Hyderabad-based Apollo Health Street (AHS), a Apollo Hospitals Group (AHG) subsidiary, made its second US acquisition by acquiring Atlanta-based business process outsourcing (BPO) and enterprise solutions company Zavata Inc for Rs 697 crore.
“The Zavata acquisition will enable us to enhance offerings to our customer base and aid in increasing client base. With this acquisition, we will be able to position ourselves as one of the biggest global healthcare outsourcing companies,” Prathap C Reddy, chairman, AHG said.
The acquisition, the fourth for AHS, will be funded by raising a debt of $135 million from Bank of India and Barclays Capital. AHG, which held 47% in AHS pre-merger, has invested around $25 million to retain the same holding in the merged entity.
Sangita Reddy said the addressable US outsourcing market which could be effectively utilised is around $30 billion and $48 billion in the payer and provider segments respectively.
(Source: Business Standard
Friday, August 31, 2007
Sun buys 48.9% stake in Red FM
South Asia FM Ltd, a unit of Kalanidhi Maran’s Sun TV Network, today said it would acquire 48.9 per cent equity in radio channel Red FM, sending the Sun TV stock up nearly 6 per cent by the close of trade today on the Bombay Stock Exchange.
The promoters of Red FM – Usha Reddy, Arjun Rao and Prannoy Roy’s New Delhi Television – will hold the remaining stake. They have also got 35 per cent of the enlarged equity of South Asia FM through an investment company A H Multisoft and NDTV News.
It is not clear yet whether, apart from the equity swap, any money is changing hands.
According to a joint study of Federation of Indian Chambers of Commerce & Industry, an industry body, and PricewaterhouseCoopers, the consultancy, the size of the radio broadcasting industry will expand from Rs 500 crore to Rs 1,700 crore by 2011 – a compounded annual growth rate of 28 per cent.
NDTV, Hyderabad-based Value Labs and Malaysia’s Astro All Asia Networks had acquired Red FM from Radio Today, a unit of Living Media, which owns India Today magazine, for about Rs 130 crore last year.
Under the broadcasting norms, this is the maximum that Sun TV can acquire in Red FM for the moment.
With this deal, Sun TV, which has radio licences for 23 locations, none in the metros, and operates two radio stations, one each in Jaipur and Bhubaneswar, will get a foothold in the north, west and east of the country. Red FM is on air in the lucrative markets of Mumbai, Delhi and Kolkata.
Chennai-based Sun TV holds a 94.91 per cent stake in South Asia FM, which focuses on expanding the company’s broadcasting footprint beyond south India. Kal Radio, in which Sun TV owns 89 per cent, manages the group’s broadcasting operations in the south.
The Sun TV-Red FM consortium will have to contend with Radio Mirchi, owned by Bennett, Coleman & Co, and Radio City, which are major players in the markets of Mumbai, Delhi and Kolkata and a few second tier cities of the north.
(Source: Business Standard)
The promoters of Red FM – Usha Reddy, Arjun Rao and Prannoy Roy’s New Delhi Television – will hold the remaining stake. They have also got 35 per cent of the enlarged equity of South Asia FM through an investment company A H Multisoft and NDTV News.
It is not clear yet whether, apart from the equity swap, any money is changing hands.
According to a joint study of Federation of Indian Chambers of Commerce & Industry, an industry body, and PricewaterhouseCoopers, the consultancy, the size of the radio broadcasting industry will expand from Rs 500 crore to Rs 1,700 crore by 2011 – a compounded annual growth rate of 28 per cent.
NDTV, Hyderabad-based Value Labs and Malaysia’s Astro All Asia Networks had acquired Red FM from Radio Today, a unit of Living Media, which owns India Today magazine, for about Rs 130 crore last year.
Under the broadcasting norms, this is the maximum that Sun TV can acquire in Red FM for the moment.
With this deal, Sun TV, which has radio licences for 23 locations, none in the metros, and operates two radio stations, one each in Jaipur and Bhubaneswar, will get a foothold in the north, west and east of the country. Red FM is on air in the lucrative markets of Mumbai, Delhi and Kolkata.
Chennai-based Sun TV holds a 94.91 per cent stake in South Asia FM, which focuses on expanding the company’s broadcasting footprint beyond south India. Kal Radio, in which Sun TV owns 89 per cent, manages the group’s broadcasting operations in the south.
The Sun TV-Red FM consortium will have to contend with Radio Mirchi, owned by Bennett, Coleman & Co, and Radio City, which are major players in the markets of Mumbai, Delhi and Kolkata and a few second tier cities of the north.
(Source: Business Standard)
Thursday, August 30, 2007
BCCL picks up 6.25% stake in IRL
Bennett, Coleman and Co (BCCL) has acquired 6.25% stake in ICRI Research Private (IRL), a leading clinical research education company in India, a BCCL release said.
IRL Group chairman Shiv Raman Dugal said: “The market for clinical research education is growing and our association with BCCL has come at the right time and could prove to be an important milestone in the life of the company.”
India contributes only 0.7% to the total global clinical trials market of $26 billion and analysts expect India to contribute 30% of revenue by 2010. India is fast emerging as a destination for clinical trials as it provides diverse genetic pool and low-cost technical services, the release added.
ICRI society, the clinical research division of the group, is a pioneer of clinical research education in India and is growing at over 100% annually. Currently, ICRI has four campuses in Delhi, Mumbai, Bangalore and Ahmedabad. It is also exploring setting up campuses abroad and has a tie-up with Cranefield University (UK) for research & faculty support.
(Source: Economic Times)
IRL Group chairman Shiv Raman Dugal said: “The market for clinical research education is growing and our association with BCCL has come at the right time and could prove to be an important milestone in the life of the company.”
India contributes only 0.7% to the total global clinical trials market of $26 billion and analysts expect India to contribute 30% of revenue by 2010. India is fast emerging as a destination for clinical trials as it provides diverse genetic pool and low-cost technical services, the release added.
ICRI society, the clinical research division of the group, is a pioneer of clinical research education in India and is growing at over 100% annually. Currently, ICRI has four campuses in Delhi, Mumbai, Bangalore and Ahmedabad. It is also exploring setting up campuses abroad and has a tie-up with Cranefield University (UK) for research & faculty support.
(Source: Economic Times)
Private equity firms invest record $3.8 bn in India
Global private equity firms, including Blackstone and Carlyle Group, have made an investment of $3.8 billion in 2007 so far in the country, up 50 per cent from the year-ago period.
The record volume has been reached through 81 M&A deals. Last year, foreign private equity players had invested $2.6 billion, data compiled by global consulting firm Dealogic showed.
Carlyle Group is the leading "financial sponsor" in India with investment of $777 million via two deals, including acquisition of over six per cent stake in HDFC.
It is followed by Dubai International Capital, which acquired a 2.87 per cent stake in ICICI Bank for $741 million, and Blackstone Group with $619 million inflow via eight deals.
Financial sponsor is a term commonly used to refer to private equity investment firms, particularly those engaged in leveraged buyout transactions.
Blackstone Group, the world's leading private equity firm, has acquired stake in companies such as Intelenet Global Services, Punj Lloyd and Gokaldas Exports.
The US-based Group has also decided to pump in $150 million to acquire a stake in Nagarjuna Construction Company. A move that comes close on the heels of its decision to acquire up to 70.1 per cent stake in Gokaldas Exports, the country's biggest apparel exporter, for about Rs 675 crore.
Blackstone Group manages around $90 billion of assets worldwide. In January, it invested about $275 million in Ushodaya Enterprises Ltd (UEL), a media and film production company owned by Ramoji Rao.
Source: (Economic Times)
The record volume has been reached through 81 M&A deals. Last year, foreign private equity players had invested $2.6 billion, data compiled by global consulting firm Dealogic showed.
Carlyle Group is the leading "financial sponsor" in India with investment of $777 million via two deals, including acquisition of over six per cent stake in HDFC.
It is followed by Dubai International Capital, which acquired a 2.87 per cent stake in ICICI Bank for $741 million, and Blackstone Group with $619 million inflow via eight deals.
Financial sponsor is a term commonly used to refer to private equity investment firms, particularly those engaged in leveraged buyout transactions.
Blackstone Group, the world's leading private equity firm, has acquired stake in companies such as Intelenet Global Services, Punj Lloyd and Gokaldas Exports.
