In a move to further accelerate its growth plans, Subhiksha, a major food and grocery discount retailer, is acquiring a majority stake in Chennai based listed company, Blue Green Constructions and Investments Limited (BGCIL). The respective Boards of Subhiksha and BGCIL are also meeting on Monday (June 30) to consider a merger of the two companies. The merged entity will be called Subhiksha Limited and is expected to list its shares on National Stock Exchange/Bombay Stock Exchange (NSE/BSE) apart from MSE where the shares are currently listed. R Subramanian, the promoter of Subhiksha said, “this transaction will ensure that Subhiksha has access to capital and will continue to be on the fast track of growth. It will also enhance value for our stakeholders and help us achieve our objective of becoming a US$ five billion company.” […]

Citigroup is looking to restructure its Indian back office operations and put its BPO and technology divisions up for sale, according to local press reports which cite IBM as the “lead contender” for the assets. Economic Times says the US bank, which has been badly hit by the credit crunch, is set to overhaul its back office operations in India – which are valued at around $1 billion – and sell off its Mumbai-based BPO operation – Citigroup Global Services – as well as its Citos unit which provides outsourced technology and infrastructure services. IBM Global Services is leading the race for the units, although European IT consultancy Capgemini and Indian outfit Tata Consultancy Services (TCS) are also in the running, says the Economic Times. Citi and IBM have so far refused to comment. […]

Suddenly, the aroma of Indian basmati has got mixed up with the scent of gunpowder. A bitter battle is brewing as India’s biggest player in the rice market, Kohinoor Foods (formerly Satnam Overseas), which accounts for about 38% of the country’s basmati market, is trying to ward off what it sees as a hostile takeover bid. The Kohinoor management has petitioned the Securities and Exchange Board of India and Company Law Board (CLB) accusing Mumbai-based Temptation Foods Ltd of leading a consortium that has covertly acquired a shareholding of almost 30% in Kohinoor Foods. These frantic calls to SEBI and CLB have happened in the last 15 days. The acquisitions, Kohinoor’s petitions to Sebi and CLB alleged, are in violation of the market watchdog’s takeover code, which mandates public disclosure by anybody seeking to acquire more than 15% of a company. It sought an ex parte interim stay from CLB on any further acquisition of Kohinoor shares by Temptation and 45 other entities listed as ‘‘acting in concert’’ with Temptation and a suspension of their voting rights. […]

The subsidiary of Cape Town, South Africa-based multinational media firm Naspers Ltd, MIH India Global Internet, which owns social networking site ibibo.com, will sell up to 50% stake in five years to China’s Tencent Holding Ltd Inc., an instant messaging service provider owned 36.1% by Naspers. Tencent has already put in $7.5 million (Rs32.10 crore) for an undisclosed stake in ibibo Web Pvt. Ltd, the company that manages three India-based websites—ibibo.com, OneFamily.com and Dwaar.com. “This partnership allows us to benefit from Tencent’s expertise in providing Internet and mobile value-added services, as well as online advertising services,” said Ashish Kashyap, chief executive officer at ibibo Web. Naspers has invested 103 million rand (Rs55 crore) in India “to develop the greenfields social network services and local search operation, ibibo”, according to information on its website. Besides ibibo, Naspers’ interests in India include a 30% stake in ACL Wireless Ltd, a mobile software developer. As part of the deal, Tencent, which owns QQ, an instant messaging and communication tool, will give ibibo.com access to its products and technologies. […]

As rival Reliance Communications dabbles with its deal with South African telecom major MTN, telecom service provider, Tata Communication is poised to hold majority share in South Africa's telecom company, Neotel. Tata Comm has entered into an agreement with South African state-owned enterprises, Eskom and Transnet to acquire their 30% stake for an undisclosed amount. Tata Communication has an existing shareholding of 26% in the South African company which will increase to 56% along with Tata Africa Holdings, through this acquisition. Tata Africa Holdings is the investment arm of the Tata Group of companies in South Africa with operations in 8 countries in Africa. The agreement is subject to fulfilment of conditions which could take upto six months. The other shareholders of Neotel include Nexus, Communitel and Two Telecom Consortium. […]