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The end of 2010 witnessed one among the largest exits in the Indian private equity sector, wherein PE majors Actis and Sequoia together made a cool $500-million profit through the sale of portfolio firm Paras Pharma. The beginning of 2011 is set to witness another big-ticket M&A deal, in which General Atlantic is to exit Patni Computers. The deal size could be around $1 billion. These two mega deals remain strong examples of M&A being today’s preferred after exit route for PE firms in India than the conventional IPO route. Siddharth Shah, head of corporate & securities practice at Nishith Desai Associates, said, “One needs to bear in mind that besides the high notional valuation that an IPO may create in some circumstances, the certainty of being able to exit on account of liquidity, price realisation and regulatory constraints may make a trade sale or a strategic sale or an M&A exit a more real and profitable exit. Time value of money is also paramount for PE investors, as most of them invest with a certain time-specific horizon.” […]
Kohlberg Kravis Roberts and Co. (KKR), one of the world’s largest private equity (PE) firms, has started offering debt finance to Indian corporations to complete its suite of products. Globally, PE funds such as The Blackstone Group LP and Oaktree Capital Management LP do provide debt financing, but KKR has made the first move in India. KKR has completed four debt transactions worth around Rs.2,800 crore through its non-banking financial company (NBFC) KKR India Financial Services Pvt. Ltd, set up in 2009, while the PE arm has deployed at least Rs.4,600 crore across five deals. “The strategy is to be a multi-asset solutions provider,” said Sanjay Nayar, chief executive and country head of KKR in India. […]
Reliance Capital Ltd. Monday said it has acquired a 26% stake in Indian Commodity Exchange Ltd. from Indiabulls Financial Services Ltd., further strengthening its presence in India's growing commodity exchange business. The company, a part of the Reliance Anil Dhirubhai Ambani Group, has already set up a national commodity spot exchange and said it has been inducted as an anchor investor in the Indian Commodity Exchange, or ICEX. Reliance Exchangenext Ltd., a unit of Reliance Capital, has acquired the stake in ICEX, which is a screen-based online derivatives exchange for commodity trading. The companies didn't disclose financial details of the deal. […]
FMCG major Dabur on Monday said it has completed the acquisition of the US based personal care firm Namaste Group for $100 million (about Rs. 451 crore) in an all-cash deal. “The company's wholly-owned subsidiary Dermoviva Skin Essentials has completed the acquisition process by acquiring 100 per cent stake in leading personal care companies of Namaste Group, US,” Dabur said in a statement. In November last year, Dabur had announced that it is acquiring Namaste Laboratories LLC and its three subsidiary companies — Hair Rejuvenation & Revitalisation Nigeria Limited, Healing Hair Laboratories International, LLC, and Urban Laboratories International, LLC along with its South African arm. The acquisition has been done through the US-based subsidiary Dermoviva Skin Essentials, it added. […]
Sources indicate the finance ministry will hold consultations with the ministry of corporate affairs to discuss India Inc's reservations on the proposed changes in the takeover code. CNBC-TV18's Aakansha Sethi learns from sources in the government that the finance ministry is not in favour of the proposed 100% open offer. The 100% open offer was proposed by the C Achuthan panel. Finance Ministry believes the change in open offer size is not healthy for Indian companies. The Achuthan panel set up by the Securities and Exchange Board of India (SEBI) had proposed a hiking of that trigger for the open offer from 15% to 25% and had said that the open offer should be made for 100% of the equity. […]
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