The US-based Group has also decided to pump in $150 million to acquire a stake in Nagarjuna Construction Company. A move that comes close on the heels of its decision to acquire up to 70.1 per cent stake in Gokaldas Exports, the country's biggest apparel exporter, for about Rs 675 crore.
Blackstone Group manages around $90 billion of assets worldwide. In January, it invested about $275 million in Ushodaya Enterprises Ltd (UEL), a media and film production company owned by Ramoji Rao.
Source: (Economic Times)
Firstsource Solutions buys MedAssist for $330 mn
As reported earlier, the deal has gone through.
In the second-largest takeover of an overseas business process outsourcing (BPO) firm by an Indian company, Firstsource Solutions has announced the acquisition of US-based MedAssist for $330 million. This is the third acquisition for Firstsource in the US, and its seventh in all.
The news drove up Firstsource shares nearly 10% to Rs 79.40 on BSE on Wednesday.
With revenues of $99 million in 2006, Louisville, Kentucky-based MedAssist is among the largest firms providing revenue cycle management services to the healthcare sector in the US. The buyout will give Firstsource a footprint in the hospital side of the healthcare business.
The deal values MedAssist at 12.5 times its 2007 operating profit, Firstsource CFO Rajesh Subramaniam said. MedAssist’s revenues have been growing at 7-10% annually, and its core earning margins are higher than most US firms at 22-24%. “We see significant opportunity to grow our business in the segment by cross-selling our services to MedAssist’s customers,” Firstsource managing director and CEO Ananda Mukerji said.
(Source: Economic Times)
In the second-largest takeover of an overseas business process outsourcing (BPO) firm by an Indian company, Firstsource Solutions has announced the acquisition of US-based MedAssist for $330 million. This is the third acquisition for Firstsource in the US, and its seventh in all.
The news drove up Firstsource shares nearly 10% to Rs 79.40 on BSE on Wednesday.
With revenues of $99 million in 2006, Louisville, Kentucky-based MedAssist is among the largest firms providing revenue cycle management services to the healthcare sector in the US. The buyout will give Firstsource a footprint in the hospital side of the healthcare business.
The deal values MedAssist at 12.5 times its 2007 operating profit, Firstsource CFO Rajesh Subramaniam said. MedAssist’s revenues have been growing at 7-10% annually, and its core earning margins are higher than most US firms at 22-24%. “We see significant opportunity to grow our business in the segment by cross-selling our services to MedAssist’s customers,” Firstsource managing director and CEO Ananda Mukerji said.
(Source: Economic Times)
Blackstone to invest $150 mn in NCC
Yesterday's news.
Blackstone Group, the global private equity firm, will buy a 14.5 per cent stake in Hyderabad-based Nagarjuna Construction Company Limited (NCCL) for $150 million (about Rs 615 crore), one of the largest-ever foreign investments in the construction sector in India.
Blackstone will buy equity in two tranches, through an allotment of 20.24 million equity shares of Rs 2 each at a premium of Rs 200.50 (equivalent to about $100 million) and 9.1 million warrants (with an exercise period of 18 months) of Rs 225 a warrant, with each warrant convertible into a equity share of Rs 2 each at a premium of Rs 223 (equivalent to about $50 million).
Nagarjuna Construction intends to use the funds for additional investments in public-private infrastructure projects and to expand its capital base, which would help it bid for larger projects and strengthen its position in the market.
This is one of the largest investments by Blackstone in the construction sector.
This is the fourth deal by Blackstone in India this year. The company acquired majority control in Gokaldas Exports for about Rs 660 crore, the largest management buyout in the textiles industry.
It has invested $275 million in Ushodaya Enterprises, which runs the Eenadu newspaper and ETV franchise, and also had another management buyout of BPO firm Intelenet from Barclays and HDFC for Rs 840 crore.
(Source: Business Standard)
Blackstone Group, the global private equity firm, will buy a 14.5 per cent stake in Hyderabad-based Nagarjuna Construction Company Limited (NCCL) for $150 million (about Rs 615 crore), one of the largest-ever foreign investments in the construction sector in India.
Blackstone will buy equity in two tranches, through an allotment of 20.24 million equity shares of Rs 2 each at a premium of Rs 200.50 (equivalent to about $100 million) and 9.1 million warrants (with an exercise period of 18 months) of Rs 225 a warrant, with each warrant convertible into a equity share of Rs 2 each at a premium of Rs 223 (equivalent to about $50 million).
Nagarjuna Construction intends to use the funds for additional investments in public-private infrastructure projects and to expand its capital base, which would help it bid for larger projects and strengthen its position in the market.
This is one of the largest investments by Blackstone in the construction sector.
This is the fourth deal by Blackstone in India this year. The company acquired majority control in Gokaldas Exports for about Rs 660 crore, the largest management buyout in the textiles industry.
It has invested $275 million in Ushodaya Enterprises, which runs the Eenadu newspaper and ETV franchise, and also had another management buyout of BPO firm Intelenet from Barclays and HDFC for Rs 840 crore.
(Source: Business Standard)
Tuesday, August 28, 2007
Elder Pharma buys 51 pc in Bulgarian firm
Elder Pharmaceuticals Ltd said on Tuesday it had acquired 51 per cent stake in Bulgaria's Biomeda group for 5 million euros ($6.82 million) in an all-cash deal to help widen its presence in Europe.
Biomeda makes oral drugs and turns in an annual revenue of 10-12 million euros, Elder said in a statement. "Elder got attracted to (the) Bulgarian market for skilled labour, which has an advantage in terms of lower labour cost compared to other European countries," said Alok Saxena, Elder's director (international).
"Bulgaria, by virtue of its strategic location, is a natural gateway to the larger markets of CIS, Asia and North Africa." Biomeda is Elder's second European acquisition following closely on the heels of its announcement, in July, to acquire a 20 percent stake in UKs NeutraHealth Plc.
(Source: Economic Times)
Biomeda makes oral drugs and turns in an annual revenue of 10-12 million euros, Elder said in a statement. "Elder got attracted to (the) Bulgarian market for skilled labour, which has an advantage in terms of lower labour cost compared to other European countries," said Alok Saxena, Elder's director (international).
"Bulgaria, by virtue of its strategic location, is a natural gateway to the larger markets of CIS, Asia and North Africa." Biomeda is Elder's second European acquisition following closely on the heels of its announcement, in July, to acquire a 20 percent stake in UKs NeutraHealth Plc.
(Source: Economic Times)
Centurion Bank gets nod for Lord Krishna Bank merger
MUMBAI: Centurion Bank of Punjab Ltd said on Tuesday it has received the Reserve Bank of India's approval for the merger of Lord Krishna Bank Ltd with itself. The merger is effective from August 29 and Centurion will issue seven shares in itself for every five held in Lord Krishna, the bank said.
Monday, August 27, 2007
M&A overdrive hits speed-breaker from headlines to boardrooms
Mergers and acquisitions seem to be the flavour of the season in India this year with reports of more than two potential deals hitting headlines every day, but over 80 per cent of these do not actually fructify.
According to a study by international M&A deals tracking firm 'mergermarket', India has emerged as Asia-Pacific's second-biggest target after China in terms of official or unofficial intentions expressed for takeover deals from across the world this year.
However, the conversion rate - measuring the proportion of news headlines actually converting into deal announcements - is the second-lowest for the country in the region. India was the target for as many as 561 potential merger and acquisition deals in the first seven months of 2007, trailing China with 824 potential deals. This translates into a daily average of about four deals in China and 2.6 deals targeting India during the 212 days between January and July this year. However, the study says the number of final deals was just 95 for Indian companies (one deal in more than two days), giving a conversion rate of just 17 per cent - the second-lowest in Asia-Pacific after 15 per cent for Taiwan.
Mergermarket said India has emerged as a key region for actual and potential M&A activities, but issues like restrictive FDI policies were hindering the momentum. "Restriction on foreign direct investment and limited capital account convertibility are limiting deal flow. Important sectors such as banking and retailing remain off-limits to foreign acquirers," it said.
(Source: Economic Times)
According to a study by international M&A deals tracking firm 'mergermarket', India has emerged as Asia-Pacific's second-biggest target after China in terms of official or unofficial intentions expressed for takeover deals from across the world this year.
