buy 26 per cent in an Indian insurance firm founded by Housing Development Finance Corp, media reported on Monday.

HDFC in May bought out its partner Chubb Corp in a general insurance venture after an uneasy relationship stalled growth. IAG, Australia's top car and home insurer, is in "advanced" talks to buy the stake, media said, citing unnamed sources.

Other "strong contenders" were US insurer Travelers and Munich Re's insurance unit ERGO, the paper said, adding HDFC expected to receive a premium for the stake.

(Source: Economic Times)

Hinduja BPO may offer consultancy, keen on US acquisition

HTMT Global Solutions, the ITES firm of the Hinduja Group, is looking at bringing in consultancy to its portfolio of services and this could preferably be done through an acquisition. The company would be looking at acquiring a mid-sized consulting firm in the US.

The company, which provides both back office and voice services, will be able to move up the value chain with the new service, HTMT Global CEO Partha Sarkar said.

Mr Sarkar said the company will be expanding its presence into tier 2 cities in India. It currently has presence in Mysore, Karnataka and Durgapur in West Bengal and is looking at adding two more locations by the end of this fiscal. It plans to raise the headcount to 12,500 by the end of this fiscal from the current 10,000.

The company is also looking at extending its presence to Latin America in the next fiscal. It has 19 delivery centres across the US, Canada, Mauritius, the Philippines and India. The US and Canada presence was expanded through the acquisition of Affina for $30 million last year.

The company, which has an existing revenue of Rs 585 crore, with reserves of about $115 million, is looking at becoming a $500 million company by 2010 through both organic and inorganic growth route.

(Source: Economic Times)

IFCI to go ahead with 26% stake sale

IFCI, the country's oldest financial institution, will invite bids later this month for the sale of 26% stake to a strategic investor.

"We will float a global advertisement for inviting bids for strategic sale of stake in the next 10-15 days," R M Malla, chief executive officer, IFCI said.

(Source: Business Standard)

Biyani looks for buys overseas to spruce up back-end ops

Future group, the country’s largest retailer, is learnt to be in talks for buying stakes in some international manufacturing companies, mainly in the consumer durables and home equipment space. The move is seen as an attempt by India’s biggest retailer at strengthening its back-end operations. The Future group already has sourcing tie-ups with some of these manufacturers.

However, when contacted, Future group MD Kishore Biyani, denied any such move. “We are not doing anything internationally as of now,” he said.

Nevertheless the buzz in the retail trade is that the group is in different stages of negotiations with various manufacturers in countries such as China, Indonesia, Vietnam, France and Denmark. The company has picked equity stakes in some domestic manufacturers such as Capital Foods and Biba Apparels. “These were simple private equity deals, where the company put in money as an investor. However, the international deals will be linked with strengthening the backend and the supply chain,” a source said.

The name of Denmark’s Tvilum Scanbirk, the world’s leading manufacturer of functional-board based office and home furniture, is being mentioned as a possible candidate in which Future group could be interested in picking up equity. But this could not be confirmed. Tvilum Scanbirk is also one of the biggest suppliers to Future group’s latest retail venture Home Town.

At present, Mr Biyani’s Pantaloon Retail operates multiple retail formats in both the value and lifestyle segments. The company operates over 5 million sq ft of retail space and has over 350 stores across 40 cities in India. The company’s leading formats include Pantaloons in the fashion retail segment, Big Bazaar in the hypermarket segment, Food Bazaar a supermarket chain and Central, a chain of destination malls. Some other formats of the Future group include Depot, Shoe Factory, Brand Factory, Blue Sky, Fashion Station, aLL, Top 10, mBazaar and Star and Sitara.

(Source: Economic Times)

Wolfensohn's private fund picks 6% in Fabindia

John Bissell's export house of 1958 – better known as Fabindia today –has an unusual backer. Former World Bank president James Wolfensohn's private investment fund has picked up 6% stake in the country's marquee Indian ethnic wear company for $11 million. This puts the valuation of Fabindia at around Rs 750 crore.

