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Although cross-border mergers and acquisition (M&A) deals touched a new high during 2007, the value of domestic M&A deals was on the decline during the year, according to a study done by consultancy firm, Grant Thornton. The value of domestic deals has declined from $6.9 billion in 2005 to $4.99 billion in 2006 and $2.83 billion in 2007, even though the volume of domestic deals has increased from 151 deals in 2005 to 214 deals in 2006 and 313 deals in 2007, the study said. The number of domestic deals ~ where both acquirer and the target company are Indian ~ has gone up but they were of small value. According to Grant Thornton, total number of M&A deals during the year (up to 15 December) were 661 with an announced value of $51 billion. But 348 cross-border deals ~ Indian companies acquiring foreign companies and the reverse ~ accounted for bulk of the share at $48 billion. […]
Future Capital, the financial arm of Future Group, has picked up an estimated 28% stake in Sankalp Retail Value Stores, a franchisee of the US-based discount format, My Dollarstore. The discount format will now be a part of Pantaloon Retail’s larger strategy to set up imported bazaar concessions as a shop-in-shop concept in its hypermarket, Big Bazaar. Sources said a team of Big Bazaar is working on setting up the new format which will offer a huge array of imported products at reasonable rates. Anil Biyani, Kishore Biyani’s younger brother, is likely to be in charge of imported bazaar, sources said. The format is also expected to help scale up the profit margins in Big Bazaar. Sameer Sain, CEO of Future Capital, was unavailable for comment. Rakesh Biyani, CEO of Pantaloon Retail, said, “We are working closely with My Dollarstore to create a concept for imported products in Big Bazaar outlets. This is an area where we see a huge consumption opportunity.” […]
Anil Ambani-promoted Reliance Entertainment is planning to sell around 5% stake to raise money for its large plans in movie production, social networking and the movie rental business. People close to the development said that Reliance Entertainment is in talks with some global funds and that a deal is likely to be agreed upon soon. The firm is insisting upon a valuation of close to Rs 6,000 crore, justifying the number on the scale, the business model and the potential in each segments. A Reliance Entertainment spokesperson was not available for comment. The move comes as a booming economy and rising affluence drive demand for entertainment. Movie companies have found it far more easier to sell their films, thanks to the insatiable appetite of NRI population across the world and the growth of multiplexes in the country. The popularity of Bollywood and the recent spate of hits combined with a drastic fall in prices of DVDs and VCDs have given a boost to the rental business. […]
Anil Ambani group firm Reliance Capital on Saturday said its subsidiary has invested in US-based telecom solution provider Stoke Inc. However, financial details of the investment made by ADAG's corporate venture arm Reliance Technology Ventures (RTVL) was not disclosed. The US-based firm enables telecom operators to solve security services problems across different broadband access. The co-investors along with RTVL in the deal include existing investors such as US-based venture capital funds Kleiner Perkins Caufield & Byers, Sequoia Capital, Integral Capital Partners and DAG Ventures, a company release said. […]
Merrill Lynch & Co. may buy a stake in Indian stockbroking firm Sharekhan Ltd., the Economic Times reported, without saying where it got the information. New York-based Merrill may buy shares from Citigroup Venture Capital, which holds a 75 percent stake in the Mumbai-based brokerage, the newspaper said. It may also receive a preferential allotment of equity securities in Sharekhan. The total value of the 20 percent stake on offer may be close to 3 billion rupees ($76 million), the report said. (Bloomberg) […]
It’s not only India Inc but also PE firms such as Sequoia Capital and Providence Equity partners which are making a beeline to buy out teams in the newly-formed Indian Premier League(IPL). Sequoia Capital, a private equity firm, which has invested in Google and Providence Equity, is one of the largest private investment firms specialising in equity investments in media and communications companies globally. According to sources close to the developments, the Board of Cricket Control of India (BCCI) has received more than 60 Expression of Interest (EoI) from leading PE firms besides multinational companies and heavyweights from India Inc till now. “We’ve received EoIs from some leading companies such as Reliance, Airtel, Kingfisher and some other individuals. And yes some PE firms have also applied,” a BCCI official told SundayET. […]
Rice processing firm LT Overseas Ltd said on Monday its unit had acquired U.S.-based rice firm Kusha Inc to increase its presence in the United States. The company did not disclose financial details but an Economic Times report had earlier estimated the value of the deal at $20 million. Kusha had revenue of about $40 million, the company said in a statement.(Reuters) […]
Wipro Ltd , India's third-biggest software exporter, is expected to bid for France's Capgemini by the end of January in a deal valuing the French firm at up to $7 billion, the Hindustan Times said on Monday, citing unnamed sources. Citigroup and HSBC have been in discussions to finalise a plan before the year-end holidays, it said, citing investment banking sources. “Details about leveraged buyout financing and other options were discussed,” it quoted a banker close to the deal as saying. […]
Tata Motors will be named on Dec. 21 as the winning bidder in the auction for Jaguar and Land Rover, according to a report in Britain's Birmingham Post newspaper. Tata will pay £1 billion, or about $2 billion, for the two Ford Motor luxury auto brands, said the newspaper, which is based near Jaguar and Land Rover's home in the British midlands. Ford spokesman Mark Truby said the company plans no announcements regarding a sale of the prestigious British brands. He said the U.S. automaker is still on track to announce the sale of Jaguar and Land Rover early next year. Tata is vying with another Indian automaker, Mahindra & Mahindra , as well as U.S. private equity firm One Equity Partners, for the units. Earlier this month those companies had submitted bids that ranged from $1.5 billion to $2 billion, said one person involved in the talks, who spoke on the condition of anonymity because they are confidential. […]
Travelguru, the online travel portal has signed a strategic agreement to acquire Desiya.com, a B2B hotel portal based in Gurgaon. The deal size is $25 million. Desiya.com is a New Jersey-based online travel company with offices in London, New Jersey, Gurgaon and Kolkata. Speaking to Hindustan Times, Ashwin Damera, founder & CEO of Travelguru.com said, “Since Desiya operates in the B2B online travel and we operate in the B2C online travel space, this acquisition is complementary for us. It will make us leaders in the online hotel business space.” Talking about financials, Damera said that Travelguru, which has been backed by VC firms like Battery Ventures and Sequoia Capital India would break even in August or September 2008. By 31 March 2008, it expects revenues of $45 million. The company has seen two rounds of funding totaling to $25 million. Damera holds a founder’s equity share in the company as well. […]
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