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The next set of merger and acquisitions are expected in the Indian port sector despite the recent rise in cost of purchasing terminals, according to a study. “Ports are increasingly attracting the interest of investors. The merger and acquisitions trend in port have hit India, too,” Ernst and Young said in a study. One of the main reasons why there would be an increase in M&A activities in this sector is that investors feel that port offers a steady source of income, it found. Financial investors, especially with a long-term horizon, like port assets because these assets tend to generate steady cash flows and high margins. […]
The health sciences sector has historically been one of the favoured sectors for PE firms in India and globally. In the former years, there were early stage investments in firms like Ajanta Pharma, Medicorp, Gland Pharma, Neuland, Biocon etc. Majority of these were led by Indian Venture Capital (VC) firms and were done in the late nineties. As the sector grew dramatically and Indian firms achieved perceivable success in the global generics arena, the size of deals and stage of investment changed. While there have been large deals such as Matrix, Emcure, Jubilant, Apollo, they have been comparatively fewer and majority of the deals average on/at $15-20 million range. As per industry estimates, PE statistics of 2007 show that the health sciences sector accounted for only two percent of the total PE market in India. Funds which have been active in the health sciences sector are ICICI Ventures, CVC, Chrys Capital, IFC, Actis and Schroders. While formulations and Active Pharmaceutical Ingredients (API) were the key areas of interest earlier, outsourcing Contract Research and Manufacturing Services, (CRAMS) and healthcare has been the dominant investment themes in recent times. Outsourcing/CRAMS continues to be a favourite with three major investments this year (Sai Advantium, GVK Biosciences, Siro) focusing on this theme. Two large deals (Max/IFC and Apollo/Apax Partners) this year in healthcare reiterated the importance of healthcare in the portfolio of large, global funds. […]
Buyouts by private equity investors this year account for 15 per cent of the total M&A deals in the country. This has increased four per cent from the same period last year. The most significant PE deal in the country has been the 324 million dollar buyout of 14 per cent stake in Akruti City by Citi Venture Capital International and American International Group this year. PE investments constitute eight per cent of the total global M&A volumes, while they account for six per cent of the deals in the US so far this year. The average size of the PE deals in 2008 so far has been 49 million dollars, against 27 million dollars last year. […]
After the $2.3 billion Jaguar-Land Rover deal, Ratan Tata is looking to partake in designing automobiles by picking stake in Italian design house Pininfarina, known for designing the likes of Ferraris. Pininfarina on Thursday said Tata has shown interest in picking up a stake in the automotive design house. “To further reinforce the strategic tie between Tata group and Pininfarina group, Ratan Tata, chairman of Tata Sons, has expressed interest in the Tata companies participating in Pininfarina's planned capital increase with the subscription of a portion of the options that will be assigned to the Pininfarina family,” the Italian firm said. When contacted, Tata Motors spokesperson said without divulging the deal size, “The company is going to take a minority stake in Pininfarina”. Pininfarina also said it would set up an R&D and engineering centre in Pune by the end of this year, where homegrown major would have a minority stake. […]
Reliance Globalcom, a fully owned subsidiary of Reliance Communications, has acquired 90% stake in UK-based Wi-Max operator eWave World. Globalcom is betting on eWave's Wi-Max licenses to tap international markets in Europe, Asia, and Latin America. Globalcom has done it again. After a USD 300 million acquisition of Yipes Holdings last year, the company has bought out majority stake in a start-up company this year. Wi-Max operator eWave World is just two-years old and has not yet made any profits until now. But the company holds licenses and spectrum to start Wi-Max services in 20 countries. While Reliance Communications may take a while to launch Wi-Max services in India on account of spectrum scarcity, it is hoping to ride on eWave to tap international markets. […]
Axis Private Equity, the PE arm of Axis Bank, has raised a Rs 600-crore infrastructure fund. IDFC Private Equity, another major, had on Tuesday announced its intention to raise a $700-million fund for the sector. According to sources familiar with the matter, Axis Private Equity is already in the process of finalising four deals related to the infrastructure sector. “Of its targeted corpus of Rs 2,000 crore, Axis PE has closed its first fund — Axis Infrastructure Fund 1 — by raising Rs 600 crore,” said a person involved in the development. The PE has already identified four investment targets, he added. When contacted, Axis PE chief executive officer and MD Alok Gupta declined to comment. Axis PE raised Rs 600 crore within a period of five to six months from its launch, the tight liquidity conditions notwithstanding. Apart from pension funds, investors in the fund also include sophisticated domestic and international banks and corporates. The Axis Infrastructure Fund has an anchor investment of Rs 200 crore from Axis Bank — the erstwhile UTI Bank — while the rest is being raised from outside. […]
Kolkata-based, Century Plyboards India (CPIL) has bought Chennai-based Sharon Plywoods and Karnal-based Century Panels in an all-share transaction on a High Court order. Through this deal, the company will get control of Sharon Veneers Pvt Ltd (SVPL) and Sharon Wood Industries Pvt Ltd (SWIPL), which were merged on April 1. Century Plyboards (India) Limited engages in the manufacture, sale, and export of plywood and veneer in India. The company markets its products under the ‘Centuryply’ brand name. The move is in line with the Century Plyboards’ plans to expand its product line and move into new markets. […]
E.I.D. Parry (India) Ltd, the Murugappa Group company, has decided to sell its stake in the Parryware Roca joint venture to its partner, Roca of Spain. According to a press release from E.I.D. Parry, its board has decided to sell the 47 per cent stake it holds in the 50:50 joint venture to the Roca Group of Spain. E.I.D. Parry will retain the balance 3 per cent. The company is selling its stake for €112 million (Rs 725 crore). The release quoting A. Vellayan, Vice Chairman, Murugappa Group, and Chairman, Parryware Roca (Pvt) Ltd, said it is a mutually beneficial move for the partners. The stake sale helps realise good value that can be invested in its core businesses. For Roca, the deal will ensure its strategy to stay ahead of the competition in the bathroom products market. Roca acquired the 50 per cent stake in Parryware in 2006 for €50 million (Rs 275 crore). Vellayan will continue as the Chairman of Parryware Roca, the release said. […]
The buzz is back in India's oldest financial institution IFCI as the finance ministry has again revived the process of selling stake in IFCI to strategic or financial investors. The IFCI stock surged over 4.5 per cent in Wednesday’s trade on multiple block deals. NDTV has learnt that the finance ministry has asked IFCI's top brass to start the process of stake sale and here are the options before IFCI. IFCI may sell 26 per cent stake to strategic investor and it might alternatively hive off 10-15 per cent stake to a financial investor. The IFCI board is to meet on April 29 to consider stake sale. […]
A Norway-based private equity fund will invest Rs 400 crore (500 million Norwegian kroners) in India's energy sector, which is expanding rapidly to meet the South Asian country's growing need for power and oil. The Indo-Nordic Private Equity AS was launched last week in Norway's capital of Oslo by Indian Ambassador Mahesh Sachdev and that country's richest man Stein Erik Hagen. “Till now, most of the business between India and Norway was in the form of Indian companies buying services from Norwegian companies in the field of shipping and oil and gas,” Suneel Regulla, the managing director of the fund, said. […]
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