However, the conversion rate - measuring the proportion of news headlines actually converting into deal announcements - is the second-lowest for the country in the region. India was the target for as many as 561 potential merger and acquisition deals in the first seven months of 2007, trailing China with 824 potential deals. This translates into a daily average of about four deals in China and 2.6 deals targeting India during the 212 days between January and July this year. However, the study says the number of final deals was just 95 for Indian companies (one deal in more than two days), giving a conversion rate of just 17 per cent - the second-lowest in Asia-Pacific after 15 per cent for Taiwan.
Mergermarket said India has emerged as a key region for actual and potential M&A activities, but issues like restrictive FDI policies were hindering the momentum. "Restriction on foreign direct investment and limited capital account convertibility are limiting deal flow. Important sectors such as banking and retailing remain off-limits to foreign acquirers," it said.
(Source: Economic Times)
State Bank of Saurashtra to be merged with SBI
The State Bank of India (SBI) has just decided to merge its wholly-owned associate bank, State Bank of Saurashtra (SBS), with itself. The boards of both banks on Saturday approved the merger proposal at their respective board meetings, which were held in Mumbai on Saturday. The move will doubtless be tracked by SBI’s principal rival and the country’s largest private sector bank, ICICI Bank.
Confirming the developments, SBI managing director T S Bhattacharya told ET: “The SBI board on Saturday moved a resolution to merge State Bank of Saurashtra (SBS) into SBI.” ET could not get an official response from SBS despite repeated attempts to reach them.
Significantly, the SBI-SBS merger is seen as a precursor to the eventual merger of other SBI associate banks with SBI. Sources familiar with the matter suggested that in the next phase, SBI may consider merging its other two wholly-owned associate banks — State Bank of Hyderabad and State Bank of Patiala — with itself. It is also learnt that the SBI board is favourably disposed towards merging its seven associate banks with itself in phases.
(Source: Economic Times)
Confirming the developments, SBI managing director T S Bhattacharya told ET: “The SBI board on Saturday moved a resolution to merge State Bank of Saurashtra (SBS) into SBI.” ET could not get an official response from SBS despite repeated attempts to reach them.
Significantly, the SBI-SBS merger is seen as a precursor to the eventual merger of other SBI associate banks with SBI. Sources familiar with the matter suggested that in the next phase, SBI may consider merging its other two wholly-owned associate banks — State Bank of Hyderabad and State Bank of Patiala — with itself. It is also learnt that the SBI board is favourably disposed towards merging its seven associate banks with itself in phases.
(Source: Economic Times)
Friday, August 24, 2007
Holcim plans to buy 20% more in Ambuja
Swiss giant Holcim plans to increase its stake in Ambuja Cements to over 51% as sky-high growth rates, soaring prices and demand in the world’s second-largest cement market make consolidation a business imperative.
The move values Ambuja, which has a capacity of about 16 million tonnes, at about Rs 23,433 crore or about $350 per tonne of cement. In contrast, rival Ultratech, with a 13 million tonne capacity, is valued at about $160 per tonne. Ambuja shares climbed 1.72% to Rs 132.75 on Thursday. The shares have risen 4.61% over the past week but have fallen 1.81% over the month.
The move values Ambuja, which has a capacity of about 16 million tonnes, at about Rs 23,433 crore or about $350 per tonne of cement. In contrast, rival Ultratech, with a 13 million tonne capacity, is valued at about $160 per tonne. Ambuja shares climbed 1.72% to Rs 132.75 on Thursday. The shares have risen 4.61% over the past week but have fallen 1.81% over the month.
Thursday, August 23, 2007
FirstSource in advanced talks on $300 mn US buy
A leading Indian pure-play business process outsourcing (BPO) firm, FirstSource Solutions, has emerged as the frontrunner in the quest to buy the US-based healthcare player MedAssist.
The deal size, sources say, is close to $300 million (around Rs 1,200 crore). If it materialised, it would be one of the largest overseas acquisitions after Wipro’s buyout of Infocrossing for around $600 million and the largest in the BPO space, they added.
Sources close to the deal say there is one more serious contender in the race for MedAssist, which has revenues of $90-100 million and provides patient services, eligibility services, patient financing and healthcare collections. It has around 1,400 employees and 950 healthcare providers as clients.
FirstSource is also rumoured to be in the race to acquire Citi’s BPO unit after the first round of bidding. The sale of the BPO business, being run by Citigroup Global Services (formerly eServe), is expected to fetch Citi around Rs 3,200 crore.
During its initial public offering (IPO) in January, the FirstSource management had indicated that the company intended to use the net proceeds of the issue for acquisitions, setting up facilities, repaying loan and general corporate purposes. Out of the proceeds of the IPO, the company plans to spend approximately Rs 180 crore on acquisitions.
(Source: Business Standard)
The deal size, sources say, is close to $300 million (around Rs 1,200 crore). If it materialised, it would be one of the largest overseas acquisitions after Wipro’s buyout of Infocrossing for around $600 million and the largest in the BPO space, they added.
Sources close to the deal say there is one more serious contender in the race for MedAssist, which has revenues of $90-100 million and provides patient services, eligibility services, patient financing and healthcare collections. It has around 1,400 employees and 950 healthcare providers as clients.
FirstSource is also rumoured to be in the race to acquire Citi’s BPO unit after the first round of bidding. The sale of the BPO business, being run by Citigroup Global Services (formerly eServe), is expected to fetch Citi around Rs 3,200 crore.
During its initial public offering (IPO) in January, the FirstSource management had indicated that the company intended to use the net proceeds of the issue for acquisitions, setting up facilities, repaying loan and general corporate purposes. Out of the proceeds of the IPO, the company plans to spend approximately Rs 180 crore on acquisitions.
(Source: Business Standard)
Publicis to acquire Capital Advertising
French advertising major Publicis Groupe is buying out Capital Advertising lock, stock and barrel. Capital is perhaps one of the last mid-sized Indian agencies along with Madison who are thriving on their own steam in the intensely competitive advertising and marketing space.
Set up in 1992, Capital’s large clients include businesses from LG and Maruti. The deal is being done through Publicis’ Netherlands subsidiary.
According to ad industry sources, Capital, just like Sam Balsara’s Madison, has been on the radar of several communications majors, including McCann Erickson. Early last year, Michael Berkin, the vice-chairman of global major Omnicom, held discussions with the promoters of Capital, Sunil Sachdeva and HV Subramaniam, to partner the agency and use it as the launch pad for the group.
“Global networks like Publicis and Dentsu, who have been late entrants to India, suffer from an inferiority complex-of-sorts. They all want to be respectable competitors to WPP and are therefore hungry for acquisitions to build scale,” said a industry source. “And this is the best time to do it.”
India’s blazing growth has thrown up several emerging sectors, with bulge-bracket marketing spends prompting global networks like the WPP group (it owns JWT and O&M), Publicis, Dentsu and IPG to look at acquisitions in every possible area.
By acquiring Capital, Publicis will build scale (around Rs 100 crore billings annually) in the traditional ad space. Also, it can use the Indian agency for pitching for conflicting accounts.
Capital was set up in 1992 by three promoters. The current shareholders in the company are HV Subramanian (47.5%), Sunil Sachdeva (47.5%) and Parshuraman Narayan (5%). It has around 50 employees and a total capitalised billings of around Rs 100-120 crore.
(Source: Economic Times )
Set up in 1992, Capital’s large clients include businesses from LG and Maruti. The deal is being done through Publicis’ Netherlands subsidiary.
According to ad industry sources, Capital, just like Sam Balsara’s Madison, has been on the radar of several communications majors, including McCann Erickson. Early last year, Michael Berkin, the vice-chairman of global major Omnicom, held discussions with the promoters of Capital, Sunil Sachdeva and HV Subramaniam, to partner the agency and use it as the launch pad for the group.
“Global networks like Publicis and Dentsu, who have been late entrants to India, suffer from an inferiority complex-of-sorts. They all want to be respectable competitors to WPP and are therefore hungry for acquisitions to build scale,” said a industry source. “And this is the best time to do it.”
India’s blazing growth has thrown up several emerging sectors, with bulge-bracket marketing spends prompting global networks like the WPP group (it owns JWT and O&M), Publicis, Dentsu and IPG to look at acquisitions in every possible area.
