At last count, there are more than a dozen likely bidders for Satyam. Only three have confirmed interest, though
With Tech Mahindra officially announcing its interest in Satyam Computer Services, the list of likely bidders for buying a majority stake in the troubled IT company is getting longer everyday. Tech Mahindra has announced today in a BSE filing that it has registered its interest in participating in the bidding process. Today is the last date for submitting Expressions of Interest (EOIs). The company board will meet tomorrow to scrutinise the EOIs submitted by the potential bidders.
The Hinduja Group, which was also a likely bidder for a majority stake in Satyam, today announced that it is not bidding for the stake in Satyam.
Till now more than a dozen names have come up as contenders for the Hyderabad-based IT company. However, out of these firms only three have confirmed their interest in picking a majority stake in Satyam. Larsen and Toubro (L&T), BK Modi’s Spice group and Tech Mahindra have reportedly submnitted EOIs today.
L&T had recently hiked its stake in Satyam from 4% to 12%, becoming the largest stake holder in the IT firm. Spice Group chairman, BK Modi has said that the group is ready to invest $408 million in Satyam, and would like a preferential issue route to acquire 51% stake in the firm.
Global IT firms Hewlett-Packard (HP) and Computer Sciences Corporation (CSC) are also reportedly considering the possibilities of acquiring a majority stake in Satyam. Another Gobal IT major IBM, which has around $12 billion in cash, was also understood to have shown an interest in acquiring the beleaguered IT firm but has now backed out.
Capegemini, Europe based computer consultancy firm, which was said to have shown interest in buying a stake in Satyam, has said that it has no interest in the fraud hit IT firm. HCL, which had acquired SAP firm Axon last year, was also said to have been keen on acquiring a stake in Satyam.
Recent reports also suggest that private equity firm General Atlantic Partners is also likely to bid for a majority stake in Satyam. The speculation is based on General Atlantic’s track record of investing heavily in India in the IT sector.
Its IT investments in India include Genpact, Patni Computers and Hexaware. There are also possibilities of General Atlantic tying up with Patni to acquire the stake just like Tech Mahinrda’s discussions with private equity funds to mount a joint bid.
It was earlier believed that the Satyam board would be interested in selling a majority stake in the firm to only IT players. Since, the board’s recent announcements have not even touched upon any such points, it has led to speculation about General Atlantic's interest in acquiring a majority stake in the fraud hit IT giant.
Other private equity names that have come up in relation to the Satyam bidding are KKR, TPG, Blackstone and the Carlyle Group.Fidelity, which had recently hiked its stake in Satyam to 7.66% is now the second largest share holder in the firm.
Other names that have been linked to the bid include iGate and the Essar Group. iGate, had last month, announced that it would not bid for Satyam. The lack of clarity about the extent of Satyam’s liabilities may discourage the potential buyers.
Thursday, March 12, 2009
PE funds for Lavasa likely by June
The Lavasa hill station project of Hindustan Construction Company (HCC) is set for a private equity injection. However, a source said a group of investors were taken for a site visit to Lavasa over a week ago and the placement is expected by June.
HCC officials refused to comment on the private equity infusion.However, they said a likely reason for private equity interest may be that work on the Lavasa project was running one year ahead of schedule at a time most other real estate companies were deferring their developments.
Somewhat ironically, they said easier availability of manpower and other resources, as the slowdown takes hold of the industry, which has helped HCC speed up work on the project.
In a recent interaction with this newspaper, Ajit Gulabchand, chairman and managing director of HCC said they were encouraged by sales during the last one year to advance the phase I completion target from 2022 to 2015. "By 2012, around 10,000 students and executives will be pursuing their studies at Lavasa. By the same time, there will be 1,000 hotel rooms across various categories. Phase 1B and Phase II will begin parallel to each other. What we hoped to complete by 2030 will be completed by 2022," he said.
Developed by Lavasa Corporation, an HCC group company, Lavasa is positioned as Independent India's first and largest hill city, which can be reached in 3 hours by road from Mumbai and in 1 hour from Pune. Spread over 12,500 acres, the hill city is expected to house a number of global leaders in hospitality, tourism, education, healthcare, business research and industry
HCC officials refused to comment on the private equity infusion.However, they said a likely reason for private equity interest may be that work on the Lavasa project was running one year ahead of schedule at a time most other real estate companies were deferring their developments.
Somewhat ironically, they said easier availability of manpower and other resources, as the slowdown takes hold of the industry, which has helped HCC speed up work on the project.
