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National Minerals Development Corporation (NMDC), India's largest iron ore producer and exporter, will acquire the Hyderabad-based Sponge Iron India (SIIL) for a maximum of Rs 800 crore. The acquisition proposal is yet to be approved by SIIL. NMDC has formed a draft proposal to merge with SIIL by acquiring the Hyderabad company's shares. It will also have to pay Rs 80 crore to the Government of India as purchase consideration and buy Andhra Pradesh Government's 1.23% stake in SIIL. […] As Lehman Brothers Holdings, a U.S based investment banking firm has decided to file for bankruptcy protection in the US., India's third largest IT company Wipro and Copal Partners, a knowledge process outsourcing firm have expressed interest to acquire its back office business in India, reported Business Standard. Lehman currently owes over $600 billion to lenders. In this regard, the bank's offshore development center, which houses over 100 employees at Wipro is expected to close down. Sources said that Mumbai office also is expected to be shut down shortly. […] The acquisition of Merrill Lynch by Bank of America (BoA) could well lead to the combined entity emerging as a formidable force in India. Even as the deal is likely to be complimentary, the merger of operations would also lead to an overlap in the debt market and the primary dealership (PD) business. There is a sense of uncertainty among some of the senior staff in DSP ML — the Indian arm of Merrill regarding the impact of the merger in India. From DSP Merrill Lynch’s (DSPML) perspective, the acquisition would mean gaining a banking platform. In India, DSPML is a bigger player than BoA. ML has also been looking at obtaining a banking licence in the country. […] The ripples created by the sale of Merrill Lynch to Bank of America could extend well beyond the possible restructuring of the financial services firm’s operations in India. For at stake is also the residual shareholding of 10% held by DSP Merrill Lynch chairman Hemendra Kothari in the Indian arm. Sources close to Mr Kothari, one of the most visible faces of investment banking in India, told ET that he was likely to exit from this investment. In late 2005, Mr Kothari sold his 50% holding to Merrill Lynch for $500 mn. Following that transaction, he was left with a 10% stake. The aim then was to delist the DSP Merrill Lynch stock. […] Looking to exit from the Indian venture Tech Mahindra, British Telecom (BT) is understood to have offered its 31% stake to Tata group company TCS. BT may be mulling to exit totally from the venture, sources said, but no confirmation could be obtained either from the British entity or the Indian corporate house. Asked if British telecom had approached with its offer to sell its total or part stake, a TCS spokesperson said “We do not comment on market speculation”. Sources said the approach could have been driven out of synergistic angle as TCS has a thriving telecom practice and most importantly BT is a valued customer of TCS. […] Indian brokerage SMC said on Monday Sanlam Ltd, a South African financial services group, will invest $50 million and form joint ventures to offer wealth and asset management services. The investment will be in two firms of the Indian group – SMC Global Securities Ltd and SAM Global Securities Ltd., the Indian firm said. The money will be used to pick up 5 percent stake each in the companies and subscription to warrants, SMC added.(Reuters) […] Brushman India is in active discussions with Snowcem Paint (SPPL) to acquire a strategic stake in SPPL subject to completion of due diligence and after obtaining regulatory approval(s) as may be necessary. Recently, the board of directors of Brushman India has recommended maiden dividend of 5% for the year ended Mar. 31, 2008, subject to the approval of the shareholders at its meeting held on Sep. 01, 2008.(My Iris) […] In a transaction representative of the aspirations of emerging Indian companies, Quality Assurance Institute (QAI) India, an operational excellence company enabling companies in the IT and ITeS sectors to deliver high performances, has bought out its US-based parent, QAI Worldwide. The 100% acquistion gives the Indian subsidiary established in 1994 an access to the large US market and also the rights over large intellectual property which rests with the parent company founded in 1980 by William Perry. The US-based parent was a minority stakeholder in the Indian subsidiary, which registered a turnover of around Rs 70 crore last year, when it was established while the other stake holders were some venture capital firms, employees, board of advisors and the CEO Navyug Mohont. […] Roots Corporation, the wholly-owned subsidiary of Indian Hotels, is looking to offload around 20% of promoters equity to private equity players. Carlyle, 3i, Warburg are said to be in the race for the funding, which would be used to fund its growth options, according to sources. Roots is planning to raise $75-100 million through the private equity route to part finance expansion plans of its budget ‘smart basics’ hotel chain, the Ginger, while parent Indian Hotels is busy raising funds for its own requirements. “We are in discussions with PE players and will make the announcement at an appropriate time,” company sources said. Recently, unviable real estate prices forced Ginger to rework its business strategy for the Indian market. Ginger Hotels which started 4 years ago, is now looking at mall-based hotels, entering into management/lease contracts, sprucing up existing hotel properties and talking to public utility services as against earlier strategy of greenfield units. […] INX Network, owned by Indrani Mukherjea, wife of ex-Star Group CEO Peter Mukherjea, plans to raise around Rs 600 crore by selling stake in its entertainment subsidiary INX Media, to fund the company’s expansion plan. INX operates Hindi entertainment channel 9X and Hindi music channel 9XM. “We may consider roping in either a strategic or financial partner and are in talks with both domestic and international companies,” said Mukherjea, founder & CEO, INX Media. The promoters – Indrani and Peter Mukherjea – together hold 50 per cent while the balance is held by private equity firms Temasek Holdings, New Silk Route, New Vernon Private Equity Fund, Kotak Mahindra Capital and Srei. It is believed that all the stakeholders will offload their stakes in equal proportion. […] |