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Essar Group to buy 59.13 percent stake in AGC

Diversified business conglomerate Essar Group Sunday said it will acquire Avaya's 59.13 percent stake in converged communication solution provider AGC Networks for Rs.206.19 crore ($44.5 million). 'The Essar Group will acquire Avaya's entire 59.13 percent stake in BSE/NSE-listed AGC Networks for USD equivalent of Rs.206.19 crore, or Rs.245 a share, subject to customary Indian regulatory requirements and completion of the open offer,' it said in a statement. The acquisition will help catapult Aegis, in which Essar Services Holdings Ltd (ESHL) invests, into top-tier of solution integrators (SI) space. [...]

PE boom in public equity no more a PIPE dream

In the first five months of this year, there were about 15 deals worth $537 million as against $642 million in the whole of last year. Pipe Investments were in decline over the past two years after it peaked out in 2008 when a record $3.3 billion worth of deals were reported. Several top PEs like Blackstone, Bain Capital, Templeton, New Silk Route, IFC and Apollo Asia are among the players that made PIPE investments this year. Blackstone has done three deals this year, where it has invested in JK Tyre, Ess Dee Aluminium and Orbit Corporation. Among the larger deals were CX Partners’ Rs 150-crore investment in Monnet Ispat & Energy, IFC’s Rs 100-crore investment in Cholamandalam DBS Finance and Rs 96-crore investment by Temasek Group firm Aranda Investments to buy 4% stake in real estate company Sobha Developers. Analysts are estimating that this year PIPE deals could touch close to $1.5-billion mark as private equity players are seeing value in the listed space and they could buy into the downside. [...]

GMR Energy raises Rs 465 crore in PE fund

GMR Infrastructure said on Thursday a private equity fund, IDFC Private Equity Fund III, and four other investors have agreed to invest Rs 465 crore (USD 99.63 million) in its unit, GMR Energy. Infrastructure Development Finance Company, IDFC Investment Advisors Ltd Argonaut Ventures and Ascent Capital Advisors India Pvt Ltd are the other investors in the power utility, GMR Infrastructure said in an exchange filing. On 19 April, group chief financial officer, Subbarao Amarthaluru, told Reuters that the group wants to raise additional USD 100 million in private equity for its unlisted power unit in about one and half months. [...]

Carlyle invests Rs 102 cr in Tirumala Milk

The Carlyle Group, a global alternative asset manager with $88.6 billion of assets under management, has invested $22 million (approximately Rs 102 crore) in Andhra Pradesh-based dairy company Tirumala Milk Products Private Limited. The funds will be used for expanding its procurement network, processing capacity, entry into new markets and for the manufacture of new value-added products. This investment into Tirumala, which has an installed capacity of 1.35-million litres per day across five processing plants, comes from Carlyle Asia Growth Partners IV (CAGP IV), a $1.04-billion fund. Carlyle has already made five investments in India from the previous fund, Carlyle Asia Growth Partners III (CAGP III). [...]

Private equity partners eye stake in Apollo Hospitals’ pharma arm

The existing private equity partners of Apollo Hospitals, such as Apax Partners, Bisikan Bayu Investments (Mauritius), an investment arm of Khazanah, and Clsa (Mauritius), are likely to pick up stakes in Apollo Pharmacy, the retail pharmacy business of Apollo Hospitals, as the parent is seriously looking at hiving it off into a separate entity. Similarly, Apollo Hospitals would also look for partners for its nursing training business, Apollo School of Nursing, to unlock the value of each business entity of the group, sources close to the development said. Apollo Hospitals, which has been scouting for investors over the last few years for its retail pharmacy business, is expected to get strong support from the existing PEs, as a sizeable chunk of the 1,050 stores showed encouraging Ebitda margins during the last financial year. The rest of the outlets are expected to follow suit in coming months, sources pointed out. [...]

Yes Bank may see exit of Rabobank

Rabobank is said to be planning of selling its stake in Indian private sector bank, Yes Bank. It currently has 15.9 per cent stake in it. Rabobank, which is Netherlands based, is planning for the exit strategy since it wants to open its own branch in the country. Till now, it was hoping to grab a piece of the Indian banking sector through the partnership but has since felt that it is not getting enough out of the partnership. Because of this, the 110 year old bank which is also into the business of dealing with agriculture, decided to go solo. Also, the Indian regulations say that for a foreign entity to open its branch in India it needs to have some stake in domestic bank. [...]

R-ADAG emerges preferred bidder for OTCEI stake

controlling stake in Over-The-Counter Exchange of India (OTCEI) from some of the exchange’s existing institutional investors, according to officials close to the development. The officials said that R-ADAG put in a bid of Rs 90 crore and that there was close competition between MCX-SX and ADAG for acquiring control of the exchange. However, when contacted an ADAG group official declined to comment. Apart from the two, the BK Modi group had also expressed interest in buying an equity stake in the Mumbai-based exchange that was incorporated in 1991, three years before NSE was established. The rules on ownership of stock exchanges restrict a single investor’s shareholding at 5%. According to officials, the entity acquiring a controlling stake in OTCEI will have to approach market regulator Sebi for greater clarity on this issue. [...]