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Reliance Life Sciences has said it is looking for acquisitions in the clinical research space, but high-valuations are hindering its plans. “We are looking to acquire clinical research companies,” said Reliance Life Sciences Chief Executive Officer K V Subramaniam. “We are looking at acquisition up to $50 million. But companies that are prepared to sell ask for 10 to 15 times more of EBITDA,” he said. The company had identified at least three clinical research companies in Europe, but had to back down because of high-valuations. “Valuation is a big factor while making an acquisition. Most of them did not make sense,” Subramaniam said. […]
Bangalore-based realty developer Puravankara Projects is planning to raise nearly $300 million (Rs 1,320 crore) to fund its new projects and buy land in the current financial year. The company will be raising $150 million through bank debts to fund new projects and the remaining amount from private equity investors for buying land, said Ravi Ramu, director (finance), Puravankara. The company is eyeing PE funding as commercial banks have put curbs on loans for buying land. Currently, Puravankara has a land bank of 125 million sq ft. The company’s plans come on the back of a sharp fall in the BSE Realty Index, along with a rise in lending rates, curbs on external commercial borrowings (ECBs) for developers, a fall in pre-sale deals for residential apartments, among others, leading to restricted cash flow to developers. The BSE Realty Index has fallen by 61 per cent from its peak in January. […]
Offshore and oilfield services firm Great Offshore Ltd said on Tuesday it has acquired two companies in Hyderabad for 1.6 billion rupees, marking its foray into the port terminal and offshore logistics business. The transaction is on an all-cash basis and is expected to close within 2 months, the company said in a notice to the Bombay Stock Exchange. “The decision to acquire an existing business is with a view to broad base earning without diversifying core business risks and ensuring sustainable cash flows,” the notice quoted Vice Chairman and Managing Director Vijay Sheth as saying. […]
Nimbus Communications, the Rs 850-crore media company with interests in entertainment, sports and broadcast, may sell 26 per cent stake to a strategic investor. The company is expecting over $140 million for this stake, which will value it at over $550 million. UBS is advising Nimbus on the transaction, which is likely through a sale of shares by existing shareholders as well as a public listing. When contacted, Nimbus executive vice- president (strategy & business development) Prasana Krishnan told ET: “UBS will advise the company after studying its growth plan in detail. But the preliminary advice is that we should evaluate all options including strategic and financial investors. Should we choose to induct a strategic investor, we intend to complete the process by March 2009. We may provide a stake to the strategic investor of up to 26 per cent which may be through a combination of primary issue and a partial sale of secondary shares by financial investors, though a final decision will be taken on this at a later stage. “ […]
Shriram EPC (SEPC), one of the leading engineering, procurement and construction (EPC) service provider, has acquired 55% in Blackstone Group Technologies (BGT), a Chennai-based engineering consulting firm for an undisclosed amount. Shriram EPC MD & CEO T Shivaraman said, “The acquisition will help us to consolidate our position as a leading provider of engineering services and provide synergies across business lines of biomass power plants and pipe rehabilitation.” SEPC has the option to acquire the balance equity after three years. BGT India director S Egbal will continue to head the organisation. Mumbai-based Singhi Advisors were exclusive advisors to BGT for the transaction. […]
Mumbai-based textiles company Alok Industries Ltd that has business interests in real estate and retail, is in talks with a few private equity (PE) firms, including Delhi-based Red Fort Capital Advisors Pvt. Ltd, to raise upwards of Rs300 crore for a 20-25% stake in its real estate development project in Peninsula in mid-town Mumbai. A senior executive of the company confirmed this, but requested anonymity, as the deal is yet to be concluded. The real estate project is owned by a 100% subsidiary of Alok Industries. The company plans to raise this amount for a 20-25% stake in a real estate project in Mumbai Axis Bank Ltd’s investment banking team is adviser to Alok Industries for this PE deal. The price as well as the quantum of stake to be sold is still under negotiation. Red Fort Capital, a realty-focused PE firm, could not be immediately reached for comment. […]
Ispat Industries is set to pick up 40 per cent stake in iron ore and coking coal mining companies in Brazil, Columbia and Mozambique through the joint venture route. Speaking on the sidelines of the company’s annual general meeting, Pramod Mittal, chairman, said that it was too premature to comment on the iron ore reserves. The Brazilian mines have iron ore reserves of 300-500 million tonnes, while the Columbia and Mozambique mines have coking coal deposits in the range of 60-70 million tonnes. Ispat would have access to the mining output in proportion to its shareholding in the JVs. When asked whether the foreign mining assets would cater to Ispat Industries or Global Steel Holdings, which is the holding company for foreign steel operations, Mittal said, “We will try to maximize value.” […]
Indian software firm, Tech Mahindra on Thursday said that it would acquire a stake of 17.28% in European systems integrator, Servista for an undisclosed amount and would be the latter’s delivery arm for a period of three years. Private equity firms HarbourVest Partners and Arts Alliance hold major stake of the privately held company, Servista. It is headquartered in London and provides managed IT services on an offshore basis with core offerings in operating and business systems such as CRM, billing, operational workflow, IT systems transformation and testing. […]
Tata Steel Global Holding Pte Ltd, the Singapore-based subsidiary that owns the international steel and mining assets of Tata Steel Ltd, the country’s largest steel maker, is in talks to raise at least $1 billion (about Rs4,400 crore) through private equity (PE) transactions or a private placement of shares with institutional investors, and likely use the money to fund the purchase of a coal or iron ore mine or part of one. In the wake of a sharp surge in raw material prices, Tata Steel and other Indian steel makers are looking to acquire iron ore, limestone and coal mines abroad. The private equity deal could be in exchange for an 8-10% stake in Tata Steel Global, said a senior transaction adviser at a multinational investment bank operating in India who is familiar with the development. […]
At least four companies have expressed interest in buying stake in the proposed commodity exchange promoted by Indiabulls Financial Services Ltd, a senior official said on Thursday. The firms, which are all Indian, include banks, government bodies and private companies, Gagan Banga, director, told Reuters adding all of them have applied to the Reserve Bank of India for the necessary approval. He declined to name the companies. Indiabulls has also applied to the Forward Markets Commission (FMC), commodity futures market regulator, for permission to sell its stake, he said. […]
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