Alok Industries, the Rs 2,200-crore Mumbai-based textile firm, has resumed talks with private equity players to dilute about 20% equity it owns in its unlisted unit, Alok Infrastructure. A realty company, Alok Infrastructure has been looking at options to raise around Rs 600 crore for developing its large land bank, said sources. Alok Industries plans to sell part of its stake in its realty unit to 3-4 private equity firms by August end. The company’s chief financial officer Sunil Khandelwal is currently in the UK for negotiations on this issue. “We are working out different options and strategies for our realty venture and something will happen before August. I am not in a position to divulge anything more now,” he told ET from London. Ernst & Young is advising Alok Industries on the equity dilution in Alok Infrastructure. […]

Mahindra & Mahindra’s (M&M) component arm Systech has acquired a controlling stake in Italian design firm Engines Engineering (EE) for an undisclosed amount. The Bologna-based firm, with annual revenues of about $12 million, develops motorcycle prototypes and two-wheeler designs. The acquisition further underscores reports that the Mahindras are interested in the growing two-wheeler market. ET had recently reported that the Anand Mahindra-led company, that is a market leader in tractors and sports-utility vehicles, has been talking to Indian and overseas players to shape its two-wheeler plans. The company is reportedly keen on high-end Italian design companies MV Agusta and Cagiva, while also showing more than a passing interest in Kinetic Motors and China’s Lifan. “Demand for offshoring of engineering services has been growing rapidly…acquiring this design house provides us the perfect vehicle to penetrate markets like Europe, China and Russia,” said Hemant Luthra, president of M&M’s components unit Systech. “Now that we have a design house in Italy, we will look for one in Germany to further penetrate the European markets, he added. […]

Telekom Malaysia will gain the management control of Spice Communications, reports CNBC-TV18, quoting sources. The Spice promoters – the Modis may exit or retain a marginal stake, sources add. Idea will pick up a stake in Spice and eventually merge Spice with Idea, they say. Earlier, CNBC-TV18 had learnt that BK Modi had said in the AGM that took place on Monday, that Telekom Malaysia was actually considering upping its stake in Spice Communications all the way up to 74%. Now does that actually indicate that the Modis are willing to exit because what CNBC-TV18 understands from the sources is that the Modis may actually exit the venture altogether and IDEA Cellular will come in as an Indian partner. And if that happens, then will Spice Communications be merged with IDEA – there is still no clarity as far as the M&A regulations are concerned and also as far as price is concerned because BK Modi had gone on record at that AGM to say that nothing less than Rs 60 per share would be agreeable to them and what we understand from our sources is that they are looking at over Rs 90 per share and what they are being offered at this point in time is a little over Rs 70 per share. CNBC-TV18 has learnt from sources that Telecom Malaysia will now gain management control of Spice Communication. The promoters of Spice and BK Modi will exit or retain marginal stake. […]

Reliance Communications (RCom), India's second-biggest mobile phone company, has hired Germany's Deutsche Bank as arranger to fund the possible acquisition of South African telecom giant MTN Group. RCom plans to raise about $14 billion, or about 30 per cent of MTN's total enterprise value of $45 billion including premium, from private equity players. The remaining $31 billion will be adjusted with the share exchange of the promoters,” a source familiar with the situation told Business Standard. Deutsche Bank, Germany's biggest bank, is in talks with private equity companies, including the Carlyle Group, the Blackstone Group and Apax Partners to raise funds. RCom has given Deutshce Bank the freedom to raise funds from private equity companies, banks and other financial players. However, the source declined to divulge the details of the route of funding RCom was considering. When contacted, an RCom spokesperson declined to comment. RCom, which had commenced the due diligence of the MTN Group last week, is expected to close it by this weekend. “This is a large process as books and financials of subsidiaries in 21 countries have to be checked but the company will close it this week itself,” he added. […]

Realty developer Phoenix Mills, promoted by Atul Ruia, plans to raise nearly $450 million (nearly Rs 1,890 crore) from private equity investors to fund its mall and hospitality projects, a top company official said today. “We will raise these funds at the project level and all the projects are FDI-compliant. We have got good response from investors,'' said Mahesh Iyer, chief financial officer of Phoenix Mills. The company is planning to raise $200 million to fund its retail projects and $250 million to fund its hospitality projects, Iyer said. The company has projects for developing 25 million sq ft of space across the country. Phoenix Hospitality, the hospitality arm of Phoenix, is developing nearly 14 hotels across the country. Phoenix has tied up with Hong Kong-based Shangri-La to manage its hotel property in Lower Parel in Mumbai and has also tied up with the Hyatt group and US-based Marriott International to manage its other hotel properties. […]