Citigroup Inc., Merrill Lynch & Co. and two other investors acquired stakes in the Multi Commodity Exchange of India Ltd. as trading surges in the Asian nation, the world's second-largest sugar and rice producer. The U.S. investment banks acquired 5 percent stakes, Ravi Muthreja, a spokesman for the Mumbai-based company said today. Passport Capital acquired 3 percent and GLG Partners LP purchased 2 percent in MCX, as the exchange is known. Goldman Sachs Group Inc. and Fidelity International Ltd. have invested in Indian markets as the fastest pace of economic growth since independence in 1947 spurs commodity demand. Overseas capital may help MCX, the world's third-largest gold exchange, develop products as the metal rises to near a record. “The foreign companies will bring in their expertise from overseas and help enhance the Indian commodity market,'' Amol Tilak, an analyst at Kotak Commodity Services Ltd., said by phone from Mumbai. “It's a good time to be in.'' […]

Vijay Mallya, chairman, United Breweries (Holdings, has bought a 50 per cent strategic stake in Epic Aircraft for $120 million (about Rs 480 crore), according to a statement by the UB Group. Mallya, whose UB Group owns the full-service carrier Kingfisher Airlines and also has a 26 per cent in Deccan Aviation (which owns budget carrier Air Deccan), has made the investment in Epic in his personal capacity. Epic Aircraft, a unit of Aircraft Investor Resources LLC, manufactures private business jets with single and twin engines, capable of carrying six to seven people. While Mallya’s initial focus would be on the US market, which is the largest with 11,000 of 14,000 business jets in the world, he will also use this acquisition to tap the business jets market in India. As India Inc looks to acquire assets abroad, its CEOs are looking for corporate jets that will fly them to destinations quicker and more comfortably. […]

A US-based private equity fund is close to picking up a minority stake in Angel Infin Private, the holding company of domestic brokerage house Angel Broking. International Finance Corporation (IFC), the private equity arm of World Bank, is another strong contender in the race. Two private equity investors, one each from Europe and Asia respectively, have also evinced an interest in the stake sale. The due diligence process has been completed and only the final financial negotiations remain, according to sources. The deal is likely to be formally announced shortly. The valuation of the group is close to Rs 1,200-1,300 crore. When contacted, Dinesh Thakkar, chairman and managing director said, “We will be announcing the name of the investor by the first week of next month.” “The funds would be infused into our holding company, which is a NBFC (non-banking finance company). This will be our main business. The new investor will help us to increase our international presence and build on the asset side by providing us with finance and back-end support,” he added. […]

Private equity majors Carlyle Group and Citigroup Venture Capital International (CVCI) are in the race to acquire a 15 per cent equity stake in Pyramid Saimira Theatre, a Chennai-based theatre chain company. Pyramid Saimira Theatre is offloading a 15 per cent stake to the private equity investors at around Rs 420 to Rs 445 a share, which is nearly 31.6 per cent premium to the current market price of Rs 338. Sources said two more investors were also in talks with the company for the stake. In addition to the 15 per cent stake in the listed entity, the group was also likely to sell around 15-20 per cent stake in its unlisted production company, Pyramid Saimira Production, they said. “Since the production company is not listed, the deal will be based on the company’s enterprise valuation,” said a source. This company is valued at Rs 1,300 crore. P S Saminathan, managing director, PSTL, declined to comment on the development. In India, Pyramid Saimira owns over 371 screens across south India. The company is in an expansion mode and plans to roll out over 2,000 screens by 2010. […]

Global private equity player Citigroup Venture Capital (CVC) on Tuesday announced that it has invested $37 million (Rs 150 crore) in Delhi-based marble company SVIL Mines for a 20% stake in the company. This puts the valuation of the two-year old SVIL Mines at $185 million (Rs 750 crore). CVC will also be represented on the company’s board. With this investment, CVC’s total India exposure stands at $800 mil-lion. The fund is planning to invest $1.5 billion of its current $4.5-billion emerging markets fund in India over the next two years. “We will invest $1.5 billion in the next two to three years. Since the $4.5-billion global fund allows 40% of the total fund size to be invested in a single geography, the investment can be as high as $1.8 billion across sectors,” said CVC India and Middle East managing director Ajay Re-lan. With bigger deals in India on its agenda, CVC is also looking to make its future investments out of the fund and not out of Citigroup’s bal-ance sheet. CVC recently invested Rs 90 crore in edible oil company KS Oils. It has equity stakes in textiles company Spentex, polyester producer JBF Industries and International Tractors Ltd as well. […]