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South African telco MTN is learnt to have sent feelers to Bharti for reviving talks, if it fails to clinch a deal with Reliance Communications, according to a source linked with discussions between the two companies. MTN and Bharti Airtel, which were in merger talks in May, but the Indian telco had called off talks after both companies failed to agree on the corporate structure of the combined entity. The source close to deliberations between Bharti and MTN also added that “the Indian telco was very open to take the discussions with MTN forward if such possibilities existed.” When contacted, the Bharti spokesperson said the “company does not comment on market speculation.” Last week, MTN and India’s second-largest mobile operator Reliance Communications (RCOM) agreed to “extend their period of exclusivity for talks until July 21.” Therefore, a formal approach by MTN appears unlikely for the time being. […]
Venture Capital firms invested $158 million in over 26 deals in the country during the three months ending June 2008, according to a study by Venture Intelligence. The study done in partnership with the US-India Venture Capital Association reveals that during the first six months of 2008 investments of $340 million across 51 investments were completed. “VC investment activity as well as amounts invested during the first half of 2008 has not been affected much by the turmoil in the global financial markets,” said Arun Natarajan, CEO of Venture Intelligence. “While IT companies continue to account for a majority of investments, it is quite significant that the proportion of non-IT investments – both by activity and value – has now climbed up to 40%. VC investments are increasingly focusing on alternative energy, media, retail and other consumer demand-led sectors,” Natarajan added. […]
SpiceJet on Tuesday said the private equity firm led by billionaire Wilbur Ross will invest $80 million (about Rs 345 crore) in the low cost airline. The board of directors of SpiceJet has accepted an offer in-principle from the US-based PE firm that would make available about Rs 345 crore to SpiceJet, a joint statement issued by SpiceJet and WL Ross & Co said. “We are delighted to have WL Ross as an investor in SpiceJet. WL Ross is one of the largest and the most experienced investor in the world. With this investment, we have no doubt that SpiceJet will fulfill its promise of emerging as India's leading airline,” SpiceJet board member Bhulo Kansagra said. “We believe in the long term validity of the low cost airline model in India and that fuel prices eventually will stabilise,” Chairman & CEO, WL Ross & Co LLC Wilbur L Ross said. […]
Amid apprehensions of economic slowdown, India Inc. seems to have resorted to mergers & acquisitions to keep their business going. The number of M&A deals announced in June stands at 51 with value at $5.35 billion, as against 49 deals and $2.92 billion in May, reveals Dealtracker, a monthly report by Grant Thornton. According to the report, the most significant deal was Japan’s Daiichi Sankyo Co. acquiring 34.8 per cent stake in Ranbaxy Laboratories Ltd. for $2.40 billion. This is followed by GMR Infrastructure Ltd ’s acquisition of 50 per cent stake in Netherlands based InterGen NV for $1.10 billion. There were 20 domestic deals (both acquirer and target company being Indian) with an announced value of $1.01 billion and 31 cross-border deals with an announced value of $4.33 billion. Nineteen of the cross border deals were outbound, where Indian companies acquired business outside the country and valued at $1.90 billion. Twelve were inbound deals where international companies or their subsidiaries bought Indian business with an announced value of $2.44 billion. […]
The $29-billion Tata Group is in the process of making a major private equity push through its flagship financial services company, Tata Capital Ltd (TCL). The plans being drawn up relate to setting up PE funds aimed at mid-cap, technology and healthcare sectors. TCL managing director & CEO Praveen P Kadle told FE: “The plans are currently on the drawing board stage, and we hope to unveil it around September. We are looking at areas like the mid-cap space and technology firms.” TCL sources said each fund would be to the tune of $200-300 million, and would aim at getting investors also from the non-resident Indian community. The PE plan is part of a broader financial services game plan being put in place by the Tata Group under the Tata Capital umbrella. “We plan to leverage the strength and contacts we have in several business sectors through our group companies,” said a source. In the technology segment, IT and communications would be focus areas, where the group has a significant presence. […]
Radio frequency systems and solutions company Microqual Techno is close to sealing private equity funding of $20 million by August-end for expansion, a top company official said. “This is the second round of PE funding for us and we plan to raise USD 20 million by August-end from 3-4 leading PE players,” Microqual Techno's CEO Mahesh Choudhary said here. In mid-2007, the company had raised USD 10 million from three players– NEA-IndoUS Ventures, JAFCO Asia and BTS India Fund. The three existing investors will participate in this round of funding as well, apart from a couple of new investors, Choudhary said. Post the fund-infusion, the PE investors will hold a 48 per cent stake in Microqual Techno. […]
IT major, Idhasoft, is close to sealing two acquisitions worth Rs 200 crore in the US, a top company official said. “We are hopeful of completing the first acquisition by end-August and the second by September 30,” Idhasoft's Chief Executive Officer, Alok Pathak, said here. While Pathak would not divulge the identities of the two target companies, he said that they were medium-sized ones with a strong customer-base. “Acquiring them would help us in augmenting our customer-base,” he said. While one company is in the B2C domain with Fortune 50 clients, the other is in the business intelligence, ERP and business process re-engineering space with several Fortune 100 clients. Idhasoft is a rapidly-growing IT services provider in retail banking, financial services, manufacturing, healthcare and insurance domains and its clients include leading Fortune 500 companies. […]
Bhupendra Kumar Modi is planning to offload 24 per cent stake in Spice Mobiles, his mobile handset business, to global handset manufacturer Sony Ericsson. According to sources close to Modi, this move is a part of a bigger association that would see Sony and Modi getting together in a range of other businesses with the Japanese multinational. “The Modi group is looking at merging its business with the Sony company at the every level. This started off with Sony's television business and now the mobile space. Sony Ericsson intends to acquire 51 per cent in Spice Mobiles. While Modi will offload 24 per cent the additional stake will be bought through the market,” said a source. Modi is in advanced stages of negotiations and the process should be completed wihin the next three months. Modi is believed to be quoting around Rs 80-100 a share. […]
Even as the market has been rife with rumours that Citi group will sell its stake in housing major HDFC, Deepak Parekh, chairman, HDFC has denied any such move. Last week, there were media reports that Citi may sell its 11.74% stake in HDFC to Oman Investment Corporation. However, when contacted , Mr Parekh said that there was no such move on Citi’s part to sell its stake. Citi had picked up a stake in HDFC in 2006. Last year, HDFC had made a preferential issue of Rs 3,114 crore to private equity major Carlyle Group and Citi to increase its stake in HDFC Bank and also help the housing major finance its insurance business and housing business. The Carlyle Group, through Carlyle Asia Partners (CAP), put in Rs 2,638 crore, while Citigroup Strategic Holdings Mauritius Ltd subscribed to the balance Rs 475 crore. Post the issue, Citigroup will maintain its holding at 12.3% and Carlyle will hold 5.6%. Currently Citi which is the largest stake holder in HDFC, holds 11.74% stake in HDFC, while Carlyle holds 5.37% stake. […]
Allied Digital Services acquired a 80.5 per cent stake in the US-based IT infrastructure management services provider, EnPointe Global Services (EGS) for $30 million. The company expects EGS to generate revenues of $40 million and EBDITA margin of 15-20 per cent in the current financial year. Allied Digital, which has about 10 per cent market share in the domestic infrastructure management services segment, derives 94 per cent of its revenues from India. (Business Standard) […]
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