UK-headquartered business process outsourcing (BPO) firm Vertex is looking at acquisitions in India. The company, which got acquired by a consortium led by private equity player Oak Hill Capital earlier this year, is looking at rapid organic growth.
"With private equity as an owner, there is always a need to grow rapidly. We are looking at doubling our business in the next five years and also at acquisition opportunities in India," Vertex CEO Richard Graham told ET.
Mr Graham added that Vertex will look at small-and medium-sized companies as acquisition targets. Oak Hill Capital Partners, GenNx360 Capital Partners and Knox Lawrence International acquired Vertex for £217.5 million comprising cash, the repayment of intra-group debt and the retention by the purchaser of certain liabilities of Vertex from UK-based United Utilities.
US-based Oak Hill Capital Partners, which currently has $4.6 billion as assets under management, also has significant business interests in Indian BPO majors Genpact and EXL Services. With both Genpact and EXL Services listing on the US bourses, Vertex may also look at a public floatation at a later stage. “If you are owned by a private equity player, then you know one day you will get sold. It is yet to be decided by when will that happen,” added Mr Graham.
Vertex is also looking to move finance and accounting (F&A) and HR functions to its India back-office in Gurgaon. The company is exploring segments high-end work like engineering support services and IT infrastructure management. New capabilities like security services, data centre management, service desk provision and application maintenance are expected to contribute about 30% of its revenues in the next 12 months.
Recently, it transferred the work it was doing for British telecom major Orange to ExlService. “We don’t want to do plain voice-based, low-end BPO work. We want to do transformational kind of work. The Orange business was voice-based work and we arrived at an agreement with EXL and Orange to transfer that work to EXL. I don’t think we have more of such low-end work on our hands now,” said Mr Graham.
Vertex India has over 1,800 employees at its two Gurgaon centres. The company is also looking at an additional facility in India. The company’s head office is located in Liverpool and it has 9,000 employees based in 66 locations across the UK, US, Canada and India.
(Source: Economic Times
Saturday, September 29, 2007
Wipro buys singapore design company
Wipro Technologies will acquire Oki Techno Centre Singapore (OTCS), a wholly-owned subsidiary of Oki Electric Industry, Japan, over a period of one year and this would be its second acquisition in the semiconductor space with the earlier one being NewLogic.
OTCS registered revenues of 8.8 million Singapore dollars for the fiscal year ended March 31, 2007 and has a 40-member team. Vasudevan Aghoramoorthy, V-P, Wipro Technologies said, this acquisition will enable them to meet the demand for newer wireless technologies and also expand its breadth of offering in the semiconductor design space.
For the first time, Wipro Technologies has made an acquisition in the Far East region with all its previous buyouts in the US and Europe.
OTCS is focussed on wireless design and has capabilities in radio frequency (RF) technologies. It mainly works for the parent company with some third party clients and Wipro expects to provide solutions for the semiconductor companies.
(Source: Economic Times)
OTCS registered revenues of 8.8 million Singapore dollars for the fiscal year ended March 31, 2007 and has a 40-member team. Vasudevan Aghoramoorthy, V-P, Wipro Technologies said, this acquisition will enable them to meet the demand for newer wireless technologies and also expand its breadth of offering in the semiconductor design space.
For the first time, Wipro Technologies has made an acquisition in the Far East region with all its previous buyouts in the US and Europe.
OTCS is focussed on wireless design and has capabilities in radio frequency (RF) technologies. It mainly works for the parent company with some third party clients and Wipro expects to provide solutions for the semiconductor companies.
(Source: Economic Times)
Friday, September 28, 2007
Carlyle, TPG eye stake in NIIT
New Delhi-based IT company NIIT Technologies is learned to be in preliminary discussions with private equity players Carlyle and TPG to sell a majority stake. Industry sources said a strategic investor is also believed to be interested in the transaction.
Promoters currently hold 40% stake in NIIT Technologies and sources said they may sell anywhere between 25% and 40% in the company. This would trigger an open offer, where investors can buy an additional 20% in the company.
(Source: Economic Times)
Promoters currently hold 40% stake in NIIT Technologies and sources said they may sell anywhere between 25% and 40% in the company. This would trigger an open offer, where investors can buy an additional 20% in the company.
(Source: Economic Times)
Lupin acquires Rubamin Labs
Lupin, the country’s biggest maker of tuberculosis medicines, has bought Baroda-based Rubamin Laboratories (RLL), which will give it an entry into the global contract research and manufacturing services (CRAMS) business. The deal size was not disclosed.
Rubamin manufactures advanced intermediates and specialises in active pharmaceutical ingredients (APIs) used in drug-making. The eight-year-old company has a wide customer base in Europe. It has a turnover of about $10 million.
RLL belonged to the Rubamin Group, whose main business is mining and metallurgy in India and Congo in Central Africa. RLL was hived into a separate company last year.
“The acquisition enables us to step up our strategic initiative in the CRAMS segment,” Lupin Chairman Desh Bandhu Gupta said. “We have a proven track record of achieving global position in every therapy that we have entered at the intermediate and API level.”
The global CRAMS market was estimated at $895 million in 2006 and growing at 43 per cent, according to business research and consulting company Frost & Sullivan.
(Source: Business Standard)
Rubamin manufactures advanced intermediates and specialises in active pharmaceutical ingredients (APIs) used in drug-making. The eight-year-old company has a wide customer base in Europe. It has a turnover of about $10 million.
RLL belonged to the Rubamin Group, whose main business is mining and metallurgy in India and Congo in Central Africa. RLL was hived into a separate company last year.
“The acquisition enables us to step up our strategic initiative in the CRAMS segment,” Lupin Chairman Desh Bandhu Gupta said. “We have a proven track record of achieving global position in every therapy that we have entered at the intermediate and API level.”
The global CRAMS market was estimated at $895 million in 2006 and growing at 43 per cent, according to business research and consulting company Frost & Sullivan.
(Source: Business Standard)
Thursday, September 27, 2007
Bank of India may dilute 5pc govt stake
The country’s sixth-largest bank in terms of assets, Bank of India (BoI) is considering diluting 5% government stake.
Mr Narayanasami,BoI chairman and managing director, indicated the bank is weighing the option of raising resources through the qualified institutional placement (QIP) route. “We are open to both follow-on issue and the QIP route. However, latter offers more advantages since it could be faster and cost effective,” he said.
If the bank goes ahead with the QIP offering, it will be the first public sector bank to do so. Among private banks, Axis Bank and Centurion Bank of Punjab recently concluded QIP issuances. With 5% stake sale, the bank would raise close to Rs 600 crore at the current market price.
The resources raised will enable BoI fund its new businesses and help it in meeting the new Basel II norms. “It will be useful in making investments in the insurance business and in any new venture we may consider taking up in future,” Mr Narayanasami said. BoI has total assets of Rs 86,842 crore with net profit of Rs 1,123 crore as on March 31, 2007.
(Source: Economic Times
Mr Narayanasami,BoI chairman and managing director, indicated the bank is weighing the option of raising resources through the qualified institutional placement (QIP) route. “We are open to both follow-on issue and the QIP route. However, latter offers more advantages since it could be faster and cost effective,” he said.
If the bank goes ahead with the QIP offering, it will be the first public sector bank to do so. Among private banks, Axis Bank and Centurion Bank of Punjab recently concluded QIP issuances. With 5% stake sale, the bank would raise close to Rs 600 crore at the current market price.
The resources raised will enable BoI fund its new businesses and help it in meeting the new Basel II norms. “It will be useful in making investments in the insurance business and in any new venture we may consider taking up in future,” Mr Narayanasami said. BoI has total assets of Rs 86,842 crore with net profit of Rs 1,123 crore as on March 31, 2007.
(Source: Economic Times
UAE firm acquires 4% stake in Development Credit Bank
UAE company has acquired over four per cent stake in India's Development Credit Bank (DCB), marking its entry into the Indian market.
Al Bateen Investment Co LLC (ABI), a unit of the Abu Dhabi-based Al Ain International Group, announced in Abu Dhabi yesterday that it has acquired 4.24 per cent stake in DCB.
ABI invested by subscribing to DCB's preferential issue to a group of institutional investors. These include Tata Capital and the Mauritius-based GRA Finance Corporation.
DCB is one of the fastest growing private sector commercial banks in India.
Nearly 80 years old, DCB currently has a network of 72 branches in India and plans to double that number by 2009.
The Aga Khan Fund for Economic Development is the largest stakeholder in the bank, holding more than a 55 per cent stake.
(Source: Economic Times)
Al Bateen Investment Co LLC (ABI), a unit of the Abu Dhabi-based Al Ain International Group, announced in Abu Dhabi yesterday that it has acquired 4.24 per cent stake in DCB.
ABI invested by subscribing to DCB's preferential issue to a group of institutional investors. These include Tata Capital and the Mauritius-based GRA Finance Corporation.
DCB is one of the fastest growing private sector commercial banks in India.
Nearly 80 years old, DCB currently has a network of 72 branches in India and plans to double that number by 2009.
The Aga Khan Fund for Economic Development is the largest stakeholder in the bank, holding more than a 55 per cent stake.
(Source: Economic Times)
India's share in M&A deals in Asia spurts to 15%
India's share in the total merger and acquisition deals in Asia has gone up from 6 per cent in 2005 to 15 per cent in 2006, SBI Capital Markets said on Wednesday.
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
(Source: Economic Times)
The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent.
SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, "Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators."
He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006.
(Source: Economic Times)
Mallya boards US Epic
VLJs (very light jets), small four to eight seater jets that have been creating a flutter in corporate America, have a new backer. Liquor baron Vijay Mallya is picking up a 50% stake in Epic Aviation, the Bend Oregon-based small aircraft manufacturer.
For the past two years, business aircraft circles, particularly in the US, have been bullish about the new planes that are being manufactured through disruptive technologies with new engines, avionics and materials.
Speaking to ET, he said “Epic is an outstanding global business opportunity as they have four world beater aircraft. There is a growing demand for business jets in the region, that we hope to tap,” Mr Mallya, a pilot with a multi-engined rating and close to 2,000 flying hours, flew the aircraft earlier last month. He refused to comment on the investment in the venture.
Epic has recently experienced an unprecedented surge in sales, booking orders more than $23 million at the Sun n Fun fly in April this year. It also sold aircraft worth $40 million three months later at AirVenture in Oshkosh, Wisconsin, said a company release.
(Source: Economic Times
For the past two years, business aircraft circles, particularly in the US, have been bullish about the new planes that are being manufactured through disruptive technologies with new engines, avionics and materials.
Speaking to ET, he said “Epic is an outstanding global business opportunity as they have four world beater aircraft. There is a growing demand for business jets in the region, that we hope to tap,” Mr Mallya, a pilot with a multi-engined rating and close to 2,000 flying hours, flew the aircraft earlier last month. He refused to comment on the investment in the venture.
Epic has recently experienced an unprecedented surge in sales, booking orders more than $23 million at the Sun n Fun fly in April this year. It also sold aircraft worth $40 million three months later at AirVenture in Oshkosh, Wisconsin, said a company release.
(Source: Economic Times
Tata Sons buys 14.7% in Praj for Rs 338 cr
Tata Sons, the unlisted holding company of the Tata group, has bought 14.7% in engineering company Praj Industries, in an open-market transaction totalling Rs 338 crore, which signals the Tatas’ intention to enter the distillery and waste water treatment industry.
The move by the Tatas also indicates a major change in the shareholding pattern of the Pune-based Praj, as the market transaction falls a notch below the takeover code.
According to BSE, Tata Sons bought 9.13 crore shares at Rs 252 per share, which is at a 6% premium to Wednesday’s closing price of Rs 238 per share. Praj’s shares were down 4.1% on BSE on Wednesday.
The move by Tata Sons assumes significance as the group’s current shareholding is now just below the Sebi-stipulated trigger for an open offer. According to capital market norms, if a company acquires 15% of the stock in another company, then the acquirer has to make an open offer to retail shareholders to buy at least 20% of the target company.
Despite repeated attempts, there was no official comment from either Tata Sons or Praj Industries. However, sources in the Tata group said the move is mainly to cash in on the growing demand for ethanol and brewery technology. The promoters, the Chaudhari family, hold 28.2% in the company where other prominent shareholders include large investors such as Vinod Khosla (8.8%) and Rakesh Jhunjhunwala (6%).
“Ethanol is here to stay,” said an analyst tracking the sector. “The business has better margins and the demand is likely to rise further as governments across the world are making it mandatory for companies to hike ethanol content in fuels,” he added. Ethanol in fuel reduces harmful emissions.
(Source: Economic Times)
The move by the Tatas also indicates a major change in the shareholding pattern of the Pune-based Praj, as the market transaction falls a notch below the takeover code.
According to BSE, Tata Sons bought 9.13 crore shares at Rs 252 per share, which is at a 6% premium to Wednesday’s closing price of Rs 238 per share. Praj’s shares were down 4.1% on BSE on Wednesday.
