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Private equity firms have invested over $5 billion in Indian companies so far this year, more than what entire 2009 saw. The PE companies, however, have also sold off shares worth about $2.5 billion yet. As many as 220 companies saw PE investment pouring in during the first seven months of 2010, or between January to July, while PE firms made an exit from 73 other companies. According to data compiled by deal space research firm VCCEdge, the first seven months of 2010 have seen private equity deals valued at $5.1 billion, as compared to $4.3 billion in entire 2009. PE firms generally exit from their investment through buyback of shares by promoters, open market transactions, merger and acquisitions and public offers. […]
INDEPENDENT News & Media (INM) sold its remaining stake in Indian newspaper publisher Jagran Prakashan for about €32m yesterday to reduce borrowing, but added that it remains interested in future co-operation between the two media groups. The decision ends INM's lucrative investment in Jagran, which began in 2005 when the company bought a 26pc stake in the Bombay-based publisher. The gradual sale of the stake over the past 14 months has yielded a profit of €67.5m for the Irish company. INM, which publishes this newspaper, has been selling some titles and investments to pay off debt since the beginning of the credit crisis in 2007, which forced the company to delay repayments to some bond holders for several months. Oligarch The company sold off the London-based 'Independent' and the 'Independent on Sunday' to Russian oligarch Alexander Lebedev's family in April. It continues to own newspapers, radio stations and advertising companies in many English-speaking countries including South Africa, Australia and New Zealand. “We have been crystal clear that our immediate and continuing priorities are on reducing bank debt, achieving and sustaining leverage ratios at significantly lower levels and focusing on growing our market-leading brands in our core markets,” INM chief executive Gavin O'Reilly said yesterday. Mr O'Reilly noted that the five-year investment had been a “highly profitable one for INM, and I want to recognise the insight of former CEOs Tony O'Reilly and Liam Healy for initiating this investment”. Gavin O'Reilly will remain as an independent and non-executive director of Jagran following a request from the Gupta family, which is Jagran's majority shareholder. “At the appropriate time, we shall continue to work with Jagran and the Gupta family in exploring other ventures in what is undoubtedly one of the most exciting media markets in the world,” Mr O'Reilly said. The company remained open to “the many exciting possibilities in the Indian media market in the future. I want to thank the Gupta family, and particularly chairman Mahendra Mohan Gupta, for their stewardship and ensuring so many years of successful partnership”, he added. […]
Mukesh Ambani-led Reliance Industries today said it will buy its third shale gas asset in the United States for $392 million. Reliance will pay $340 million in cash to acquire a 60% stake in the Marcellus shale-gas acreages held by Carrizo Oil and Gas Inc and its partner, the company said in a press statement. The remainder $52 million would in Carrizo's drilling cost in the Marcellus shale-gas areas of central and northeast Pennsylvania. The Mumbai-based firm in April had bought a 40% stake in Atlas Energy Inc's Marcellus Shale acreage for$1.7 billion. In June, it had agreed to buy a 45% stake in Pioneer Natural Resources Co's Eagle Ford shale natural gas asset in Texas for about $1.36 billion. […]
Mahindra & Mahindra is expected to offer around $300 million to $450 million for South Korean sport utility vehicle maker Ssangyong Motor, the Economic Times reported, citing two people with knowledge of the matter. The paper said Mahindra's board was likely to approve the bid for Ssangyong at a meeting on Thursday. Mahindra would fund the bid through a combination of debt and internal accruals and that Kotak Mahindra Bank is likely to finance the debt along with other third party bankers that have not yet been finalised, the paper said. The paper said Mahindra was not looking at pledging its shares or opting for an equity dilution to raise the money. Pawan Goenka, Mahindra's president for auto and farm equipment, declined to comment when contacted by the paper. […]
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