August 2007
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Tatas to pick up stake in Development Credit Bank

Tata Capital and Tata Investments would jointly pick up a 4.5 per cent stake in Development Credit Bank (DCB) for around Rs 85 crore, a bank official said. The bank would make a preferential allotment of shares to five specific group of investors, including the Tatas, for Rs 300 crore, DCB Managing Director and CEO Gautam Vir said. Other investors who would be allotted shares are Al Bateen of Abu Dhabi (4.5 per cent), Lehman Brothers arm, Marc Faber and SVG. Vir said the issue is being made to increase the capital base of the bank and is awaiting approval of the Reserve Bank of India (RBI) for the allotment. Following the issue, the bank’s capital adequacy ratio (CAR) would increase from 10.5 per cent to 17.7 per cent. […]

Akzo Nobel to make 20% open offer for ICI India

With Dutch paint maker Akzo Nobel giving the nod today for the $16 billion global takeover of ICI, Akzo is expected to make an open offer of 20 per cent to the shareholders of ICI India. India’s largest paint maker Asian Paints also holds a 9.2 per cent stake in ICI India. According to the Securities and Exchange Board of India (Sebi) regulations, a company, which intends to buy shares that would entitle it to exercise 15 per cent or more voting rights, has to make an open offer for at least an additional 20 per cent shares of the target company. The open offer will be priced on the average 26-week price or the average of the daily high and low prices, two weeks prior to the date of announcing the offer. In case the shares of the target company are not frequently traded, then the pricing parameters for the open offer will be based on the fundamentals of the company such as returns on the net worth of the company, book value per share, EPS and so on. Akzo executives from Amsterdam refused to comment on India specific initiatives, citing it was too early to comment. […]

Haier India firms Indian presence with Daewoo Anchor plant buy

The $14 billion Chinese consumer durables major, Haier Co., Ltd. has firmed up its Indian operations by acquiring the manufacturing facility of Anchor Daewoo Electronics in a few hours from Mumbai in Pune, Maharashtra. The acquisition, for an undisclosed amount, was announced by Haier India last week. The acquisition of Anchor Daewoo's facility, spread over 40 acres in Ranjangaon, Pune, will give Haier access to a manufacturing capability of refrigerators, color televisions and washing machines. According to a Haier official, the company plans to upgrade the new facility, which currently employs around 500 people, and create a research and development facility for its refrigerator range. The plant has a capacity to make 350,000 refrigerators annually, about 300,000 washing machines and 500,000 colour TVs. […]

Pvt equity firms must join consortia for IFCI stake

The IFCI board has put been in place a more transparent procedure for inducting a strategic investor amid concerns over the manner in which the country’s oldest financial institution had set about doing the job. The bidding process has been rejigged to address the issues raised at the board meeting held on August 4 by some of the directors who felt that the sale procedure was opaque and non-transparent. These directors wanted to ensure that there was no repeat of a scenario similar to the Sasan power project, according to a source who is privy to the developments. The project’s consultants Ernst & Young had failed to identify problems in the bid document of Lanco-Globeleq till the project was awarded to the consortium. Ernst & Young is the consultant for IFCI as well. “Responding to this, the board had decided to have a foolproof and a transparent sale procedure and consider only serious buyers who will enable IFCI emerge as a stronger institution,” said senior level Delhi based officials. At the the last board meeting, the directors had appointed N Balasubramanian, former chairman of Sidbi, as chairman of IFCI, replacing PS Shenoy. […]

Blackstone sees 'huge' deal pipeline in India

Blackstone Group LP President Hamilton James said on Monday the company has a “huge” pipeline of deals in India, and is eyeing transactions in Japan as well while a freeze remains in U.S. and European credit markets.

Blackstone has fewer, but larger deals in the works in China, James said, a sign it is moving rapidly to build up its new Asia strategy. He was speaking on the company's first quarterly earnings conference call.

James said Blackstone is targeting smaller […]