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Bennett, Coleman & Co Ltd (BCCL) has picked up a stake in Noble Hygiene Pvt Ltd, a Mumbai-based enterprise manufacturing and marketing diapers and personal hygiene products. The company manufactures a range of diapers for both babies under the brand Teddy and for adults branded as Friends. In fact, Nobel Hygiene pioneered the concept of adult diapers in India. Both these brands are available across India through retail, modern trade and hospitals. Noble Hygiene has recently set up a plant in Nashik, Maharashtra. Kamal Johari, MD Nobel Hygiene, said the deal with BCCL will help Nobel further strengthen its market presence. […]
Private equity (PE) deals in listed companies are set to rise if the Securities and Exchange Board of India (Sebi) approves the Achutan Committee’s recommendations on the takeover code. However, buyouts are likely to dwindle, say major PE players in the country. According to estimates, lack of good opportunities has kept around $30 billion PE money waiting to be deployed. “The 25 per cent mark is positive, as PEs want to take their stake beyond 15 per cent in companies they invest in,” said Shahzaad Dalal, vice-chairman and managing director, IL&FS Investment Managers. Among the BSE 500 companies, 98 have single public shareholders with 10-14.99 per cent holding, according to a study by SMC Capital. For such investors, the upward revision of the takeover threshold limit can be a huge opportunity to increase their holding to 25 per cent without an open offer, say analysts. […]
Kings XI’s proposal to transfer 93% of its share to a private equity firm was rejected by the Board of Control for Cricket in India (BCCI). It said that the takeover must wait until investigations against suspended IPL chairman Lalit Modi have been concluded. The decision further delays the Punjab outfit owners’ plan to sell the team. A team willing to sell stake cannot go ahead without the BCCI’s permission, say rules laid out by the IPL governing council. Team owners also have to pay BCCI a transfer fee on a pro-rata value of the franchise. […]
GVK Power & Infra (GVKPIL) is in talks with PE players to dilute stake in its airport subsidiary. GVK Airport Development Private Ltd which is the holding company for all GVK investments in the aviation space is looking at diluting up to 26% stake. GVK Airport development private limited is a hundred per cent subsidiary of GVK Power & Infra. According sources from the company, GVKPIL is in talks with Temasek holdings, Blackstone group & SBI-Macquarie. ‘The company is looking at raising up to $400 mn through the stake sale’ said a company source who did not want to be named. The deal is expected to be finalised by September. GVK Power and Infrastructure holds about 37 per cent in Mumbai International Airport Ltd (MIAL) and around 29 per cent in Bangalore International Airport Ltd (BIAL). It is in talks with its South African partner Bidvest to buy 13.5% stake which will take hike its stake to 51% in MIAL. […]
Indian energy major Reliance Industries is in talks with Texas-based Quicksilver Resources , including for a possible buyout of the U.S. firm that develops shale gas and coal-bed methane, the Daily News & Analysis reported on Monday. The talks also include buying a part stake or partnering Quicksilver for one of its major projects called the Horn River Basin assets in British Columbia, the newspaper said, citing unidentified sources familiar with the development. […]
Nikhil Gandhi-controlled SKIL Infrastructure, the promoter of Pipavav Shipyard, is likely to acquire a majority stake in Chennai-based Everonn Education to enter the country’s fledging education industry. The board of Everonn, which sells information and communication technology (ICT) products to government and private schools, will meet on Monday to approve the sale of redeemable optionally convertible debentures to SKIL, said a person close to the matter. On conversion of debentures, SKIL will hold more than 15% equity stake in Everonn. Then it will launch a 20% open offer to the minority shareholders of Everonn. Post the offer, SKIL will be the largest shareholder of Everonn, said the person who did not wish to be named. Mr Gandhi was not available for comments as he was abroad. Everonn managing director P Kishore declined to comment. […]
Leading foreign funds Morgan Stanley, Fidelity and billionaire investor George Soros’ hedge fund Quantum (M) have picked up stakes in Infrastructure Development Finance Company (IDFC) through a qualified institutional placement (QIP). The three global investors together bought four crore shares, roughly 26% of the 15.8 crore-share placement, for Rs 680 crore, according to disclosures filed with the National Stock Exchange (NSE). Morgan Stanley now holds 3.5% of IDFC’s diluted equity capital. Fidelity and Quantum (M) own a little less than 1% each in the company. IDFC shares have been rising over the past few weeks and are now quoting at a decent premium to the QIP price. The stock closed at Rs 195 on Friday, while the shares were placed with the institutional investors at Rs 168.25 apiece. […]
Emirates Telecommunications Corp may buy 26 percent of Reliance Communications Ltd., a stake estimated to be worth $3 billion, as early as mid-August, the Financial Times reported, citing people familiar with the talks. Both sides are considering merging the Indian unit of Etisalat, as the Abu Dhabi-based phone carrier is known, with Reliance because of domestic rules that bar companies from owning more than 10 percent of two telecommunications companies, the newspaper said. Reliance and Etisalat declined to comment on any specific negotiations, according to the report. A merger wouldn’t be simple because takeover rules in India discourage such a combination, the newspaper cited HSBC Holdings Plc analyst Rajiv Sharma as saying. […]
At a time when global markets such as the US and Europe are still crawling out of economic slowdown, private equity (PE) investments in India are expected to gain momentum and hit the previous peak of 2007. Venture capital (VC) and PE fund flows in the country are expected to rebound to $17 billion for the calendar year 2010, according to a survey by consulting firm Bain & Company. Of this, a little less than half has already been invested in the first half of the year and the remaining $8-9 billion is expected to be infused by December. “Action is heating up in the PE space and a host of limited partners from the global markets, especially the US, are now looking at India as an investment destination,” said Sri Rajan, partner and head of the PE practice in India at Bain & Company. Key sectors that are likely to witness significant action over the next few months in the country include infrastructure, energy and healthcare, he said. […]
Takeovers are set to get costlier with a Sebi panel favouring making it mandatory for the acquirer to make an offer for up to 100 per cent stake in any listed company. As of now, an open offer for a minimum of 20 per cent in the target company is required to be made by any entity that has purchased 15 per cent equity, either from the promoters or from the open market. The Securities and Exchange Board of India has set up a Takeover Regulatory Advisory Committee, with former Securities Appellate Tribunal presiding officer C Achuthan as chairman. The Committee, which prepared the report in consultation with the various stakeholders, is believed to have recommended making suitable changes in the existing takeover regulations. […]
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