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Bajaj Auto has bought a 14.5% stake in Austria’s KTM Power Sports AG, Europe’s second-largest manufacturer of sports-bikes, for over Rs 300 crore. The acquisition has been done through its subsidiary Bajaj Auto International Holdings BV. The stake and alliance allows Bajaj to manufacture KTM-branded bikes in the range of 125cc and 250cc at its Chakan plant, which will be sold in Europe. An added benefit: KTM’s platforms for 125 cc and 250 cc bikes will be used by Bajaj to design its own ones. But there will be no joint branding — Bajaj and KTM bikes will be sold separately, both in India and abroad. Bajaj will also distribute KTM’s entire range of motorcycles in India and the ASEAN region. These include top-end models such as the 990cc Super Duke, the 690cc Duke, and the 450cc executive model. Following the stake acquisition, Bajaj becomes the second-largest shareholder in KTM after its promoters. The company could consider increasing stake at a later date, sources said, though company officials declined to comment. S Ravikumar, vice-president (business development) told DNA Money that while it was too premature to dwell on production numbers, the first bike could roll out of the facility during 2009-10. “This is an integrated operation involving R&D, engineering and the supply chain of vendors and distributors,” he said. The 125cc and 250cc bikes could typically focus on discerning customers on the lines of the Bajaj Pulsar and, to that extent, will contribute to the ‘going up the value chain’ mantra. […]
Enam Capital, an investment arm of Enam Group, is picking up an 11.76% stake in the proposed expanded capital base of TIL (formerly Tractors India). TIL is a 63-year Kolkata-based heavy engineering company, which has clocked a Rs 310-crore turnover in the first six months of 2007-08. Confirming the development, a senior official of Enam Securities told ET: “Enam Capital is a proprietary investment arm of Enam Group. It is picking up stakes in TIL.” Enam Capital is owned by Vallabh Bhansali and his family members. TIL managing director and CEO, Sumit Mazumder also said: “We are issuing warrants on private placement basis to the promoters and Enam Capital to raise Rs 97 crore. The board of directors cleared the proposal on November 4. It will be now placed before shareholders for their nod. We will convene an extra-ordinary general meeting for the purpose.” TIL’s present paid up capital is Rs 9.73 crore. This is proposed to be raised to Rs 13 crore. Currently promoters hold 44.3% in TIL, while financial institutions have 22.36%. Mutual funds and public hold 13.77% and 19.57%, respectively. According to a notice issued by TIL to the BSE on Monday, the company said that the board has approved private placement of some 29,93,842 warrants to the promoters and a “select group”, aggregating Rs 97.59 crore. The warrants would be converted to equity shares 18 months from the date of issue, at a price of “Rs 326 per equity share including premium of Rs 316 per share”. This would mean that each privately placed warrant would be converted to one equity share of Rs 10 each at a premium of Rs 316 per share. […]
Daimler has pulled out of the race for a stake in Indian bus and truck maker Eicher Motors Ltd, the Business Standard said on Sunday. That has left Volvo, Renault, Mahindra International, a joint venture of Mahindra & Mahindra Ltd and Navistar's International Truck and Engine Corp, and “some other unidentified companies,” it said. “We were in talks with Eicher, but we are not looking at having any partnership. We are not interested in that company,” the paper quoted a Daimler India executive as saying. Eicher Motors has said it is evaluating partnership options. Daimler, which recently began assembling some Actros trucks in India, has said it was very close to naming a local partner. It makes buses in India in partnership with Sutlej Motors Ltd. […]
Bangalore based IT company, SPAN Infotech India Pvt. Ltd has announced that it has reached an agreement with EDB, which will acquire a 50.1% stake of the company. EDB is, one of the largest IT groups in the Nordic countries, with over 40 years’ experience of serving leading Nordic businesses and over 4,600 employees with revenues of over $1 billion (Rs3,925 crore). EDB delivers solutions that cover the entire range of business critical IT services. SPAN Infotech employs about 550 professionals working from 3 office locations in Bangalore, India, and is principally working in the areas of applications development and applications management. This acquisition represents one of the largest-ever investments by a Norwegian IT company in Asia. It is expected that the transaction will be implemented towards the end of the fourth quarter of 2007. The current management of SPAN Infotech will continue to run the company following the acquisition. […]
