September 2007
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Tatas plans buyout of UK's Liberty

The Tata Group is planning to buy UK-based specialty tea company Liberty Tea to expand its presence in the global beverages market and acquire a larger share of the retail shelf space. The talks are still at a nascent stage and senior Tata Tea officials are examining the synergies that the acquisition would bring to its UK presence, the group sources said. Tata Tea's almost total dependence on black tea revenues has forced the beverages major to look at other product categories. The company is now the world's second-largest global branded tea player with a presence in 40 countries and owns brands such as Tetley and Good Earth. Tata Group sources say acquisition of Liberty Tea would benefit Tetley the most, as the 'Super Brand' is currently looking to grow in the rest of Europe, particularly in the former eastern block countries and in the Caribbean. (ET) […]

PE majors, Carlyle & TPG eye stake in NIIT

The promoters of Delhi-based IT company NIIT Technologies (NTL)are in talks with private equity (PE) players Carlyle and TPG for selling a majority stake. Promoters, who currently hold 40% in NTL, may sell anywhere between 25-40%, the sources said. This will trigger an open offer, where investors can buy 20% more in the company. “NIIT (through its wholly-owned subsidiary Scantech Evaluation Services) holds 25% in NTL with a vision to attract strategic partners, if required, and to help in its next level of growth. There is no change in that position. Since NTL has a market capitalisation of Rs 1,309 crore, a 60% stake in the company will cost around Rs 1,000 crore, depending on the premium that the investors are willing to pay to the promoters. If the deal goes through, this could be one of the biggest deals in the IT sector. (ET) […]

PE presence what’s in it for investors?

First came the foreign institutional investors and changed the landscape of the Indian equity market and also investing styles. Now that they have settled down, we have a new breed of investors, the private equity funds, who are creating ripples in the global market, have started to make their presence felt in India too. Recent deals like the Blackstone Group buying out the majority stake in textile company Gokaldas Exports and also taking a stake in Nagarjuna Construction Company and General Atlantic, Warburg Pincus and the Blackstone Group eyeing a larger share in Infomedia India, have started to garner attention. As an investor, it becomes paramount to understand the dynamics of the funds and be armed with the information. With global experience, PE funds can, to a great extent, determine the future of the company that they have invested in. After all, PE investing is not merely portfolio investing as in the case of FIIs. PE funds go beyond and influence management decisions and in many cases are the management themselves. […]