By acquiring Capital, Publicis will build scale (around Rs 100 crore billings annually) in the traditional ad space. Also, it can use the Indian agency for pitching for conflicting accounts.
Capital was set up in 1992 by three promoters. The current shareholders in the company are HV Subramanian (47.5%), Sunil Sachdeva (47.5%) and Parshuraman Narayan (5%). It has around 50 employees and a total capitalised billings of around Rs 100-120 crore.
(Source: Economic Times )
Tuesday, August 21, 2007
JSW Steel announces $900 mn US acquisition
JSW Steel has acquired three companies in the US for $900 million to expand its geographical footprint. The target companies are Jindal United Steel Corporation, Saw Pipes, USA and Jindal Enterprises LLC.
These have 1.2 million net tonne of plate mill, 0.55 million net tonne of pipe mill and 0.35 million net tonne of double jointing and coating lines. These facilities are strategically located near a deep-water port, central to Gulf of Mexico oil and gas industries.
With this acquisition, JSW would get an entry point into growing and booming oil & gas sector in North America. The company would enhance the income accretive business model for immediate access to customers and markets through product diversification, market diversification and geographical diversification.
On completion of due diligence, JSW Steel will acquire 90% stake at an approved enterprise valuation and the balance 10% will be retained by some of the existing shareholders.
The acquisition price of $900 million works out to 6.25 times of the EBIDTA for 2006-07 (Apr-Mar) and is comparable with the transaction EBIDTA multiple of 4.7 to 14.8 times for similar transaction in the steel industry internationally, the company said in a notice to BSE.
According to Seshagiri Rao, director-finance, the funding required for completing this acquisition of 90% stake including working capital, will be $940 million, which will be financed by a foreign currency debt of $380 million to be raised against the guarantee of JSW Steel and the balance $560 million to be raised in the target company.
The company has flexibility of shifting part of the recourse debt to the extent of $230 million to the target company once the debt to EBIDTA covenant is complied with.
JSW Steel will form wholly owned subsidiaries or step down subsidiaries in Netherlands and US to raise finances and make investments to acquire the 90% stake. The companies will be merged into one single operating entity in US through a scheme of merger.
Meanwhile, the JSW group has approved setting up six modules of 500 tph beneficiation plant producing 15 mtpa of beneficiated ore at an estimated cost of Rs 850 crore. The project cost is proposed to be financed by way of term loan of Rs 500 crore, and the balance out of cash accruals. The payback period is expected to be 12 months.
(source: Economic times)
These have 1.2 million net tonne of plate mill, 0.55 million net tonne of pipe mill and 0.35 million net tonne of double jointing and coating lines. These facilities are strategically located near a deep-water port, central to Gulf of Mexico oil and gas industries.
With this acquisition, JSW would get an entry point into growing and booming oil & gas sector in North America. The company would enhance the income accretive business model for immediate access to customers and markets through product diversification, market diversification and geographical diversification.
On completion of due diligence, JSW Steel will acquire 90% stake at an approved enterprise valuation and the balance 10% will be retained by some of the existing shareholders.
The acquisition price of $900 million works out to 6.25 times of the EBIDTA for 2006-07 (Apr-Mar) and is comparable with the transaction EBIDTA multiple of 4.7 to 14.8 times for similar transaction in the steel industry internationally, the company said in a notice to BSE.
According to Seshagiri Rao, director-finance, the funding required for completing this acquisition of 90% stake including working capital, will be $940 million, which will be financed by a foreign currency debt of $380 million to be raised against the guarantee of JSW Steel and the balance $560 million to be raised in the target company.
The company has flexibility of shifting part of the recourse debt to the extent of $230 million to the target company once the debt to EBIDTA covenant is complied with.
JSW Steel will form wholly owned subsidiaries or step down subsidiaries in Netherlands and US to raise finances and make investments to acquire the 90% stake. The companies will be merged into one single operating entity in US through a scheme of merger.
Meanwhile, the JSW group has approved setting up six modules of 500 tph beneficiation plant producing 15 mtpa of beneficiated ore at an estimated cost of Rs 850 crore. The project cost is proposed to be financed by way of term loan of Rs 500 crore, and the balance out of cash accruals. The payback period is expected to be 12 months.
(source: Economic times)
TV18 To Buy 50% Stake In MTV India For Rs. 200 Crore
The Television Eighteen Group (TV18) is picking 50 percent equity stake for Rs. 200 crore in MTV Networks India (MTVI), a unit of U.S. media company Viacom that markets and distributes of TV channels MTV, VH1 and Nickelodeon. The deal is apparently part of the 50:50 joint venture between Viacom and the TV 18 Group announced in May this year.But it wasn’t known at the time of the creation of the joint venture Viacom-18 that TV18 would directly pick up equity in MTVI.
The TV 18 Group is investing through a wholly-owned Mauritius entity BKH Holdings, which will raise funds for the deal. Viacom will receive royalty payments from MTVI equaling 2% of net revenues for use of Viacom brands and is also expected to receive 1% of MTVI’s net revenues as technical assistance and consultancy fees.
(Source: ContentSutra)
The TV 18 Group is investing through a wholly-owned Mauritius entity BKH Holdings, which will raise funds for the deal. Viacom will receive royalty payments from MTVI equaling 2% of net revenues for use of Viacom brands and is also expected to receive 1% of MTVI’s net revenues as technical assistance and consultancy fees.
(Source: ContentSutra)
Blackstone buys 50% in Gokaldas
Blackstone Group, among the world largest buyout firms, has accelerated its investments in India, pulling off on Monday its second buyout deal in less than three months by picking up a 50.1% stake in Gokaldas Exports Ltd, the country’s largest garments exporter, for $116 million or Rs482.5 crore, and setting aside another $49 million for an open tender mandated under local securities laws for an additional 20% of the target’s shares.
The holding of the promoters in Gokaldas Exports, the Bangalore-based Hinduja family (not related to the Hinduja Group) will come down from 70.1% to 20% before the open offer.
Blackstone said on Monday that it sees large opportunities in the garments outsourcing business and expects firms from its overseas portfolio and extended network to outsource manufacturing to a 400-acre so-called special economic zone that Gokaldas is setting up at Kanakapura outside Bangalore. “We are associated with a large network of retailers through our global portfolio of investments who may want to outsource to India,” said Akhil Gupta, managing director of Mumbai-based Blackstone Advisors India Pvt. Ltd.
Companies running operations from special economic zones or SEZs enjoy several incentives. The Gokaldas SEZ, expected to employ around 50,000 people, will house units of several garment manufacturers. The company will have a unit that will employ around 4,000 people in the SEZ.
“More companies will outsource (to) us,” said Rajendra Hinduja, managing director of Gokaldas Exports, referring to the benefits of the sale. “We will get access to textile companies in the US that have investments from Blackstone.” The names of such companies were not immediately available. Gokaldas earns more than 96% of its revenue from exports to global brands such as Tommy Hilfiger, Nike and Adidas, and to large retailers such as Walmart Inc. and Gap Inc.
Blackstone, which will pay Rs275 per share or a premium of 25% for the shares of Gokaldas, had initially prospected the Bangalore target as a ‘growth deal’ with the intention of acquiring a minority stake. Blackstone has invested $525 million, excluding Gokaldas, in India till date and intends on deploying $2 billion in the next two years.
(Source: Live Mint)
The holding of the promoters in Gokaldas Exports, the Bangalore-based Hinduja family (not related to the Hinduja Group) will come down from 70.1% to 20% before the open offer.
Blackstone said on Monday that it sees large opportunities in the garments outsourcing business and expects firms from its overseas portfolio and extended network to outsource manufacturing to a 400-acre so-called special economic zone that Gokaldas is setting up at Kanakapura outside Bangalore. “We are associated with a large network of retailers through our global portfolio of investments who may want to outsource to India,” said Akhil Gupta, managing director of Mumbai-based Blackstone Advisors India Pvt. Ltd.
Companies running operations from special economic zones or SEZs enjoy several incentives. The Gokaldas SEZ, expected to employ around 50,000 people, will house units of several garment manufacturers. The company will have a unit that will employ around 4,000 people in the SEZ.
