October 2010
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StanChart acquires 100% in brokerage venture with STCI

Standard Chartered has increased its holding in Standard Chartered-STCI Capital Markets to 100 per cent by acquiring the remaining 25.1 per cent stake from its local partner, the Securities Trading Corporation of India (STCI). With this, the brokerage entity becomes a wholly-owned subsidiary of the foreign bank, which will soon be rebranded to reflect the new ownership. The acquisition of the last tranche comes nearly three years after the initial acquisition was made. In August 2007, Standard Chartered entered into a strategic partnership with STCI by acquiring 49 per cent in UTI Securities, which was then renamed Standard Chartered-STCI Capital Markets. Thereafter, in December 2008, Standard Chartered exercised an option to raise its stake to 74.9 per cent. While the complete acquisition cost Standard Chartered a little over Rs 300 crore, the foreign bank will infuse further capital to ramp up the broking services, including research and investment banking. […]

Hero Group to buy out Honda Motors' 26% stake in the joint venture

Hero Group is looking to buy out Honda Motors' 26% stake in the joint venture and needs to raise about $2 billion to do so. Hero already owns 26% of the company, with the rest held by other investors. It is still early; Hero is only just putting together a team of bankers to help it find the money, and both companies are quiet about their intentions. But if it strikes a deal, Hero is going to have to answer a number of questions for the rest of Hero Honda's shareholders. For starters, what is Hero going to do about its lack of research and development facilities? Honda's role in the joint venture is to provide technology, and its agreement to do so will come up for review in 2014. Will it continue the pact, without a stake in the company, and if so, at what cost? Even with Honda as a co-owner, Hero's royalty payments on technology have been rising faster than sales, reaching $90 million in the year to March. […]