Murugappa Group company, Carborundum Universal Ltd (CUMI) has entered into an agreement with Foskor (Proprietary) Ltd, South Africa to acquire 51 per cent equity stake in Foskor Zirconia (Proprietary) Ltd, Phalaborwa, South Africa, (FZL) for an undisclosed some. With a 4200 tonnes per annum installed capacity for Zirconia (mineral), FZL is the third largest producer of Zirconia in the world. Fumed silica is also produced as a by-product of the furnace operation. This investment will be a good platform for CUMI to address the growing minerals business. The sales of FZL in 2007-08 were $ 16 million. This will be reflected in CUMI balance sheet starting from the current year. CUMI on a standalone basis has a total revenue of Rs 600 crore.   more »

Indian aviation could soon witness the next round of consolidation as Kingfisher Airline's 's move to acquire a stake in low-cost carrier SpiceJet has entered its final phase. UB Group chief Vijay Mallya is holding talks with SpiceJet's main promoter Bhupendra Kansagra in Europe for buying his 12.91% stake, along with a 13.42% stake held by Dubai-based investment firm Istithmar PJSC. Mallya, who is learnt to be looking for a total of 26%, stake, may have to shell out between Rs 145 to Rs 155 crore for the deal. At current stock prices, the SpiceJet's valuation is over Rs 600 crore. Its share closed at Rs 25 on Friday. SpiceJet is learnt to be losing up to Rs 70 lakh daily on account of high oil prices and looking for fresh infusion of funds to survive.   more »

Aviation entrepreneur G.R. Gopinath, founder of the country’s largest low-fare airline Simplifly Deccan (erstwhile Air Deccan), has mandated Mumbai-based investment banking firm Edelweiss Capital Ltd to seek out private-equity investors for his new cargo airline. Gopinath, who owns 100% of Deccan Cargo, plans to dilute up to 26% of his stake and eventually list the company to provide private equity investors an exit opportunity, said a person familiar with the development, asking not to be identified. Deccan Cargo plans to invest $200 million (about Rs863 crore) over the next three years, the person said. Infosys Technologies Ltd, India’s second largest software exporter, has won the mandate to design and implement technology that will allow Deccan Cargo to offer online “track and trace” facilities for customers, and help cut costs, this person also added.   more »

Bennett, Coleman & Company Ltd (BCCL) has picked up equity in SMC Group companies, which holds SMC Global Securities Ltd and SAM Global Securities Ltd under its banner. Founded in 1990 by Subhash Chand Aggarwal and Mahesh Chand Gupta, SMC is a full financial services firm catering to all classes of investors. SMC offers services in brokerage, arbitrage, merchant banking, wealth management and is also involved in the distribution of retail products, such as insurance, IPO and mutual funds. It also offers special advisory services to HNIs and corporates. With a 2% stake in SMC Group, BCCL would now be invested in one of the largest retail investor networks in the country, serving over 450,000 investors, having added 150,000 customers last fiscal. The SMC Group has a network of more than 1,350 offices across 350 locations in India and an overseas office in Dubai.   more »

National Aluminium Company Ltd., or Nalco, a public sector enterprise of Government of India and the second largest aluminium producer, is likely to acquire 51% stake in Tajik Aluminium Company or Talco, a primary aluminium producer owned by the Tajikistan Government, for undisclosed sum, according to media reports. Sources said in a statement that NALCO has approached the Government with the proposal and awaits its approval. Sources added that the matter is also under consideration of the Tajik Government. Once the deal materializes, it will see the combine emerging as one of the world's top-three aluminium producers with an output of 8,00,000 metric tonnes or MT, the release stated. Talco located in Tursunzoda, a city in western Tajikistan, runs the largest aluminium manufacturing plant in central Asia and is one of Tajikistan's largest enterprises. In 2006, Talco produced 416,000 MT of aluminium.   more »