“More companies will outsource (to) us,” said Rajendra Hinduja, managing director of Gokaldas Exports, referring to the benefits of the sale. “We will get access to textile companies in the US that have investments from Blackstone.” The names of such companies were not immediately available. Gokaldas earns more than 96% of its revenue from exports to global brands such as Tommy Hilfiger, Nike and Adidas, and to large retailers such as Walmart Inc. and Gap Inc.
Blackstone, which will pay Rs275 per share or a premium of 25% for the shares of Gokaldas, had initially prospected the Bangalore target as a ‘growth deal’ with the intention of acquiring a minority stake. Blackstone has invested $525 million, excluding Gokaldas, in India till date and intends on deploying $2 billion in the next two years.
(Source: Live Mint)
Bharti Telesoft in talks to buy Jayaatsu
Bharti Telesoft, one of the largest players in the mobile value-added service (VAS) space in the country, is learnt to be in talks to acquire Bangalore-based software firm Jataayu. Sources did not specify the deal size as talks were in the initial stages.
According to sources, Bharti Telesoft is looking for acquisitions to expand its rapidly growing portfolio. The company has already deployed its products and solutions in 25 countries to over 100 networks, enabling service provision to over 150 million customers across five continents.
Its customers in India include Vodafone Essar, Idea Cellular, Tata Tele and Bharti Airtel, while globally, its client list includes telecom majors Vodafone and France Telecom.
In this context, Jataayu Software will be a strategic fit to Telesoft’s expansion plans as the Bangalore-based firm has emerged as a leading provider of mobile handset solutions and VAS infrastructure solutions in mobile messaging, browsing, synchronisation and provisioning, sources said.
India’s phenomenal telecom growth over the last 18 months has increased operators’ focus on VAS software. As per industry estimates, the telecom software market grew by over 50% in FY ‘06-07, garnering revenues of Rs 17,871 crore.
Additionally, with falling revenue per user, telcos are increasingly looking at VAS products to boost their bottom line. VAS currently accounts for an average 10% of an operator’s revenue compared to about 25% in developed markets.
Bharti Telesoft is best known for its e-recharge solutions, which are currently used by India’s GSM operators. Indian operators record more than 3 million e-recharge per day on Bharti Telesoft’s platform.
(Source: Economic Times )
According to sources, Bharti Telesoft is looking for acquisitions to expand its rapidly growing portfolio. The company has already deployed its products and solutions in 25 countries to over 100 networks, enabling service provision to over 150 million customers across five continents.
Its customers in India include Vodafone Essar, Idea Cellular, Tata Tele and Bharti Airtel, while globally, its client list includes telecom majors Vodafone and France Telecom.
In this context, Jataayu Software will be a strategic fit to Telesoft’s expansion plans as the Bangalore-based firm has emerged as a leading provider of mobile handset solutions and VAS infrastructure solutions in mobile messaging, browsing, synchronisation and provisioning, sources said.
India’s phenomenal telecom growth over the last 18 months has increased operators’ focus on VAS software. As per industry estimates, the telecom software market grew by over 50% in FY ‘06-07, garnering revenues of Rs 17,871 crore.
Additionally, with falling revenue per user, telcos are increasingly looking at VAS products to boost their bottom line. VAS currently accounts for an average 10% of an operator’s revenue compared to about 25% in developed markets.
Bharti Telesoft is best known for its e-recharge solutions, which are currently used by India’s GSM operators. Indian operators record more than 3 million e-recharge per day on Bharti Telesoft’s platform.
(Source: Economic Times )
Vision Corp to acquire stake in PIAL
MUMBAI: Vision Corporation, engaged in entertainment business, on Monday said it has decided to acquire 51 per cent stake in shipping and logistics company Pol India Agencies Ltd (PIAL).
A board meeting held on Friday decided to acquire 51 per cent equity stake in PIAL at a price yet to be mutually discussed and negotiated, the company said in a filing to the Bombay Stock Exchange.
PIAL is a shipping and Logistics out-fit, which is more than 50 years old, have been controlling and promoting shipping interests of Polish Ocean Lines from Middle-East to South East Asian sector and were handling both bulk and general cargoes project cargoes, container and passenger vessels in addition to doing stevedoring, clearing and forwarding as well as other related logistics activities.
The company also decided to make preferential allotment of equity shares to investors and convene an Extra Ordinary General Meeting (EGM) on September 12 to pass a Special Resolution to this effect.
Shares of the company were trading at Rs 13.68, up 4.99 per cent on the BSE.
(Source: Economic Times )
A board meeting held on Friday decided to acquire 51 per cent equity stake in PIAL at a price yet to be mutually discussed and negotiated, the company said in a filing to the Bombay Stock Exchange.
PIAL is a shipping and Logistics out-fit, which is more than 50 years old, have been controlling and promoting shipping interests of Polish Ocean Lines from Middle-East to South East Asian sector and were handling both bulk and general cargoes project cargoes, container and passenger vessels in addition to doing stevedoring, clearing and forwarding as well as other related logistics activities.
The company also decided to make preferential allotment of equity shares to investors and convene an Extra Ordinary General Meeting (EGM) on September 12 to pass a Special Resolution to this effect.
Shares of the company were trading at Rs 13.68, up 4.99 per cent on the BSE.
(Source: Economic Times )
Monday, August 20, 2007
TPG Capital eyes stake in IndiGo
Leading global private equity fund TPG Capital (formerly Texas Pacific) is in talks with budget carrier IndiGo to pick up a 10-15 per cent stake in the airline.
Top executives of the airlines have started negotiations and the deal is expected to happen in the next few months, according to investment banking sources.
"IndiGo is considering dilution of promoters’ equity and are is in talks with TPG for a possible sale of shares,” a source said. When contacted, Rahul Bhatia, managing director of InterGlobe Interprises, which owns the airline, said that the company was not looking at any dilution of promoters’ equity. “We do not have any plans to dilute equity. We have enough funds to take care of the future requirements of the airline,” he said. InterGlobe Enterprises and the former president and chief executive officer of US Airways, Rakesh Gangwal, had jointly promoted IndiGo.
However, sources close to TPG said that that the private equity firm is exploring investment opportunities in the aviation sector in the country and Indigo is one of its target companies. “As the ATF (aviation turbine fuel) prices went up and airlines were forced to reduce fares, valuation of the industry came down in 2006. Though airlines were interested in PE placements, not many players were interested. Now its the time of consolidation and global PE firms will have a major role to play," said an analyst from Lehman Brothers.
If successful, the transaction will make TPG's first aviation investment in India. TPG was in talks with Air Deccan before Kingfisher air chairman Vijay Mallya acquired a 26 per cent stake recently. The group was also in talks with SpiceJet. However, these transactions failed either due to differences over valuation or the airlines were not ready to offer a higher stake in the company.
Mallya had offered Rs 550 crore for 26 per cent stake in Air Deccan while ICICI Ventures had invested $50 million for 19 per cent stake in Air Deccan in 2005.
TPG, which manages over $30 billion assets across the world, is one among those PE players that have made substantial investments in the aviation sector. It has invested in Continental Airlines, Rynair, Australia's Qantas and has also placed a bid for Midwest Airlines.
IndiGo is expeccted to use private equity finance for its expansion plans. It has placed a $6 billion order to acquire 100 Airbus A320 family aircraft. The airline has so far received 11 Airbus A320-200 and another 89 are on order. It receives one brand new plane every four to six weeks. By 2010, IndiGo plans to serve 30 Indian cities with a fleet of 40 A 320 aircraft.
(Source: Hindustan Times)
Top executives of the airlines have started negotiations and the deal is expected to happen in the next few months, according to investment banking sources.
"IndiGo is considering dilution of promoters’ equity and are is in talks with TPG for a possible sale of shares,” a source said. When contacted, Rahul Bhatia, managing director of InterGlobe Interprises, which owns the airline, said that the company was not looking at any dilution of promoters’ equity. “We do not have any plans to dilute equity. We have enough funds to take care of the future requirements of the airline,” he said. InterGlobe Enterprises and the former president and chief executive officer of US Airways, Rakesh Gangwal, had jointly promoted IndiGo.
However, sources close to TPG said that that the private equity firm is exploring investment opportunities in the aviation sector in the country and Indigo is one of its target companies. “As the ATF (aviation turbine fuel) prices went up and airlines were forced to reduce fares, valuation of the industry came down in 2006. Though airlines were interested in PE placements, not many players were interested. Now its the time of consolidation and global PE firms will have a major role to play," said an analyst from Lehman Brothers.
