Delhi-based publishing house MBD Group is in talks with international private equity firms to offload equity in its mixed-use development MBD Zephyr in Bangalore, as it tries to raise funds in a nervous and choppy market. The mixed-use development, which is expected to be completed by 2011 will have a luxury hotel, space for luxury and premium retail, and entertainment spaces. The company is looking at offloading between 26% and 49% equity in the retail portion of Zephyr, which is spread over more than 80,000 sq. ft. “We have started sensing the market. We have been approached by some private equity funds,” said Sonica Malhotra, executive director, MBD. She did not say how much the company expected to raise from this divestment. The eight-acre MBD Zephyr project at Whitefield near Bangalore is targeting luxury brands such as Gucci, Versace, Louis Vuitton and premium ones such as Debenhams, Zara, Mango and Body Shop. Zephyr will also have a 450-room luxury hotel owned and managed by the MBD Group.   more »

Telco Construction Equipment Company Ltd (TELCON), leading construction equipment sector in India, signed an agreement with the existing shareholders of Serviplem SA, Spain for acquisition of their 79% stake in the company. As part of the partnership strategy, the existing owners will continue to be associated with the venture and own the remaining 21%.   more »

The Rs. 3500-crore Gitanjali Gems Ltd., India's largest integrated diamond and jewellery manufacturer and retailer, today announced the complete acquisition of Gili. Earlier the Group had 65% stake in the 'Superbrand'. The first jewellery brand to be launched in India- Gili is evaluated at INR 85 cr today and had achieved a Superbrand status in 2004. For more than a decade now, the brand offers Indian consumers a world of choice in gold and diamond jewellery – truly "Easy Elegance". Gili was launched in the year 1994 with its primary brand value being, "Genuine diamond and gold jewellery at affordable prices" and it has come a long way becoming andd sustaining itself as one of the most preferred brand in its category. Gitanjali Gems Ltd has also acquired 100% Shares of 'Modali Gems Pvt Ltd.' (MGPL), earlier a joint venture Company. By way of this acquisition, MGPL has become a wholly owned subsidiary of the Company. The main business of MGPL is to manage the distribution of the brand Asmi and allied products. It is currently a 120 people company with about 45 distributors and 345 retailers under its banner. These powerful acquisitions will drive much more value to key stakeholders including end customers, and partners of Gitanjali Group. This all adds up to advantages including better deals for consumers and access to the world's most coveted brand than ever before.   more »

Liquor tycoon Vijay Mallya is open to buying back Heineken’s 37.5% stake in United Breweries (UB), in which he holds an equal stake, at the prevailing market price. “If you ask me whether I would buy them back, my answer is at today’s price, sure, I am a buyer,” Mr Mallya told ET. But Heineken sources said the Dutch brewer has no plan to sell its stake. Heineken will inherit stake in UB from Scottish & Newcastle (S&N) after the completion of a worldwide takeover of the British brewer. The Heineken-Carlsberg combine announced S&N’s acquisition for $15.4 billion in January. The acquisition process is still on. At the current price, UB’s market cap is pegged at Rs 3,800 crore, down almost 50% from January’s peak. Mr Mallya will have to show up with Rs 1,425 crore if he were to buy back at the prevailing rate. The UB scrip closed flat at Rs 176 on BSE on Thursday.   more »

Japanese conglomerate Itochu Corporation has bought around 30% stake in Mumbai-based Rajendra Plastics (RPPL) from the Punamiya family for nearly Rs 90 crore, putting the valuation of the plastic bag maker at Rs 300 crore. This is the Japanese company’s first investment in the growing plastics industry in India. Neemit Punamiya, managing director, RPPL, confirmed the deal, but declined to divulge its exact size. “They (Itochu) have bought 29.94% stake in our company. Their expertise in international operations will help us improve our corporate governance and provide us with better technology in manufacturing and marketing. The association with the Japanese giant will also help our exports. Their exposure and experience may lead to diversification into allied products and services.” Itochu officials could not be reached for comments. Post deal, the promoters will hold over 70% stake in, and retain management control of, the privately-held company. The sale proceeds will be utilised to double the company’s annual capacity to 44,000 tonne by next year.   more »

