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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. […]
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. […]
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. […]
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. […]
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. […]
Punj Lloyd Group, a specialist in engineering, procurement and construction (EPC) services, has acquired a strategic 74 per cent stake in Technodyne International Limited, UK for an undisclosed amount. Technodyne is a specialist engineering, design and consultancy company specializing in large scale cryogenic and high pressure tanks. With projects executed across the world, Technodyne carries out the basic design and detailed engineering for complete steel and steel plus concrete tanks including associated piping, instrumentation and electrical systems. Technodyne also has track record in designing of test rigs. “This acquisition is a strategic fit and further strengthens Punj Lloyd's existing tankage and terminal business. The acquired capabilities enable the Group to provide end-to-end solutions for complete delivery of complex cryogenic, high pressure LNG, LPG, ethylene, ammonia and other similar storage tanks, a significant growth area in Oil & Gas sector. The capabilities will also be leveraged for design of refinery and petrochemical projects,” the company said in a statement. […]
Anil Ambani, the billionaire chairman of India's Reliance Communications , may link up with private equity groups in a bid to gain a powerful foothold in sub-Saharan Africa's biggest mobile phone operator MTN , the Financial Times said on Wednesday. Quoting people familiar with the situation, the FT said private equity groups had expressed interest in supporting Ambani's plan to swap all or most of his majority stake in Reliance, India's No.2 mobile operator, for up to 34.9 percent of MTN. “These are people who are all interested in telecoms and emerging markets, therefore this deal is an obvious place for them to invest,” the paper quoted a person familiar with the potential tie-up as saying. A combination of MTN, valued at $35.6 billion at Tuesday's close, and Reliance, valued at $26.9 billion, would create a top 10 global industry company to rival Japan's NTT DoCoMo […]
Spice Communications is open to all offers, including stake sale, and is currently waiting for a proposal from Telekom Malaysia before it takes a decision, its chairman said. Telekom Malaysia (TM) holds 39.2 percent in the Indian telecom services provider. Spice, which currently has operations in two of the 23 telecom circles, needs funds to expand. “We have got four new licenses and are hoping to get more. We have to expand company's capital and total investment,” Bhupendra Modi told reporters on the sidelines of annual shareholders meet. Modi said although firms like UAE's Emirates Telecommunications (Etisalat) have been in talks with Spice, he was waiting for an offer from TM as Indian laws permit a maximum of 74 percent foreign holding in telecoms. “As TM has already 39 percent, any restructuring on the foreign side has to be done with TM. […]
Global investment and technology development firm DE Shaw & Co. Inc. invested 6.3 billion rupees in India's International Amusement Ltd. (IAL), reported Business Standard, quoting unnamed sources. The report said the private equity deal values IAL at 30 billion rupees, but said the exact stake acquired by DE Shaw was unclear. Robin Vijeshwar, managing director, IAL, was quoted as saying that the company is in talks with several private equity funds, but declined to discuss the details of the transaction. The company plans to use the funds for its 350-acre Jaipur amusement park, and some other ongoing projects, the financial daily said.(Forbes) […]
UTI Ventures, the venture capital arm of UTI asset management company, is planning to raise a $400-450 million fund. This will be the third fund of Bangalore-based venture capital major and is likely to be called “Ascent India Fund”. The fund will open by July and close in 3-6 months. The company would tap institutional investors in the US, Europe and Asia. Endowment funds, pension funds and high-end sovereign wealth funds would contribute in the fund-raising exercise, according to sources. The fund will finance deals ranging between $15 and $20 million. It would invest across sectors, with a major focus on infrastructure, retail and media. The venture capital arm of India's third largest AMC has initiated talks with prospective companies for investment purposes. […]
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