If successful, the transaction will make TPG's first aviation investment in India. TPG was in talks with Air Deccan before Kingfisher air chairman Vijay Mallya acquired a 26 per cent stake recently. The group was also in talks with SpiceJet. However, these transactions failed either due to differences over valuation or the airlines were not ready to offer a higher stake in the company.
Mallya had offered Rs 550 crore for 26 per cent stake in Air Deccan while ICICI Ventures had invested $50 million for 19 per cent stake in Air Deccan in 2005.
TPG, which manages over $30 billion assets across the world, is one among those PE players that have made substantial investments in the aviation sector. It has invested in Continental Airlines, Rynair, Australia's Qantas and has also placed a bid for Midwest Airlines.
IndiGo is expeccted to use private equity finance for its expansion plans. It has placed a $6 billion order to acquire 100 Airbus A320 family aircraft. The airline has so far received 11 Airbus A320-200 and another 89 are on order. It receives one brand new plane every four to six weeks. By 2010, IndiGo plans to serve 30 Indian cities with a fleet of 40 A 320 aircraft.
(Source: Hindustan Times)
PE Texas, Apax to buy stake in Patni
Private equity firms Texas Pacific Group and Apax Partners are close to buying some of the founders' stake in India's Patni Computer Systems Ltd, a newspaper reported on Monday, citing unnamed sources.
Gajendra and Ashok Patni, two of the three brothers who founded the software services firm, are looking to sell their stake, local media had earlier reported.
Their holding in the company totals to about 29 per cent. The agreement between one of the private equity partners and the Patni brothers is likely to be signed next month, the media said.
A spokeswoman for New York-listed Patni, which counts General Electric Co and ABN AMRO among its clients, said the company had no comment to make on the report. Chairman and Chief Executive Narendra Patni, who holds about 15 per cent of the company, will buy out a part of the stake on offer while the private equity firms will pick up the remaining, the daily said.
(Source: Economic Times )
Gajendra and Ashok Patni, two of the three brothers who founded the software services firm, are looking to sell their stake, local media had earlier reported.
Their holding in the company totals to about 29 per cent. The agreement between one of the private equity partners and the Patni brothers is likely to be signed next month, the media said.
A spokeswoman for New York-listed Patni, which counts General Electric Co and ABN AMRO among its clients, said the company had no comment to make on the report. Chairman and Chief Executive Narendra Patni, who holds about 15 per cent of the company, will buy out a part of the stake on offer while the private equity firms will pick up the remaining, the daily said.
(Source: Economic Times )
PNB may bid for IFCI stake
Punjab National Bank may bid for a 26 per cent holding in institutional lender IFCI Ltd., the Economic Times reported on Monday, quoting the bank's chairman and managing director.
"The bank's board will take a final call on the matter," K.C. Chakraborty told the newspaper, adding the bank shared some common account holders with IFCI.
The paper said state-run Punjab National had sought to acquire a controlling stake in IFCI more than three years ago but the proposal fell through. A spokesman at the bank could not be immediately reached.
State-run IFCI is looking for a strategic investor and has appointed Ernst & Young as its advisors. Last month, the Economic Times had reported that Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and Barclays were eyeing a 26 per cent in IFCI.
(Source: Economic Times )
"The bank's board will take a final call on the matter," K.C. Chakraborty told the newspaper, adding the bank shared some common account holders with IFCI.
The paper said state-run Punjab National had sought to acquire a controlling stake in IFCI more than three years ago but the proposal fell through. A spokesman at the bank could not be immediately reached.
State-run IFCI is looking for a strategic investor and has appointed Ernst & Young as its advisors. Last month, the Economic Times had reported that Citigroup, Lehman Brothers, BNP Paribas, Deutsche Bank and Barclays were eyeing a 26 per cent in IFCI.
(Source: Economic Times )
Sunday, August 19, 2007
Apollo buys Seaport Container
The Apollo Tyres group, through its logistics arm Apollo International, has acquired the Mumbai-based container transport services company, Seaport Container Terminal, for an undisclosed amount. Apollo International, which is engaged in imports and exports of tyres and tubes, had recently announced its foray into logistics space.
Seaport Container Terminal is a leading transportation company operating as contractor for the rail PSU, Container Corporation of India (CONCOR), for the latter’s inland container depot (ICD) in Mulund, which mainly handles traffic from Jawaharlal Nehru Port Trust (JNPT).
Apollo International is positioning itself as 4PL (four-party logistics) player in the industry, offering complete logistics solutions under one-roof.
(Source: Business Standard)
Seaport Container Terminal is a leading transportation company operating as contractor for the rail PSU, Container Corporation of India (CONCOR), for the latter’s inland container depot (ICD) in Mulund, which mainly handles traffic from Jawaharlal Nehru Port Trust (JNPT).
Apollo International is positioning itself as 4PL (four-party logistics) player in the industry, offering complete logistics solutions under one-roof.
(Source: Business Standard)
Punj Lloyd sells 11% stake
A clutch of private equity funds including Warburg Pincus, Blackstone, Avenue Capital and hedge funds DKR Oasis and Kingdom Capital have bought a total of 11 per cent stake in Punj Lloyd for Rs 814 crore.
Warburg Pincus has bought 5.5 per cent stake while, Avenue Capital has acquired 2.5-3 per cent in Punj Lloyd, which is an EPC contractor focused on the oil and gas sector with diversification to infrastructure.
Private equity major Blackstone bought somewhere between 0.5 per cent and 1 per cent in Punj Lloyd, which issued the shares to these global investors through a qualified institutional placement (QIP) issue priced at Rs 275 a share, almost on par with the current market price.
Following the placement, the company’s paid-up capital has gone up from Rs 29 crore. Ravi Keswani, director (finance) of Punj Lloyd said the company would invest Rs 400 crore to buy a strategic 25.1 per cent stake in Pipavav Shipyard and it would spend another Rs 80 crore for its foray into real estate development.
(Source: Business Standard)
Warburg Pincus has bought 5.5 per cent stake while, Avenue Capital has acquired 2.5-3 per cent in Punj Lloyd, which is an EPC contractor focused on the oil and gas sector with diversification to infrastructure.
Private equity major Blackstone bought somewhere between 0.5 per cent and 1 per cent in Punj Lloyd, which issued the shares to these global investors through a qualified institutional placement (QIP) issue priced at Rs 275 a share, almost on par with the current market price.
Following the placement, the company’s paid-up capital has gone up from Rs 29 crore. Ravi Keswani, director (finance) of Punj Lloyd said the company would invest Rs 400 crore to buy a strategic 25.1 per cent stake in Pipavav Shipyard and it would spend another Rs 80 crore for its foray into real estate development.
(Source: Business Standard)
Friday, August 17, 2007
Tata Power offloads 4.2% in PTC for Rs 50 crore
Tata Power has sold 4.2% in PTC India in the open market for about Rs 50 crore. Tata group’s power generation arm was one of the early investors in PTC, formerly Power Trading Corporation. The partial stake sale comes at a time when PTC has announced it will raise Rs 1,200 crore from the market to fund expansion plans. Existing investors would be required to pump in more money or see their stake come down.
Just before the initial public offering (IPO) of PTC in March 2004, Tata Power was the single largest stake holder in the company having about 16% stake. In fact, its stake was higher than the individual holdings of the four PSU promoters — NTPC, NHPC, PFC and PGC. Tata Power’s holding came down after the IPO to about 10% and till June 2007 it remained the single largest equity holder.
(Source: Economic Times )
Just before the initial public offering (IPO) of PTC in March 2004, Tata Power was the single largest stake holder in the company having about 16% stake. In fact, its stake was higher than the individual holdings of the four PSU promoters — NTPC, NHPC, PFC and PGC. Tata Power’s holding came down after the IPO to about 10% and till June 2007 it remained the single largest equity holder.
(Source: Economic Times )
Thursday, August 16, 2007
DLF to buy DCM Shriram mill land for Rs 1,600 cr
Real estate major DLF is set to close the Swatantra Bharat Mills (SBM) real estate deal with DCM Shriram Consolidated (DSCL) for over Rs 1,600 crore on Thursday. This will be the largest private sector land deal in the country and will give DLF access to about 38 acres of prime land, at a distance of just about 4-5 km from the capital’s central business district, Connaught Place.
