Warburg Pincus, a global private equity firm, will invest $110 million in country’s electrical and power distribution equipment company Havells India.
Havells will issue fresh shares and warrants to Warburg Pincus, representing approximately 11.2 per cent of the fully diluted share capital of the company.
SSKI (a subsidiary of IDFC) was the financial advisor and Amarchand Mangaldas provided legal advice to Warburg Pincus on this transaction.
Havells India, $1.2 billion enterprise and one of country’s fastest growing electrical and power distribution equipment companies, manufactures products ranging from building circuit protection, industrial & domestic switchgears, cables & wires, energy meters, fans, CFL lamps, luminaries for domestic, commercial & industrial application, and modular switches.
Havells also owns prestigious global brands like Crabtree (Indian Region), Sylvania, Lumiance and Zenith, among others.
Over a twelve-year period, Warburg Pincus have invested approximately $2 billion in India making it one of the largest private equity investors in the country.
The firm’s past and current investments in India include Ambuja Cements, Bharti Airtel, Dainik Bhaskar, HDFC, Kotak Mahindra Bank, Max India, Moser Baer, Nicholas Piramal, Punj Lloyd, Sintex Industries, Lemon Tree Hotels and WNS Global Services.
(Source: Business Standard)
Monday, October 22, 2007
Saturday, October 13, 2007
Apologies for the absence + Announcement
Dear readers,
Apologies for not being able to update the blog for the last 5 days. We were really very busy with work which kept us away from the blog. To avoid such disruptions in the future, we plan to best utilize the open source power of the blogger and open this blog to people who would like to join us in updating the information.
I request you to drop a mail to us at h.sandeep.reddy@gmail.com if you are interested in updating the blog. Give us the following information:
- Name, Age, Working/Studying at
The user who is updating the blog can promote his/her own blog as well and can also post jobs if required.
Regards,
~Reddy
on behalf of the M&A team.
Apologies for not being able to update the blog for the last 5 days. We were really very busy with work which kept us away from the blog. To avoid such disruptions in the future, we plan to best utilize the open source power of the blogger and open this blog to people who would like to join us in updating the information.
I request you to drop a mail to us at h.sandeep.reddy@gmail.com if you are interested in updating the blog. Give us the following information:
- Name, Age, Working/Studying at
The user who is updating the blog can promote his/her own blog as well and can also post jobs if required.
Regards,
~Reddy
on behalf of the M&A team.
Friday, October 5, 2007
IFC set to pick up 5% stake in Karnataka Bank
The International Finance Corporation (IFC), the private sector funding arm of World Bank, is set to pick up about 4-5% stake in Mangalore-headquartered Karnataka Bank. The bank’s board is meeting on Friday to decide on a preferential allotment to IFC.
A senior Karnataka Bank official confirmed the development but said pricing details and quantum of stake has not been decided as yet.
Karnataka Bank could be the second Indian bank where the 51-year old World Bank arm has an equity stake. IFC holds 4.99% stake in Federal Bank.
Karnataka Bank had raised Rs 120 crore in June by way of a tier-II bond issue. The bank had gone in for a rights issue (at the ratio of one share for every two shares of post-bonus share capital) at Rs 20 per share (Rs 10 premium) in 2004.
As of June 30, some of the leading institutional shareholders in Karnataka Bank include — Oppenheimer Funds (Oppenheimer International Small Company Fund) with a 4.94% stake, Citigroup Global Markets (Mauritius) 4.34%, UTI Mastershare scheme 1.65%, Franklin Templeton Investment Fund 3.09% and Quantum MF with 3.73% stake.
Post preferential issue, the bank’s capital adequacy ratio(CAR) would rise to 13% from the current 12.72% and help it meet the funding needs up to September 2008.
(Source: Economic Times)
A senior Karnataka Bank official confirmed the development but said pricing details and quantum of stake has not been decided as yet.
Karnataka Bank could be the second Indian bank where the 51-year old World Bank arm has an equity stake. IFC holds 4.99% stake in Federal Bank.
Karnataka Bank had raised Rs 120 crore in June by way of a tier-II bond issue. The bank had gone in for a rights issue (at the ratio of one share for every two shares of post-bonus share capital) at Rs 20 per share (Rs 10 premium) in 2004.
As of June 30, some of the leading institutional shareholders in Karnataka Bank include — Oppenheimer Funds (Oppenheimer International Small Company Fund) with a 4.94% stake, Citigroup Global Markets (Mauritius) 4.34%, UTI Mastershare scheme 1.65%, Franklin Templeton Investment Fund 3.09% and Quantum MF with 3.73% stake.
Post preferential issue, the bank’s capital adequacy ratio(CAR) would rise to 13% from the current 12.72% and help it meet the funding needs up to September 2008.
(Source: Economic Times)
Thursday, October 4, 2007
Veeda to buy two cancer research units
Veeda Clinical Research, one among the top-three clinical research organisations (CRO) in India, will soon acquire two CROs in North America and Central Europe.