The move by Tata Sons assumes significance as the group’s current shareholding is now just below the Sebi-stipulated trigger for an open offer. According to capital market norms, if a company acquires 15% of the stock in another company, then the acquirer has to make an open offer to retail shareholders to buy at least 20% of the target company.
Despite repeated attempts, there was no official comment from either Tata Sons or Praj Industries. However, sources in the Tata group said the move is mainly to cash in on the growing demand for ethanol and brewery technology. The promoters, the Chaudhari family, hold 28.2% in the company where other prominent shareholders include large investors such as Vinod Khosla (8.8%) and Rakesh Jhunjhunwala (6%).
“Ethanol is here to stay,” said an analyst tracking the sector. “The business has better margins and the demand is likely to rise further as governments across the world are making it mandatory for companies to hike ethanol content in fuels,” he added. Ethanol in fuel reduces harmful emissions.
(Source: Economic Times)
Sistema takes 10% in Shyam
Russian telecom firm Sistema has finally got a foothold in India — the company has picked up 10% stake in Shyam Telelink, which offers CDMA-based mobile services in Rajasthan, for $11.4 million.
Sistema said that it intends to increase its stake in Shyam to 51% after receiving approval from the Foreign Investment Promotion Board (FIPB) of India. If it goes through, the overall value of the deal may reach $58.1 million.
Earlier, Sistema had tried to pick up a stake in Aircel Cellular, but the deal fell through. It was also in the race for Hutchison’s stake in Hutch-Essar.
In a related development, Shyam Telelink has also applied for mobile licences, also called Universal Access Service Licence, across the country.
Sistema, which was founded in 1993, is the largest private sector consumer services company in Russia. Sistema, along with its subsidiaries serve over 80 million consumers in Russia, the CIS and Eastern and Western Europe
(Source: Economic Times)
Sistema said that it intends to increase its stake in Shyam to 51% after receiving approval from the Foreign Investment Promotion Board (FIPB) of India. If it goes through, the overall value of the deal may reach $58.1 million.
Earlier, Sistema had tried to pick up a stake in Aircel Cellular, but the deal fell through. It was also in the race for Hutchison’s stake in Hutch-Essar.
In a related development, Shyam Telelink has also applied for mobile licences, also called Universal Access Service Licence, across the country.
Sistema, which was founded in 1993, is the largest private sector consumer services company in Russia. Sistema, along with its subsidiaries serve over 80 million consumers in Russia, the CIS and Eastern and Western Europe
(Source: Economic Times)
Wednesday, September 26, 2007
Canbank to sell 49% MF arm stake to Robeco
Canara Bank is transferring 49% in its mutual fund arm Canbank Investment Management Services (CIMS) to Netherlands-based Robeco, the asset management arm of Rabobank Group, today. The bank had signed an agreement in March with Robeco for selling the stake.
Canara Bank will retain 51% in its mutual fund arm after the stake sale. Subsequently, the bank will set up a joint venture, the bank informed BSE today.
(Source: Business Standard
Canara Bank will retain 51% in its mutual fund arm after the stake sale. Subsequently, the bank will set up a joint venture, the bank informed BSE today.
(Source: Business Standard
Fidelity buys 10 pct stake in BAG Films
Fund manager Fidelity International has picked up a 10 percent stake in BAG Films & Media Ltd through issue of fresh equity shares, the Economic Times reported on Tuesday.
The deal is valued at 500-600 million rupees, it said, quoting investment banking sources.
BAG Films Managing Director Anurradha Prasad, when contacted, declined to comment.
The company's board is meeting on Tuesday afternoon to consider preferential issue of shares and warrants.
(Source: Reuters)
The deal is valued at 500-600 million rupees, it said, quoting investment banking sources.
BAG Films Managing Director Anurradha Prasad, when contacted, declined to comment.
The company's board is meeting on Tuesday afternoon to consider preferential issue of shares and warrants.
(Source: Reuters)
Indiastar Fund picks up 18.5% stake in IOL Chem
The $2-billion Indiastar (Mauritius) fund, foreign private equity investor, has picked up an 18.5 per cent equity stake in Punjab-based IOL Chemicals and Pharmaceuticals Ltd (formerly known as Industrial Organics Ltd), a leading manufacturer of industrial chemicals and bulk drugs in the country.
IOL Chemicals and Pharmaceuticals Ltd, based out of Ludhiana-Punjab, manufacturers and exportersindustrial chemicals, organic chemicals and drugs like Glacial Acetic Acid, Ethyl Acetate, Acetic Anhydride, Ibuprofen.
The company has completed the expansion of its capacities of acetic acid to 50,000 TPA, Ethyl Acetate to 33,000 TPA, Acetic Anhydride to 12,000 TPA and Ibuprofen to 3,600 TPA. The company has also put up a 4Mw cogeneration power plant for captive consumption.
The company is also going in for expansion of Rs180 crores to be funded partly by aforesaid securities, debt from financial institutions and internal accruals.
The company would further expand Ibuprofen capacity to meet the growing export demand. Currently, it is exporting its finished products mainly in South Asian countries.
The major customers for the company include United Phosphorus Ltd, Rallis India Limited, Ranbaxy Laboratories Limited, Nector Life Science Limited etc .
IOLCP is also exporting products to countries such as Bangladesh, Dubai, Libya, Lebanon, Thailand, Syria & Singapore.
(Source: Business Standard)
IOL Chemicals and Pharmaceuticals Ltd, based out of Ludhiana-Punjab, manufacturers and exportersindustrial chemicals, organic chemicals and drugs like Glacial Acetic Acid, Ethyl Acetate, Acetic Anhydride, Ibuprofen.
The company has completed the expansion of its capacities of acetic acid to 50,000 TPA, Ethyl Acetate to 33,000 TPA, Acetic Anhydride to 12,000 TPA and Ibuprofen to 3,600 TPA. The company has also put up a 4Mw cogeneration power plant for captive consumption.
The company is also going in for expansion of Rs180 crores to be funded partly by aforesaid securities, debt from financial institutions and internal accruals.
The company would further expand Ibuprofen capacity to meet the growing export demand. Currently, it is exporting its finished products mainly in South Asian countries.
The major customers for the company include United Phosphorus Ltd, Rallis India Limited, Ranbaxy Laboratories Limited, Nector Life Science Limited etc .
IOLCP is also exporting products to countries such as Bangladesh, Dubai, Libya, Lebanon, Thailand, Syria & Singapore.
(Source: Business Standard)
Gremach acquires 75% stake in 11 coal mines in Mozambique
Gremach Infrastructure Equipments & Projects shares soar 5 per cent on news that the company has taken 75 per cent controlling stake in 11 coal mine licenses in Mozambique aggregating 13,520 hectares in Moatize.
“This region falls in Karoo basin which is recognized as prime hard coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the company,” Gremach said in a notice to BSE.
Gremach plans to begin prospecting the area in October, which will be completed by mid 2008. The licenses have been purchased from Mozambique’s Osho Mozambique Coal Mining Limitada.
"These 11 licences are very close to existing Companhia Vale do Rio Doce mines and few of them have common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world," Rishi Raj Agarwal, MD of the company said.
(Source: Economic times)
“This region falls in Karoo basin which is recognized as prime hard coking coal bearing area in Africa. There is a global shortage and crisis of hard coking coal and this will add huge value to the profitability of the company,” Gremach said in a notice to BSE.
Gremach plans to begin prospecting the area in October, which will be completed by mid 2008. The licenses have been purchased from Mozambique’s Osho Mozambique Coal Mining Limitada.
"These 11 licences are very close to existing Companhia Vale do Rio Doce mines and few of them have common boundary with CVRD licences where hard prime coking coal has already been found. These strategic acquisitions will make Gremach one of the most important players in prime hard coking coal mine in the world," Rishi Raj Agarwal, MD of the company said.
(Source: Economic times)
Tuesday, September 25, 2007
Mukesh fund eyes 44% in Pondy project
Mukesh Ambani-backed Urban Infrastructure Opportunities Fund (UIOF), which is managed by senior Ambani associate Anand Jain, is expected to pick up 44% stake in Pondicherry Fashion City project for around Rs 200 crore.
Sources said UIOF has emerged as the preferred investor for the Pondicherry SEZ Company (PSEZCo) in which the state government and two other private promoters will hold the remaining stake. Others who had shown interest in the Rs 3,700-crore project included Warburg Pincus, Goldman Sachs and IDFC, sources added.
UIOF has already raised over Rs 3,200 crore. The project coming up on a 993-acre land in South Pondicherry will offer manufacturing, design, education, warehousing, exhibition and IT-backed ventures for apparel and other fashion sectors. The project is conceived as an integrated fashion township offering manufacturing, exhibition and logistics support to the global industry.
(Source: Economic Times)
Sources said UIOF has emerged as the preferred investor for the Pondicherry SEZ Company (PSEZCo) in which the state government and two other private promoters will hold the remaining stake. Others who had shown interest in the Rs 3,700-crore project included Warburg Pincus, Goldman Sachs and IDFC, sources added.
UIOF has already raised over Rs 3,200 crore. The project coming up on a 993-acre land in South Pondicherry will offer manufacturing, design, education, warehousing, exhibition and IT-backed ventures for apparel and other fashion sectors. The project is conceived as an integrated fashion township offering manufacturing, exhibition and logistics support to the global industry.
(Source: Economic Times)
Friday, September 21, 2007
PTC buys 26% in Indian Energy Exchange
PTC India (formerly Power Trading Corporation of India), the country’s largest power trading firm, has taken 26% stake in the country’s first power exchange Indian Energy Exchange (IEX), which recently got regulatory approval. Tata Power (TPC), Reliance Energy (REL), Rural Electrification Corporation (REC), a consortium of Adani Enterprises (AEL) and IDFC are other stakeholders in IEX.
A power exchange is just like any other stock and commodity bourse, and acts as a platform for buying, selling and trading of electricity across India. At present, there is no such exchange in India and electricity is traded bilaterally at mutually agreed rates.IEX has been set up by Financial Technologies (India) and and Multi Commodity Exchange (MCX) for trading electricity
Source: Business Standard)
A power exchange is just like any other stock and commodity bourse, and acts as a platform for buying, selling and trading of electricity across India. At present, there is no such exchange in India and electricity is traded bilaterally at mutually agreed rates.IEX has been set up by Financial Technologies (India) and and Multi Commodity Exchange (MCX) for trading electricity
Source: Business Standard)
Thursday, September 20, 2007
Carlyle, Citi eye 15% in Pyramid Saimira
Private equity majors Carlyle Group and Citigroup Venture Capital International (CVCI) are in the race to acquire a 15 per cent equity stake in Pyramid Saimira Theatre, a Chennai-based theatre chain company.
Pyramid Saimira Theatre is offloading a 15 per cent stake to the private equity investors at around Rs 420 to Rs 445 a share, which is nearly 31.6 per cent premium to the current market price of Rs 338.
In addition to the 15 per cent stake in the listed entity, the group was also likely to sell around 15-20 per cent stake in its unlisted production company, Pyramid Saimira Production, they said.
“Since the production company is not listed, the deal will be based on the company’s enterprise valuation,” said a source. This company is valued at Rs 1,300 crore.
P S Saminathan, managing director, PSTL, declined to comment on the development. In India, Pyramid Saimira owns over 371 screens across south India. The company is in an expansion mode and plans to roll out over 2,000 screens by 2010.
Meanwhile, Pyramid Saimira Theatre has won the bid for Hoyts Cinemas, promoted by the Kerry Packer group. The bid was won for A$450 million.
Hoyts, an Australian chain of cinema multiplexes which operates in Australia, New Zealand, Argentina, Brazil, Chile and Uruguay, is jointly owned by Western Australian Newspapers Holdings (WAN) and Publishing and Broadcasting (PBL). Over the years, it has sold most of its theatres in the US to the Regal Entertainment group.
PSTL already has presence in Malaysia through its joint venture company Pyramid Saimira Theatre Chain Malaysia.
Through the joint venture, it operates around 50 screens in Malaysia.
(Source: Business Standard)
Pyramid Saimira Theatre is offloading a 15 per cent stake to the private equity investors at around Rs 420 to Rs 445 a share, which is nearly 31.6 per cent premium to the current market price of Rs 338.
In addition to the 15 per cent stake in the listed entity, the group was also likely to sell around 15-20 per cent stake in its unlisted production company, Pyramid Saimira Production, they said.
“Since the production company is not listed, the deal will be based on the company’s enterprise valuation,” said a source. This company is valued at Rs 1,300 crore.
P S Saminathan, managing director, PSTL, declined to comment on the development. In India, Pyramid Saimira owns over 371 screens across south India. The company is in an expansion mode and plans to roll out over 2,000 screens by 2010.
