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UK-based telecom major Vodafone Group has exercised its option to acquire Essar’s stake in their joint venture, Vodafone Essar, which will result in a cash flow of $5 billion for the Indian firm. “Vodafone Group announces that the Essar Group has exercised its underwritten put option over 22 per cent of Vodafone Essar Ltd (VEL). Following the exercise by the Essar Group of its put option, Vodafone has exercised its call option over the remaining 11 per cent of VEL owned by the Essar Group, resulting in a total cash payment of $5 billion,” Vodafone said in a statement today. […]
UAE-based engineering, procurement and construction company Dodsal Group has acquired Chennai-based AE&E IDEA (India) Private Limited, it was announced here on Tuesday. The acquisition adds to Dodsal's growing portfolio and improves its project execution capabilities in the engineering, procurement and construction sectors. In its 27 years, AE&E IDEA (India) Pvt Ltd has established its presence in the power, oil and gas and infrastructure sectors and complements and enhances Dodsal's engineering division's own strengths in the fields of oil and gas, power, pipelines, infrastructure, exploration & mining. Rajen A Kilachand, the Chairman and President of Dodsal Group, said the acquisition is a strategic fit and further strengthens the company's existing business footprint in the energy, industrial and infrastructure sectors. […]
The Essar Group, through Essar Africa Holdings Ltd (EAHL), has bought 54 per cent stake in Zimbabwe’s state-owned steelmaker, Zisco. The total deal value is $750 million, which includes $340 million of debt. Essar (Middle East & Africa) Resident Director and EAHL Director Firdhose Coovadia told Business Standard, “It’s a significantly distressed asset, operating at very low levels. We will invest $400 million in the joint venture to get it back to production; $340 million will be used to pay off the debt and money owed to employees as wages.” He said the company was looking to restart steel production at Zisco in 12-15 months from the date of getting all other necessary approvals in place. The transaction requires approvals from various Zimbabwean ministries and acceptable terms for the debt obligations of the government of Zimbabwe (GoZ) towards Zisco’s creditors. Essar said, “Upon closing, EAHL and GoZ will also finalise and settle liabilities such as unpaid wages and salaries and amounts due to various local creditors, etc.” […]
The private equity arm of Standard Chartered Bank has invested Rs 85 crore in Privi Organics , a Mumbai-based aroma chemical manufacturer and exporter . Most of the products manufactured by Privi Organics are used by fragrance and flavours companies. The company also exports products to over 25 countries. Privi is planning an expansion of its manufacturing facilities at Mahad in Maharashtra and the fund infusion will partly be used to finance this expansion. The specialty and fine chemicals market is pegged at $860 million and most of the products in this segment are used as additives in the textile, leather, paper, cosmetics and detergent industries. The global chemical industry underwent a major downturn during the recession . […]
Kotak Mahindra Group said Sumitomo Mitsui Banking Corp. will invest in a $300 million fund that will buy stakes in infrastructure projects. Kotak Mahindra plans to raise funds from domestic and overseas private-equity investors for Indian power generation, road, port and airport projects, it said in a statement to the Bombay Stock Exchange today. Toronto-based Brookfield Asset Management Inc. (BAM/A), Tokyo-based Sumitomo Mitsui and Kotak will together contribute 22.5 percent of the capital, it said. Prime Minister Manmohan Singh’s government is easing rules to lure cash from abroad as Asia’s third-biggest economy plans to double spending on public works to $1 trillion in the five years to 2017. India cut a withholding tax on funds that invest in infrastructure debt to 5 percent from 20 percent in a budget released on Feb. 28. […]
Motilal Oswal Private Equity Advisors, a wholly-owned subsidiary of Mumbai-based Motilal Oswal Financial Services, has invested Rs 45 core in a private equity of Pune-based ElectroMech, India’s largest industrial crane manufacturer and customised material handling solution provider. “We are investing in ElectroMech because its growth is based on its strong fundamentals, and it is also diversifying its customer base,” said Prakash Bagla, vice-president of Motilal Oswal Private Equity. He said the firm was focused to sustain a long-term competitive advantage and it was expected to deliver 30-40 per cent returns over the next three to five years. “We will use the money for capital expenditure and funding the growth plan of the company,” said Tushar Mehendale, managing director of ElectroMech. […]
United Phosphorus Limited (UPL), India's largest agrochemical company, on Monday said it will acquire a 50% stake in Sipcam Isagro Brazil for an undisclosed amount. The Indian firm will buy the stake from Isagro that currently holds 50% in Sipcam's Brazil arm. Sipcam Isagro Brazil is a joint venture between two Italian firms – Sipcam-Oxon group and Isagro. Both the companies have signed a pact under which Isagro will exit the joint venture and UPL will join with 50% stake, the Indian company said in a statement on Monday. “The deal size is being pegged around $600 million or 2,700 crore,” said a person close to the development. The deal is expected to be closed in the next one month and the acquisition will be funded largely through internal accrual, as the company has enough cash in hand, he said. As on December 31, 2010, the company had nearly 1,800 crore cash in balance. […]
In the largest real estate fund exit in India, Kotak Realty Fund sold one of its prime commercial property assets in western Mumbai to a real estate fund of Tata Realty and Infrastructure for an enterprise value of Rs525 crore. Kotak Realty Fund, a unit of Kotak Mahindra Bank, was one of India's first private equity funds and has assets worth $850 million under management. The firm's maiden fund, the Kotak India Real Estate Fund – I, made a hefty profit for it within five years, following the sale of Peepul Tree Properties Pvt Ltd, which owns an information technology park in Goregaon. The Peepul Tree IT park comprises 700,000 sq ft of leaseable area and counts among its tenants firms such as Accenture, HP, BNP, Tata AIG and Integron. The fund, which made an initial investment of Rs95 crore in the project, has received over Rs400 crore following the exit. […]
Private equity investments in Indian companies declined 54 per cent to US $324 million in February, over the same month a year-ago. “The second month of 2011 saw US $324 million of private equity investments in Indian companies, 54 per cent down from the investments of US $699 million for the same month last year,” according to a report by financial consultant Four-S Services. Besides, the total number of deals announced in February 2011 was lower than that in the year-ago period. In February this year, 22 PE deals were announced, against 23 deals in the same month last year. The year 2011 has so far witnessed investments worth US $755 million, compared to US $1.15 billion for the same period (January-February) last year. […]
Kotak India Real Estate Fund I today announced the sale of Peepul Tree Properties Private Limited (Peepul Tree Properties), a wholly-owned undertaking, to Tata Realty Initiatives Fund 1 for an enterprise value of Rs. 525-crore (USD 117-million), thereby scripting India's largest RE fund exits. Peepul Tree Properties owns an IT park in the Mumbai suburb of Goregaon, which has been 96 per cent leased to marquee tenants such as Accenture, HP, BNP, Tata AIG, BOB Legal and General, Integron and Prana Studios. On an initial equity investment of Rs. 95-crore, Kotak India Real Estate Fund I has received over Rs. 400-crore from the exit, including internal accruals, a press release issued here stated. The exit has many firsts to its credit. […]
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