In a recent interaction with this newspaper, Ajit Gulabchand, chairman and managing director of HCC said they were encouraged by sales during the last one year to advance the phase I completion target from 2022 to 2015. "By 2012, around 10,000 students and executives will be pursuing their studies at Lavasa. By the same time, there will be 1,000 hotel rooms across various categories. Phase 1B and Phase II will begin parallel to each other. What we hoped to complete by 2030 will be completed by 2022," he said.
Developed by Lavasa Corporation, an HCC group company, Lavasa is positioned as Independent India's first and largest hill city, which can be reached in 3 hours by road from Mumbai and in 1 hour from Pune. Spread over 12,500 acres, the hill city is expected to house a number of global leaders in hospitality, tourism, education, healthcare, business research and industry
eSolar invested $30 million in Acme group
U.S. solar power plant developer eSolar said Tuesday it has signed a $30 million deal with Indian technology company Acme Group that is part equity investment and part licensing agreement.
Under the deal, Acme will build up to 1,000 megawatts of solar-thermal power plants in India using eSolar's technology, and could work with other companies that want to build solar plants using eSolar's technology, the companies said.
Acme plans to start construction on the first 100 megwatts of a 250-megawatt project in India using eSolar's technology, according to privately held eSolar, of Pasadena, Calif.
"Acme's $30 million dollar commitment demonstrates their confidence in eSolar's technology," eSolar Chief Executive Bill Gross said in a statement. "We are committed to working with the very best partners, such as Acme, to scale deployment as quickly as possible around the world."
ESolar announced a separate deal last week with U.S. independent power producer NRG Energy Inc. (NRG), in which NRG will invest at least $10 million for an equity stake in eSolar and the right to build and own 500 megawatts of solar-thermal power plants using eSolar technology.
Among the solar-thermal power plants NRG, of Princeton, N.J., invested in is a 245-megawatt facility under development in Kern County, Calif. for which eSolar signed a power purchase agreement with Edison International (EIX) unit Southern California Edison.
ESolar is building a demonstration solar-thermal power plant in Southern California with technology that the company plans to use for its commercial- scale plants.
Under the deal, Acme will build up to 1,000 megawatts of solar-thermal power plants in India using eSolar's technology, and could work with other companies that want to build solar plants using eSolar's technology, the companies said.
Acme plans to start construction on the first 100 megwatts of a 250-megawatt project in India using eSolar's technology, according to privately held eSolar, of Pasadena, Calif.
"Acme's $30 million dollar commitment demonstrates their confidence in eSolar's technology," eSolar Chief Executive Bill Gross said in a statement. "We are committed to working with the very best partners, such as Acme, to scale deployment as quickly as possible around the world."
ESolar announced a separate deal last week with U.S. independent power producer NRG Energy Inc. (NRG), in which NRG will invest at least $10 million for an equity stake in eSolar and the right to build and own 500 megawatts of solar-thermal power plants using eSolar technology.
Among the solar-thermal power plants NRG, of Princeton, N.J., invested in is a 245-megawatt facility under development in Kern County, Calif. for which eSolar signed a power purchase agreement with Edison International (EIX) unit Southern California Edison.
ESolar is building a demonstration solar-thermal power plant in Southern California with technology that the company plans to use for its commercial- scale plants.
Aegis to acquire ICT group for about $128 mln
Aegis Ltd, a back-office unit of India's Essar Group, has proposed to buy global business process outsourcing firm ICT Group for about $128 million in cash.
The $8 per share offer price is more than double that of ICT's Friday close of $3.60 on Nasdaq.
Aegis said it is seeking support and approval of ICTG board to effect the transaction on a friendly basis.
ICT Group provides outsourced customer-care services, primarily to U.S.-based companies, including Pfizer , Washington Mutual Inc WM.N and Virgin Mobile USA and has operations in Ireland, UK, Canada, Australia, Mexico, Philippines, Costa Rica, India and Argentina.
Last October, Aegis acquired Los Angeles-based PeopleSupport for $250 million to expand its presence in the Philippines market.
Shares of the Newtown, Pennsylvania-based company rose more than 66 percent to $6 in morning trade on Nasdaq.
The $8 per share offer price is more than double that of ICT's Friday close of $3.60 on Nasdaq.
Aegis said it is seeking support and approval of ICTG board to effect the transaction on a friendly basis.
ICT Group provides outsourced customer-care services, primarily to U.S.-based companies, including Pfizer , Washington Mutual Inc WM.N and Virgin Mobile USA and has operations in Ireland, UK, Canada, Australia, Mexico, Philippines, Costa Rica, India and Argentina.
Last October, Aegis acquired Los Angeles-based PeopleSupport for $250 million to expand its presence in the Philippines market.