Meanwhile, Pyramid Saimira Theatre has won the bid for Hoyts Cinemas, promoted by the Kerry Packer group. The bid was won for A$450 million.
Hoyts, an Australian chain of cinema multiplexes which operates in Australia, New Zealand, Argentina, Brazil, Chile and Uruguay, is jointly owned by Western Australian Newspapers Holdings (WAN) and Publishing and Broadcasting (PBL). Over the years, it has sold most of its theatres in the US to the Regal Entertainment group.
PSTL already has presence in Malaysia through its joint venture company Pyramid Saimira Theatre Chain Malaysia.
Through the joint venture, it operates around 50 screens in Malaysia.
(Source: Business Standard)
OOH Media acquires AdImpact
OOH Media, India’s largest out-of-home television company, has acquired AdImpact, a premier OOH television company based in Mumbai.
OOH Media has 3,000 screens across 22 markets in India. With this acquisition OOH Media will get an additional 1,200 screens of AdImpact.
Ishan Raina, CEO, OOH Media said, “AdImpact has some wonderful properties, including key Nariman Point buildings, INOX nationally and other excellent properties across Mumbai and Bangalore. These properties are prime location for us and it is always an advantage to own these sites.”
AdImpact is now a 100 per cent subsidiary of OOH Media.
“We have absorbed all the people of AdImpact,” said Raina. However, he would not divulge financial details of the deal.
OOH Media has plans to go public in the next two or three years.
The out-of-home television segment in India is in a nascent stage and has only 4,500 screens till date. “This is just the beginning. Five hundred to 600 screens are being added every month,” Raina said.
Raina is optimistic about the future of the medium. “With new buildings, multiplexes, tech parks coming up OOH media is all set to grow faster.” OOH Media was created nine months ago by Ishan Raina, former CEO of Euro RSCG, together with with 3i, one of the world’s leading private equity groups. OOH Media also has a strategic relationship with Focus Media, the world’s largest out-of-home TV company.
(Source: Business Standard)
OOH Media has 3,000 screens across 22 markets in India. With this acquisition OOH Media will get an additional 1,200 screens of AdImpact.
Ishan Raina, CEO, OOH Media said, “AdImpact has some wonderful properties, including key Nariman Point buildings, INOX nationally and other excellent properties across Mumbai and Bangalore. These properties are prime location for us and it is always an advantage to own these sites.”
AdImpact is now a 100 per cent subsidiary of OOH Media.
“We have absorbed all the people of AdImpact,” said Raina. However, he would not divulge financial details of the deal.
OOH Media has plans to go public in the next two or three years.
The out-of-home television segment in India is in a nascent stage and has only 4,500 screens till date. “This is just the beginning. Five hundred to 600 screens are being added every month,” Raina said.
Raina is optimistic about the future of the medium. “With new buildings, multiplexes, tech parks coming up OOH media is all set to grow faster.” OOH Media was created nine months ago by Ishan Raina, former CEO of Euro RSCG, together with with 3i, one of the world’s leading private equity groups. OOH Media also has a strategic relationship with Focus Media, the world’s largest out-of-home TV company.
(Source: Business Standard)
L&T plans to pick up stake in Feedback
Larsen & Toubro (L&T), the country’s largest infrastructure company, is close to acquiring a stake in Feedback Ventures, a leading integrated infrastructure services firm. L&T’s investment vehicle for the acquisition will be the newly formed L&T Infrastructure Finance.
Sources in the know of the development said L&T Infrastructure’s investment in Feedback would be strategic in nature and bring both the companies closer in the future.
When contacted, sources in Feedback Ventures confirmed that they had held talks with L&T, adding that many private equity players had also shown interest in picking up a stake in the New Delhi-based company.
Sources in L&T said they would not comment on market speculation.
“The company will inform the stakeholder if there is any development worthy of mention on this front,” they added.
Mission Holdings, a group of people who founded the New Delhi-based Feedback Ventures, holds 36 per cent stake. Other shareholders of the closely held company include DLF, HDFC, IDFC and the Thapar group outfit, NewQuest Corporation.
No further details of the proposed deal could be ascertained. Sources in the know said the proposed purchase of stake would not cost L&T much. By the latest stake sale last year, Feedback Ventures was valued at Rs 84 crore, when DLF acquired 19 per cent stake for Rs 16 crore.
The infrastructure company’s valuation has appreciated over the past one year.
L&T is expected to have its nominees on the board of Feedback Ventures, if it acquires more than 10 per cent stake.
DLF, it may be mentioned, sent two nominees to the Feedback board, following its acquisition of 19 per cent stake last year.
L&T Infrastructure Finance, which was recently launched by L&T, is expected to hit the market in three to four years with a public issue.
(Source: Business Standard)
Sources in the know of the development said L&T Infrastructure’s investment in Feedback would be strategic in nature and bring both the companies closer in the future.
When contacted, sources in Feedback Ventures confirmed that they had held talks with L&T, adding that many private equity players had also shown interest in picking up a stake in the New Delhi-based company.
Sources in L&T said they would not comment on market speculation.
“The company will inform the stakeholder if there is any development worthy of mention on this front,” they added.
Mission Holdings, a group of people who founded the New Delhi-based Feedback Ventures, holds 36 per cent stake. Other shareholders of the closely held company include DLF, HDFC, IDFC and the Thapar group outfit, NewQuest Corporation.
No further details of the proposed deal could be ascertained. Sources in the know said the proposed purchase of stake would not cost L&T much. By the latest stake sale last year, Feedback Ventures was valued at Rs 84 crore, when DLF acquired 19 per cent stake for Rs 16 crore.
The infrastructure company’s valuation has appreciated over the past one year.
L&T is expected to have its nominees on the board of Feedback Ventures, if it acquires more than 10 per cent stake.
DLF, it may be mentioned, sent two nominees to the Feedback board, following its acquisition of 19 per cent stake last year.
L&T Infrastructure Finance, which was recently launched by L&T, is expected to hit the market in three to four years with a public issue.
(Source: Business Standard)
Wednesday, September 19, 2007
Infosys linked to buyout talks for UK's Sage
Infosys Technologies is in the thick of yet another European buy-out rumour --this time involving the UK-based Sage Group
British publications have reported that Sage's stock price on the London Stock Exchange went up on Tuesday on talk that Infosys, CapGemini orsoftware giant Microsoft may be interested in acquiring the company
The 13,000-strong Sage Group posted a turnover of £936 million during the last calendar year. It is estimated to have a market capitalisation of over £3 billion
source: timesofindia
British publications have reported that Sage's stock price on the London Stock Exchange went up on Tuesday on talk that Infosys, CapGemini orsoftware giant Microsoft may be interested in acquiring the company
The 13,000-strong Sage Group posted a turnover of £936 million during the last calendar year. It is estimated to have a market capitalisation of over £3 billion
source: timesofindia
Tuesday, September 18, 2007
Indian Hotels buys 10% of Orient Express for $211 mn
The Tata group’s penchant for history is remarkable. Eight months ago they snapped up Corus — formerly British Steel — and a symbol of British industrial might. Then they bought Pierre, the fabled New York hotel built by a Corsican immigrant as the Great Depression was breaking upon the New World in 1929. On Monday, they did one better.
Group company Indian Hotels snapped up 10% of Orient Express Hotels Trains and Cruises for about $211 million. Orient Express owns, part-owns and manages 35 hotels in 25 countries. It also runs cruises and luxury trains, the most famous being the Venice Simplon-Orient-Express, the modern day avtaar of the legendary luxury train.
(Source: Economic Times)
Group company Indian Hotels snapped up 10% of Orient Express Hotels Trains and Cruises for about $211 million. Orient Express owns, part-owns and manages 35 hotels in 25 countries. It also runs cruises and luxury trains, the most famous being the Venice Simplon-Orient-Express, the modern day avtaar of the legendary luxury train.
(Source: Economic Times)
Monday, September 17, 2007
PE deals hit record $10.8 bn in 8 months
For the first time, private equity (PE) investments in India have crossed the $10-billion mark in a calendar year. And that too, with over three months still to go in 2007. The magnitude of the growth can be gauged by the fact that in 2006, the total value of PE deals announced stood at $7.86 billion.
With the PE industry on fire and with strategic mergers & acquisitions (M&A) building on the big-budget deals struck early this year, the total value of equity deals involving Indian companies is now nudging the $60-billion mark.
For the January-August period, the total value of PE deals announced stood at $10.8 billion spread over 267 deals, according to the latest dealtracker of advisory firm Grant Thornton. PE funds have been flexing their muscles in equity transactions in the country, and even surpassed strategic M&As in the value of deals struck during June and July.
In June and July, PEs totalled $4.6 billion while M&As were valued at $2.66 billion. But in August, M&As clawed back with the cumulative value of deals pegged at $3.37 billion over 62 deals compared to $1.22 billion worth of PE deals through 30 deals.
Some of the large M&As last month include JSW Steel's acquisition of three US-based steel units, Wipro's takeover of Infocrossing and First-source Solutions' acquisition of MedAssist Holding. The total value of strategic M&As during January-August crossed $48.4 billion through 460 deals.
Cross-border deals continue to outpace domestic M&As as in the re-cent past. There were a total of 30 domestic deals with an announced value of $660 million as against 32 cross-border deals worth $2.71 bil-lion.
The cross-border M&As in turn are being led by outbound deals i.e., deals where Indian companies are acquiring global companies. There were a total of 21 outbound deals worth $2.33 billion in August as against 11 inbound deals, cumulating to an announced value of $380 million.
Some big PE deals recorded last month include Blackstone's buyout of Gokaldas Exports and its minority stake in Nagarjuna Constructions. In addition, there were a clutch of investors acquiring minority stake in the telecom infrastructure unit of Reliance Communications apart from Apax Partner's deal for Apollo Hospitals and a group of PE funds picking stake in real estate and infrastructure management company Indu Projects.
(source: Economic Times)
With the PE industry on fire and with strategic mergers & acquisitions (M&A) building on the big-budget deals struck early this year, the total value of equity deals involving Indian companies is now nudging the $60-billion mark.
For the January-August period, the total value of PE deals announced stood at $10.8 billion spread over 267 deals, according to the latest dealtracker of advisory firm Grant Thornton. PE funds have been flexing their muscles in equity transactions in the country, and even surpassed strategic M&As in the value of deals struck during June and July.
In June and July, PEs totalled $4.6 billion while M&As were valued at $2.66 billion. But in August, M&As clawed back with the cumulative value of deals pegged at $3.37 billion over 62 deals compared to $1.22 billion worth of PE deals through 30 deals.
Some of the large M&As last month include JSW Steel's acquisition of three US-based steel units, Wipro's takeover of Infocrossing and First-source Solutions' acquisition of MedAssist Holding. The total value of strategic M&As during January-August crossed $48.4 billion through 460 deals.
Cross-border deals continue to outpace domestic M&As as in the re-cent past. There were a total of 30 domestic deals with an announced value of $660 million as against 32 cross-border deals worth $2.71 bil-lion.
The cross-border M&As in turn are being led by outbound deals i.e., deals where Indian companies are acquiring global companies. There were a total of 21 outbound deals worth $2.33 billion in August as against 11 inbound deals, cumulating to an announced value of $380 million.
Some big PE deals recorded last month include Blackstone's buyout of Gokaldas Exports and its minority stake in Nagarjuna Constructions. In addition, there were a clutch of investors acquiring minority stake in the telecom infrastructure unit of Reliance Communications apart from Apax Partner's deal for Apollo Hospitals and a group of PE funds picking stake in real estate and infrastructure management company Indu Projects.
(source: Economic Times)
Friday, September 14, 2007
Fiat ready with tech support to Tata on Jaguar bid
Italy's Fiat is ready to lend technical support to Indian partner Tata in an eventual bid for Land Rover and Jaguar, the premium brands which Ford Motor is putting up for sale.
"If Tata is interested in Jaguar and Land Rover, we are ready to provide technical support," a Fiat spokesman told reporters attending the Frankfurt International Motor Show.
The spokesman clarified a comment made to reporters earlier in the day by Fiat Chief Executive Sergio Marchionne during a tour of the exhibits set up by the automaker's various brands.
In response to a question about Fiat's interest in Land Rover and Jaguar through a Tata bid for them, Marchionne had joked: "For completely different reasons, we are interested in both." Last weekend, Fiat Chairman Luca Cordero di Montezemolo had told reporters that the Italian automaker was not interested in the two British-based brands.
Tata, a major partner for Fiat in India where they both make cars and engines, would be one of several potential bidders for the two brands. A source familiar with the matter has told media that India's Mahindra & Mahindra Ltd and US buyout firms TPG and Ripplewood have expressed interest.
Ford plans to have more details on the sale of Jaguar and Land Rover by the end of 2007 or early 2008.
(source: Economic Times)
"If Tata is interested in Jaguar and Land Rover, we are ready to provide technical support," a Fiat spokesman told reporters attending the Frankfurt International Motor Show.
