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Global drinks giant Diageo has emerged as a surprising contender for acquiring a stake in Karan Billimoria-led Cobra Beer. Sources said Diageo is in fairly advanced discussions with the UK-headquartered brewer to buy about 30% stake for about $100 million. The India-born international beer company is seeking a valuation of about $400 million. NM Rothschild is advising Cobra on its fund-raising plans, which have also attracted private equity biggies like Goldman Sachs. However, Diageo is seen as a serious suitor at the moment, sources added. Cobra Beer may decide on a suitor in the next few weeks. Diageo is the world’s largest drinks company and a predominant player in the spirits segment. But it has substantial interest in the brewing sector with iconic stout beer Guinness and specialty Irish beer Kilkenny. If the deal goes through, this will be one of the rare instances of Diageo taking a minority exposure in an alcoholic beverage company. Earlier this year, the drinks behemoth took 50% stake in the Netherlands-based super-premium vodka maker Ketel One for $900 million. […]
Rolta India Ltd, an information technology firm which specialises in geospatial information systems and high-end engineering, has finalised a deal to acquire a US-based company that specialises in business intelligence. The move is seen as the company's effort to bolster its enterprise information & communication technology business. “The business intelligence acquisition will enable us to offer various types of analytics over our existing ERP (enterprise resource planning) offering as well as over the GIS solutions. This would create a synergic mix of technology with intellectual property rights (IPR),” Kamal K Singh, chairman, Rolta India Ltd told DNA Money. […]
Dawnay Day International, the financial services unit of the UK-based Dawnay Day Group, has decided to sell its 50% stake in Dawnay Day AV, the joint venture financial services firm in India, after the turmoil in its global operations. The firm was set up in 2005 by Alok Vajpeyi, a high profile investment banker with DSP Merrill Lynch Ltd. The Indian venture offers stock broking, and sells mutual funds and insurance products of other firms. The firm is also exploring the possibility of setting up an asset management firm with a partner. “We have decided to build business with a new partner,” said Vajpeyi, who owns 25% stake in the venture. “I am not going to sell my stake. I will stay with my team.” The remainder 25% is owned by a trust of 1,700 employees working with the firm across 40 branches. A senior executive of Dawnay Day AV, who didn’t want to named, said the firm is in talks with Hyderabad-based Karvy Stock Broking Ltd and a few other large private equity investors. “The business valuations are still under negotiation,” the same executive said. At least two investment bankers, who did not wish to be named, said Vajpeyi, who is the vice-chairman and managing director of Dawnay Day AV, had talks with Karvy last year with a proposal to become a partner and expand the business. Vajpeyi declined to comment on this beyond saying: “We are talking to a few partners.” […]
RJ Corp-owned Devyani Food Industries has acquired 100% stake in ice-cream venture Cream Bell, having acquired part-owner CK Jaipuria’s share in the entity. The share transfer, in tranches, was completed last week. Sources said the Cream Bell business is valued at around Rs 450-550 crore. The historical valuation of Cream Bell, carried out by private investment firm International Finance Corporation (IFC) a year ago, was about Rs 120 crore. It has subsequently multiplied about four-five times with capacity expansion and increase in Cream Bell’s market share. The Ravi Jaipuria-promoted RJ Corp is now in the process of setting up a greenfield facility in Goa for the ice-cream venture on an investment of Rs 40 crore to double installed capacity. The new plant is expected to go onstream in about four months’ time, and is being set up to cover a pan-India footprint for the ice-cream business. […]
Info Edge India, which owns naukri.com, jeevansaathi.com and shiksha.com, will buy 40% stake in New Delhi-based education content developer Applect Learning Systems for Rs 6.5 crore. The company has already paid Rs 1 crore for the stake and will disburse the rest over the next 18-24 months, after Applect achieves some pre-determined milestones. Info Edge has tapped into its reserves, which stand at about Rs 300 crore, for the stake buy. Applect Learning is a subsidiary of IMS Learning Resources, which provides coaching for higher education entrance exams. It provides content development services with a focus on education in the K-12 segment. […]
