July 2010
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PE fund 3i India shuts down buyout division

Private equity major 3i India has closed down its buyout division and merged the team with its infrastructure unit, because it sees greater investment opportunities in building roads, bridges and power stations than in taking over companies. This mirrors a similar development in the firm’s Asian operations, where the buyout team was recently merged with the growth capital division. The head of 3i’s Asian buyout team, David Osborne left last month. Saurabh Shah, the former head of the India buyout team, will now move to the infrastructure team along with Shrikant Bahadkar, taking the total team strength for infrastructure to ten. “Our long term view is that buyout will be big in India, but at the moment there is no supply…no one is selling, so buyouts are scarce,” 3i Asia head Anil Ahuja, who is also in charge of the infrastructure unit, told ET. Infrastructure is one of the three focus areas for the listed private equity firm which has around $11 billion in assets; the other two are growth capital and buyouts. […]

PE investment up three times in first half

PE players, advisory firms say the second half will see the same level of activity. Private equity (PE) investments are back. In the first half of calendar year 2010, total PE investments touched $4,571 million (around Rs 21,380 crore) across 138 deals (excluding real estate). This was a three-fold jump over the $1,508 million (around Rs 7,057 crore) invested in 111 deals during the same period last year, said a study by Venture Intelligence, a research service focused on PE and merger and acquisition (M&A) activity in India. In the quarter ended June 30, PE firms invested about $2,364 million (around Rs 11,063 crore) in 67 deals. This was 2.6 times more than in this period last year (which saw $890 million being invested in 51 deals) and also higher than the quarter prior to that ($2,207million in 71 deals). With this, the amount invested by PE firms in India has climbed for the fifth successive quarter. […]

India M&A and PE deals total US$13.74bn: Grant Thornton

The total M&A and PE (incl. QIP) deals in the month of June 2010 were valued at US$13.74bn (67 Deals) as compared to US$1.38 bn (43 deals) and US$6.30bn (72 Deals) in the corresponding month of 2009 and 2008 respectively. The total value of outbound deals (Indian companies acquiring businesses outside India) in June 2010 was US$0.13 bn (17 deals) as compared to US$0.14 bn (4 deals) and US$1.89 bn (18 deals) during the corresponding month in 2009 and 2008 respectively. The total value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) in June 2010 was US$0.41 billion (6 deals) as compared to US$0.12 billion (10 deals) and US$2.42 billion (11 deals) during the corresponding month in 2009 and 2008 respectively. […]

Media sector eyes mid-ticket deals in coming months

The fragmented media industry is heading for several mid-sized deals in coming quarters as cash-rich regional players try to expand, while larger but loss-making operators look to consolidate around core segments. The $12 billion media and entertainment industry, which has seen a handful of recent mergers, is poised for a wave of small to mid-sized deals across radio, television, newspapers and cable distributors, bankers and analysts said. “There is some appetite now for mergers and acquisitions,” said Jehil Thakkar, media analyst at KPMG Advisory, who expects deals worth a total $100-$150 million in the sector. “Industry is still recovering, not recovered. So people who need to cash-out will see it as an opportunity to do so in the next few months,” he said. […]