The spokesman clarified a comment made to reporters earlier in the day by Fiat Chief Executive Sergio Marchionne during a tour of the exhibits set up by the automaker's various brands.
In response to a question about Fiat's interest in Land Rover and Jaguar through a Tata bid for them, Marchionne had joked: "For completely different reasons, we are interested in both." Last weekend, Fiat Chairman Luca Cordero di Montezemolo had told reporters that the Italian automaker was not interested in the two British-based brands.
Tata, a major partner for Fiat in India where they both make cars and engines, would be one of several potential bidders for the two brands. A source familiar with the matter has told media that India's Mahindra & Mahindra Ltd and US buyout firms TPG and Ripplewood have expressed interest.
Ford plans to have more details on the sale of Jaguar and Land Rover by the end of 2007 or early 2008.
(source: Economic Times)
PE firms eye a slice of Bombay Dyeing
A clutch of leading private equity giants such as Blackstone are in the race to acquire a minority stake in Nusli Wadia’s Bombay Dyeing. There is growing buzz in the market that the Wadias are looking at shedding less than a 15% stake to private equity funds.
People close to the situation said that Bombay Dyeing, which needs money to expand its real estate and airlines business, along with its planned forays into retail, may consider the private equity route as one option for raising money.
A Bombay Dyeing spokesperson categorically denied any plans to rope private equity investors into the company. When quizzed if private equity giant Blackstone is the frontrunner, a senior executive of the company said: “We have not even had a cup of coffee with anyone in Blackstone at any level.” Akhil Gupta, chairman and managing director of Blackstone India, said: “We have signed confidentiality agreements with several people. I cannot comment on the individual specifics of the deal.”
People close to Bombay Dyeing say that the Wadia family, which has never shared equity with outside investors in any of its old core companies, will have the final say in determining the transaction’s success. The deal may not happen if the terms are too onerous or if the Wadia family feels that money can be easily obtained through other means such as a rights issue.
It seems the markets are already abuzz with all the deal-talk. Bombay Dyeing shares rose 2.28% on Wednesday to close at Rs 628.45. The shares have gained 8.75% over the week and 14.27% over the past month. A deal at currently market price will fetch the company about Rs 400 crore. The firm’s market value is is now at about Rs 2,424 crore.
The fund infusion in the company - through a private equity deal, a rights issue or any other means of financing - is expected to help Bombay Dyeing revamp its textile business and develop its real estate properties. The firm plans to invest Rs 1,500 crore in developing a slew of real estate projects in Mumbai. Bombay Dyeing, once a strong player in the textile business, suffered when DMT, its main product, was overtaken by PTA as the main raw material for the polyester industry. Add to that, insufficient growth in the fabric and garment business and its sales fell to Rs 507 crore for the year ended March while profit nearly halved to Rs 35 crore.
(source: Economic Times)
People close to the situation said that Bombay Dyeing, which needs money to expand its real estate and airlines business, along with its planned forays into retail, may consider the private equity route as one option for raising money.
A Bombay Dyeing spokesperson categorically denied any plans to rope private equity investors into the company. When quizzed if private equity giant Blackstone is the frontrunner, a senior executive of the company said: “We have not even had a cup of coffee with anyone in Blackstone at any level.” Akhil Gupta, chairman and managing director of Blackstone India, said: “We have signed confidentiality agreements with several people. I cannot comment on the individual specifics of the deal.”
People close to Bombay Dyeing say that the Wadia family, which has never shared equity with outside investors in any of its old core companies, will have the final say in determining the transaction’s success. The deal may not happen if the terms are too onerous or if the Wadia family feels that money can be easily obtained through other means such as a rights issue.
It seems the markets are already abuzz with all the deal-talk. Bombay Dyeing shares rose 2.28% on Wednesday to close at Rs 628.45. The shares have gained 8.75% over the week and 14.27% over the past month. A deal at currently market price will fetch the company about Rs 400 crore. The firm’s market value is is now at about Rs 2,424 crore.
The fund infusion in the company - through a private equity deal, a rights issue or any other means of financing - is expected to help Bombay Dyeing revamp its textile business and develop its real estate properties. The firm plans to invest Rs 1,500 crore in developing a slew of real estate projects in Mumbai. Bombay Dyeing, once a strong player in the textile business, suffered when DMT, its main product, was overtaken by PTA as the main raw material for the polyester industry. Add to that, insufficient growth in the fabric and garment business and its sales fell to Rs 507 crore for the year ended March while profit nearly halved to Rs 35 crore.
(source: Economic Times)
Subprime may not upset Indian M&As
The subprime crisis, which is now playing out in the West, may not quite be a dampener for Indian corporates, a growing number of whom are aggressively scouting for acquisitions abroad, according to senior bankers.
These bankers reckon that the level of mergers and acquisitions (M&As) activity could be higher in the near term, with Indian corporates sensing opportunities in the US and Europe. The assessment comes at a time, when India Inc has started making an impact in the M&As segment in Asia. M&A volumes from India, which were in single-digit figure at 6% of the total volumes in Asia in 2005, have more than doubled to 15% in 2006.
Indian companies are unlikely to be impacted by the turmoil in the subprime market, bankers said. However, credit spreads for Indian corporates, which have expanded by at least 50-60 basis points during the past two months, are unlikely to narrow down soon.
According to Lehman Brothers MD India investment banking Nalin Nayyar, equity levels in transactions will go up from 15% earlier to 25-30%. There is a discernible flight to quality now, he said. Indian corporates will see value-based opportunities in the next 3-6 months, he felt, adding that sponsors would return to the M&A market for smaller transactions. He also foresees higher funding costs, lower leverage levels and large equity components. He expects an equilibrium to be established in the medium term.
He told participants of a seminar organised by Ficci and IBA that due to the high liquidity in the markets, corporates used to leverage transactions in some cases as high as 10 times. Mr Nayyar said that in some cases, banks have started providing loans without any covenants attached. The acquisition finance market growth hinges on liquidity provided by structured finance vehicles like collateralised loan obligation. In 2002, the volumes of the acquisition by the finance market were at euro 41 billion, while the CLO volumes were at euro 3 billion.
Banks were the primary funding source at 81% and the remaining being institutions. In 2007, the volumes reached euro 138 billion while CLO volumes were at euro 25 billion. The market now has over 31 hedge funds now compared with none in 2002. The composition of the market has also changed, with banks accounting for 45%, CLOs 34%, credit funds 15% and others 6%, respectively.
According to Citigroup Global merger and acquisition director Devinjit Singh, the M&A segment in India has acquired a significant size. The volumes from India in 2006 have doubled compared with the previous year. The theme of outbound acquisitions has also gone up drastically. As against $4.4 billion in 2005, they rose to $24.46 billion in 2006. This year, it has topped $20.59 billion. India beat most countries in Asia, including China, in 2006 on the M&A volumes. The only country, which had a higher percentage of volumes in 2006, was Australia at 28%.
According to SBI capital markets MD and CEO R Sridharan, close to 57% of the outbound deals were in Europe, while 34% were in North America. There have also been instances of small Indian companies acquiring larger overseas companies. A case in point is that of Rain Calicining with a market cap of $125 million acquiring US-based CII for $595 million.
According to HSBC India head corporate, investment banking and markets Tarun Kataria, over the past 2-3 years, there has been a tightening of loan and credit default swap (CDS) spreads. However, over the past two months, spreads have risen by 50-80 basis points. Spreads for Indian corporate papers with a five-year tenure have gone up from Libor plus 65 basis points close to Libor plus 100-110 bps. Financing for Indian corporates would not dry up, but pricing would be higher than what it was years ago, he feels.
Mr Nayyar adds that currently the market is focused on liquidating the existing underwritten leveraged loan pipeline — $200 billion in the US and $125 billion in Europe. Some of the deals have been pulled completely or are being restructured. The secondary market has virtually collapsed there.
Many Indian companies have leveraged financing options for bigger deals. They have also used the SPV route, as they do not have to pay withholding tax and also as they are not burdened with restrictions on interest rates, amounts, tenures and the use of proceeds, according to Mr Singh.
(source: Economic Times)
These bankers reckon that the level of mergers and acquisitions (M&As) activity could be higher in the near term, with Indian corporates sensing opportunities in the US and Europe. The assessment comes at a time, when India Inc has started making an impact in the M&As segment in Asia. M&A volumes from India, which were in single-digit figure at 6% of the total volumes in Asia in 2005, have more than doubled to 15% in 2006.
Indian companies are unlikely to be impacted by the turmoil in the subprime market, bankers said. However, credit spreads for Indian corporates, which have expanded by at least 50-60 basis points during the past two months, are unlikely to narrow down soon.
According to Lehman Brothers MD India investment banking Nalin Nayyar, equity levels in transactions will go up from 15% earlier to 25-30%. There is a discernible flight to quality now, he said. Indian corporates will see value-based opportunities in the next 3-6 months, he felt, adding that sponsors would return to the M&A market for smaller transactions. He also foresees higher funding costs, lower leverage levels and large equity components. He expects an equilibrium to be established in the medium term.
He told participants of a seminar organised by Ficci and IBA that due to the high liquidity in the markets, corporates used to leverage transactions in some cases as high as 10 times. Mr Nayyar said that in some cases, banks have started providing loans without any covenants attached. The acquisition finance market growth hinges on liquidity provided by structured finance vehicles like collateralised loan obligation. In 2002, the volumes of the acquisition by the finance market were at euro 41 billion, while the CLO volumes were at euro 3 billion.
Banks were the primary funding source at 81% and the remaining being institutions. In 2007, the volumes reached euro 138 billion while CLO volumes were at euro 25 billion. The market now has over 31 hedge funds now compared with none in 2002. The composition of the market has also changed, with banks accounting for 45%, CLOs 34%, credit funds 15% and others 6%, respectively.
According to Citigroup Global merger and acquisition director Devinjit Singh, the M&A segment in India has acquired a significant size. The volumes from India in 2006 have doubled compared with the previous year. The theme of outbound acquisitions has also gone up drastically. As against $4.4 billion in 2005, they rose to $24.46 billion in 2006. This year, it has topped $20.59 billion. India beat most countries in Asia, including China, in 2006 on the M&A volumes. The only country, which had a higher percentage of volumes in 2006, was Australia at 28%.
According to SBI capital markets MD and CEO R Sridharan, close to 57% of the outbound deals were in Europe, while 34% were in North America. There have also been instances of small Indian companies acquiring larger overseas companies. A case in point is that of Rain Calicining with a market cap of $125 million acquiring US-based CII for $595 million.
According to HSBC India head corporate, investment banking and markets Tarun Kataria, over the past 2-3 years, there has been a tightening of loan and credit default swap (CDS) spreads. However, over the past two months, spreads have risen by 50-80 basis points. Spreads for Indian corporate papers with a five-year tenure have gone up from Libor plus 65 basis points close to Libor plus 100-110 bps. Financing for Indian corporates would not dry up, but pricing would be higher than what it was years ago, he feels.
Mr Nayyar adds that currently the market is focused on liquidating the existing underwritten leveraged loan pipeline — $200 billion in the US and $125 billion in Europe. Some of the deals have been pulled completely or are being restructured. The secondary market has virtually collapsed there.
Many Indian companies have leveraged financing options for bigger deals. They have also used the SPV route, as they do not have to pay withholding tax and also as they are not burdened with restrictions on interest rates, amounts, tenures and the use of proceeds, according to Mr Singh.
(source: Economic Times)
Carlsberg to buy 60% in Parag for Rs 32 crore
Beer giant Carlsberg is making rapid moves in India. The Copenhagen-based brewer is set to acquire 60% stake in Parag Breweries located near Kolkata. The target brewery, which is still under development, will have an initial capacity to produce around 1.5-2 lakh cases of beer monthly, sources said.
Carlsberg, through its local arm South Asia Breweries, is picking up stake in Parag as well as its holding entity Agnes Impex, both of whom will be merged subsequently. Carlsberg will hold about 60% stake post consolidation. The acquisition cost will be roughly Rs 32 crore, sources added. When contacted, the promoter of Parag Breweries Parag Mitra said, “I am surprised by the news your are breaking to me.”
This acquisition would be Carlsberg’s second in India in the last 12 months. Earlier, it acquired Himneel Breweries in Himachal Pradesh from its creditors IFCI and Dena Bank for roughly Rs 36 crore. Carlsberg, makers of the eponymous global beer, is also setting up two greenfield breweries at Alwar in Rajasthan and at Aurangabad in Maharashtra with an investment of Rs 85 core.
(Source: Economic Times)
Carlsberg, through its local arm South Asia Breweries, is picking up stake in Parag as well as its holding entity Agnes Impex, both of whom will be merged subsequently. Carlsberg will hold about 60% stake post consolidation. The acquisition cost will be roughly Rs 32 crore, sources added. When contacted, the promoter of Parag Breweries Parag Mitra said, “I am surprised by the news your are breaking to me.”