Jet Airways India ’s chairman Naresh Goyal is planning to dilute 10 per cent stake of the company in favour of foreign institutional investors and private equity players, K G Vishwanath, general manager-finance, said. “The decision was taken about three weeks ago,” Vishwanath said, but declined to disclose the price at which the stake will be sold. The stake sale will be conducted prior to the rights issue of equity shares through which the company plans to raise about $400 million.   more »

Bennett, Coleman & Company (BCCL) has acquired a stake in Pune-based Abbee Consumables and Peripherals Sshope (ACPSL). ACPSL's core business includes refilling inkjet and laser cartridges. In 2003, the company launched the first Indian retail chain/franchisee operation 'Abbee Sshope', dealing in branded printer cartridge refilling services. In addition to the refilling services, Abbee Sshope also serves as a one-stop shop for ITeS companies. B B Somani, CEO of Abbee Sshope, said, "This deal recognizes the potential of refilling industry in India. Presently the industry is fragmented in unorganized sector which does not have any accountability towards customers. Our retail chain is committed to fulfil the customers' demand for quality refilling at reasonable price. We are creating completely new ethos which will change the refilling industry in India."   more »

Domestic brokerage firm Religare Enterprises is close to acquiring London’s oldest broking firm; Hichens, Harrison & Co. The deal is expected to be announced by this weekend. The size of the acquisition is pegged over $100 million (about Rs 400 crore). For the half-year ended June 2007, Hichens, Harrison & Co — listed on the Alternative Investment Market of the London Stock Exchange —had reported revenues of £10.6 million and operating profits of £2.9 million. If successful, this would be first overseas acquisition by an Indian brokerage firm abroad. When ET contacted, Religare CEO and MD Sunil Godhwani said, “We are constantly evaluating opportunities to strengthen our business model both through organic and inorganic routes, especially for our institutional business.” The proposed acquisition is expected to give Religare a foothold in the extremely competitive international capital markets. The company, which currently has one of the largest retail networks among Indian brokerage firms, is now eyeing a strong presence in the institutional space.   more »

State Bank of India (SBI), India's largest bank, said it has bought a 91 pct stake in Global Trade Finance Ltd (GTF), trade finance solutions provider, without mentioning the size of the deal. The bank -- 59.7 pct-owned by the Indian government -- said it has executed a share-purchase agreement with Exim Bank, FIM Bank Malta and International Finance Corp (IFC), the World Bank's private sector lending arm, to acquire their holdings in GTF. On Jan 24, the company said it intended to buy the stake for about 5.2 bln rupees. EXIM holds 40 pct of GTF while the Washington-based IFC holds 12.5 pct, FIM Bank has a 38.5 pct stake and India's state-run Bank of Maharashtra owns the remaining 9 pct. GTF reported a net profit of 288.7 mln rupees in 2007, a rise of 171 pct year-on-year. ( Forbes)   more »

Tata Motors will buy luxury brands Jaguar and Land Rover from Ford Motor for $2.3 bn in cash. The purchase price is less than half of what Ford had paid for the two brands as demand for luxury vehicles has dropped the world over. The acquisition is the largest ever by an Indian company in the automobile space. Ford will pay about $600 mn to the Jaguar Land Rover pension funds, the two companies said in a joint statement today. Ford had bought Jaguar in 1989 for $2.5 bn while Land Rover was bought from BMW for $2.5 bn in 2000. The transfer of ownership to Tata Motors is expected to close by the end of the next quarter, subject to regulatory approvals. "We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact," Tata Motors Chairman Ratan Tata said. Alongwith the two brands the deal will involve acquisition of plants and Intellectual Property Rights (IPR) held by the two brands. Tata Motors did not mention the mode of financing the deal, but sources familiar with the developments said it would be done mainly through bridge financing from a clutch of banks, including JP Morgan, Citigroup and State Bank of India (SBI). The company is raising Rs 4,000 crore through issue of securities in the foreign and domestic market in one or more tranches   more »