According to sources, Natixis has withdrawn and Blackstone as well may withdraw from IFCI stake sale. The bidders still in the fray are – GE Capital, Sterlite and MS, IDFC, WL Ross Consortium, Cargill, Shinsei and PNB. Earlier Kotak Mahindra Bank and Newbridge had dropped out. According to sources, Natixis, which is a French bank, has definitely pulled out. They had earlier expressed interest. Blackstone is also likely to withdraw in the next few days, analysts said. It is likely to signal its intention to the IFCI management that it wants to withdraw from the race, they added. Kotak Mahindra Bank and Newbridge have already withdrawn earlier, analysts said. This means that out of the 10 players who had initially expressed interest in IFCI, four have withdrawn and six players remain. […]
Housing Development Finance Corp (HDFC), on Wednesday announced that it has sold 26 percent equity in its general insurance business to German insurer Ergo for an undisclosed amount. The country's largest housing finance company, will sell 32.5 million shares in HDFC General Insurance to Ergo, equivalent to 26 percent stake. The joint venture (JV) agreement also allows the German company to hike its stake to 49 percent as and when the FDI regulations change. “We are selling 26 percent equity in our general insurance to Ergo. We will be applying to the regulator and hope to get the approval within the next four weeks,” said HDFC chairman Deepak Parekh. The joint venture, which will be called HDFC Ergo General Insurance has a capitalisation of about $30 million. Earlier this year, HDFC bought its partner Chubb Corp's 26 percent stake in the general insurance venture after an uneasy relationship stalled growth. […]
Having successfully completed the $542 million acquisition of Globeleq America’s power assets in June this year, Delhi-based D S Constructions Ltd is now eyeing a share in a European company. It is expected to take up to 22% stake in Athens-based construction company Aegek SA for around $43.4 million (Rs 170 crore). A Bloomberg report said Aegek SA had informed Athens Stock Exchange that D S Constructions Ltd would be investing €30 million ($43.4 million) in buying the shares of the company. It may further increase the stake to 33% in the next three years, said Aegek in the statement to the stock exchange. However, officials at D S Constructions refused to comment on the development. After the acquisition of Globeleq America in 2007, D S Constructions was looking at more takeovers overseas to increase its presence in the power and construction sector. The recent development aptly complements the company’s plans of inorganic expansion strategy. […]
The Marico Group (Marico) today announced its entry into the South African ethnic hair care and Health care market. It has acquired the consumer division of Enaleni Pharmaceuticals Limited, through purchase of 100% shares in Enaleni Pharmaceuticals Consumer Division (Pty) Ltd (EPCD), an Enaleni subsidiary. The deal is valued at South African Rand (ZAR) 92.8 million (about Rs. 52 crore). Marico clinched this deal in a competitive bidding process. The Durban-based EPCD is present across segments such as Hair Relaxers, After Care -Hair Food and Hair Conditioners. EPCD’s Current annualised Turnover is about ZAR 95 Million that is about Rs 53 crore, (1 ZAR = Approx INR 5.6) EPCD operates 3 leading brands, viz. Caivil in premium ethnic hair care, Black Chic in VFM hair care, Hercules in OTC Health Care. […]
Pyramid Saimira Theatre Limited (PSTL), a Chennai-based theatre chain, has acquired Texas-based theatre chain FunAsia through its subsidiary, Pyramid Saimira Entertainment America. The enterprise value of FunAsia is pegged at $25 million. The acquisition includes FunAsia’s theatre screens, radio station, magazine and banquet halls. “With this acquisition, which is an all-cash deal, the total number of screens under PSTL has increased to 703 globally. We will scale up the number of screens from 23 to 60 in the US and Canada by the year end so as to cover 80 to 90% of the South Asian population there. We plan to expand to other cities such as Chicago, Virginia, Los Angeles and San Hose”, PSTL managing director P S Saminathan said. PSTL, apart from South Asia and US, would also ramp up its presence in the UK, another lucrative market for Indian cinema. Also, the company would create a mega digital theatre chain. Asked about the source of funding, he said it has already raised $ 90 million through convertible debentures. […]
Hyderabad-based software solutions and IPTV provider Goldstone Technologies has acquired 51% stake in 4G Informatics for an undisclosed amount. 4G Informatics is a privately-held firm in Hyderabad specialising in biometric identity solutions, With the acquisition, Goldstone will be getting a foothold in the emerging identity solutions market in India. The company will use a combination of cash and stock as per the guidelines of the Securities and Exchange Board of India (Sebi) to fund the acquisition, according to a release issued by the company today. The cash component would be used to pay part of the consideration to the promoters of 4G Informatics. Sreeni Tripuraneni, founder and chief executive officer of 4G Informatics, would continue to manage the company along with its team. Goldstone Technologies will appoint two directors to the board of 4G Informatics.(Business Standard) […]
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