This acquisition would be Carlsberg’s second in India in the last 12 months. Earlier, it acquired Himneel Breweries in Himachal Pradesh from its creditors IFCI and Dena Bank for roughly Rs 36 crore. Carlsberg, makers of the eponymous global beer, is also setting up two greenfield breweries at Alwar in Rajasthan and at Aurangabad in Maharashtra with an investment of Rs 85 core.
(Source: Economic Times)
Thursday, September 13, 2007
India most acquisitive of emerging economies: KPMG
India has emerged as the most acquisitive of emerging nations as the global spread of Indian enterprise in recent years led to the takeover of several major western and other companies, according to a new study.
(source: Hindustan Times)
Experts believe that the spate of mergers and acquisitions by Indian companies can be likened to the 'hunted fast becoming hunters' in the corporate boardrooms of global capital.
Of the four major emerging economies - Brazil, Russia, India and China (BRIC) - India recorded the largest number of mergers and acquisitions activity during the first half of 2007, according to KPMG's Emerging Markets International Acquisitions Tracker.
The study reveals that deal flow between emerging and developed economies is beginning to converge as companies from the BRIC nations start to ramp up their mergers and acquisitions activity.
The research, which analysed deal flows between nine selected emerging economies and eleven key developed markets, shows that companies from countries such as the BRIC nations are fast closing the gap on their counterparts in developed nations in terms of cross-border acquisitions.
The study reveals that nowhere is this rapid convergence between inbound and outbound deal flows more apparent than in China. But it adds that China still has some way to go to catch up with India - which was easily the most acquisitive of the emerging nations.
A total of 32 outbound deals were recorded in the first half of 2007 - an impressive figure that puts the country well on target to beat the 50 deals that took place during the whole of 2006.
Ian Gomes, chairman of KPMG's New and Emerging Markets practice for KPMG in Britain, said: "The large volume of outbound deals is indicative of the current mindset of many Indian companies; grow, acquire and utilise debt facilities to the full.
"Growing organically does not appear to be a favoured option for many Indian organisations - instead, getting a foot in the door quickly via the acquisition route is vital. They would argue that they have the money and are prepared to pay premium prices, so why wait?
"However, I recommend a degree of caution as there is a danger that in their haste to hit the acquisition trail, they could end up over-paying for assets."
While the number of deals involving a developed economy buying into an emerging economy is still much larger than that of emerging-into-developed, the gap is narrowing - and narrowing fast.
Key findings of the research:
-- During the first six months of 2007, there were 67 emerging-into-developed deals taking place, against 126 developed-into-emerging transactions.
-- A total of 119 emerging-into-developed deals took place in 2006, whereas there were 322 completions of the reverse kind.
-- This compares to a mere 49 emerging-into-developed deals in 2003, in contrast to 215 deals going in the opposite direction.
(source: Hindustan Times)
Wednesday, September 12, 2007
Essel Propack eyeing Alcan's packaging unit
Essel Propack, a unit of the Mumbai-based Essel Group, is learnt to be in talks to acquire a packaging unit of Alcan. If successful, the deal would catapult Essel to the top position in personal care packaging.
Senior Essel Propack executives have been in talks with Alcan Packaging Beauty, after the Montreal-based Alcan said it plans to sell its packaging unit as part of a restructuring exercise, said sources close to the development. While the deal’s financial size couldn’t be ascertained, Alcan Packaging had posted sales of $800 million last year.
The Mumbai-based company has shown interest in buying out packaging units to gain a robust presence in packaging and laminated tubes, aluminium-made tubes used by toothpaste and other consumer goods makers. Last month, Essel said it would participate in the rehabilitation and revival of Ras Propack Lamipack and Ras Extrusion, both declared as sick by the Board of Industrial and Financial Reconstruction.
(Source: Economic Times)
Senior Essel Propack executives have been in talks with Alcan Packaging Beauty, after the Montreal-based Alcan said it plans to sell its packaging unit as part of a restructuring exercise, said sources close to the development. While the deal’s financial size couldn’t be ascertained, Alcan Packaging had posted sales of $800 million last year.
The Mumbai-based company has shown interest in buying out packaging units to gain a robust presence in packaging and laminated tubes, aluminium-made tubes used by toothpaste and other consumer goods makers. Last month, Essel said it would participate in the rehabilitation and revival of Ras Propack Lamipack and Ras Extrusion, both declared as sick by the Board of Industrial and Financial Reconstruction.
(Source: Economic Times)
HSBC hikes stake in Nitco Tiles to 8%
HSBC has increased its stake in Nitco Tiles to around 8% by picking another 4.95% in the Mumbai-based tiles manufacturing firm for Rs 26 crore. The stake was picked up through an investment arm — HSBC Financial Services (Middle East). It already owns 2.75% in the company.
The promoters of the company, the Talwar family, controls 47.9% stake while banks, financial institutions and FIIs control over 30% in the firm.
Currently, Nitco Tiles is adding an additional capacity of 60% to take its total installed annual capacity to 6.3 million sq mt. The current market share of the company among the organised players stands at 10%. The company is also outsourcing vitrified tiles from China. Nitco has also entered the importing and distribution of cement business.
Nitco Tiles is also merging its three real estate subsidiaries Shark Properties, Nitco Realties and Motivation Properties with itself. Industry analysts said the current buoyancy in demand for ceramic tiles and the geographically-diversified marketing network of the company are likely to ensure increased sales volumes.
(Source: Economic Times)
The promoters of the company, the Talwar family, controls 47.9% stake while banks, financial institutions and FIIs control over 30% in the firm.
Currently, Nitco Tiles is adding an additional capacity of 60% to take its total installed annual capacity to 6.3 million sq mt. The current market share of the company among the organised players stands at 10%. The company is also outsourcing vitrified tiles from China. Nitco has also entered the importing and distribution of cement business.
Nitco Tiles is also merging its three real estate subsidiaries Shark Properties, Nitco Realties and Motivation Properties with itself. Industry analysts said the current buoyancy in demand for ceramic tiles and the geographically-diversified marketing network of the company are likely to ensure increased sales volumes.
(Source: Economic Times)
Tuesday, September 11, 2007
Reliance aquires Malaysian polyester firm
Reliance Industries Ltd (RIL), India's most valuable company, has acquired Hualon Corporation (M) Sdn Bhd of Malaysia, the world's largest integrated polyester manufacturer, for an undisclosed sum.
One of the top Malaysian textile exporters employing over 6,000 people, Hualon has the capacity to produce over 500,000 tonnes of polyester and blended yarns, 30,000 tonnes of nylon, 150,000 tonnes of polyethylene terephthalate and 400-500 million yards of fabric annually.
The acquisition will help RIL consolidate its position as the world’s largest polyester manufacturer with a capacity of 2.5 million tonnes, 25 per cent more than its current capacity.
It will raise the company's share in the global polyester fibre and yarn business from 5 per cent to 7 per cent. The buyout will add Rs 4,000 crore to RIL's revenue next year.
The RIL stock closed 1.32 per cent higher at Rs 1,987.20 on the BSE. "This will be the largest foreign direct investment in Malaysia after the Asian currency crisis. Hualon is one of the top five exporters of Malaysia and has extensive tie-ups for fabric and yarn supply in the global markets. With our large manufacturing capacities in India, we can meet large orders, which will be an added advantage for us," an RIL spokesperson said.
(Source: Business Standard)
One of the top Malaysian textile exporters employing over 6,000 people, Hualon has the capacity to produce over 500,000 tonnes of polyester and blended yarns, 30,000 tonnes of nylon, 150,000 tonnes of polyethylene terephthalate and 400-500 million yards of fabric annually.
The acquisition will help RIL consolidate its position as the world’s largest polyester manufacturer with a capacity of 2.5 million tonnes, 25 per cent more than its current capacity.
It will raise the company's share in the global polyester fibre and yarn business from 5 per cent to 7 per cent. The buyout will add Rs 4,000 crore to RIL's revenue next year.
The RIL stock closed 1.32 per cent higher at Rs 1,987.20 on the BSE. "This will be the largest foreign direct investment in Malaysia after the Asian currency crisis. Hualon is one of the top five exporters of Malaysia and has extensive tie-ups for fabric and yarn supply in the global markets. With our large manufacturing capacities in India, we can meet large orders, which will be an added advantage for us," an RIL spokesperson said.
(Source: Business Standard)
United Phos, Rallis eye $2 bn buy in Japan
Another big-ticket global acquisition by an Indian company is brewing. United Phosphorus and Tata Group enterprise Rallis India are in the race to acquire the world’s largest privately held crop protection and life sciences firm, Arysta LifeScience Corporation, from private equity firm Olympus Capital Holdings.
Sources close to the development said these two Indian companies were among the six contenders for the Tokyo-based firm. The acquisition is expected to cost nearly $2 billion (Rs 8,200 crore), or nearly double Arysta's turnover of 124.1 billion yen (Rs 4,400 crore) last year.
Other bidders include an Israeli firm, Australia’s Nufarm and Blackstone, the global private equity fund.
Olympus has put Arysta on the block and has appointed investment banks Goldman Sachs and Lehman Brothers for the sale. It had bought 8.7 per cent of Arysta in 2002 for around $80 million (Rs 320 crore). Since then, it has been gradually building up its stake.
(Source: Business Standard)
Sources close to the development said these two Indian companies were among the six contenders for the Tokyo-based firm. The acquisition is expected to cost nearly $2 billion (Rs 8,200 crore), or nearly double Arysta's turnover of 124.1 billion yen (Rs 4,400 crore) last year.
Other bidders include an Israeli firm, Australia’s Nufarm and Blackstone, the global private equity fund.
Olympus has put Arysta on the block and has appointed investment banks Goldman Sachs and Lehman Brothers for the sale. It had bought 8.7 per cent of Arysta in 2002 for around $80 million (Rs 320 crore). Since then, it has been gradually building up its stake.
(Source: Business Standard)
Private equity funds need level playing field in India to grow
Although 2007 is likely to be another landmark year for private equity (PE) in India, the level of PE activity, currently estimated at around $10 billion, could increase and needs to increase multifold given India’s current GDP growth.
To achieve this, regulations and taxes need to improve and the PE community needs to project itself in the market that it is a source of finance that contributes to the growth plans of entrepreneurs, helps generate employment and improves corporate governance.
Having said this, PE financing is steadily gaining more acceptability amongst Indian promoters. This indicates a ‘leap of faith’ for closely-held traditional Indian family-owned and managed businesses, which until a few years ago, had viewed private equity financing as a possible interference in their business.
The recent investment by Blackstone in Bangalore-based garments company Gokaldas Exports demonstrates this leap of faith. Blackstone has acquired a controlling stake from the owners.
This transaction symbolises a traditional promoter-family run business partnering with a large private equity fund to accelerate its growth plans. This transaction demonstrates that Indian promoters are recognising the value that a PE brings to the partnership and PE investors are being viewed as ‘partners’ to the business.
In the backdrop of increasing competition for deals, some PE funds bring immediate value to Indian promoters at the negotiating table. For example, in the BPO industry, value is brought to the negotiating table by offering to introduce existing US or Europe-based investee companies who could be interested in offshoring, thereby providing an immediate growth opportunity to the Indian business.
Since 2002, PE inflows to India have witnessed a compounded annual growth rate of 67%. PE inflows during the first seven months of 2007 stood at $6 billion, which is already close to surpassing the $7.9 billion invested during the whole of 2006. However, what is more important for
PE is that the past two years have confirmed that the Indian market provides the liquidity to help PEs exit from their investments. Reports suggest that between January 2004 and June 2007, PE and venture capital funds exited 160 companies, 110 through sales and 50 through IPO.
(source: Economic Times)
To achieve this, regulations and taxes need to improve and the PE community needs to project itself in the market that it is a source of finance that contributes to the growth plans of entrepreneurs, helps generate employment and improves corporate governance.
Having said this, PE financing is steadily gaining more acceptability amongst Indian promoters. This indicates a ‘leap of faith’ for closely-held traditional Indian family-owned and managed businesses, which until a few years ago, had viewed private equity financing as a possible interference in their business.
The recent investment by Blackstone in Bangalore-based garments company Gokaldas Exports demonstrates this leap of faith. Blackstone has acquired a controlling stake from the owners.
This transaction symbolises a traditional promoter-family run business partnering with a large private equity fund to accelerate its growth plans. This transaction demonstrates that Indian promoters are recognising the value that a PE brings to the partnership and PE investors are being viewed as ‘partners’ to the business.
In the backdrop of increasing competition for deals, some PE funds bring immediate value to Indian promoters at the negotiating table. For example, in the BPO industry, value is brought to the negotiating table by offering to introduce existing US or Europe-based investee companies who could be interested in offshoring, thereby providing an immediate growth opportunity to the Indian business.
