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Dewan Housing Finance Corporation Ltd, (DHFL) has held plans to raise around Rs 240 crore through qualified institutional placements (QIP) and preference shares. Instead, the company may take the private equity route. Keeping in mind the current market volatility, it may evaluate raising a smaller amount, of around Rs 150-200 crore. “We have deferred our plans of QIP given the overall market situation at present,” Kapil Wadhawan, vice-chairman and managing director, DHFL, told DNA Money. “The company is currently in the process of evaluating other options, which could be a private equity route. The PE route offers stability and by nature a PE investor remains with a company over a 5-7 year time frame” he added. […]
Private equity arm of Franklin Templeton Investments Darby Overseas Investments has picked up an undisclosed stake in coffee chain Cafe Coffee Day for $25 million. Darby's Asia Mezzanine Fund II has invested USD 25 million in Bangalore-based Amalgamated Bean Coffee Trading Company Ltd (ABCTC), the owners of Coffee Day, the company said in a statement without disclosing further transaction details. This is Darby's third investment in India in the last 12 months, it added. Coffee Day is one of the largest integrated coffee players in India, with operations across the coffee value chain, from procurement and processing to retailing. It owns and operates coffee cafes in India under the brand “Cafe Coffee Day”. […]
Sam Balsara, principal shareholder of Madison World Companies, has acquired 51% stake in MediaCom India Private Ltd, a WPP-owned media agency in India. With the majority stake, Balsara will be chairman of the company whereas Divya Gururaj will continue as managing director of MediaCom. The company will report to Balsara and GroupM will not be involved in managing the company, according to a statement from Madison Media. Meanwhile, Procter & Gamble India (P&G) has awarded its media buying and planning account to Madison MediaCom Combine effective from July 1 this year. Announcing the deal, a spokesperson from P&G said, “In November 2007, as part of standard corporate requirement to ensure that the best agency resources are working on the business, P&G India undertook a review of its media agencies. We are happy to share that based on the results of the evaluation. We have awarded our media account to Madison Mediacom Combine.” P&G India’s media business is estimated to be around Rs 200 crore. […]
UAE’s telecom giant Emirates Telecommunications Corp (Etisalat) is in talks with Telekom Malaysia (TM) backed Spice Communications and other new licence holders for a possible foray into the Indian mobile space. Etisalat is the largest telecom operator in the UAE and provides telecommunications services in 14 countries in Africa, Asia and Africa including Pakistan, Egypt and Saudi Arabia. […]
Bangalore-based IT services firm Mindteck has announced acquisitions of three companies for $9.6 million (around Rs 38.4 crore). It completed the acquisition of the US-based Primetech Solutions, an IT consulting company. It also acquired two of its associate companies – Mindteck UK and Mindteck Singapore. These acquisitions will expand Mindteck’s operation in the US, Europe and Asia-Pacific as part of its ‘Go Global’ strategy. Mindteck has raised $7.47 million (around Rs 31 crore) through private equity for implementation of the strategy. The new investments are being used to fund current acquisitions, repay debt and for future growth. […]
Gateway Rail Freight, a subsidiary of Mumbai-based Gateway Distriparks, is in the processs of raising around Rs 330 crore from private equity investors. PE firms like The Blackstone Group, India Value Fund, New Silk Route and Temasek Holdings are said to be in the fray to pick up equity stake. Gateway Distriparks closed at Rs 98.05 on the BSE. (ET) […]
A change of management is underway at plywood firm Kitply Industries which owns the popular brand Kitply with Hong Kong-based ADM Capital infusing Rs 120 crore for restructuring the company. India Debt Management, a group company of ADM, has infused capital in Kitply Industries, which will be used partly to repay the lenders and partly to revive its operations. The proposal to bring in a private equity (PE) player ADM on its board was recently cleared by the board of Kitply Industries and its lenders. The company had outstanding loans of Rs 500 crore to about 15 lenders. Bankers said that the company ran into trouble owing to an earlier slowdown in the economy and a family dispute over management control. The restructuring of Kitply was referred two years ago to the corporate debt restructuring (CDR) forum — a platform where lenders get together to revolve stressed loans. The restructuring package envisages Rs 75-80 crore being used to repay the lenders while the balance Rs 40-45 will be infused into the company. While some of the lenders have already sold their loans to Asset Restructuring Company of India (Arcil), other lenders like ICICI Bank, SBI and IFCI would continue as lenders. […]
N. Sankar-led Sanmar Group, an integrated industrial, shipping and engineering group, has acquired Houston-headquartered Matrix Metals LLC for an undisclosed sum. Matrix Metals operates one of the largest speciality steel casting businesses in North America. It is a portfolio company of Jefferies Capitol Partners, a private equity investment firm with more than $680 million in funds under management. The deal is expected to result in the creation of a leading specialty steel casting group in the global arena. Matrix Metals has foundries in Keokuk (Iowa), Richmond (Texas) and San Juan del Rio in Mexico. The three plants together have a combined capacity of 30,000 tonnes a year. Matrix designs and pours castings of all sizes up to 8,500 pounds. It is focussed on meeting the casting needs in the flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors. It employs around 1,300 people across these three locations. According to a release from the Sanmar group, Matrix Metals closed the last financial year with sales of $157 million, up 10 per cent over 2006. […]
Mumbai-based, Accentia Technologies Ltd (ATL) has informed that the company has acquired 51% stake in Oak Technologies Inc, USA in an all cash deal. However, the value of the deal was not disclosed by the company. ATL provides business process management solutions for the healthcare, financial, and insurance sectors. It offers various business process outsource management (BPOM) solutions, which primarily include professional transcription to medical providers and non-medical companies in the United States and the United Kingdom. The company’s BPOM solutions also comprise medical billing and coding, insurance claim processing, and consultancy services. […]
The diminishing appetite of investors is hurting the fund raising plans of the PE players. Corporates are also in a tight spot as the markets have turned unfavourable in terms of raising money. Said a source at the financial institution, “We are hoping to close the fund by June-end and there is a possibility of falling short by 15 per cent.” Since there is a turbulence in the global markets, some of the PE players are postponing their fund raising plans, while others are revising their original targets and extending closing dates for their funds. According to banking sources, ICICI group — which is planning to raise over $7 billion for its PE activities — said the entire process is being prolonged because of the market conditions. “The fund raising plans of PE firms will be dampened considering the current market conditions. There will be a temporary flip,” said P Harshavardhan, partner & director, Boston Consulting Group(India). According to industry estimates, the amount being raised by PE players is more than $12 billion this year. This figure, however, does not include real estate funds. […]
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