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Baring may acquire 15% in Famy Care

Baring Private Equity Partners (India) is the front-runner to buy about 15% stake in Mumbai-based drugmaker Famy Care for around $40 million, or Rs 185 crore, a person familiar with the matter said. Privately-held Famy Care is one of the world’s largest maker of oral contraceptives pills. “If the talks fructify, the deal could be closed within a month or two,” the person, a pharma industry executive asking not to be named, said. The deal will value Famy Care at Rs 1,230 crore, making it one of the biggest private equity investments in the pharma sector in recent times. When contacted by ET, Sanjeev Taparia, MD at Famy Care, said: “We are in discussions with potential PE funds. But we can’t share names as nothing has been finalised.” He also declined to share the financial details about the company. Mr Taparia leads the company owned by Taparia family. [...]

Shree Renuka buys Brazilian sugar company for Rs 1,530 cr

India Inc has made a significant foray into Brazil, the largest sugar producer in the world. Shree Renuka Sugars Limited (SRSL) has entered into a definitive agreement with Grupo Equipav of Brazil for an investment of USD 329 million (around Rs 1,530 crore) leading to a majority, controlling equity stake in Equipav S.A. ACUCAR, one of the largest sugar/ethanol companies in that country. The company consists of two very large and modern sugar/ethanol mills with integrated co-generation facilities in Sao Paulo state in Southeast Brazil having a combined cane crushing capacity of 10.5 million tons of cane per annum (44,400tcd). In addition, Equipav has a co-generation capacity of 203 MW. The mills will be expanded to a combined capacity of 12.0 million tonnes (56,600 tcd) per annum and 295 MW with a capital expenditure of $218 million. [...]

NMDC to pay $2.5 bn for 50% stake in Ferrous' Brazil ops

State-owned NMDC is set to pick up 50% stake in the Ferrous Resources Ltd’s Brazilian operations for $2.5 billion, marking the first overseas foray by India’s largest mining company. NMDC has signed the non-disclosure agreement with the Ferrous group, a multinational consolidator of iron ore with properties in several countries, such as the US, Brazil and Canada, said two senior executives familiar with the development. Under the proposed deal, the Ferrous group will issue fresh shares worth $2.5 billion to NMDC over the next few years. The funds will be used for developing mines and building infrastructure, said a senior executive who was part of the negotiations. [...]

Rel Media makes counter bid for Fame at Rs 83.40 a share

Anil Ambani-led Reliance MediaWorks on Sunday made a public offer to buy an additional 52.48% stake in the multiplex chain operator Fame India for about Rs 180.14 crore, countering an existing takeover bid by rival Inox Leisure. Recently, Inox Leisure had signed an agreement to acquire 43.28% promoter’s stake in Fame India and earlier this month made an open offer to buy another 20% stake, at a price of Rs 51 per share. At present, three Anil Ambani group firms — Reliance MediaWorks, Reliance Capital Partners and Reliance Capital — together hold about 10.26% stake in Fame. In a public notice, Reliance MediaWorks said it would make an open offer to acquire 52.48% in Fame India. Sources said the decision to make the open offer was made at a board level meeting held on Saturday. [...]

Complex regulatory regime impeding PE flows into infra

Delays in getting approvals and complex regulatory environment in the country are major factors impeding private equity (PE) flows into the infrastructure sector, says a study. Delay in financial closure of infrastructure projects and non-transparent bidding processes are other reasons hampering PE flow into the sector, a joint study by industry chamber ASSOCHAM and audit firm Ernst & Young said. Absence of vibrant bond markets in India is also a handicap for private equity investment unlike other developed nations where they (bond markets) serve as an alternative avenue for financing and re-financing, the study said adding that the bond market in India has not grown substantially. [...]