Since 2002, PE inflows to India have witnessed a compounded annual growth rate of 67%. PE inflows during the first seven months of 2007 stood at $6 billion, which is already close to surpassing the $7.9 billion invested during the whole of 2006. However, what is more important for
PE is that the past two years have confirmed that the Indian market provides the liquidity to help PEs exit from their investments. Reports suggest that between January 2004 and June 2007, PE and venture capital funds exited 160 companies, 110 through sales and 50 through IPO.
(source: Economic Times)
Hero group acquires Scotland's TSC for 40 mn pounds
Hero Group has acquired Scotland’s largest call centre company, Telecom Service Centres (TSC), in a deal worth £40 million. TSC, which employs around 3,000 people, would be merged with the group’s call centre subsidiary, HeroITeS. The new entity will be christened TSC Hero and will offer customers a multi-site solution, increasing market potential and growth prospects in the core markets of Europe, Asia and the US.
The Hero move marks another deal by Indian ITeS firms in mainland UK. It also makes Hero UK's third big Indian-owned call centre player after HCL and First Source. This is besides TSC’s big operations in Peterboro.
The development is also in keeping with the trend of Indian ITeS companies getting around the ‘UK only’ call centre syndrome that many UK–based clients have started to insist on recently. TSC chief executive Ken Hills told reporters that the move will not result in jobs shifting to India. “This is not about taking UK jobs to India. In the last three years, we have created 1,500 jobs in the UK and the growth rate will probably continue,” he said. There will also be no change in the management.
Mr Hills said TSC’s clients have all made ‘positive’ decisions to locate their operations in the UK despite higher costs—while searching for additional services that complement existing arrangements. TSC’s clients include Vodafone, T-mobile, Hewlett-Packard and HSBC. TSC was established at Rothesay, on the Isle of Bute, in 1994. The company has ten ‘contact centres’, nine of which are in Scotland.
Incidentally, the deal gives an exit option for Lloyd’s Capital Development, the private equity arm of Lloyds TSB Group, which backed a £28-million management buyout in 2003. TSC made pre-tax profits of nearly £3 million last year, up from £2.5 million in 2005 while turnover rose from £43.5 million to just under £50 million. Gurgaon-based HeroITeS offers outsourcing services in the voice support, email services, technical support, finance and accounting BPO.
(source: Economic Times)
The Hero move marks another deal by Indian ITeS firms in mainland UK. It also makes Hero UK's third big Indian-owned call centre player after HCL and First Source. This is besides TSC’s big operations in Peterboro.
The development is also in keeping with the trend of Indian ITeS companies getting around the ‘UK only’ call centre syndrome that many UK–based clients have started to insist on recently. TSC chief executive Ken Hills told reporters that the move will not result in jobs shifting to India. “This is not about taking UK jobs to India. In the last three years, we have created 1,500 jobs in the UK and the growth rate will probably continue,” he said. There will also be no change in the management.
Mr Hills said TSC’s clients have all made ‘positive’ decisions to locate their operations in the UK despite higher costs—while searching for additional services that complement existing arrangements. TSC’s clients include Vodafone, T-mobile, Hewlett-Packard and HSBC. TSC was established at Rothesay, on the Isle of Bute, in 1994. The company has ten ‘contact centres’, nine of which are in Scotland.
Incidentally, the deal gives an exit option for Lloyd’s Capital Development, the private equity arm of Lloyds TSB Group, which backed a £28-million management buyout in 2003. TSC made pre-tax profits of nearly £3 million last year, up from £2.5 million in 2005 while turnover rose from £43.5 million to just under £50 million. Gurgaon-based HeroITeS offers outsourcing services in the voice support, email services, technical support, finance and accounting BPO.
(source: Economic Times)
Sunday, September 9, 2007
Five PEs line up for 15% in LIC credit card arm
Blackstone, JC Flower, Fortress, Temasek and 3i in talks with LIC
Global private equity investors Blackstone, JC Flower and Fortress of the US, Temasek of Singapore and 3i of the UK are in talks with the Life Insurance Corporation of India (LIC) for buying a combined 15 per cent stake in the life insurer’s proposed credit card venture with US-based GE Money.
The valuation of the proposed company is still to be worked out. LIC will own a 40 per cent stake, GE Money India 30 per cent and Corporation Bank, LIC Housing Finance and LIC Mutual Fund 5 per cent each.
(Source: Business Standard)
Global private equity investors Blackstone, JC Flower and Fortress of the US, Temasek of Singapore and 3i of the UK are in talks with the Life Insurance Corporation of India (LIC) for buying a combined 15 per cent stake in the life insurer’s proposed credit card venture with US-based GE Money.
The valuation of the proposed company is still to be worked out. LIC will own a 40 per cent stake, GE Money India 30 per cent and Corporation Bank, LIC Housing Finance and LIC Mutual Fund 5 per cent each.
(Source: Business Standard)
Fortis buys stake in Malar Hospitals
Fortis Healthcare Limited, the country’s second-biggest health-care provider by market value, is buying Malar Hospital in Chennai, expanding into the southern part of the country for the first time.
International Hospitals Ltd, a wholly-owned subsidiary of Fortis Healthcare, will buy 28 per cent of the equity capital of Malar Hospitals Limited (MHL) from the promoters and an additional 18 per cent by way of preferential allotment.
Seven per cent will be acquired by Oscar Investments Limited. Up to 20 per cent could be acquired through an open offer.
The equity value of MHL, which made its initial public offering in 1992, on a 100 per cent basis stands at Rs 42 crore. The promoters hold about 30 per cent of the 13.9 million shares and the balance is with the public and institutions.
“The acquisition cost per bed for us comes to Rs 32 lakh,” said Shivinder Mohan Singh, CEO and managing director, Fortis Healthcare. “The equity value to the turnover is 1.6 times for Malar, whereas our market cap is 2.65 times. We have picked up the company at Rs 30 per share.”
The 180-bed facility, which was operational in 1995, has three operation theatres and a pathological laboratory.
“Malar is renowned in the south and we are very happy to have acquired the brand. The move will help us in our rollout in south India,” Singh said.
Singh said that Malar, a multispecialty hospital with a focus on mother-child care, may be turned into a superspecialty institution in line with the company’s plans for Chennai.
Over the next six weeks, Fortis will work out the intricacies of the acquisition and decide on further investment that would be required to revamp the hospital.
The MHL acquisition takes Fortis’ total bed strength to 2,200, of which 1,600 are already operational.
Fortis, which runs 12 hospitals in north India, said it plans to operate 40 hospitals with 7,000 beds by 2010 as it seeks to meet demand for high-quality health care. Fortis expects to spend about $500 million on expansion, Singh said last month.
(Source: Economic Times
International Hospitals Ltd, a wholly-owned subsidiary of Fortis Healthcare, will buy 28 per cent of the equity capital of Malar Hospitals Limited (MHL) from the promoters and an additional 18 per cent by way of preferential allotment.
Seven per cent will be acquired by Oscar Investments Limited. Up to 20 per cent could be acquired through an open offer.
The equity value of MHL, which made its initial public offering in 1992, on a 100 per cent basis stands at Rs 42 crore. The promoters hold about 30 per cent of the 13.9 million shares and the balance is with the public and institutions.
“The acquisition cost per bed for us comes to Rs 32 lakh,” said Shivinder Mohan Singh, CEO and managing director, Fortis Healthcare. “The equity value to the turnover is 1.6 times for Malar, whereas our market cap is 2.65 times. We have picked up the company at Rs 30 per share.”
The 180-bed facility, which was operational in 1995, has three operation theatres and a pathological laboratory.
“Malar is renowned in the south and we are very happy to have acquired the brand. The move will help us in our rollout in south India,” Singh said.
Singh said that Malar, a multispecialty hospital with a focus on mother-child care, may be turned into a superspecialty institution in line with the company’s plans for Chennai.
Over the next six weeks, Fortis will work out the intricacies of the acquisition and decide on further investment that would be required to revamp the hospital.
The MHL acquisition takes Fortis’ total bed strength to 2,200, of which 1,600 are already operational.
Fortis, which runs 12 hospitals in north India, said it plans to operate 40 hospitals with 7,000 beds by 2010 as it seeks to meet demand for high-quality health care. Fortis expects to spend about $500 million on expansion, Singh said last month.
(Source: Economic Times
Friday, September 7, 2007
Blackstone eyes 30% in nuclear tech firm MTAR
US private equity (PE) giant Blackstone is learnt to be close to picking up a 25-30% stake in Hyderabad-based nuclear and space science components company MTAR Technologies for around Rs 300 crore. If the deal goes through, it will possibly be the first PE investment in the defence and nuclear space in India.
The privately-held MTAR makes critical components and products for nuclear reactors. The transaction, which comes in the backdrop of the Indo-US nuclear deal, is taking place in a company which was subject to US sanctions following India’s nuclear tests of 1998.
MTAR is believed to have high profit margins and it is said that PE major Carlyle too was interested.
(Source: Economic Times)
The privately-held MTAR makes critical components and products for nuclear reactors. The transaction, which comes in the backdrop of the Indo-US nuclear deal, is taking place in a company which was subject to US sanctions following India’s nuclear tests of 1998.
MTAR is believed to have high profit margins and it is said that PE major Carlyle too was interested.
(Source: Economic Times)
Thursday, September 6, 2007
India 2nd most targeted nation for M&As in APAC banking space
India has emerged as the second most targeted nation for mergers and acquisitions in the Asia- Pacific banking industry with deals worth 10.3 billion dollars in 2007 so far, a report shows.
According to the data compiled by global consultancy firm Dealogic, total value of M&As - domestic and cross border - in the banking space in Asia-Pacific jumped to 70.5 billion dollars in 220 deals during the first eight months, up 40 per cent from 50.5 billion dollars through 197 deals a year ago.
With 72 deals valued at 36.3 billion dollars, Japan leads the tally, followed by India and South Korea. South Korea recorded 10 M&A deals valued at 7.6 billion dollars, the Dealogic data showed.
Meanwhile, cross-border M&As touched 23.8 billion dollars in 69 deals in 2007 so far. The figures nearly doubled from 12 billion dollars through 45 deals during the same period last year.
Interestingly, the top five deals this year accounted for 46 per cent of the total volume, compared to just 15 per cent last year. The top five deals were led by the acquisition of 59.74 per cent stake in State Bank of India by the Indian government for 8.7 billion dollars from the country's central bank - RBI.
Japan accounted for three of the top five M&As -- acquisition of 56 per cent stake in Nikko Cordial by Citigroup for 7.9 billion dollars, buyout of Mizuho Securities by Shinko Securities for 6.5 billion dollars and Mitsubishi UFJ Financial Group acquiring 37.22 per cent in Mitsubishi UFJ Securities.
South Korea accounted for the fourth largest deal with UK-based HSBC Holdings acquiring 51.02 per cent of Korea Exchange Bank for 6.3 billion dollar.
(Source: Economic Times
According to the data compiled by global consultancy firm Dealogic, total value of M&As - domestic and cross border - in the banking space in Asia-Pacific jumped to 70.5 billion dollars in 220 deals during the first eight months, up 40 per cent from 50.5 billion dollars through 197 deals a year ago.
With 72 deals valued at 36.3 billion dollars, Japan leads the tally, followed by India and South Korea. South Korea recorded 10 M&A deals valued at 7.6 billion dollars, the Dealogic data showed.
Meanwhile, cross-border M&As touched 23.8 billion dollars in 69 deals in 2007 so far. The figures nearly doubled from 12 billion dollars through 45 deals during the same period last year.
Interestingly, the top five deals this year accounted for 46 per cent of the total volume, compared to just 15 per cent last year. The top five deals were led by the acquisition of 59.74 per cent stake in State Bank of India by the Indian government for 8.7 billion dollars from the country's central bank - RBI.
Japan accounted for three of the top five M&As -- acquisition of 56 per cent stake in Nikko Cordial by Citigroup for 7.9 billion dollars, buyout of Mizuho Securities by Shinko Securities for 6.5 billion dollars and Mitsubishi UFJ Financial Group acquiring 37.22 per cent in Mitsubishi UFJ Securities.
South Korea accounted for the fourth largest deal with UK-based HSBC Holdings acquiring 51.02 per cent of Korea Exchange Bank for 6.3 billion dollar.
(Source: Economic Times
PE biggies line up for ICICI pie in Infomedia
Private equity funds General Atlantic, Blackstone and Warburg Pincus have shown interest in ICICI Venture’ 63% stake in Infomedia (formerly Tata Infomedia), the publisher of business directory Yellow Pages and some well-known niche magazines.
Given the fact that whoever buys the stake will have to make an open offer and also pay a controlling premium, the buyer should sell out upwards of Rs 400 crore. Infomedia’s market capitalisation is Rs 474 crore and its shares closed at Rs 240 at the BSE on Wednesday.
When contacted, the ICICI Venture spokesperson said, “We don’t comment on market speculation.” Infomedia India CEO Prakash Iyer could not be reached despite repeated attempts.