Shares of the Newtown, Pennsylvania-based company rose more than 66 percent to $6 in morning trade on Nasdaq.
Wednesday, March 11, 2009
Tech Mahindra in talks to buy Sloka
Services major Tech Mahindra is in discussions to acquire Bangalore-based niche telecom solutions player Sloka Telecom. People close to the situation said the 5- year-old tech start-up Sloka Telecom has put a price tag of Rs 30-35 crore but there is no agreement on a final transaction. Sloka provides solutions in the areas of fixed WiMax, Mobile WiMax and 3G. The company claimed that its patent pending technology architecture gives price advantage in making smaller and cheaper telecom base stations primarily finding application in the semi-urban and rural areas.
When contacted, a spokesperson for Tech Mahindra said: “As a policy, we do not comment on market speculations.” Sloka Telecom CEO Sujai Karampuri refused to comment on the development. Sloka Telecom, with centres in Bangalore and the US, has been looking at multiple options which include an outright sale of the company. It has held similar such discussions with other entities in the past, sources added. For Tech Mahindra, a potential deal would help build its solutions portfolio as it looks to enlarge its reach in the telecom segment. It could also give them the platform to partner with global telecom majors in getting into the developing markets. Increasingly, global telecom players are looking at cost effective technology solutions to address developing markets such as India.
Tech Mahindra in 2005 had acquired the Bangalore-headquartered Axes Technologies which was in the telecom infrastructure space. Tech Mahindra has been scouting for niche telecom acquisitions which could provide them the technological edge in a crowded space of telecom vertical. It has also been looking at generating higher revenue from its solutions segment.
When contacted, a spokesperson for Tech Mahindra said: “As a policy, we do not comment on market speculations.” Sloka Telecom CEO Sujai Karampuri refused to comment on the development. Sloka Telecom, with centres in Bangalore and the US, has been looking at multiple options which include an outright sale of the company. It has held similar such discussions with other entities in the past, sources added. For Tech Mahindra, a potential deal would help build its solutions portfolio as it looks to enlarge its reach in the telecom segment. It could also give them the platform to partner with global telecom majors in getting into the developing markets. Increasingly, global telecom players are looking at cost effective technology solutions to address developing markets such as India.
Tech Mahindra in 2005 had acquired the Bangalore-headquartered Axes Technologies which was in the telecom infrastructure space. Tech Mahindra has been scouting for niche telecom acquisitions which could provide them the technological edge in a crowded space of telecom vertical. It has also been looking at generating higher revenue from its solutions segment.
Pyramid Saimira in stake sale talks
Pyramid Saimira Theatre Ltd is in talks for a stake sale in its subsidiaries to raise working capital, a top official said. "We have lost close to 100 crores (1 billion rupees) of cash in some divisions and also because of the general recession in the occupancy rates," Chairman P.S.Saminathan told television channel NDTV Profit.
"So we have lost some 100 crores of cash flow which we thought we should replenish.Instead of borrowing more money we have decided to sell off stake in our subsidiaries to put our main company on a growth trajectory," he said.
The company is in talks with strategic players for stake sale in two of its foreign subsidiaries and an Indian subsidiary, he said.(Reuters)
"So we have lost some 100 crores of cash flow which we thought we should replenish.Instead of borrowing more money we have decided to sell off stake in our subsidiaries to put our main company on a growth trajectory," he said.
The company is in talks with strategic players for stake sale in two of its foreign subsidiaries and an Indian subsidiary, he said.(Reuters)
Mallya Likely To Divest 15% Stake In United Spirits
UB Group Chairman Vijay Mallya said in a statement that four global spirits makers including Diageo, the world's largest, evinced interest in acquiring a stake in United Spirits Ltd. or USL, the country's largest liquor manufacturer. UB Group holds around 38% in USL, reports media. Mallya declined to reveal the names of the other three interested parties, as it would be inappropriate to disclose further details at this stage. According to company officials, the group is planning to sell up to 14.9% of a total of 17% of treasury stocks in USL to strategic partners.
Treasury stocks are those shares, which are traded by the company in open market, and these shares are not eligible for bonus and do not have voting rights.Sources said in a statement that Mallya is interested in selling the stake in USL to raise funds to retire debt.United Spirits has over 150 products in its portfolio, including the brands Black Dog, Signature, Royal Challenge and Romanov.
Treasury stocks are those shares, which are traded by the company in open market, and these shares are not eligible for bonus and do not have voting rights.Sources said in a statement that Mallya is interested in selling the stake in USL to raise funds to retire debt.United Spirits has over 150 products in its portfolio, including the brands Black Dog, Signature, Royal Challenge and Romanov.
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