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A consortium of investors, led by private equity player 3i, is in talks to pick up a 4-4.5% equity stake in Adani Power for Rs 1,800 crore. The power company, which is majority-owned by Adani Enterprise, is in the process of floating an initial public offer (IPO) and the stake sale is a precursor to the public issue. The pre-IPO transaction will value Adani Power at nearly $10 billion, making it the most valued private sector power company in the country. The consortium of investors includes Singapore’s Temasek and an infrastructure fund, according to sources. The Adani Group spokesperson declined to comment on the matter. […]
Future Ventures India, the venture capital arm of Kishore Biyani-owned Future Group—owners of retail brands Big Bazaar and Pantaloon—, is close to acquiring a substantial stake in Kolkata-based apparel maker Turtle . Sources said a deal is expected shortly. A senior executive at Future Ventures confirmed that the due diligence was on. “Turtle is an exciting company and Future Ventures is in an advanced stage of discussion with them. However, it will be difficult to reveal the exact size of the deal,” he said. Turtle director Amit Ladsaria also confirmed that a deal was in the offing, but declined to comment on the plan. “The deal hasn’t been completed yet. We’ll be in a position to comment once that is done.” […]
Lehman Brothers’ bankruptcy is likely to cost Indian real estate dear. It may impact the financial major’s existing investments worth $500 million in realty firms, including DLF and Unitech, besides drying up another $500-million worth of potential investment which was expected to flow into Unitech’s Mumbai projects. The news of Lehman’s collapse brought the BSE realty index down by 7.65% on Monday, while the benchmark Sensex declined 3.35%. Both DLF and Unitech fell 7.5%. Lehman’s fall signals a deepening of credit crisis for Indian developers, who have lately been battling falling sales, rising cost of construction and tightening credit. It is expected that the US-based firm is likely to go for a fire sale of its assets. Lehman invested $200 million in DLF promoter group company DLF Assets last year and bought 50% stake in Unitech’s Mumbai project for $175 million a few months ago. It had also invested $80 million in Bangalore-based SEZ Gandhi City and was likely to hike its share to $300 million. […]
The acquisition of Merrill Lynch by Bank of America (BoA) could well lead to the combined entity emerging as a formidable force in India. Even as the deal is likely to be complimentary, the merger of operations would also lead to an overlap in the debt market and the primary dealership (PD) business. There is a sense of uncertainty among some of the senior staff in DSP ML — the Indian arm of Merrill regarding the impact of the merger in India. From DSP Merrill Lynch’s (DSPML) perspective, the acquisition would mean gaining a banking platform. In India, DSPML is a bigger player than BoA. ML has also been looking at obtaining a banking licence in the country. […]
The ripples created by the sale of Merrill Lynch to Bank of America could extend well beyond the possible restructuring of the financial services firm’s operations in India. For at stake is also the residual shareholding of 10% held by DSP Merrill Lynch chairman Hemendra Kothari in the Indian arm. Sources close to Mr Kothari, one of the most visible faces of investment banking in India, told ET that he was likely to exit from this investment. In late 2005, Mr Kothari sold his 50% holding to Merrill Lynch for $500 mn. Following that transaction, he was left with a 10% stake. The aim then was to delist the DSP Merrill Lynch stock. […]
Looking to exit from the Indian venture Tech Mahindra, British Telecom (BT) is understood to have offered its 31% stake to Tata group company TCS. BT may be mulling to exit totally from the venture, sources said, but no confirmation could be obtained either from the British entity or the Indian corporate house. Asked if British telecom had approached with its offer to sell its total or part stake, a TCS spokesperson said “We do not comment on market speculation”. Sources said the approach could have been driven out of synergistic angle as TCS has a thriving telecom practice and most importantly BT is a valued customer of TCS. […]
Indian brokerage SMC said on Monday Sanlam Ltd, a South African financial services group, will invest $50 million and form joint ventures to offer wealth and asset management services. The investment will be in two firms of the Indian group – SMC Global Securities Ltd and SAM Global Securities Ltd., the Indian firm said. The money will be used to pick up 5 percent stake each in the companies and subscription to warrants, SMC added.(Reuters) […]
Brushman India is in active discussions with Snowcem Paint (SPPL) to acquire a strategic stake in SPPL subject to completion of due diligence and after obtaining regulatory approval(s) as may be necessary. Recently, the board of directors of Brushman India has recommended maiden dividend of 5% for the year ended Mar. 31, 2008, subject to the approval of the shareholders at its meeting held on Sep. 01, 2008.(My Iris) […]
Smart private equity money is showing a clear bias for healthcare providers rather than drug manufacturers. Despite the slowdown in the equity markets, over half a dozen private equity investments have come into the hospitals and healthcare segment in the recent months. Over the same period, the biggest news in the pharmaceutical industry has been the sell out by the promoters of Ranbaxy to Japanese major Daiichi Sankyo. Tellingly, one of the businesses they have retained is Fortis, the hospital chain. There are also rumours of another Hyderabad-based pharmaceutical company scouting for a buyer to come to its rescue. This is in stark contrast to the trend between 2004 and 2006, when Indian drug majors were sewing up big-ticket acquisitions abroad. […]
The country’s largest private equity fund, ICICI Venture, is teaming up with US-based PE fund Providence to put in a joint bid for BPO firm Firstsource Solutions. ICICI Venture is also wooing Kohlberg Kravis Roberts & Co (KKR), one of the world’s biggest buyout funds, to join the consortium, said a banker. If the funds eventually join hands to bid for Firstsource, it would be the first time in India that three large PE players come together for an acquisition. Both Firstsource and I-Venture are promoted by the ICICI group. It’s perceived that any deal could be partly driven by ICICI Bank, the biggest shareholders in Firstsource. […]
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