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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.” […]
In a sector that’s largely unorganised and dominated by family-run set ups, private equity and outdoor media owners are becoming strange bedfellows. But there’s also a catch — currently, most of the funding is going into newer players with interests beyond conventional media. Recently, Warburg Pincus invested about Rs 276 crore in the out-of-home (OOH) advertising company Laqshya Media. UTI Venture Funds, which is largely credited with identifying the sector, also invested an additional Rs 25 crore in the company taking the total investment to Rs 301 crore. The company had picked up a 15% stake in Laqshya for Rs 45 crore in October 2006. Earlier this year, another OOH media firm received funding to the tune of $50 million from Goldman Sachs and Lehman Brothers. Media reports now suggest that ICICI Ventures, Lehman and Goldman Sachs have lined up plans to pick up around 15-20% stake in the Bangalore-based OOH advertising firm Serve & Volley for Rs 250 crore. […]
The latest industry buzz is that a deal between Anil Ambani’s Reliance Communications (RCom) and South Africa’s MTN may be announced on Sunday, July 6, which is the death anniversary of Dhirubhai Ambani. The speculation has gained currency because, in 2006, Anil Ambani had announced his interest in acquiring a controlling stake in Hutch Essar on the birth anniversary of his father. The 45-day exclusivity period for talks between RCom and MTN ends on July 8, and therefore, an announcement (either yes or no) could be announced anytime by then, sources pointed out. An extension of the exclusivity period, by as much as 30 days, cannot be ruled out either. Following the feud between the Ambani brothers, the deal structure is believed to have been changed between MTN and RCom, as first reported in this newspaper on June 27. Instead of a proposed merger between the two, RCom is now looking at acquiring below 35% stake in MTN, sources said. RCom may tie up with investors, including sovereign wealth funds, to buy a stake in MTN. […]
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. […]
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. […]
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. […]
TVS Shriram Growth Fund, a private equity fund floated by the TVS Group family and the Shriram Transport Finance group, has successfully raised Rs 500 crore. The Fund plans to invest the raised amount in the range of Rs 10 crore to Rs 50 crore in mid-cap companies with revenues of Rs 30 crore to Rs 250 crore. The fund intends to target investments in sectors such as food and agro, media and entertainment and privatized education. The fund would be looking at return of 20 per cent to 25 per cent after four years. The company has appointed Gopal Srinivasan, as Chairman of TVS Capital Funds. […]
After acquiring a stake in Air Deccan last year, UB Group chairman Vijay Mallya is all set to expand his wings further in the domestic aviation space. According to sources, now Mallya is eyeing a stake in low-cost carrier (LCC) SpiceJet. Last year when Kingfisher Airlines took a 26% stake in Air Deccan, Mallya had evinced interest in picking up a stake in SpiceJet but things did not move forward. “I am interested in SpiceJet but I am not a predator,” he had said then. Kingfisher is now learnt to be eyeing a part of either the 12.9% stake held by SpiceJet's promoter, UK-based NRI Bhupendra Kansagra or the 13.4% stake held by Dubai-based investment firm Istithmar PJSC. Kansagra was under a lock-in period, which barred him from selling any part of his stake in SpiceJet. The lock-in period ended a few months ago. Kingfisher's executive vice president Hitesh Patel said he would not comment on the issue, but added: “I can see additional consolidation in the industry in next 12 to 18 months. All these airlines won't be hanging around that long. If as predicted, crude hits $178 to a barrel in September, it will kill some players…. The access to funds of Kingfisher is strong and the backing of UB Group is a strong plus.” […]
Anil Ambani’s Reliance Communications (RCOM) may be examining alternative structures to bring about its proposed mega-combination with MTN. RCOM, possibly in partnership with a sovereign wealth fund based in the Middle East, may directly buy a large equity stake in MTN, emerging as the single largest shareholder. This is to avoid legal disputes that may arise from Reliance Industries’ (RIL) claims of right of first refusal (RoFR) if RCOM were to enter into a reverse merger with MTN. Under the reverse merger route, MTN would have made an open offer for RCOM followed by a share swap between Reliance ADAG, promoters of RCOM, and MTN. ADAG would then have emerged as the single largest shareholder of MTN while RCOM will become subsidiary of MTN. That plan has not been junked, but sources close to the development said RCOM is also examining the option of directly acquiring a 40% stake in MTN. A Middle East-based sovereign wealth fund could join hands with RCOM for the acquisition of the controlling stake in MTN. The name of the fund could not be ascertained. […]
Jacob Ballas Capital India, a non-banking finance company focused on private equity advisory services, is planning a $500 million India-focused private equity fund. The NBFC, founded in 1995, currently serves as advisor to three India-focused PE funds in which New York Life is an active participant. Jacob Ballas was founded by Rajan Jetley, who was earlier the CEO of Air India and currently manages $445 million across three funds. When contacted, Srinivas Chidambaram, Managing Director of Jacob Ballas Capital India, said he cannot confirm, deny or comment on this as they are in process of raising the fund. The funds have been focusing on infrastructure, IT/BPO, textiles, pharmaceuticals and the financial services sector in India. The move by Jacob Ballas to raise a $500 million fund is backed by a strong pipeline of deals available in the Indian market given the losing lustre of the public markets. […]
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