September 2007
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Kalyani Group buys Germany's RSBconsult

Kalyani Group said it acquired RSBconsult GmbH, a Muenster, Germany-based wind turbine maker, for an undisclosed sum. The deal further positions the company in the wind turbine sector, considering our presence as a wind farm operator and a supplier of components, chairman B N Kalyani said in a release to the Bombay Stock Exchange. Kalyani Group said it will initially focus on Europe before it expands to other key markets like US and China by 2010.(Forbes) [...]

CGH Earth to raise Rs 350 cr via PE

Hospitality firm CGH Earth is looking at raising Rs 350 crore through private equity to fund its long-term investment plans, which include setting up 30 new resorts by 2012. “Leisure tourism is catching up fast in the country and we want to be a part of this growth. We will invest Rs 300 crore over the next five years to set up 30 new leisure resorts across the country by 2012,” CGH Earth Managing Director and Chief Executive Officer Jose Dominic told PTI. He said the company is presently in talks with various PE investors to raise the amount required for expansion. “We are looking at raising nearly Rs 350 crore and are in talks with various PE investors to dilute a part of our stake in the company,” Dominic said. CGH Earth may also tap the stock markets through the IPO route. [...]

Kaveri Tele eyeing acquisition in North America

Kaveri Telecom will be buying a company, which is involved in antenna and radio frequency manufacturing. The size of the deal is seen at Rs 40-50 crore. Kaveri Telecom is likely to announce the deal in 1-2 months. The management has declined to comment on the deal. Meanwhile, they see FY08 turnover at Rs 100 crore. The reason for the acquisition is that the product they sell in India is for Rs 500 and if they sell the same product in North America, they can earn USD 42. (MoneyControl) [...]

Quipo to raise $100m from PE funds

Infrastructure services company Quipo, part of the Srei Group, is out to raise around $100 million from private equity funds by early next year. A bulk of this would be used for financing telecom tower business, even as the company plans foray into the development of airport infrastructure. IDFC PE and GIC Singapore had picked up around 30% stake in the company early this year for around Rs 150 crore. Srei Infrastructure Finance has 15% stake in the company. Quipo Infrastructure Equipment is in the business of leasing and renting out infrastructure equipment to construction, oil and gas and telecom industries. When contacted, Quipo Infrastructure Equipment vice-chairman Sunil Kanoria said the fund would part-finance the company’s planned capital expenditure of Rs 4,000 crore over the next two years. Around two-third of the expenditure would be for expanding the telecom tower business. Plans also include tapping the capital market by 2010. [...]

Adecco seals biggest HR deal by acquiring Indian arm

Staffing and HR company Adecco has completed the acquisition of its Indian arm Adecco India (formerly known as Peopleone Consulting). The Swiss major had earlier bought 67% stake in the Bangalore-based company in September 2004 for $10-15 million (Rs 40-60 crore). Sources said that the final enterprise value of the acquisition is now $50-60 million (Rs 200-240 crore). The final value makes the deal the biggest in the HR services space in India so far. The other transactions like Vedior buying Mafoi, Randstad buying EmmayHR and Manpower’s deal with ABC Consultants were in the Rs 10-40 crore range. Peopleone Consulting started operations in 2000 by Ajit Isaac, current CEO of Adecco India with equity investment from JP Morgan Partners and one other financial investor. In 2004, Adecco’s acquisition had included the 20% stake that JP Morgan held in Peopleone, and the rest from promoters and individual investors. [...]

Bank M&As to get own fairplay brink

The ministry of corporate affairs has arrived at an understanding with the finance ministry on not using the criteria used in other sectors for regulating mergers in the banking sector. The size threshold for merging companies to seek the competition regulator’s approval would be appropriately raised for banks after the Competition Commission of India (CCI) gains experience, sources said. The corporate affairs ministry, which turned down a finance ministry proposal to the effect, introduced the competition amendment Bill, 2007, in Parliament last week, with a uniform threshold for all sectors. The understanding with the finance ministry is that it would be suitably modified to keep mergers that do not adversely affect consumer interest out of the purview of competition regulation based on the regulator’s experience. As per the existing norm, a combined entity with more than Rs 1,000-crore assets or Rs 3,000-crore turnover in the country should notify the regulator. In the case of entities having overseas presence as well, the bar is $500-million assets or $1,500-million turnover in the country and abroad taken together (in addition to separately meeting the local requirement). However, for foreign companies merging abroad and for group companies, there are separate thresholds. The government expects the competition regulator to be fully functional by April. The norm is set to come under sharp focus in the light of State Bank of India (SBI) merging its subsidiaries with itself and the global consolidation of banks that have a presence in the country. Banking sources say SBI’s move to acquire the smallest of its seven subsidiaries, State Bank of Saurashtra, is likely to trigger more M&As in the sector. [...]

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. When contacted, Morepen Laboratories chairman and managing director Sushil Suri confirmed the development. He, however, refused to divulge details saying, “We cannot disclose the name of the investor.” Sources close to the deal also said Avenue has the option to subscribe 5% more of the equity by way of warrants in the future. For this, they will have to make a down payment of 10% of the agreed price upfront, while the remaining will be paid up in 18-months. This will trigger off the mandatory requirement of an open offer. [...]

Vijay Mallya plans to buy a controlling stake in Epic Aircraft

Indian businessman Vijay Mallya plans to buy a controlling stake in U.S.-based Epic Aircraft for about $200 million, the Mint newspaper said on Monday. “I am in talks with Epic promoter,” Mallya told the paper. Epic makes private business jets. A joint announcement by Mallya and Epic is expected by the end of the month, the newspaper said, citing a source close to the development. Mallya's UB Holdings controls Kingfisher Airlines and owns 26 percent in Deccan Aviation Ltd , which operates discount carrier Air Deccan. Together, the two airlines have about 30 percent of India's fast-growing domestic aviation market. (Reuters) [...]

Apax buys11pc stake in Apollo Hospitals

Apax Partners, the British private equity firm, is teaming up with Prathap Reddy, one of India's most prominent entrepreneurs, to give it a stake in the subcontinent's fast-growing healthcare industry. Apax is investing just over $100m for an 11pc shareholding in Apollo Hospitals Enterprise, which operates more than 40 sites and claims to be Asia's largest healthcare group. Apollo, founded by Dr Reddy in 1983, is listed on the Bombay Stock Exchange. Its new partnership with Apax cements the buyout firm's credentials as one of the world's leading investors in private healthcare businesses. The investment by Apax may spell the end of Apollo's interest in Capio UK, the owner of the Nightingale clinic in north London which has become known as a retreat for troubled celebrities. Capio is being auctioned by the investment bank NM Rothschild on behalf of Apax and Nordic Capital. The £300m sale process was triggered for competition reasons because of Apax's existing portfolio of British healthcare assets, which includes some of the country's leading private hospital operators. [...]