Even though the Indian government does not allow foreign investment in multibrand retail, the policy was partially relaxed recently and FDI up to 51% allowed in single brand retail. Following this, several luxury brands such LVMH, Chritian Dior and Hermes began converting their franchisee agreements into joint ventures.

Fabindia generates annual revenue of Rs 200 crore selling ethnic menswear, womenswear, household furnishing, handicrafts and organic food. The company declined to declare the profit figure but said its balance sheet was “highly profitable”.

Fabindia has extensive expansion plans and intends to grow the number of stores from 61 to over 200 in the next four years. The money raised will be used to strengthen its supply chain. Fabindia is setting up community-owned joint ventures in the rural areas with artisans and craftspersons as shareholders.

Fabindia is essentially a retail platform for the hand made (both textile and non-textile) which brings rural craft to urban markets. At present it sources from 21 states and works with 15,000 craftspersons. The company said that in the next four years it would create 100,000 sustainable jobs in the rural, handicraft sector.

Mr Wolfensohn, who was the president of World Bank for 10 years from 1995 to 2005, plans to open an investment banking group along with his children and friends. He wants to raise $500 million to $1 billion for investing in countries like India. He also plans to open an office in the country.

(Source: Economic Times)

Dishman acquires Solvay's fine chemicals

Dishman Pharmaceuticals & Chemicals Ltd will acquire the fine chemicals, vitamin D and vitamin D analogues business of Solvay Pharmaceuticals for an undisclosed amount.

As part of this deal, all facilities, people and activities at Solvay's Veenendaal site in the Netherlands and technology, patent and intellectual property rights for fine chemicals, vitamin D and vitamin D analogues business will be transferred to the company, Dishman informed the BSE.

The intended sale of Solvay's site in Veenendaal is a result of Solvay Pharmaceuticals strategy to focus on the main therapeutic areas of cardiometabolic and neuroscience treatments and hive off the non-core business.

Dishman's manufacturing plants and research facilities are spread across two locations in Gujarat. The company has an approved US FDA facility and cGMP compliant manufacturing facilities. In 2006, the company acquired Carbogen Amcis, a Switzerland based contract research and manufacturing facility, which is fully integrated.

(Source: Economic Times)

MTNL close to taking over Lanka’s Suntel

In what could be its first acquisition, state-owned telecom firm MTNL is close to buying Sri Lankan fixed-line operator Suntel and has sent a high-level delegation to start technical assessment of the company. A delegation has left for Sri Lanka to hold discussions with Suntel on the technical assessment, which is a prerequisite to formalise the deal, company sources said.

MTNL is believed to have emerged as the highest bidder for Suntel with a bid between $160-180 million. If the deal goes through, this will be the NYSE-listed Indian company’s first acquisition. It will also give MTNL a foothold in Sri Lanka’s fast-growing telecom market.

The Colombo-based company offers fixed-line service on CDMA-based technology’s WLL platform. All its key shareholders want to exit, sources said.Nordic company Telia is Suntel’s top shareholder with 55% stake through its holding firm Overseas Telecom. The remaining stake is held by Sri Lanka’s Metrocorp, the National Development Bank Of Sri Lanka, Townsend of Hong Kong and International Finance Corporation.

(Source: Economic Times)

GE Shipping buys Suezmax tanker

Great Eastern Shipping has signed a contract to buy a modern double hull Suezmax tanker, which is expected to join the company’s fleet by the second quarter of 2007-08.

The Suezmax tanker will enhance and modernise the crude tanker fleet. Additionally, a double hull Suezmax crude carrier earlier contracted in the first quarter of 2007-08 is also due for delivery during the second quarter.

GE Shipping’s current fleet comprises 46 ships with an average age of 12.2 years, aggregating 3.22 million deadweight tonnes. Besides this, the company's building order book comprises five product tankers, which will be delivered during the next two years.

(Source: Economic Times)

Rolta to buy Canada's Orion Technology

Indian software firm Rolta on Friday said it was signing an agreement to acquire the Canadian software firm Orion Technology for an undisclosed amount.

