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UAE-based Emirates Telecommunications Corp (Etisalat) has signed an agreement to acquire 45 per cent stake in India's Swan Telecom for around $900 million.The deal puts the value of the Indian GSM service provider at around $2 billion. Etisalat has operations in 16 countries, including Saudi Arabia, Pakistan and Egypt, and was looking at entering the Indian market, which is the second largest in terms of subscribers in the world. (BS) […] Anil Dhirubhai Ambani Group-promoted Reliance Tech Ventures, venture capitalist Artiman and Cisco Ventures are in talks to invest Rs 30-35 crore in SureWaves, the Bangalore-headquartered startup engaged in providing media convergence technology solutions and funded by the former Broadcom India honcho Rajendra Khare. Reliance Tech Ventures, which provides early-stage capital for scaling up businesses linked to the group companies, is in the fray as multiplex chain and distribution entity Adlabs is reportedly a client of SureWaves, sources said. The startup plans to dilute a stake of 20-26% for a capital infusion of $7-8 million. Mr Rajendra Khare, CMD, SureWaves could not be reached despite several reminders. […] Major financial institutions and private equity firms such as Cornell Capital and Actis are likely to join hands with leading domestic power sector financing company Power Finance Corporation (PFC) to set up an equity consortia for funding power projects in the country. The state-owned institution would identify power projects needing equity support and provide lucrative investment opportunity to consortia partners. The new initiative would be run by the newly set up arm of PFC, Power Equity Capital Advisors Pvt Ltd (PE-CAP). Other institutions and PE firms that may become part of the consortia include Sansar Capital Asia, Nexent Ventures, Capital Management Advisors and Highfield Capital Management. […] New York-based private equity fund WL Ross and Co. Llc., which in August agreed to invest $80 million (about Rs370 crore at the current exchange rate) in low-fare airline SpiceJet Ltd, has, on its own, started talks with Jet Airways India Ltd and Kingfisher Airlines Ltd for a possible merger with the Delhi-based carrier. Ross, part of investment management firm Invesco Ltd, has also started discussions with other low-fare carriers for a possible merger in an attempt to create a larger airline, said a person familiar with the development. “The idea is to increase the valuation of SpiceJet or the money invested by WL Ross before the firm exits,” this person added, asking not to be named. WL Ross has also suggested strict cost controls and tighter management to turn around SpiceJet, he added. […] Media and entertainment company Mukta Arts has announced the acquisition of mobile content and application company, Coruscant Tec. The entertainment marque acquired a 51-per cent stake in Coruscant Tec in an all cash deal for an unspecified amount. Mukta Arts is promoted by filmmaker Subhash Ghai. Mukta Arts is a well known name in the Indian entertainment industry, and has outlined plans to further consolidate its position with the acquisition of Coruscant Tec by adding another dimension to its entertainment portfolio. […] Nepal’s finance minister Baburam Bhattarai is expected to announce the launch of the Nepal Infrastructure Bank, or NIB, in his budget speech on Friday. The bank will be modelled on India’s Infrastructure Development Finance Co. Ltd, or IDFC. “We have got a go-ahead from the government to set up the NIB. This project is very critical for Nepal,” said Radhesh Pant, managing director of Bank of Kathmandu Ltd and president of bankers’ body Nepal Bankers Association. “We expect the finance minister to announce this in his budget speech.” FM Bhattarai is expected to announce launch of the bank today. The Bank of Kathmandu is a member of the consortium of banks that will hold a 20% stake in NIB. India’s IDFC will hold a 20% stake, while the government of Nepal will own around 11% and a Nepalese private equity firm, another 20%, Pant said. […] Three multinational firms are in the race to pick up a 15% stake in Future Logistics Solutions Ltd (FLSL), the logistics and supply chain unit of the Future Group, said an executive with knowledge of the deal. Hong Kong-based Li and Fung Group, the world’s biggest trade sourcing company, European logistics and distribution operator Logista, and CMST, a Chinese logistics enterprises solutions provider, are competing for a slice of FLSL for about $40 million (Rs186.8 crore), which will be used to finance an expansion plan, said this executive on condition of anonymity because he is not permitted to speak publicly about the transaction. Kishore Biyani, chief executive officer of Future Group, confirmed that the firm was looking to divest a 15% stake to raise funds for investment. “We are looking to raise $40 million through private equity,” he said in a telephone interview. […] Lupin has acquired 60% stake in Pharma Dynamics, a South African generic marketing firm, for an undisclosed amount. This acquisition—fifth in 12 months—gives Lupin a foothold into the South African market. “We are looking at creating strong footholds in various markets to register sales of $1 billion by the year end. This year we have allocated Rs 250 crore for R&D and we expect our growth to be more than 40%,” Lupin chairman D B Gupta said. Pharma Dynamics is the sixth-largest generic player in South Africa. It recorded sales of Rand 118 million (nearly $15 million) for the year ended February 2008. It had an EBITA of over 20%. […] JDS Apparels (P) Ltd has initiated the process of raising Rs 40 crore from private equity players to fund its second phase of retail expansion in the country. The Noida-based fashion and lifestyle retailer currently operates 6 stores under the Ritu Wear brand in north India with another 10 in various stages of opening. According to sanjay Sahni, director of JDS Apparels, the expansion of another 10 stores is expected to be accomplished by second half of 2009. “In fact, two new stores are set to open in Faridabad and Indirapuram in a couple of months from now,” said Sahni. […] Indian insurance regulator IRDA has reportedly asked Tata AIG to clarify its solvency. A tight-lipped AIG (India) confirmed that its solvency had been questioned, but refused to answer additional questions. “Having regard to the developments reported in USA, the IRDA has asked for the reports of the companies in the matter,” a spokesperson said. According to IRDA, the US economic downturn and recent collapse of several banks has caused serious concern in Indian financial markets.AIG India shares are currently split between Tata and AIG, with the former holding 74 per cent and the latter retaining the remaining 26 per cent.Nevertheless, Indian policy holders will be relieved to learn that the Federal Reserve Board has agreed to lend as much as $85 billion to rescue the floundering American International Group. […] |