Interestingly, the company had bought about 25 acres of land contiguous to the SBM plot in 2005. DLF already has an in-principle approval to develop an IT SEZ on this land.
Earlier this year, the company acquired another 2 acres in the same locality.
With the acquisition of SBM’s 38 acres, DLF will have a 65-acre contiguous landbank in Delhi. If the real estate major goes for an integrated township on this land, it will be the largest such project inside a city.
Also, this will probably be the first integrated township of its kind, combining an IT SEZ with a massive housing supply for those working in the SEZ.
(Source:Economic Times )
Interestingly, the company had bought about 25 acres of land contiguous to the SBM plot in 2005. DLF already has an in-principle approval to develop an IT SEZ on this land.
Earlier this year, the company acquired another 2 acres in the same locality.
With the acquisition of SBM’s 38 acres, DLF will have a 65-acre contiguous landbank in Delhi. If the real estate major goes for an integrated township on this land, it will be the largest such project inside a city.
Also, this will probably be the first integrated township of its kind, combining an IT SEZ with a massive housing supply for those working in the SEZ.
(Source:Economic Times )
Wednesday, August 15, 2007
Fidelity Investments to pick up 10 pc in TCIL
Fidelity Investments International today announced its decision to pick up 10 per cent stake in logistics company Transport Corporation of India (TCIL) for Rs 52 crores.
"With this, the FII's stake in the company would come close to 10 per cent of paid up equity. The development comes in the light of the company's plans to expand and consolidate its supply chain and logistics business, both nationally and globally," says a TCIL release.
TCIL will raise the money to part finance its capital expansion plans worth Rs 440 crores. The FII will pick up the stake at Rs 105.25 per share for a face value of Rs 2 each.
"Out of our total capex plan of Rs 440 crores, we would be spending Rs 340 crores over a period of three years, beginning 2007-08 for investment in warehousing, fleet upgradation and expansion, shipping and IT systems," it quoted TCIL Vice Chairman and MD D P Agarwal as saying.
TCIL has already invested Rs 100 crore in the last financial year and has plans to invest Rs 200 crores this fiscal, it added.
(Source: Economic Times)
"With this, the FII's stake in the company would come close to 10 per cent of paid up equity. The development comes in the light of the company's plans to expand and consolidate its supply chain and logistics business, both nationally and globally," says a TCIL release.
TCIL will raise the money to part finance its capital expansion plans worth Rs 440 crores. The FII will pick up the stake at Rs 105.25 per share for a face value of Rs 2 each.
"Out of our total capex plan of Rs 440 crores, we would be spending Rs 340 crores over a period of three years, beginning 2007-08 for investment in warehousing, fleet upgradation and expansion, shipping and IT systems," it quoted TCIL Vice Chairman and MD D P Agarwal as saying.
TCIL has already invested Rs 100 crore in the last financial year and has plans to invest Rs 200 crores this fiscal, it added.
(Source: Economic Times)
Lehman to buy Brics' arm
Finally Lehman announces the much expected and anticipated acquisition of Brics Securities.
Investment bank Lehman Brothers on Tuesday said it would acquire Institutional Equity Group of Brics Securities, a brokerage firm.
The acquisition would help in expansion of Lehman Brothers' presence by accelerating the development of its equities business and establishing an equity research and sales function, it said in a statement.
"India's economic growth and the increasing depth and breadth of its capital markets presents a strong business opportunity," Lehman CEO Tarun Jotwani said.
The acquisition would help Lehman Brothers to offer its clients more sophisticated and comprehensive equity research, primary equity placement, secondary trading and investment services in India.
(Source: Economic Times )
Investment bank Lehman Brothers on Tuesday said it would acquire Institutional Equity Group of Brics Securities, a brokerage firm.
The acquisition would help in expansion of Lehman Brothers' presence by accelerating the development of its equities business and establishing an equity research and sales function, it said in a statement.
"India's economic growth and the increasing depth and breadth of its capital markets presents a strong business opportunity," Lehman CEO Tarun Jotwani said.
The acquisition would help Lehman Brothers to offer its clients more sophisticated and comprehensive equity research, primary equity placement, secondary trading and investment services in India.
(Source: Economic Times )
Bear Stearns enters India
US financial services major Bear Stearns is entering India by acquiring US automaker Ford’s financial arm Ford Automotive Finance Company. Bear Stearns, which is investing Rs 190 crore in the venture, plans to be a full-fledged financial services company covering institutional equities, fixed income, investment banking, global clearing services, asset management, private client services and other services allowed for a non-banking financial company (NBFC) in India.
Bear Stearns will acquire Ford Automotive from its parent Ford Credit International (FCI) for Rs 90 crore. FCI is part of Ford Credit, which is the financial services business of Ford Motor. Ford Credit is one of the world’s largest auto financiers and is particularly strong in the North American market.
After the Ford Automotive acquisition, Bear Stearns will invest at least $25 million (Rs 100 crore) to comply with Indian regulations. In a fund-based NBFC, foreign direct investment (FDI) up to 100% requires a minimum capitalisation of $50 million, of which $7.5 million is to be brought upfront and the balance in 24 months.
Bear Stearns had revenues of $16.5 billion with total assets of $350 billion as of November 2006. The fund was in the last month when two of its hedge funds filed for bankruptcy in the US. The hedge funds had built huge exposures in the sub-prime lending market, which basically represents mortgage to home buyers with poor credit history.
Analysts are now concerned about its impact on other financial markets including India.
What’s interesting is the route taken by Bear Stearns to enter India. Instead of starting operations by acquiring an existing securities firm, which is its core business, it is planning to buy an auto finance services company. Bear Stearns is already a registered financial institutional investor in India.
(Source: Economic Times )
Bear Stearns will acquire Ford Automotive from its parent Ford Credit International (FCI) for Rs 90 crore. FCI is part of Ford Credit, which is the financial services business of Ford Motor. Ford Credit is one of the world’s largest auto financiers and is particularly strong in the North American market.
After the Ford Automotive acquisition, Bear Stearns will invest at least $25 million (Rs 100 crore) to comply with Indian regulations. In a fund-based NBFC, foreign direct investment (FDI) up to 100% requires a minimum capitalisation of $50 million, of which $7.5 million is to be brought upfront and the balance in 24 months.
Bear Stearns had revenues of $16.5 billion with total assets of $350 billion as of November 2006. The fund was in the last month when two of its hedge funds filed for bankruptcy in the US. The hedge funds had built huge exposures in the sub-prime lending market, which basically represents mortgage to home buyers with poor credit history.
Analysts are now concerned about its impact on other financial markets including India.
What’s interesting is the route taken by Bear Stearns to enter India. Instead of starting operations by acquiring an existing securities firm, which is its core business, it is planning to buy an auto finance services company. Bear Stearns is already a registered financial institutional investor in India.
(Source: Economic Times )
Tuesday, August 14, 2007
Tatas to pick up stake in Development Credit Bank
Tata Capital Ltd and Tata Investments would jointly pick up a 4.5 per cent stake in Development Credit Bank (DCB) for around Rs 85 crore, a bank official said. The bank would make a preferential allotment of shares to five specific group of inv estors, including the Tatas, for Rs 300 crore, DCB Managing Director and CEO Gautam Vir told reporters here on Monday. Other investors, who would be allotted shares are Al Bateen of Abu Dhabi (4.5 per cent), Lehman Brothers arm, Marc Faber and SVG.
Following the issue, the bank's capital adequacy ratio (CAR) would increase from 10.5 per cent to 17.7 per cent.
(Source: Business Line)
Following the issue, the bank's capital adequacy ratio (CAR) would increase from 10.5 per cent to 17.7 per cent.
(Source: Business Line)
Thursday, August 9, 2007
RIL may buy stake in Modern Dairies
Mukesh Ambani’s Reliance Industries is in talks to acquire an equity stake in Haryana-based Modern Dairies which would strengthen its presence in the high-volume, low-margin liquid milk market.
Reliance Retail, through which Reliance Industries is extending its presence in the organised retail sector, last month launched its own milk brand in Hyderabad, and it plans to make it available in other cities shortly.