The acquisition is expected to enable the company specialise in clinical trials for the development of cancer drugs and emerge as a global player.
Veeda, which acquired three CROs in Europe within two years, is in advanced stages of negotiations. Both the companies are specialised in cancer clinical trials and have a track record of over 8-10 years. “We have signed a term sheet agreement with one and are negotiating with another. Each of these acquistions would range from $5-10 million. Cancer trials constitute about 40 per cent of the global clinical trials happening at present and we plan to position ourselves specialised in this field,” said Apurva Shah, managing director, Veeda.
CROs help pharmaceutical companies in conducting clinical trials in humans from phases I to III during the development cycle of a drug, which spans 10-15 years. In India, the clinical trials industry bloomed only in the last few years. Currently, there are about 230 CROs.
Ahmedabad-based Veeda, the first Indian CRO to make a footprint outside India, made its first acquisition two years ago by acquiring Phase-I Clinical Trial Unit, a well-established CRO in Plymouth, England. In December 2006, it acquired Dice, a CRO with strength in data management and based in Brussels, Belgium. In May this year, Veeda took over Phase-1 (drugs tested on human beings for the first time) clinical research unit in Gorlitz, Germany.
(Source: Business Standard)
The acquisition is expected to enable the company specialise in clinical trials for the development of cancer drugs and emerge as a global player.
Veeda, which acquired three CROs in Europe within two years, is in advanced stages of negotiations. Both the companies are specialised in cancer clinical trials and have a track record of over 8-10 years. “We have signed a term sheet agreement with one and are negotiating with another. Each of these acquistions would range from $5-10 million. Cancer trials constitute about 40 per cent of the global clinical trials happening at present and we plan to position ourselves specialised in this field,” said Apurva Shah, managing director, Veeda.
CROs help pharmaceutical companies in conducting clinical trials in humans from phases I to III during the development cycle of a drug, which spans 10-15 years. In India, the clinical trials industry bloomed only in the last few years. Currently, there are about 230 CROs.
Ahmedabad-based Veeda, the first Indian CRO to make a footprint outside India, made its first acquisition two years ago by acquiring Phase-I Clinical Trial Unit, a well-established CRO in Plymouth, England. In December 2006, it acquired Dice, a CRO with strength in data management and based in Brussels, Belgium. In May this year, Veeda took over Phase-1 (drugs tested on human beings for the first time) clinical research unit in Gorlitz, Germany.
(Source: Business Standard)
Ranbaxy ups Zenotech stake to tap biotech
Ranbaxy Laboratories Ltd, India’s second-biggest drugmaker, has agreed to take control of Zenotech Laboratories Ltd to gain access to the $65 billion market (about Rs 2,50,000) for biotechnology treatments.
Ranbaxy will buy shares from founders of the Hyderabad-based company as well as new stock to increase its stake to 45 per cent, it said in a statement today. The Gurgaon-based drugmaker will offer to buy an additional 20 per cent from investors under stock exchange takeover rules, it said.
The acquisition gives Chief Executive Officer Malvinder Singh control over research and production of drugs based on generic biotechnology, or living cell-based products, that are harder to make than chemical medicines. Companies including General Motors Corp are pushing the US to allow copies of biological medicines as a way to reduce healthcare costs.
The acquisition “provides Ranbaxy with a skill into a business which has higher entry barriers, allowing for greater profitability,’’ said Sarabjit Kour Nangra, an analyst with Angel Broking Ltd in Mumbai, who has a “hold” rating on Ranbaxy’s stock.
Zenotech shares rose by their daily limit on the Bombay Stock Exchange. The stock has more than doubled this year, valuing the drugmaker at about $121 million (about Rs 480 crore). Ranbaxy fell 0.5 per cent, eroding its 13 per cent gain this year.
Ranbaxy will pay Rs 214 crore to increase its stake to 45 per cent. The drugmaker will buy 22 per cent from Zenotech’s founders, including Chief Executive Officer Jayaram Chigurupati, and an additional 16 per cent in preferential stock.
(Source: Business Standard)
Ranbaxy will buy shares from founders of the Hyderabad-based company as well as new stock to increase its stake to 45 per cent, it said in a statement today. The Gurgaon-based drugmaker will offer to buy an additional 20 per cent from investors under stock exchange takeover rules, it said.
The acquisition gives Chief Executive Officer Malvinder Singh control over research and production of drugs based on generic biotechnology, or living cell-based products, that are harder to make than chemical medicines. Companies including General Motors Corp are pushing the US to allow copies of biological medicines as a way to reduce healthcare costs.
The acquisition “provides Ranbaxy with a skill into a business which has higher entry barriers, allowing for greater profitability,’’ said Sarabjit Kour Nangra, an analyst with Angel Broking Ltd in Mumbai, who has a “hold” rating on Ranbaxy’s stock.