ICICI Venture acquired Tata’s 50% stake in Infomedia India in 2003 for Rs 123 core. It later acquired an additional 13% through an open offer.
Infomedia, with annual revenues of Rs 143 crore, is best known for its business directory service, the Yellow Pages. Tata Press, when it owned Infomedia, launched the Tata Press Yellow Pages in Mumbai and soon took the Yellow Pages culture to more than 20 cities across India.
An industry source pointed out that PE firms have shown interest in the company for its publishing outsourcing business and the growth it offers. The size of the publishing vertical in the BPO space is around $250 million.
Infomedia entered this business in December 2005 through the acquisition of Bangalore’s Cepha Imaging Systems and UK-based publishing company Keyword Group. The idea was to scale up operations, forge partnerships with international publishers and take advantage of India’s cost structure.
(source: Economic Times)
Given the fact that whoever buys the stake will have to make an open offer and also pay a controlling premium, the buyer should sell out upwards of Rs 400 crore. Infomedia’s market capitalisation is Rs 474 crore and its shares closed at Rs 240 at the BSE on Wednesday.
When contacted, the ICICI Venture spokesperson said, “We don’t comment on market speculation.” Infomedia India CEO Prakash Iyer could not be reached despite repeated attempts.
ICICI Venture acquired Tata’s 50% stake in Infomedia India in 2003 for Rs 123 core. It later acquired an additional 13% through an open offer.
Infomedia, with annual revenues of Rs 143 crore, is best known for its business directory service, the Yellow Pages. Tata Press, when it owned Infomedia, launched the Tata Press Yellow Pages in Mumbai and soon took the Yellow Pages culture to more than 20 cities across India.
An industry source pointed out that PE firms have shown interest in the company for its publishing outsourcing business and the growth it offers. The size of the publishing vertical in the BPO space is around $250 million.
Infomedia entered this business in December 2005 through the acquisition of Bangalore’s Cepha Imaging Systems and UK-based publishing company Keyword Group. The idea was to scale up operations, forge partnerships with international publishers and take advantage of India’s cost structure.
(source: Economic Times)
Wednesday, September 5, 2007
Hindujas set to buy Networth Broking
Amas Bank, part of the Hinduja Group, is believed to be buying a majority stake in the Mumbai-based Networth Stock Broking, in a move that will likely pave the way for the group’s entry into India’s broking industry.
The deal would involve a stake sale by the promoters and issue of fresh shares to the Geneva-headquartered bank at roughly Rs 120-125 per share, said a source familiar with the development.
On Tuesday, trading in Networth shares was frozen at the upper-end of the 5% intra-day circuit filter at Rs 90.55. Over the past one week, the stock has gained over 20%, accompanied by a rise in trading volumes.
Amas will make an open offer to the minority shareholders at the same price that has been offered to the promoter group, the source said. Top Networth officials could not be reached for comments. An e-mail query to the broking house also did not elicit a response till the time of going to press.
Promoters and groups affiliated to them held 48.22% in Networth as on June 30. Chairman and managing director Suresh Jain, one of the promoters, holds 43.21%. Mr Jain had hiked his stake to 43.40% in March from 40.87% earlier following the conversion of 3.50 lakh warrants.
Further, many of Networth’s top brass have also been exercising their stock options to increase their stake in the company. Foreign institutions hold 11.2% in the broking house. The deal, which values Networth at roughly Rs 102 crore, would also involve infusion of debt by Amas, according to the source.
The debt infusion will enable the mid-sized broking house expand operations across the country. The brokerage, which has a 154-strong branch networth and offers retail broking, insurance and mutual fund distribution services, has a strong presence in South India.
Though the deal size comes nowhere close to the ones sealed in recent times, it indicates the interest of foreign financial companies to be a part of the fast-growing Indian financial services industry. BNP Paribas, which recently acquired 33% in Geojit Securities, valued the broking house at Rs 620 crore.
Amas, which is registered with the Swiss Federal Banking Commission, provides services including portfolio management, investment banking, structured and trade finance. The buyout of controlling stake in Networth will enable the Hinduja Group expand its financial services business in India. The Hinduja Group is a software-to-automobile-to-banking conglomerate and owns IndusInd Bank and companies like Ashok Leyland and Hinduja TMT.
(source: Economic Times)
The deal would involve a stake sale by the promoters and issue of fresh shares to the Geneva-headquartered bank at roughly Rs 120-125 per share, said a source familiar with the development.
On Tuesday, trading in Networth shares was frozen at the upper-end of the 5% intra-day circuit filter at Rs 90.55. Over the past one week, the stock has gained over 20%, accompanied by a rise in trading volumes.
Amas will make an open offer to the minority shareholders at the same price that has been offered to the promoter group, the source said. Top Networth officials could not be reached for comments. An e-mail query to the broking house also did not elicit a response till the time of going to press.
Promoters and groups affiliated to them held 48.22% in Networth as on June 30. Chairman and managing director Suresh Jain, one of the promoters, holds 43.21%. Mr Jain had hiked his stake to 43.40% in March from 40.87% earlier following the conversion of 3.50 lakh warrants.
Further, many of Networth’s top brass have also been exercising their stock options to increase their stake in the company. Foreign institutions hold 11.2% in the broking house. The deal, which values Networth at roughly Rs 102 crore, would also involve infusion of debt by Amas, according to the source.
The debt infusion will enable the mid-sized broking house expand operations across the country. The brokerage, which has a 154-strong branch networth and offers retail broking, insurance and mutual fund distribution services, has a strong presence in South India.
Though the deal size comes nowhere close to the ones sealed in recent times, it indicates the interest of foreign financial companies to be a part of the fast-growing Indian financial services industry. BNP Paribas, which recently acquired 33% in Geojit Securities, valued the broking house at Rs 620 crore.
Amas, which is registered with the Swiss Federal Banking Commission, provides services including portfolio management, investment banking, structured and trade finance. The buyout of controlling stake in Networth will enable the Hinduja Group expand its financial services business in India. The Hinduja Group is a software-to-automobile-to-banking conglomerate and owns IndusInd Bank and companies like Ashok Leyland and Hinduja TMT.
(source: Economic Times)
Tuesday, September 4, 2007
Reliance buys east African oil retailer GAPCO
Reliance Industries said on Tuesday it had bought a majority stake and management control of east African oil retailer Gulf Africa Petroleum Corp (GAPCO) for an undisclosed sum.
The company said in a statement that GAPCO was a strategic acquisition which would give it access to the rapidly growing economies of east Africa, where demand for petroleum products is rising. "These markets are easily accessible from India and in that sense provide a strategic fit for exports from India," it said.
GAPCO owned and operated large storage terminalling facilities and a retail distribution network in countries including Tanzania, Uganda and Kenya, Reliance said. It said GAPCO had more than 250 outlets catering to retail and industrial segments.
Reliance, India's largest private company, operates a 660,000 bpd refinery in India. Reliance Petroleum Ltd, a subsidiary in which Chevron Corp holds 5 per cent, is building a 580,000 bpd unit nearby.
Media reported on Tuesday that Reliance Industries, which has a market capitalisation of $67 billion, was eyeing a 50 per cent stake in Kenya's sole refinery. Shares in Reliance Industries ended 0.8 per cent higher at Rs 1,971.50 in a Mumbai market that rose 0.3 per cent.
(source: Economic Times)
The company said in a statement that GAPCO was a strategic acquisition which would give it access to the rapidly growing economies of east Africa, where demand for petroleum products is rising. "These markets are easily accessible from India and in that sense provide a strategic fit for exports from India," it said.
GAPCO owned and operated large storage terminalling facilities and a retail distribution network in countries including Tanzania, Uganda and Kenya, Reliance said. It said GAPCO had more than 250 outlets catering to retail and industrial segments.
Reliance, India's largest private company, operates a 660,000 bpd refinery in India. Reliance Petroleum Ltd, a subsidiary in which Chevron Corp holds 5 per cent, is building a 580,000 bpd unit nearby.
Media reported on Tuesday that Reliance Industries, which has a market capitalisation of $67 billion, was eyeing a 50 per cent stake in Kenya's sole refinery. Shares in Reliance Industries ended 0.8 per cent higher at Rs 1,971.50 in a Mumbai market that rose 0.3 per cent.
(source: Economic Times)
Origo Sino-India buys 20 pct stake in India's Roshini International Bio Energy
Origo Sino-India PLC said it taken a 20 pct stake in India's Roshini International Bio Energy Corp Ltd (RIBEC), extending a convertible note of up to 2 mln usd and retaining the right to invest an additional 6 mln usd in a pre-IPO private placement.
The private equity adviser also said it has entered into definitive agreements with RIBEC to create an international joint venture focused on the renewable bio-energy sector.
RIBEC reported earnings before interest, taxes, depreciation and amortisation of 4.4 mln usd for the year to end March on revenue of 5.87 mln usd, the company said in a statement.
(source: Hemscott)IFC to buy stake in Angel Broking
| International Finance Corporation (IFC), the private sector funding arm of World Bank, is in talks with Angel Broking group to pick up a minority stake in its holding company. |
| The group is in advanced discussions with four global investors and IFC is one of them. “We expect to finalise an investor soon,” said Angel Chairman and Managing Director Dinesh Thakkar. |
| The new investor will be issued fresh equity in Angel Infin Private, a holding company of group. Angel expects to raise Rs 150 crore from the investors to fund its retail expansion, taking its branches from 80 to 260 in smaller cities. |
| The multilateral agency discloses the investment proposal as part of its efforts to enhance the transparency of its activities. IFC said the proposed investment will help Angel introduce new products to serve its clients more effectively. |
| “The investment is well aligned to the corporation’s strategy to support organisations in their growth phase. This also meets IFC’s objective to promote financial inclusion in India by ensuring access to a broader range of financial savings products,” the agency said in a statement on its website. |
| Thakkar said the group intends to rope in international player to bring in global expertise and also support Angel’s plan to grow beyond India. The group has developed expertise in retail format which it would like to roll out in other countries as well. |
| “The new investor can help us to find partner in other countries including developed markets. The group can provide cost and quality benefit through outsourcing some activities (to India),” Thakkar added. (source: Business Standard) |
Kalyani Group buys RSB Consult
The $2.1-billion Kalyani group on Monday announced the acquisition of RSB Consult GmbH, a design and consulting house in the wind energy sector, based in Muenster, Germany, for an undisclosed amount. Since the acquisition took place a few days ago RSB Consult has undergone a change in name to become Kenersys GmbH, an obvious short form for Kalyani Energy Systems.
statement released here by the company noted that the acquisition of the four-year-old company was a “strategic step towards entering the high growth wind energy sector”. According to Bharat Forge CMD BN Kalyani RSB, set up in 2003 by professionals from the sector, is a design and consulting house with a customer base across the world.
Mr Kalyani noted, “There are two strategic leverages in the wind turbine business, product technology and supply chain management. With the acquisition of RSB, the Kalyani group will have a strong and experienced design and engineering team that will take care of product technology. The Kalyani Group will bring in its well established global supply chain capabilities and engineering skills to drive the global business model. It will manage the Asia Pacific markets and operations from India."
(Source: Economic Times)
statement released here by the company noted that the acquisition of the four-year-old company was a “strategic step towards entering the high growth wind energy sector”. According to Bharat Forge CMD BN Kalyani RSB, set up in 2003 by professionals from the sector, is a design and consulting house with a customer base across the world.
Mr Kalyani noted, “There are two strategic leverages in the wind turbine business, product technology and supply chain management. With the acquisition of RSB, the Kalyani group will have a strong and experienced design and engineering team that will take care of product technology. The Kalyani Group will bring in its well established global supply chain capabilities and engineering skills to drive the global business model. It will manage the Asia Pacific markets and operations from India."
(Source: Economic Times)
UK firm buys Apollo stake for $100 mn
British private equity firm, Apax Partners, is investing USD 100 million for an 11 per cent stake in India's Apollo Hospitals Enterprises to take advantage of the fast-growing healthcare industry.
The Apollo Group founded by Prathap Reddy in 1983 operates more than 40 sites and is stated to be Asia's largest healthcare group.
According to a report in a newspaper, Apax already co-owns General Healthcare Group, the biggest private operator in the UK, alongside the South African firm Netcare and recently sold its stake in Healthcare at Home, a leading domestic care provider, to Hutton Collins.
(Source: Economic Times)
The Apollo Group founded by Prathap Reddy in 1983 operates more than 40 sites and is stated to be Asia's largest healthcare group.
According to a report in a newspaper, Apax already co-owns General Healthcare Group, the biggest private operator in the UK, alongside the South African firm Netcare and recently sold its stake in Healthcare at Home, a leading domestic care provider, to Hutton Collins.
(Source: Economic Times)
Monday, September 3, 2007
1.Broad Sector Themes
We will be posting articles on each of these themes soon. Readers can also send in their comments/articles to h.sandeep.reddy@gmail.com and i will post them on the blog with due attribution.