Andrew Yule may soon invite expression of interest (EoI) for divesting its 26.2% stake in Tide Water Oil — the company which owns the automobile lubricant Veedol. “The divestment process will be initiated after receiving the valuation from appointed consultants. We will prefer a company which not only offers better value but also aligns with the company’s future plans,” a senior official in the ministry of heavy industries said. The government has simultaneously initiated the process of appointing a consulting firm to undertake valuation exercise. The process is expected to be completed in two-three months. Sources said major oil companies like RIL, Total and Chevron were interested in buying the stake. […]
Swan Telecom, which has received licences to operate mobile phone services in 13 out of the 22 telecom circles in India, is in talks with foreign companies for diluting 26 per cent of its equity for around $470 million. “Arrangements are being worked out for selling a 26 per cent stake in the company,” said Shahid U Balwa, managing director, Swan Telecom. The talks are happening considering a total equity value of the company around $1.8 billion. Including debt, the company's enterprise value is pegged around $2.2 billion. Meanwhile, real estate major Unitech's talks to sell 26 per cent stake in its mobile operations have picked up pace, with the company holding several rounds of talks with three international players for the deal this week. The company holds the licences through several unlisted subsidiaries. […]
Mumbai based BSE listed, Greycells, that operates EMDI vocational institutes in India and middle-east announced its acquisition of 26% stake in another Media and Entertainment vocational education company: AAT. According to FICCI Pwc 2007, Indian Media and Entertainment industry is growing at a CAGR of 24% and will be Rs. 51900 cr by 2010. Currently 4 of the top 10 career aspirants choose Media and Entertainment. Also the gross enrolment in higher studies is expected to double to 12% in a decade from the present 7%. This presents a great opportunity to vocational education specialists like Greycells and AAT. Both the institutes, at present, have combined student strength of 1800. They have aggressive plans to increase to 10,000 levels in next couple of years. […]
Reliance Communications (RCOM) and South Africa’s MTN on Friday announced that merger talks between the two telcos have ended. Anil Ambani-owned RCOM has become the second Indian telco in as many months to fail in pulling off a merger with MTN. Bharti Airtel and MTN were close to a merger in May but the Indian telco called off the talks after the two companies failed to agree on the corporate structure of the combined entity. “Owing to certain legal and regulatory issues, the parties are presently unable to conclude a transaction. Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse,” Reliance Communications said in a statement. MTN too issued a similar statement to Johannesburg Stock Exchange News Service late Friday evening, adding: “Accordingly, it has been mutually decided to allow the exclusivity agreement to lapse and caution is no longer required to be exercised by shareholders when dealing in MTN securities.” […]
The twists in the MTN saga brought together three of India’s corporate czars, both the Ambanis and Sunil Mittal, and provided them a unique, if unwanted opportunity, to determine each other’s destiny. RCOM chairman Anil Ambani had pulled off a coup when he landed an agreement for exclusive talks with MTN within 24 hours of Bharti Airtel pulling out of negotiations with the South African telco in late May. Mr Ambani had seemed to have pulled the rug from under the feet of his arch rival Bharti Airtel chairman Sunil Mittal. But seven weeks down the line, it is another Ambani, older brother Mukesh, who seemed to have handed a second chance to Mr Mittal as Bharti looks to re-engage with MTN. The wheel seems to have come full circle from late May. Mukesh seems to have done to Anil what the latter did to Sunil earlier. Whether RCOM entered into negotiations with MTN once talks with Bharti had failed, or whether it was its eagerness to explore all options with MTN which resulted in the collapse of talks between the South African firm and Bharti, is a matter of conjecture. Yet some industry sources share the view that that it was Anil’s offer of a ‘better’ deal that led MTN to call off its proposed merger with Bharti after both companies had signed a term-sheet. […]
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