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Following an investor outcry, Satyam Computer Services Ltd. late Tuesday dropped a $1.6 billion plan to buy stakes in a pair of infrastructure companies in which the Indian software company 's founders held stakes. The decision came just half a day after Satyam said its board had approved the plan to buy 51% of Maytas Infra Ltd. and all of Mytas Properties Ltd. The reversal was forced after Satyam's American depository receipts fell $6.85, or 55%, to $5.70 in 4 p.m. New York Stock Exchange composite trading. The ADRs rebounded 56% to $8.89 in after-hours trading. Analysts criticized the proposed buyout because of the construction companies' lack of relevance to Satyam's core business, and because Satyam's founders, led by Chairman B. Ramalinga Raju, hold stakes of 36% in Maytas Infra and 35% in Maytas Properties. […]
India’s fourth-largest software company, Satyam Computer Services on Tuesday announced acquisition of 100% stake in Maytas Properties for $1.3 billion and 51% stake in Maytas Infra for $0.3 billion. The company’s decision, which comes as a surprise is being termed as a move to diversify its portfolio in non-IT sectors, which has been facing the heat of the global meltdown. Maytas, which is the reverse word for Satyam is promoted by two sons of B Ramalinga Raju, chairman and founder of Satyam Computer Service. The decision has been approved by the company’s board of directors. Analysts and institutional investors do not seem happy with this move and some are likely to oppose it. […]
Reliance ADAG is close to acquiring 50% stake in a UK-based currency exchange and money transfer firm for an undisclosed amount. This will enable the Indian company to sell its financial products to the 1.4 million NRI population. The name of the UK firm is under wraps but a person with knowledge of the development said the target company was recently named as one of the fastest growing firms in the UK with more than 250 outlets. “It could either be TTT Moneycorp or No1 Currency,’’ he said, adding, the deal will be routed through Wall Street Finance, an Indian public-listed firm that ADAG acquired recently to enter the money transfer business. […]
OVL is eying to save $1 billion by picking just 51 per cent stake in Imperial Energy. The decision is taken after many deliberations as the deal is not much attractive due to the steep decline in crude oil rates in the international market. However, the government gave its nod to the proposed acquisition on the grounds of energy security. ONGC Videsh (OVL) had approached the UK Takeover Panel to extend the time limit for the proposed acquisition of the UK's Imperial Energy. The company said that it suffered delay in approval of the proposal from the Indian government due to recent attack in its financial capital, Mumbai. However, the request was turned down by the UK penal on the grounds of financial loss to the company being acquired, and violation of rule Rule 2.5 which stipulates the necessity to make an offer within given time. […]
Serco Group Plc , an international services company, said it acquired 60% stake in InfoVision Group, a business process outsourcing company in India, for INR 977 million or GBP 13.3 million in cash. With this acquisition, Serco said it entered into the domestic Indian BPO market and that it intends to launch its brand, both in BPO and as a service provider. Further, the Group stated that outsourced BPO service market is expected to grow around US$1.8 billion over the next five years. Christopher Hyman, Chief Executive of Serco, said, that the company's market entry promises excellent opportunities as India is a substantial, fast-growing economy. […]
US and European telecoms groups and other investors are in talks to buy up to a 26 percent stake in India's Reliance Communications, a report said Thursday. The Economic Times, a leading Indian financial daily, said foreign investors were in discussions to take a 20-to-26 percent holding in India's second-largest cellular operator, which is led by tycoon Anil Ambani. The deal would hinge on whether Reliance Communications, known as RCom, can get a premium over its current share price, the newspaper said, citing an unidentified banker with knowledge of the discussions. […]
Hinduja Group owned, Amas Bank has acquired 40 per cent stake in Chennai-based broking firm, Patco Investments and Consultancy Services for an undisclosed sum. The acquisition has come as part of the bank's strategy to expand its presence in the Indian capital markets and would help the lender to build access to onshore wealth management and corporate advisory services, the bank said in a press statement issued here today. Patco has operations in stock broking, derivatives trading, portfolio and wealth management, NRI services, government securities, advisory and investment banking services. […]
Credit rating agency CRISIL Ltd said on Wednesday it would sell 90 percent stake in its UK subsidiary, Gas Strategies Group Ltd, to the management of the firm for an undisclosed sum. The UK firm provides consulting, training and information services for the international energy business. CRISIL would retain 10 percent stake in the company, which contributed 10 percent of the CRISIL Group's consolidated revenues for the nine months to September, it said in a statement. […]
The Financial Technologies India (FTIL) group has inked a deal to acquire 60 per cent stake in Botswana-based Bourse Africa. The latter has been licensed by the Botswana government to set-up a spot and/or derivative multi-asset exchange for trading in commodities, currencies, bonds and diamonds. The remaining equity in Bourse Africa will be held by other African financial institutions, banks, global multi-lateral developmental ventures, exchanges and other strategic investors. The exchange will offer participants an efficient, cost-effective and secure trading platform, supported by a world-class regulatory framework of the Non-Bank Financial Institutions Regulatory Authority (NBFIRA) to ensure market integrity, systemic stability and investor protection, a statement issued by FTIL said. […]
Wind energy billionnaire Tulsi R Tanti, the chairman and managing director of Suzlon Energy, and his family have diversified their business interest and picked up a 49 per cent stake in broadband service provider You Telecom’s cable TV subsidiary, Digital Outsourcing, for around Rs 100 crore. Citigroup Venture Capital International-owned You Telecom has a 36 per cent stake in Digital Outsourcing, while the remaining stake is held by high networth individuals. When contacted, You Telecom CEO E V S Chakravarthy confirmed the development. Tulsi Tanti could not be contacted for his comments. “The investment done by Tulsi Tanti family is of personal nature and Suzlon is not in any way connected to the deal,” said a senior Suzlon executive. […]
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