The packaged milk, Dairy Pure, is available at Rs 18 a litre through nearly 50 outlets in and around Hyderabad.
Modern produces packed liquid milk, skimmed milk powder, whole milk powder, infant milk food, pure ghee and butter. Reliance Retail, which has so far set up over 200 retail outlets, procures 10,000 litres of milk a day at Atmakur, in Nellore district, of Andhra Pradesh. The packaging has been outsourced.
The company is pitted against such established leaders like Mother Dairy and Vijaya. There are a host of regional players in the Rs 15,000-crore branded packaged milk market.
According to sources, Reliance plans to make Punjab and Haryana a hub for its dairy products. It intends to procure 10 million litres of milk daily, over the next four years. This is more than the combined procurement of all players in the co-operative and private sectors.
(Source: Business Standard)
Reliance Retail, through which Reliance Industries is extending its presence in the organised retail sector, last month launched its own milk brand in Hyderabad, and it plans to make it available in other cities shortly.
The packaged milk, Dairy Pure, is available at Rs 18 a litre through nearly 50 outlets in and around Hyderabad.
Modern produces packed liquid milk, skimmed milk powder, whole milk powder, infant milk food, pure ghee and butter. Reliance Retail, which has so far set up over 200 retail outlets, procures 10,000 litres of milk a day at Atmakur, in Nellore district, of Andhra Pradesh. The packaging has been outsourced.
The company is pitted against such established leaders like Mother Dairy and Vijaya. There are a host of regional players in the Rs 15,000-crore branded packaged milk market.
According to sources, Reliance plans to make Punjab and Haryana a hub for its dairy products. It intends to procure 10 million litres of milk daily, over the next four years. This is more than the combined procurement of all players in the co-operative and private sectors.
(Source: Business Standard)
Foreign PEs picks 24% in Phoenix Mills
Leading private equity funds like Barclays Capital, Citigroup, HSBC Financial and DB Fund Mauritius, along with a host of overseas real estate funds, Alpine Capital and Bluerich Fund, have collectively acquired a 24% stake in Atul Ruia-promoted Phoenix Mills for Rs 1,300 crore.
The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.
Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.
Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.
Phoenix intends to set up about 10 Market Cities across metros and relatively smaller retail format developments of about 1 million sq ft in tier II cities across India.
(Source: Economic Times )
The funds have picked up equity through a mix of preferential allotment and qualified institutional placement (QIP). Six funds including Barclays Capital, Citigroup, HSBC Financial, DB Fund Mauritius, Rhodes Diversified, DWS Invest Bric Plus and Americorp Ventures acquired 7% stake in Phoenix Mills for Rs 330 crore through preferential allotment while the real estate funds and other private equity funds picked up 18% for Rs 980 crore.
Riding on the success of ‘High Street Phoenix’ in Mumbai, the company has floated a new retail model — Market Cities.
Market Cities are already present in Bangalore, Chennai, Pune and Mumbai while five more are coming up.
Currently, Phoenix Mills holds 75% stake in Atlas Hospitality while the remaining is with the promoters. Market City is a city-centric concept developed by Phoenix. These are large-sized mixed format retail developments of approximately 2 million sq ft.
Phoenix intends to set up about 10 Market Cities across metros and relatively smaller retail format developments of about 1 million sq ft in tier II cities across India.
(Source: Economic Times )
L&T to invest Rs 100cr in Rangsons
Larsen & Toubro (L&T) is set to invest Rs 100 crore in Mysore-based Rangsons Electronics for a 40 per cent stake. Rangsons Electronics is a Rs 70 crore electronic manufacturing solutions provider and one of the preferred suppliers for L&T’s electrical & electronics division.
According to sources, the Rs 20,000 crore engineering and construction major is making investment to beef up its presence in the fast-growing EMS market. This division contributes around Rs 2,000 crore to L&T’s top line and is engaged in the business of low-voltage switchgear products, electrical systems, energy meters, medical equipments, petroleum dispensing pumps and automation solutions.
Rangsons Electronics is a part of the diversified N R Sons in Mysore. It employs around 700 people in four manufacturing units. In 2006, it increased capacity by around 50 per cent and has grown at a compounded annual rate of 65 per cent in the last five years.
In addition to L&T, Rangsons is also a major supplier to GE. These two account for around 65 per cent for the company’s top line.
(Source: Business Standard )
According to sources, the Rs 20,000 crore engineering and construction major is making investment to beef up its presence in the fast-growing EMS market. This division contributes around Rs 2,000 crore to L&T’s top line and is engaged in the business of low-voltage switchgear products, electrical systems, energy meters, medical equipments, petroleum dispensing pumps and automation solutions.
Rangsons Electronics is a part of the diversified N R Sons in Mysore. It employs around 700 people in four manufacturing units. In 2006, it increased capacity by around 50 per cent and has grown at a compounded annual rate of 65 per cent in the last five years.
In addition to L&T, Rangsons is also a major supplier to GE. These two account for around 65 per cent for the company’s top line.
(Source: Business Standard )
Tuesday, August 7, 2007
ETC Network to merge with Zee Interactive
ETC Network Ltd has considered and approved the scheme of amalgamation with Zee Interactive Learning Systems Ltd.
The scheme envisages amalgamation of ETC Network with Zee Interactive with effect from April 1, 2007. The exchange ratio is 1 share of Zee Interactive for 2 shares of ETC.
ETC Network is into broadcasting television channels, ETC Music and ETC Punjabi. Zee Interactive is a diversified education company.
Post amalgamation, the combined entity would be named ETC Networks Ltd and would be listed on the stock exchanges.
(Source: ET )
The scheme envisages amalgamation of ETC Network with Zee Interactive with effect from April 1, 2007. The exchange ratio is 1 share of Zee Interactive for 2 shares of ETC.
ETC Network is into broadcasting television channels, ETC Music and ETC Punjabi. Zee Interactive is a diversified education company.
Post amalgamation, the combined entity would be named ETC Networks Ltd and would be listed on the stock exchanges.
(Source: ET )
Wipro to buy Infocrossing for $600m
IT major Wipro Ltd said on Monday it is buying Nasdaq-listed Infocrossing Inc in a deal that values the acquisition target at about $600 million.
Wipro has offered to pay $18.70 per share of the New Jersey-based company that provides select outsourcing services to mid-sized companies in the United States, said Wipro's Chief Financial Officer Suresh Senapaty.
The acquisition, the biggest-ever by an Indian services company, will help Wipro enhance its offerings to customers, especially those involving off-shoring of technology infrastructure services by Western companies to low-cost destinations like India, he said.
``We have been pursuing organic growth, and at the same time looking for inorganic opportunity,'' Senapaty said. ``Infocrossing is a perfect fit (for Wipro).''
The board of Infocrossing has approved and recommended the deal to its shareholders. The offer from Wipro represents a 6 per cent premium over the last closing price of Infocrossing shares, he said. Wipro plans to make an open offer to buy all outstanding shares of the company.
The transaction, which is subject to regulatory approvals, is expected to be completed by December, Wipro said, adding that the takeover will be funded from its own cash reserves.
Infocrossing operates five data centers and employs about 900 people. Its sales totaled US$229 million last year, leaving the company with a net profit of $8.4 million, an Wipro statement said.
(Source: Economic Times)
Wipro has offered to pay $18.70 per share of the New Jersey-based company that provides select outsourcing services to mid-sized companies in the United States, said Wipro's Chief Financial Officer Suresh Senapaty.
The acquisition, the biggest-ever by an Indian services company, will help Wipro enhance its offerings to customers, especially those involving off-shoring of technology infrastructure services by Western companies to low-cost destinations like India, he said.
``We have been pursuing organic growth, and at the same time looking for inorganic opportunity,'' Senapaty said. ``Infocrossing is a perfect fit (for Wipro).''
The board of Infocrossing has approved and recommended the deal to its shareholders. The offer from Wipro represents a 6 per cent premium over the last closing price of Infocrossing shares, he said. Wipro plans to make an open offer to buy all outstanding shares of the company.
The transaction, which is subject to regulatory approvals, is expected to be completed by December, Wipro said, adding that the takeover will be funded from its own cash reserves.
Infocrossing operates five data centers and employs about 900 people. Its sales totaled US$229 million last year, leaving the company with a net profit of $8.4 million, an Wipro statement said.
(Source: Economic Times)
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