February 2010
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Rel Media makes counter bid for Fame at Rs 83.40 a share

Anil Ambani-led Reliance MediaWorks on Sunday made a public offer to buy an additional 52.48% stake in the multiplex chain operator Fame India for about Rs 180.14 crore, countering an existing takeover bid by rival Inox Leisure. Recently, Inox Leisure had signed an agreement to acquire 43.28% promoter’s stake in Fame India and earlier this month made an open offer to buy another 20% stake, at a price of Rs 51 per share. At present, three Anil Ambani group firms — Reliance MediaWorks, Reliance Capital Partners and Reliance Capital — together hold about 10.26% stake in Fame. In a public notice, Reliance MediaWorks said it would make an open offer to acquire 52.48% in Fame India. Sources said the decision to make the open offer was made at a board level meeting held on Saturday. […]

Complex regulatory regime impeding PE flows into infra

Delays in getting approvals and complex regulatory environment in the country are major factors impeding private equity (PE) flows into the infrastructure sector, says a study. Delay in financial closure of infrastructure projects and non-transparent bidding processes are other reasons hampering PE flow into the sector, a joint study by industry chamber ASSOCHAM and audit firm Ernst & Young said. Absence of vibrant bond markets in India is also a handicap for private equity investment unlike other developed nations where they (bond markets) serve as an alternative avenue for financing and re-financing, the study said adding that the bond market in India has not grown substantially. […]

UK's Ashmore in talks to exit Digicable

UK-based private equity (PE) firm Ashmore Investment, which holds 49% stake in Mumbai-based cable company Digicable Network, has initiated talks with a host of companies to sell its stake in the venture, two persons familiar with the matter said. According to an executive in the investment banking space, Ambit Finance is advising Ashmore Investment in its bid to exit Digicable, a mid-sized cable company that claims to have over 8 million subscribers. However, ET could not independently verify it. An email sent to Ambit Finance did not elicit any response. As per another executive in a media company, Ashmore has been looking to sell its stake for a few months now. As per the FDI rules in India, an international company can own up to 49% stake in a cable company and Ashmore can not increase its stake further. […]

ADB May Start $100 Million Clean-Energy Venture Capital Fund

The Asian Development Bank may raise at least $100 million more in venture capital to invest in developers of advanced clean-energy technologies in the region. The lender has formed a taskforce to design the fund before seeking management approval, Jun Tian, an adviser at the Manila- based bank’s regional and sustainable development department, said in an interview in Tokyo today. The lender had already raised $363 million for four funds focusing on renewable energy including wind and hydropower plants in order to thwart climate change, Tian said. Clean energy investment fell 6.5 percent to $145 billion worldwide last year from 2008, according to Bloomberg New Energy Finance, as the global recession sapped funding for the sector. […]

Burmans plan Rs 925-crore healthcare fund

The Burman family, the promoters of FMCG major Dabur India, is planning to set up a $200 million (around Rs 925 crore) private equity (PE) fund dedicated to the healthcare and life sciences segment. This is the second major initiative of Burmans in the healthcare space after they sold their entire stake in cancer medicine manufacturing company Dabur Pharma for Rs 878 crore to French healthcare major Fresenius SE in 2008. The Burmans are known to be investing in a greenfield facility to house the operations of Dabur Research Foundation, now a full-fledged contract research organization. Former Dabur Pharma CEO Ajay Vij will be heading the contract research entity as well as the private equity fund. When reached for comment, Vij confirmed the development […]

Actis Invests $50 Million In Integreon

Actis, an emerging markets private equity specialist, announced today that it has invested US$50 million (INR 235 crores) to acquire a substantial minority stake in Integreon, the leading global provider of legal support, research and business services to law firms, financial institutions and corporations. As part of this investment, JM Trivedi, Actis's Head of South Asia, and Gautham Radhakrishnan, a Director at Actis, will join Integreon's board of directors. Actis has invested alongside Ayala Corporation, the oldest and one of the leading conglomerates in the Philippines, which initially invested in Integreon in 2006 through LiveIt Investments, its business process outsourcing holding company. Ayala Corporation will continue to hold a majority stake in Integreon. Today, professionals at leading organisations including 11 of the top 50 global brands such as Microsoft; 32 of the AmLaw 50 such as Clifford Chance and DLA Piper US LLP; and 9 of the top 10 global investment banks focus on their “highest and best use” by trusting high-quality research, document, and legal solutions from Integreon. Integreon revenues have grown at an 83 per cent CAGR since 2006 to an $89 million revenue run rate in Q4 2009. […]

QInvest says to buy 25 pct stake in India's Ambit

QInvest, Qatar's largest investment bank, will buy a 25 percent stake in Mumbai-based Ambit Group for an undisclosed amount, the company said. The deal, the company's first investment in India, will help Ambit expand its investment banking, advisory and private wealth businesses, the statement said. The investment “will dramatically accelerate QInvest's ambitions in India, one of the world's fastest growing economies,” QInvest CEO Shahzad Shahbaz said in the statement. “We see significant opportunities for our clients and ourselves across investment management, investment banking, private equity and brokerage,” he added. […]

Air Works Engg buys 85% stake in UK based Air Livery

Air Works Engineering, India`s leading provider of aviation services has acquired 85% stake in Air Livery, UK. With an annual turnover of Rs 1.35 billion, Air Livery is Europe`s leading aircraft refinishing company. The acquisition adds significantly to both the revenue and profitability of Air Works. Air Works has constantly been focusing on adding accreditations and services to make the company a one-stop shop for all aircraft maintenance work. Air Works recently became the first Indian independent airframe MRO Company to be awarded the EASA repairs station approval. By adding a whole new section of painting and refurbishment services through this acquisition, Air Works marks another significant milestone for the Indian MRO industry. […]

PE deals quadruples to $1.24 bn in Jan: Thornton

Private equity deals in India witnessed a strong growth momentum in the very first month of this year and almost quadrupled to $1.24 billion, from its year ago period, says a study. According to global consultancy firm Grant Thornton, the total value of private equity transactions and qualified institutional placement (QIP) deals amounted to $1.24 billion in January 2010, against $309 million in the year ago period, registering an over four-fold jump. Upturn was also witnessed in terms of the number of deals recorded in this month. In January this year 29 PE and QIP transactions were posted, against 16 deals registered in same period in 2009, the report added. […]

Sahara to pay Rs1,120 cr to Siva Ventures by Mar

Maverick investor C. Sivasankaran has completed the first leg of yet another profitable exit, with the Sahara group repaying around Rs1,680 crore to Siva Ventures Ltd even as it has to repay an additional Rs1,120 crore by March if it wants to regain complete control over Aamby Valley Ltd, which has built an eponymous luxury township spread over 10,600 acres an hour’s drive from Mumbai. Sahara India Commercial Corp. Ltd, a housing subsidiary of the group, owns 51% stake in the project. The group had sold 49% stake of Aamby Valley City to Siva Ventures in 2007 with an arrangement to buy back the stake in three years at a pre-determined price. Siva Ventures bought this stake for Rs1,000 crore. In addition to that, it has lent Rs1,200 crore to Aamby Valley. […]