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The United Kingdom’s largest UPS supplier, Chloride Group, has entered India through a 90 per cent stake purchase in the Pune-based UPS maker, DB Power Electronics Pvt Ltd, at an approximate cost of Rs 253 crore. The deal follows a four-year-old strategic partnership between Chloride Group and DB Power Electronics for sales and servicing of Chloride Group products in India, Nepal and Bangladesh. With this deal, Chloride Group has acquired a majority shareholding in DB Power Electronics and will take over three manufacturing units in Pune and Satara, along with a research and development facility in Pune city. DB Power Electronics had reported revenues worth Rs 270 crore. […]
As valuation of Indian companies have improved with the recovery in the stock market, a number of private equity players are offloading their stakes and such exits have shot up nearly 30 per cent in the first seven months of 2009. Till July this year, India Inc saw as many as 31 deals where the PE firms sold their stakes in domestic companies – an increase of 29 per cent over the corresponding period a year ago. In the comparable period there were 24 such deals, according to data compiled by the deal-tracking firm Venture Intelligence. “PE firms which are currently exiting, invested in Indian companies way back in 2004-05. With the recovery in the stock market, they are now finding valuations attractive and are selling stake,” Venture Intelligence CEO Arun Natarajan said. […]
SREI Infrastructure Finance Ltd is working on putting together a private equity fund, with a corpus of “hundreds of millions of dollars,” that would be utilised to provide equity and debt to infrastructure projects in India, Saud Siddique, Joint Managing Director, SREI Infrastructure, told Business Line on Friday. “We are working on it. We are talking to investors who understand SREI's business,” he said. Siddique, who joined SREI about six months ago, comes with a rich experience in handling infrastructure projects in the US and Singapore. […]
India’s largest consumer goods company, Godrej Consumer Products Ltd (GCPL), has told its US partner Sara Lee Corp. that it is willing to acquire its household and body care business in countries such as Indonesia, Malaysia, Singapore and Thailand, in addition to its 51% stake in the Indian joint venture, Godrej Sara Lee Ltd, according to H.K. Press, vice-chairman of GCPL. Under the home and body care segment, Sara Lee manufactures and sells products such as Kiwi shoe polish, Brylcreem hair cream, Radox body wash, Ambipur air fresheners and GoodKnight insecticides. In some countries, it also sells food products and beverages. In North America, it runs bakeries and sells meat products to retail chains such as Wal-Mart Stores Inc. On 30 March, Illinois-based Sara Lee had said in a press statement that it was “reviewing strategic options for its international household and body care business after receiving expressions of interest”, including outright sale. […]
Reliance Industries has picked up a 67% stake in Krishna Godavari Gas Network Limited (KGGNL), a company floated by the Andhra Pradesh government to set up India's first state-wide gas distribution network. The shareholders' agreement should be signed next week. CNBC-TV18’s Vishwanath Pilla and Ashwin Mohan report. RIL has picked up a 67% stake in Krishna Godavari Gas Network Limited… a company mandated to set up a state-wide gas distribution network. The Andhra government, GSPC and IDFC are the other stakeholders, each holding 11%. […]
Ushacomm, an IT solutions vendor, is eyeing acquisition in India, continental Europe or the UK in the telecom product space. Saugata Banerjee, executive director, Ushacomm, said the acquisition is likely to be made within the current fiscal and the size of the target firm could be less than $200 million. The buy would be funded through promoters' equity, he said. Ushacomm, which caters to the telecommunications segment, is also set to enter new areas such as power with its billing software. […]
DHFL Venture Capital Pvt. Ltd, a subsidiary of Dewan Housing Finance Corp. Ltd (DHFL)—India’s third largest home finance company—will partner US-based Redwood Capital Partners Llc. to float a private equity (PE) fund that will invest in logistics and warehousing companies, a senior company official said. “We had discussions with Redwood for over a year and have now decided to start a PE fund with equal participation,” Arun Goel, CEO of DHFL Venture Capital, said. The venture capital firm currently manages a $47 million (Rs224 crore) fund that invests in property. “…the market is turning around and we plan to raise money in a couple of months,” he said. Goel declined to indicate the initial size of the proposed PE fund, but DHFL chairman and managing director Kapil Wadhawan said he planned to “scale up the fund to Rs3,000 crore in three-five years”. […]
Private equity firm Warburg Pincus plans to sell its 50.12 per cent stake in business process outsourcing firm WNS Global Services, according to a report by the Economic Times. WNS, India’s second largest BPO firm, is listed on the New York Stock Exchange and expected to achieve a valuation of around $800m. This price would provide Warburg with an exit payout of $400m. Warburg paid just $40m when it acquired a 64 per cent stake in WNS from British Airways in 2002. […]
Bombay Stock Exchange Ltd (BSE), Asia’s oldest, will pick a 15% stake in United Stock Exchange of India Ltd (USX) and will jointly offer currency futures trading, said a person familiar with the development. BSE’s board, which met on Wednesday evening to discuss this, approved it unanimously, the person said. He declined to be identified because he is not authorized to speak to the media. BSE spokesperson Kalyan Bose declined comment. “There have been some general discussions between BSE and us,” said T.S. Narayanasami, who on Tuesday was appointed as managing director and chief executive officer of USX. […]
Private equity (PE) companies in India prefer to pick up minority stakes in companies rather than majority ones, a Tuesday report from New Delhi-based investment bank SMC Capitals Ltd said. Between calendar 2005 and the first half of calendar 2009, the total value of PE deals was $41.91 billion (Rs2 trillion at Tuesday’s rates) but only $2.52 billion (Rs0.12 trillion), or 6%, of those were controlling stake transactions, the report said. The largest controlling stake transactions were the $900 million investment, worth an 85% stake, by Kohlberg Kravis Roberts and Co. (KKR) in Flextronics Software Systems in 2006 and the $200 million investment worth an 80% stake by the Blackstone group in Intelenet Global Services Pvt. Ltd in 2007. The report said that the trend could likely be because Indian promoters are emotionally attached to their firms. […]
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