Without disclosing the deal size, Rolta, in a statement here said it expected to generate around $100 million over the next five years by integrating the acquired technology from Orion, which specialized in enterprise web-GIS (geographical information systems) solutions.

Orion will continue its operations under the same name from its headquarters in Canada, and would be managed and operated by the management team that is currently in place.

Orion's founder and chairman Zul Jiwani said: "We are excited about becoming a part of the Rolta group. This fulfils our aspiration to have a global reach for promoting widespread use of our products and services.

(Source: Economic Times)

Wipro buys Singapore's Unza for $246 mn

India's third-largest software services exporter, Wipro Ltd, has acquired Singapore's Unza Holdings Ltd for about $246 million in cash, the company said on Friday.

New York-listed Wipro, which also has interests in consumer care and lightings, expects to complete the 100 per cent acquisition by end-July, it said in a statement. Unza is a maker of personal care products with operations in over 40 countries. It has manufacturing plants in Malaysia, Vietnam, China and Indonesia. Wipro, which gets a bulk of its revenue by providing IT solutions and services such as systems integration, software application development and maintenance, has been buying up firms to accelerate growth.

(Source: Economic Times)

Patni acquires Logan-Orviss

Patni Computer Systems, a Mumbai-based IT services provider, today announced the acquisition of Europe-based Logan-Orviss International (LOI), a leading independent specialist telecommunications consulting services company.

The acquisition includes an upfront cash payment on completion of the transaction as well as performance-linked incentive payments on achieving financial targets over a three-year period. LOI ended 2006 with revenues of ¤11.8 million.

The current acquisition strengthens Patni’s capability in the communications and media practice. Logan-Orviss International will become Patni’s telecommunications consulting and advisory practice, and will be led by Brendan Logan and Colin Orviss, the firm’s co-founders.

(Source: Business Standard)

JM Financial to pick up 60% in ASK Securities

Nimesh Kampani’s JM Financial Services will buy a 60 per cent stake in domestic institutional brokerage & equity research firm ASK Securities for Rs 58.14 crore, barely four months after both the local companies separated from their long-time foreign partners.

JM Financial Services, which split from its seven-year partner Morgan Stanley in February, had given up two key businesses viz., institutional broking & sales & equity research, to the US bank for $425 million (Rs 1,912 crore).

The deal came about on the same day that JM Financial’s former partner, Morgan Stanley, received government clearance to invest Rs 1,894 crore to conduct securities sales, trading and broking, merchant banking and corporate advisory services and other NBFC activities.

ASK Group, which has three businesses – institutional broking & equity research (ASK Securities), portfolio management services (ASK Investment Managers Ltd) and financial planning (ASK Wealth Advisors Pvt Ltd), separated from its foreign partner Raymond James by acquiring the 50 per cent held by the company in March.

The transaction is expected to close by the second quarter of Financial Year 2007-08, subject to necessary regulatory approvals

(Source: Business Standard )

Essar eyes shipping, telecom JVs in Vietnam

Essar Group is looking at shipping, telecom and energy joint venture opportunities in Vietnam, Jagdeesh Mehta, president of Essar Vietnam Steel Corp., said on Thursday at an Indo-Vietnam business conference. Vietnamese Prime Minister Nguyen Tan Dung is leading a business delegation to India. The Essar Group and two Vietnamese companies said earlier this year they would establish a $527-million venture to build a hot-rolled steel mill to help reduce the country's dependence on imports of hot-rolled steel coils.

(Source: Economic Times)

Temasek to buy 5% in Bharti Airtel

Temasek Holdings, the Singapore government's investment arm, is acquiring 4.99% stake in Bharti Airtel, India's largest cellular telephony operator.

Singapore Telecom is already a large shareholder in the company.

"Bharti Enterprises continues to maintain a controlling interest of over
45% in Bharti Airtel through its subsidiary Bharti Telecom," said a statement issued by Bharti.