Zenotech shares rose by their daily limit on the Bombay Stock Exchange. The stock has more than doubled this year, valuing the drugmaker at about $121 million (about Rs 480 crore). Ranbaxy fell 0.5 per cent, eroding its 13 per cent gain this year.
Ranbaxy will pay Rs 214 crore to increase its stake to 45 per cent. The drugmaker will buy 22 per cent from Zenotech’s founders, including Chief Executive Officer Jayaram Chigurupati, and an additional 16 per cent in preferential stock.
(Source: Business Standard)
Monday, October 1, 2007
Time Technoplast buys 74 pc in NED Energy
Polymer products maker Time Technoplast Ltd said on Monday it has bought a 74 per cent stake in battery maker NED Energy Ltd for an undisclosed sum.
NED's enterprise value is estimated at Rs 650 million and Time Technoplast has the option of buying out the balance 26 per cent from the promoters, it said in a statement.
(Source: Economic Times)
NED's enterprise value is estimated at Rs 650 million and Time Technoplast has the option of buying out the balance 26 per cent from the promoters, it said in a statement.
(Source: Economic Times)
Sterlite Optical buys 58.7 pc stakes in Sterlite Infra
Optic-fiber cable maker Sterlite Optical Technologies Ltd said on Monday it has acquired a 58.7 per cent stake in Sterlite Infrastructure Pvt Ltd, making it a subsidiary of Sterlite Optical.
(Source: Economic Times)
(Source: Economic Times)
Warring brothers put Onida on block
Two members of the Onida founding family have broken off with the third main shareholder and begun talks with a rival group led by Videocon and Kishore Biyani’s Future Capital to sell a substantial stake in the main holding company.
In a development fraught with enormous implications for the consumer durables industry and for one of India’s best-loved TV brands, Sonu Mirchandani and Vijay Mansukhani, who together hold 66% in Guviso, the holding company for Mirc Electronics, have put their stake on the block. Sharp differences with Gulu Mirchandani, Sonu’s brother and the chairman and managing director of Onida, are said to be the main reason.
Gulu, who holds the remaining shares, has been the public face of the company. Sonu and Vijay Mansukhani, the co-brother (Vijay and Gulu’s wives are sisters), have stayed in the background till now, but now want a change in their position. Vijay is on the board of Mirc Electronics, but Sonu is not. Sonu Mirchandani runs Monica Electronics, which manufactures a range of white goods including CTVs. Under an arrangement with Monica, Mirc markets these products under the Onida brand.
The two partners are also believed to be upset about Gulu’s control over the company. They feel that they should also have equal share and deciding power. The holding company’s name, Guviso, has been formed by the first two letters of the three individuals.
The development is significant for the consumer durables industry, which has often been plagued by low margins, heavy promotional costs and stiff competition. But Onida has always managed to keep its head above water. It is the third-largest colour TV brand with an estimated market share of about 10%.
It is one of the few Indian brands to have survived the onslaught of the aggression displayed by multinationals, especially the Korean companies in a fiercely-competitive durables market. The brand enjoyed an iconic status with its famous ‘Neighbour’s Envy, Owner’s Pride’ tag line. It is expected to fetch a valuation of Rs 600-800 crore, though its market cap is just about Rs 320 crore
(Source: Economic Times
In a development fraught with enormous implications for the consumer durables industry and for one of India’s best-loved TV brands, Sonu Mirchandani and Vijay Mansukhani, who together hold 66% in Guviso, the holding company for Mirc Electronics, have put their stake on the block. Sharp differences with Gulu Mirchandani, Sonu’s brother and the chairman and managing director of Onida, are said to be the main reason.
Gulu, who holds the remaining shares, has been the public face of the company. Sonu and Vijay Mansukhani, the co-brother (Vijay and Gulu’s wives are sisters), have stayed in the background till now, but now want a change in their position. Vijay is on the board of Mirc Electronics, but Sonu is not. Sonu Mirchandani runs Monica Electronics, which manufactures a range of white goods including CTVs. Under an arrangement with Monica, Mirc markets these products under the Onida brand.
The two partners are also believed to be upset about Gulu’s control over the company. They feel that they should also have equal share and deciding power. The holding company’s name, Guviso, has been formed by the first two letters of the three individuals.
The development is significant for the consumer durables industry, which has often been plagued by low margins, heavy promotional costs and stiff competition. But Onida has always managed to keep its head above water. It is the third-largest colour TV brand with an estimated market share of about 10%.
It is one of the few Indian brands to have survived the onslaught of the aggression displayed by multinationals, especially the Korean companies in a fiercely-competitive durables market. The brand enjoyed an iconic status with its famous ‘Neighbour’s Envy, Owner’s Pride’ tag line. It is expected to fetch a valuation of Rs 600-800 crore, though its market cap is just about Rs 320 crore
(Source: Economic Times
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