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Tanla Solutions buys Finland's Openbit for $18.6 mln

Tanla Solutions Ltd. said it has bought Finland-based Openbit OY, which provides software to help pay for mobile content, for a total $18.6 million in cash. In a regulatory filing, Tanla said it has bought an 85-percent stake in Openbit for $15.81 million, and will buy the remaining 15 percent within three years. For the year to Dec. 31, 2007, Openbit had revenues of $15.88 million with an EBITDA of $0.79 million. Its clients include Nokia , Symantec , F-Secure and Quickoffice, and gaming companies like 3D Arts and Gamelion.(Forbes) […]

ICICI Venture, JP Morgan to invest Rs 120 cr in PVR

PVR Pictures, a subsidiary of PVR, has signed agreements with ICICI Venture Funds Management Company and JP Morgan Global Special Opportunities Group for an investment of Rs l20 crore in the company. JP Morgan and ICICI Venture will each invest Rs 60 crore in PVR Pictures. This transaction will enable the parent, PVR, to become a fully integrated film and entertainment company with interests across the entire value chain including production, distribution and exhibition. PVR is already one of the largest multiplex operators in India and contributes 15 per cent of the box office collections of any leading Bollywood film. The expansion into the production and distribution business through PVR Pictures will create further synergy f or the group by leveraging its exhibition circuit. […]

KSK Fund to raise 10mn pounds from AIM listing

KSK Emerging India Energy Fund, which will make investments in Indian power and energy companies, plans to raise up to 101 million pounds through its listing on the Alternative Investment Market next week. The newly incorporated firm in Guernsey, Channel Islands plans to list its shares on AIM, which is part of the London Stock Exchange, on June 9. It would seek registration in Guernsey as a closed ended investment entity. The objective of the company is to generate long-term capital growth for its shareholders through diversified exposure to an actively managed portfolio of investments into companies engaged in the Indian power and energy sector value chain. The company would target predominantly unlisted companies with strong growth prospects and experienced management teams that require capital for growth, KSK Emerging India Energy Fund said in a regulatory filing, which is mandatory prior to the listing. It would mainly target investment in growth capital companies such as those engaged in manufacture of equipment, providers of engineering, design and construction services. […]

Motilal Oswal Venture invested Rs 60 Cr in Parag Milk Foods

Funds managed and advised by Motilal Oswal Venture Capital Advisors Private Limited (“MOVCAPL”) and its associates, have invested Rs. 60 Crs in Parag Milk Foods Pvt. Ltd (“Parag/ Gowardhan”), one of the fastest growing dairy in the country and selling under the brand “Gowardhan”. Parag, based out of Maharashtra, is one of the few players that use 100% cow milk for all their products. Its product portfolio includes liquid milk and various dairy products such as milk powder, cheese, ghee, butter, cream, curd, butter milk and gulab jamun mix. Parag has a state-of-the-art Bhagyalaxmi dairy farm spread over an area of 30 acres and equipped with the latest rotary parlour for milking cows. This has been a path breaking initiative by the company and will put the Company in the league of global dairy companies once scaled up. […]

RCom ropes in Deutsche Bank for MTN deal

Reliance Communications (RCom), India's second-biggest mobile phone company, has hired Germany's Deutsche Bank as arranger to fund the possible acquisition of South African telecom giant MTN Group. RCom plans to raise about $14 billion, or about 30 per cent of MTN's total enterprise value of $45 billion including premium, from private equity players. The remaining $31 billion will be adjusted with the share exchange of the promoters,” a source familiar with the situation told Business Standard. Deutsche Bank, Germany's biggest bank, is in talks with private equity companies, including the Carlyle Group, the Blackstone Group and Apax Partners to raise funds. RCom has given Deutshce Bank the freedom to raise funds from private equity companies, banks and other financial players. However, the source declined to divulge the details of the route of funding RCom was considering. When contacted, an RCom spokesperson declined to comment. RCom, which had commenced the due diligence of the MTN Group last week, is expected to close it by this weekend. “This is a large process as books and financials of subsidiaries in 21 countries have to be checked but the company will close it this week itself,” he added. […]