One of Bharti's group companies has decided to grant an option to acquire an indirect stake in Bharti Airtel to a wholly-owned subsidiary of Temasek. The option arrangement envisages acquisition of shares which, on exercise, will result in a 4.99% stake in Bharti Airtel.

(Source: Business Standard )

Ashok Leyland in JV with Finland's Alteams

Ashok Leyland Ltd said on Tuesday that it had formed a joint venture with Finland's Alteams to make components for the telecommunication and automotive sectors.

The equal joint venture, subject to regulatory approvals, will commence in 2007, with an initial investment of more than Rs 175 crore ($43 million), the company said.

The joint venture to make high-pressure die casting aluminium products will achieve revenues of Rs 650 crore in five to six years, when total investment will add up to Rs 335 crore, it said in a statement.

(Source: Business Line )

Godrej Sara Lee buys Sara Lee biz in India

Consolidating its operations in the Indian subcontinent, the US-based Sara Lee Corporation has sold its subsidiary’s business in India and Sri Lanka to its existing joint venture company Godrej Sara Lee(GSLL) for $13 million.

GSLL will now be manufacturing, marketing and distributing the brands owned by Sara Lee Household and Body Care like Kiwi Shoe Polish, Kiwi Drainex drain cleaner and Brylcream brand of hair care.

Sara Lee Corporation has a 51 per cent stake in Godrej Sara Lee while the balance is held by the Godrej Group in which Godrej Industries has a 20 per cent stake.

(Source: Business Line)

Tiger Airways to launch first flight in India

Singapore-based low cost carrier Tiger Airways on Tuesday said it would start direct flights to Singapore from the city and Kochi beginning October 28.

The airliner would offer low-cost one-way fares starting Rs 1,600 from both the destinations. "We expect the aggressive ticket prices, which are nearly half of what other airlines are offering, to generate a strong demand from the region," Mr Davis, CEO, Tiger Airways said.

The airliner has established an extensive network of low fare routes across the Asia Pacific region. "Tiger Airways is now the only low fare airline to offer services across whole of Asia, encompassing China, South East Asia, India and Australia," he said.

(Source: Business Line)

Tata Group buys Innovative Foods

The Tata Group today announced its foray into the processed foods business with the completion of acquisition formalities of 70 per cent stake in the South-based Innovative Foods Limited (IFL) from the Amalgam Group. The Rs 16.5 crore Innovative posted a loss of Rs 4 crore in the last fiscal.

The acquisition, estimated at under Rs 20 crore, has been made through Residency Foods and Beverages Limited (RFBL), a subsidiary of Indian Hotels Company Limited (IHCL). The acquisition of Innovative Foods outlines our strategic intent for the processed foods business. We strongly believe in leveraging our in-house expertise within the group with our FMCG, F&B and retail businesses.

The company has a presence in the various food segments through group companies like Tata Tea, Tata Coffee and Tata Chemicals (Tata Salt). As part of its diversification plan, the Tata group through RFBL has recently entered into an exclusive agreement with Jasper Aqua Exports, a seafood company based in Vishakapatnam.

(Source: Business Standard)

Max India eyes control of two CROs in US

Delhi-based healthcare and insurance company Max India is looking at acquiring two clinical research organisations (CRO) in the US. Max India joint MD Anantharaman said, “We are looking at either picking up majority stake or full control in 2 CROs in the US, which have sales order of $25-$50 million. We have identified few CROs and have initiated direct talks with a couple of them. We may appoint investment bankers for a bigger deal.”

The company would fund the buy out from the Rs 1,000 crore fund raised through qualified institutional placements. The acquition may happen after a year, he added.

The strategic tie-ups are likely to materialise in the next 2-3 months. Currently, Neeman Medical International, Max’s clinical research company, has a business development subsidiary in the US and regional offices in Europe and Latin America.

The company sees two benefits of having its presence in the US. First, its CROs in the US will outsource all its back-end work to its Indian operations. Secondly, having a subsidiary in the US would allow the company to outsource its mandatory trails in the US to its own company.

