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At a time when the country’s real estate builders are reeling from a severe cash crunch, MetroCorp, a Bangalore-based realtor, is close to raising $300 million (about Rs 1,400 crore) from leading global financial institutions, including Prudential Corporation Asia and Warburg Pincus. MetroCorp, a three-year-old real estate developer, has three projects under execution, and has lined up a bouquet of 21 projects across India, ranging from residential and commercial to integrated townships to special economic zones. Deepak Krishnappa, chairman & CEO, refused to confirm the move but said they are in discussions with various private equity funds for development of plots. […]
The average size of private equity deals in real estate has come down by an annual 60% to Rs 190 crore as the deteriorating market conditions have forced investors to take smaller exposures. The total PE investments have reduced significantly, while the number of deals has remained almost stagnant. “While there has been a dip in the total amount committed in the second quarter of 2008, the wait-and-watch strategy adopted by PE funds scouting for opportune partners will force Indian developers to re-work their valuations and construction timelines and make them more reasonable,” says Cushman & Wakefield India joint MD Sanjay Dutt […]
Apparel retailer Provogue (India) Ltd said on Monday UK's LTG International Ltd will invest 569.7 million rupees to pick up 3.36 percent stake in a unit of real estate arm Prozone Enterprises Pvt Ltd. LTG is founded by Lewis Trust Group of UK and Prozone is a joint venture between Provogue and Liberty International Plc, according to a company statement. In April, Provogue sold 27 percent stake in the unit for 4.57 billion rupees to Triangle India Real Estate Fund, founded by Old Mutual Investment and ICS Realty. (Reuters) […]
Vaccine maker Panacea Biotec has agreed to buy 19.9% in US-based PharmAthene for $13.1 mn. Panacea will route the acquisition through a wholly-owned subsidiary Kelisia Holdings. PharmAthene is developing medical products against biological and chemical threats. Kelisia Holdings will purchase approximately 3.73 mn shares of PharmAthene common stock at $3.50 per share and will also receive warrants to purchase up to 2.75 mn additional shares of PharmAthene at $5.10 per share. The transaction is expected to close on or before October 20, 2008, a Panacea Biotec release said. […]
UK-based back office services provider Xchanging Plc has agreed to acquire 75 per cent stake in IT services firm Cambridge Solutions for about 83 million pounds (Rs 686.84 crore). As part of the deal, Xchanging would pay Rs 371.2 crore in cash and issue 1.52 crore shares of the firm to Cambridge. These shares would account for seven per cent of Xchanging's current issued ordinary share capital, the firm said in a statement on Friday. According to sources, the UK firm would be paying about Rs 81 for each share of Cambridge. This would be a premium of 36.3 per cent over the company's closing price of Rs 59.40 on Friday on the Bombay Stock Exchange. […]
Stock markets that have fallen for most part of 2008 are delaying private equity, or PE, transactions and also increasing the use of convertible instruments where an investment is converted into equity at a later date at the prevailing price. The delay is because both the companies and investors hold out for a better deal. For companies, a better deal means a higher valuation. For private equity firms, it means a lower valuation. Citigroup Venture Capital International (CVCI), the PE arm of Citibank NA, says it has been exploring potential targets in India for the past nine months, but has closed only two deals, both at the beginning of the year. The snag in most cases was the divergence between what the promoter wanted and what CVCI was willing to pay. By the time promoters adjusted their valuations downwards to reflect market movement, the market had fallen further. That’s a story that is playing out across India’s PE universe. […]
Integrated media and entertainment company Compact Disc India (CDI) on Tuesday said content developer iMedia Ventures will invest $10 million in the company and is interested to pick up 15 per cent stake in it. In a filing to the Bombay Stock Exchange, CDI said iMedia Ventures has offered to invest $10 million (about Rs 47 crore) in the company's expansion projects. (Indiantelevision) […]
Reliance Money is moving fast on getting into the commodity exchange business. The Anil Ambani-owned Reliance Money said that it has received official approval to pick up 10 per cent stake at the National Multi Commodity Exchange (NMCE). Reliance Money had proposed to buy a strategic 26 per cent stake in NMCE, the third largest national commodity exchange based in Ahmedabad. NMCE had inducted Reliance Money chief executive officer Sudip Bandhopadhyay as a director in the exchange board. The apex commodities market regulator Forward Markets Commission (FMC) had forwarded the Reliance Money proposal to buy 26 per cent stake in NMCE to the Consumer Affairs Ministry that oversees commodity futures trading in India. […]
Azim Premji, backer of IT major Wipro, is believed to be investing $17 million (Rs 80 crore) to acquire a minority stake in Carnation Auto, a company floated by Jagdish Khattar, former managing director of Maruti Suzuki India, reports Business Standard. In addition to Premji, who will be investing through his investment arm, Premji Invest, IFCI ventures is reported as another investor in Carnation Auto, investing $5.9 million for a minority stake. […]
Tata Steel Ltd said on Wednesday its Singapore-based unit has agreed to buy 19.9 percent in Canadian miner New Millenium Capital Corp for $22.6 million. Tata Steel said it has an option to acquire 80 percent in a joint venture that will develop New Millenium's Direct Shipping Ore (DSO) project, and also hold rights to the entire iron ore output from the project, which is expected to have annual production of 4 million tonnes from 2010. The DSO project is estimated to hold reserves in excess of 100 million tonnes of direct shipping quality ore, Tata Steel said in a statement to the stock exchange. […]
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