PE firms gear up $5-bn war chest for R Comm’s MTN deal

Private equity firms Blackstone, Apax Partners and Carlyle are gearing up a war chest of $5billion for Anil Ambani’s Reliance Communication Ltd’s (R com) deal with the South African telecom giant MTN. However the role of the private equity firms is not very clear since the corpus of $5 billion is not a very substantial amount for the deal, which would essentially entail exchanging shares. According to sources the firms are willing to raise the corpus for the deal which if comes through would see, Anil Ambani exchange his majority stake in his Group’s flagship company for up-to 39.4% stake in the resulting firm. R com’s banker on raising funds for the acquisition is Deutsch Bank. […]

Pre-IPO deals get PE investors best returns

While the foreign institutional investors might be miffed with the Indian equity market and be steadily decreasing their exposure, private equity players might not, as returns earned by deals remain in the positive zone. Incidentally, private equity investors took a record $19.5 billion exposure in India, significantly higher than the $12.8 billion in China. In this segment, the pre-IPO marker seems to have been the stellar area where investments made in 2007, and marked to market till end of May, have seen the deals generate a 128.30% return, says a study conducted by New Delhi based SMC Investment Solutions & Services. Earlier known as the venture capital, pre-IPO route is where private equity funds invest in the company way before the IPO and then earn the gains by exiting after listing or in the secondary market at an opportune time. […]

Kotak plans $1-b infrastructure fund

The lure of infrastructure finance opportunities is prompting more players to set up dedicated funds. The Kotak Mahindra Group is now looking at launching a $1-billion infrastructure fund, for which it could tie up with a global player. It is also looking at options of setting up a hedge fund type structure from one of its overseas arms to invest in India. The group had last year moved its private equity and real estate funds under Kotak Investment Advisors (KIAL). This alternate assets division already has assets under management of nearly $1.6 billion, which would increase to around $2.5-3 billion in a year’s time if the infrastructure fund gets launched. It is also in the process of raising funds from overseas markets for its private equity and real estate funds. KIAL, which came into effect from October 1, 2007, had posted a net profit of Rs 13.5 crore for the year ended March 2008. […]

JP Associates may dilute its equity to fund Ganga Expressway Project

Noida-based infrastructure developer Jaiprakash Associates is considering a dilution of its equity to fund the initial expenses of the Rs 40,000-crore Ganga Expressway Project. If market sources are to be believed, the company is in talks with a handful of foreign investors. This is not the first time Jaiprakash Associates is offloading stake to fund a project. The company had raised Rs 1,150 crore by selling 1% stake to ICICI Bank. The dilution was effected to capitalise Jaypee Infratech, a subsidiary company formed to develop, construct and operate Taj Expressway, a 165-km, six-lane access controlled toll expressway between Noida and Agra in Uttar Pradesh. […]

Phoenix Mills eyes $450 million funding from PE funds

Realty developer Phoenix Mills, promoted by Atul Ruia, plans to raise nearly $450 million (nearly Rs 1,890 crore) from private equity investors to fund its mall and hospitality projects, a top company official said today. “We will raise these funds at the project level and all the projects are FDI-compliant. We have got good response from investors,'' said Mahesh Iyer, chief financial officer of Phoenix Mills. The company is planning to raise $200 million to fund its retail projects and $250 million to fund its hospitality projects, Iyer said. The company has projects for developing 25 million sq ft of space across the country. Phoenix Hospitality, the hospitality arm of Phoenix, is developing nearly 14 hotels across the country. Phoenix has tied up with Hong Kong-based Shangri-La to manage its hotel property in Lower Parel in Mumbai and has also tied up with the Hyatt group and US-based Marriott International to manage its other hotel properties. […]