Infy, Wipro chase same target for the first time
India’s tech posterboys and cross-town rivals Infosys Technologies and Wipro have shown interest in buying out the US-based high-end analytics company MarketRx. The indicative valuation of MarketRx is seen between $150 million and $160 million (Rs 615-650 crore), sources said.
This is probably the first time the Bangalore-headquartered Infosys and Wipro are seen chasing the same company for a possible acquisition. MatrixRx’s $160-million valuation is five times its revenue, the sources added. It is believed that the promoter expectation is “slightly north of this valuation”.
It is learnt that four-five suitors have expressed interest in MarketRx after the company mandated William Blair & Company in the US and Avendus in India to explore options, which could lead to a possible sellout. “The promoters are exploring various options regarding the future and will take an appropriate decision. The process is on,” said a source familiar with the developments.
For software services biggies like Wipro and Infosys, the acquisition will give a headstart in the analytics segment of the knowledge process outsourcing (KPO) segment, as it takes considerable time to build one’s practice organically in this business.
Industry observers said analytics services bring in higher revenue per employee compared to conventional IT services. The rates of analytics services range between $30 and $60 per hour while some high-skilled statistical modeling processes attract up to $150 per hour.
Wipro has been focusing on inorganic growth, with its now famous string of pearls strategy. Infosys, on the other hand, is getting aggressive on the M&A front. A target like MarketRx provides the BPO arms of both Wipro and Infosys a platform to get into transformational business deals.
Unconfirmed reports suggested that BPO major WNS could be also in the fray, but Gurgaon-based company is unlikely to join the race. Early this year, WNS acquired another analytics firm Marketics for $65 million, valuing it almost 10 times its annual revenue.
MarketRx was started in 2000. It has over 350 employees spread across the US, Europe and India. Its list of investors includes the US-based venture fund Sequoia Capital. The India operations were started with the Gurgoan centre in 2003 and support the US teams on collaborative projects besides servicing European and Asia-Pacific clients. MarketRx has more than 75 small and big pharma, biotechnology and medical devices companies as its clients.
Third-party analytics is growing steadily in India with more players entering the space, but currently it being dominated by captive units of MNCs, especially the financial powerhouses.
(Source: Economic Times)
This is probably the first time the Bangalore-headquartered Infosys and Wipro are seen chasing the same company for a possible acquisition. MatrixRx’s $160-million valuation is five times its revenue, the sources added. It is believed that the promoter expectation is “slightly north of this valuation”.
It is learnt that four-five suitors have expressed interest in MarketRx after the company mandated William Blair & Company in the US and Avendus in India to explore options, which could lead to a possible sellout. “The promoters are exploring various options regarding the future and will take an appropriate decision. The process is on,” said a source familiar with the developments.
For software services biggies like Wipro and Infosys, the acquisition will give a headstart in the analytics segment of the knowledge process outsourcing (KPO) segment, as it takes considerable time to build one’s practice organically in this business.
Industry observers said analytics services bring in higher revenue per employee compared to conventional IT services. The rates of analytics services range between $30 and $60 per hour while some high-skilled statistical modeling processes attract up to $150 per hour.
Wipro has been focusing on inorganic growth, with its now famous string of pearls strategy. Infosys, on the other hand, is getting aggressive on the M&A front. A target like MarketRx provides the BPO arms of both Wipro and Infosys a platform to get into transformational business deals.
Unconfirmed reports suggested that BPO major WNS could be also in the fray, but Gurgaon-based company is unlikely to join the race. Early this year, WNS acquired another analytics firm Marketics for $65 million, valuing it almost 10 times its annual revenue.
MarketRx was started in 2000. It has over 350 employees spread across the US, Europe and India. Its list of investors includes the US-based venture fund Sequoia Capital. The India operations were started with the Gurgoan centre in 2003 and support the US teams on collaborative projects besides servicing European and Asia-Pacific clients. MarketRx has more than 75 small and big pharma, biotechnology and medical devices companies as its clients.
Third-party analytics is growing steadily in India with more players entering the space, but currently it being dominated by captive units of MNCs, especially the financial powerhouses.
(Source: Economic Times)
OnMobile to buy France’s Voxmobili for Rs 150 cr
After Bharti Telesoft talks with Bangalore-based software firm Jaatayu, its the turn of another player in this space.
The Infosys-incubated and India’s largest value-added services (VAS) operator OnMobile is acquiring Voxmobili SA, France’s leading telecom solutions company, for about Rs 150 crore. The acquisition will help the Bangalore-based OnMobile expand its operations in Asia to the Pacific, Australia and the US. A formal announcement is expected as early as next week.
Voxmobili, headquartered in Paris, specialises in personal data management and wireless synchronisation. Its software solutions primarily cater to mobile operators, fixed line players, internet service providers and cable operators. When contacted on this issue, OnMobile CEO and co-founder Arvind Rao declined comment.
This is OnMobile’s second acquisition after ITfinity Solutions, which it had bought last December, after receiving $27.8 million as part of its third round of funding from Deutsche Bank, Goldman Sachs and Polygon Investment Partners.
The acquisition of Voxmobili will help OnMobile access the technological expertise of the French VAS major, which includes world-class ‘phone backup’ solutions used by some of the largest operators in the US. Additionally, OnMobile will inherit an experienced team of software developers with extensive experience in developing 3G solutions. The company feels that this would give it a headstart against its competitors in this sector, even as telecom operators roll out 3G services in the Asia-Pacific.
OnMobile is also learnt to be readying an initial public offering and raise about $150 million from its listing, which it plans to use for future acquisitions.
Industry experts are of the view that the VAS sector, which at present has more than 20 players, will see major consolidation over the next 12-18 months. “Two years from now, it is unlikely that there will be more than four major players in this space in India. While most startups in the segment receive active support from VCs, these models may not be viable in the long run,” a top executive of a leading VAS company said.
In India, OnMobile competes with Cellebrum, One97 Communications, Bharti Telesoft, IMI Mobile, Mobile2win, Mauj.
(Source: Economic Times
The Infosys-incubated and India’s largest value-added services (VAS) operator OnMobile is acquiring Voxmobili SA, France’s leading telecom solutions company, for about Rs 150 crore. The acquisition will help the Bangalore-based OnMobile expand its operations in Asia to the Pacific, Australia and the US. A formal announcement is expected as early as next week.
Voxmobili, headquartered in Paris, specialises in personal data management and wireless synchronisation. Its software solutions primarily cater to mobile operators, fixed line players, internet service providers and cable operators. When contacted on this issue, OnMobile CEO and co-founder Arvind Rao declined comment.
This is OnMobile’s second acquisition after ITfinity Solutions, which it had bought last December, after receiving $27.8 million as part of its third round of funding from Deutsche Bank, Goldman Sachs and Polygon Investment Partners.
The acquisition of Voxmobili will help OnMobile access the technological expertise of the French VAS major, which includes world-class ‘phone backup’ solutions used by some of the largest operators in the US. Additionally, OnMobile will inherit an experienced team of software developers with extensive experience in developing 3G solutions. The company feels that this would give it a headstart against its competitors in this sector, even as telecom operators roll out 3G services in the Asia-Pacific.
OnMobile is also learnt to be readying an initial public offering and raise about $150 million from its listing, which it plans to use for future acquisitions.
Industry experts are of the view that the VAS sector, which at present has more than 20 players, will see major consolidation over the next 12-18 months. “Two years from now, it is unlikely that there will be more than four major players in this space in India. While most startups in the segment receive active support from VCs, these models may not be viable in the long run,” a top executive of a leading VAS company said.
In India, OnMobile competes with Cellebrum, One97 Communications, Bharti Telesoft, IMI Mobile, Mobile2win, Mauj.
(Source: Economic Times
Avenue Capital to pick 15% in Morepen for Rs 80 crore
US-based Avenue Capital, a hedge fund that focuses on distressed and undervalued debt and equity opportunities, is in an advanced stage of negotiations to pick up an equity stake in Delhi-based loss-making pharma company Morepen Laboratories. Sources indicated that Avenue Capital could pick up 15% stake for around Rs 80 crore, and the deal which is expected to be completed by the middle of this month.
The fund is offering Rs 20 per share of Morepen Labs, which works out to a 28% premium to Friday’s market price of Rs 15.6. However, it is about 40% higher than the share price when negotiations between the two began.
The fund raising will help the company to substantially improve its capacity utilisation. Morepen is talking to MNC pharma companies in its attempts to secure long-term contract manufacturing. The company has set up a new facility for making paracetamol and currently manufactures 2,400 tpa of the drug which it plans to increase by the end of the year.
(Source: Economic Times
The fund is offering Rs 20 per share of Morepen Labs, which works out to a 28% premium to Friday’s market price of Rs 15.6. However, it is about 40% higher than the share price when negotiations between the two began.
The fund raising will help the company to substantially improve its capacity utilisation. Morepen is talking to MNC pharma companies in its attempts to secure long-term contract manufacturing. The company has set up a new facility for making paracetamol and currently manufactures 2,400 tpa of the drug which it plans to increase by the end of the year.
(Source: Economic Times
Mallya buys Spyker-Ferrari F1 team:
The king of good times, Vijay Mallya, is not just bringing Formula One race to India but is also buying a F1 team.
Sources have told the TV18 Network that Mallya has closed in on Spyker-Ferrari and he would be investing in the team in his personal capacity. According to the sources the deal is worth 90mn euros and is almost final and will be announced shortly.
The Spyker-Ferrari board has given the green signal as Mallya's bid is at a reasonable premium.
However, as Mallya is investing in the Spyker team in his personal capacity, Kingfisher will continue to sponsor the Toyota Panasonic F1 team.
The TV 18 Network had first reported on Mallya's F1 bid earlier this week.
Speaking to the network during the Istanbul Grand Prix, Mallya said, "You can draw your own conclusions, but part and parcel of bringing Formula One to India is to also have an Indian company involved in Formula One. In what form or shape, I am not going to disclose just yet. I think it is premature. But we have drivers, we have Narain Karthikeyan, we have Karan Chandok and I hope there will be more as we go along. That is one part of the story. But to have a more significant involvement in a particular Formula One team, could well have a domino effect in regenerating interest in Formula One in our large country and culminating of course in actually hosting a race."
In September 2006, Spyker, which is one of the laggards on the F1 circuit, acquired the Midland F1 Team of UK.
Source: Yahoo Sports
Sources have told the TV18 Network that Mallya has closed in on Spyker-Ferrari and he would be investing in the team in his personal capacity. According to the sources the deal is worth 90mn euros and is almost final and will be announced shortly.
The Spyker-Ferrari board has given the green signal as Mallya's bid is at a reasonable premium.
However, as Mallya is investing in the Spyker team in his personal capacity, Kingfisher will continue to sponsor the Toyota Panasonic F1 team.
The TV 18 Network had first reported on Mallya's F1 bid earlier this week.
Speaking to the network during the Istanbul Grand Prix, Mallya said, "You can draw your own conclusions, but part and parcel of bringing Formula One to India is to also have an Indian company involved in Formula One. In what form or shape, I am not going to disclose just yet. I think it is premature. But we have drivers, we have Narain Karthikeyan, we have Karan Chandok and I hope there will be more as we go along. That is one part of the story. But to have a more significant involvement in a particular Formula One team, could well have a domino effect in regenerating interest in Formula One in our large country and culminating of course in actually hosting a race."
In September 2006, Spyker, which is one of the laggards on the F1 circuit, acquired the Midland F1 Team of UK.
Source: Yahoo Sports
Blue River buys 10.22% in Rane Holdings
Private equity firm Blue River Capital has acquired 10.22 per cent stake in Rane Holdings (RHL), the holding company of Chennai-based auto component manufacturer, Rane Group. The acquisition has been transacted through the secondary market via Blue River’s Mauritius-based investment company.
Rane Group Chairman L Ganesh said, “We believe the investment will enhance the shareholders’ value in Rane companies.”
A representative of Blue River, which has $140 million under management in the country, will now join the Rane Group’s board of directors. The Rs 1,400-crore company is currently undertaking a restructuring exercise to consolidate its shareholdings across group companies through the holding company RHL, which is likely to emerge as the group’s vehicle for mopping up capital for upcoming ventures. Ernst & Young is serving as advisor on the proposed restructuring scheme.
(Source: Business Standard"
Rane Group Chairman L Ganesh said, “We believe the investment will enhance the shareholders’ value in Rane companies.”
A representative of Blue River, which has $140 million under management in the country, will now join the Rane Group’s board of directors. The Rs 1,400-crore company is currently undertaking a restructuring exercise to consolidate its shareholdings across group companies through the holding company RHL, which is likely to emerge as the group’s vehicle for mopping up capital for upcoming ventures. Ernst & Young is serving as advisor on the proposed restructuring scheme.
(Source: Business Standard"
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