(Source: Economic Times)

Global PE players eye stake in JetLite

Naresh Goyal-promoted Jet Airways is believed to be in preliminary talks with leading international private equity players for offloading a minority stake in JetLite, the name given to Air Sahara that it acquired three months ago for Rs 1,450 crore.

Global investment companies and equity funds like Dubai-based Istithmar PSJC, US private equity firms Texas Pacific Group and Blackstone and Singapore’s investment holding company Temasek Holdings have been approached by merchant bankers associated with the talks.

Sources close to the development said Jet Airways, which is readying itself for a $400 million rights issue to fund its expansion plans, may dilute up to 25 per cent in JetLite. Jet Airways Executive Director Saroj Datta, however, denied that talks were on for divesting equity.


Sources said JetLite would be profitable by October-November. The rebranding exercise has begun with Jet Airways integrating Air Sahara’s frequent flyer programme.

Meanwhile, the airline has been repositioned as a “value carrier” — that is, an airline between a low-cost and a full-service carrier. To this end, JetLite has discontinued business class operations from June and re-configured its aircraft to all-economy seats.

(Source: Business Standard )

acquisitions are set to play a dominant role in PepsiCo’s India growth plans

PepsiCo Inc chairman & CEO Indra K Nooyi has told the India team to push hard for buyouts in milk-based beverages, juices and convenience foods this year to build the wellness portfolio.

Since PepsiCo worldwide generates $5 billion surplus cash every year, there’s no limit on the number of acquisitions and the amount that it would pay as long as they add value to the portfolio. The India office has begun work on this and is in the process of identifying potential targets and making their shadow profit & loss accounts, a top source told ET.

Ms Nooyi, an old hand in mergers and acquisitions, built the company’s health and wellness portfolio by leading the PepsiCo team that acquired Quaker Oats —in a $13.8-billion deal—as well as Tropicana juices.

The soft drink company is also looking for alliances with milk co-operatives to jointly explore milk-based drinks, such as cold coffee, lassi and milk shakes.

Pepsi has made only two acquisitions in India so far, the last being Uncle Chipps, which it bought seven years ago for around Rs 10 crore. Though the budget this time is several times more, it remains to be seen how many takeover candidates actually sell out.


Potential acquisition targets:
- Dabur’s Real — the market leader in juices with annual sales of Rs 240 crore — has been pursued by suitors, including Coca-Cola, but the owners are not ready to play ball.
- Another potential candidate Frito-Lay could be looking at is Haldiram’s, a dominant player in snack foods after Frito-Lay.

A top industry source said inorganic growth in new product categories is the only way forward for soft drink companies in India to push for growth.

If they were to depend solely on fizzy and flavoured drinks in their respective portfolios, the growth is likely to be in single digits and that too only if the weather is conducive and NGOs don’t train their guns on them. Not surprisingly, cola companies are hedging risks by entering wellness and new-age segments that can be had throughout the year.

(Source: Economic Times)

Spentex buys Czech firm Schoeller for $25mn

The board of directors of Spentex Industries, which met on June 30, 2007, has approved a proposal to acquire Schoeller Litvinov k.s. (Schoeller) in Czech Republic.

According to a release issued by Spentex to the BSE today. the acquisition of Schoeller was completed for a consideration of $25 million.

"The transaction will enhance the topline of the company by about euro 55 million and add another euro 6 million per year in cash flow. This acquisition is in line with company's inorganic growth strategy of acquiring good, operational assets of strategic value. Schoeller is a leading yarn manufacturer in Europe with operations in Germany, the Benelux countries, France and the Czech Republic with customer base spread across European Union," the release added

(Source: Business Standard )

Cranes Soft buys Proland, Caravel

Cranes Software has acquired the Bangalore-based anti-virus software maker Proland Systems Ltd, and Caravel Info Systems.

Cranes has spent Rs 20 crore towards the acquisition cost of Proland and the immediate investments in product enhancement.

(Source: Business Line )