Kingfisher Airlines Ltd., is close to finalizing a share-swap deal with New Delhi-based low cost carrier SpiceJet Ltd., the Business Standard newspaper said, without saying where it got the information. SpiceJet's stockholders are expected to get one share of the merged entity for every three shares owned, the newspaper said today. SpiceJet, which planned to raise $100 million for fleet expansion, is yet to get investors, the newspaper said. Kingfisher Airlines, controlled by billionaire Vijay Mallya, operates India's biggest budget carrier Deccan Aviation Ltd. (Bloomberg)   more »

UK-based Eredene Capital has picked up a 50% stake in Apeejay Infra-Logistics (AILPL), the infrastructure arm of Kolkata-based Apeejay Surrendra Group. The group is setting up a state-of-the-art logistics park in Haldia in West Bengal’s West Midnapore district. Eredene Capital has invested Sterling Pound 5.25 million or Rs 42 crore to pick up the 50% AILPL stake. This was confirmed by Abdul Wahid, the new chief executive officer of AILPL. Eredene Capital invests in infrastructure projects and in real estate development in India. It focuses primarily, but not exclusively, on logistics, distribution of warehouses and port services. Mr Wahid, who will be responsible for all infrastructure related activities of the Apeejay Surrendra group, has over 17 years of experience as a senior supply chain management professional. Speaking to ET, Mr Wahid said: “The Eredene group has picked up a 50% stake in APILPL at an investment of Rs 42 crore. The Eredene group has a crack team with core experience in real estate, infrastructure, ports and logistics and we see them as natural partners in the development project at Haldia. We look forward to working with them in this and other future projects as well.”   more »

Anil Ambani’s Reliance Communications (RCOM) is in talks to raise up to $5-6 billion from banks to part-finance its planned acquisition of the South African telco MTN. RCOM may pledge the shares of MTN to raise the funds and also provide some sort of guarantee to the lenders. Sources in the know said Deustsche Bank, HSBC and Barclays, among others, are putting in place short-term financing for RCOM to finance the deal. A few Indian banks and a host of European banks have also offered an underlying commitment to lend money for the transaction. RCOM will have to repay this debt in a year or so by raising long-term funding. RCOM’s 45-day exclusivity period (during which MTN could not consider any alternative partner) ends on July 7. It’s unlikely that the transaction would be completed by then, said a source in the know. Instead, the exclusivity period might be extended. The entire transaction is expected to be routed through a special purpose vehicle (SPV). In addition to RCOM, other partners could also pick up equity in this SPV. RCOM is learnt to have been in talks with a Middle East-based sovereign wealth fund and a couple of private equity players to offer stake in the SPV. It is learnt that the private equity funds are not-so-keen to participate in the SPV, while the sovereign fund is interested in it. RCOM will likely hold a majority equity stake in the SPV.   more »

Non-voice BPO firm Tricom India will pay $2.25 million for acquiring 100 per cent stake in the US-based Pacific Data Centers Inc (PDC). The new acquisition will enhance Tricom`s capabilities to address the needs of clients whose data cannot be sent offshore and also expand its service portfolio in other business domains, according to Mr Chetan Kothari, Managing Director of Tricom India Ltd. Established in 1976, PDC provides services such as data entry, data conversion, imaging, OCR, medical billing, claims processing, printing, mailing, and lock box services. Its customers include Government agencies, hospitals, insurance companies, direct mailers, banks, utilities and management organisations.   more »

Auto ancillary maker Amtek Auto is reported to be making a bid to acquire German castings company KSM Castingsfor around 250 million euros (around Rs1,700 crore). Apart from Amtek Auto two global private equity players are also reported to be in the race to acquire the firm for which the bidding has entered the second round. The Frankfurt-based KSM Castings supplies light metal casting products for the automotive industry. The proposed acquisition is part of Amtek's strategy to boost its revenues from overseas operations. If the deal is successful, it will be one of the largest acquisitions by an Indian company in the automotive forging category. KSM Castings' clientele includes Volkswagen Group, Daimler, BMW, Ford, Porsche, Bosch, and Mann & Hummel. The German company reported sales of e355 million last year.   more »