Anil Ambani’s Reliance Communications (RCOM) is in talks to raise up to $5-6 billion from banks to part-finance its planned acquisition of the South African telco MTN. RCOM may pledge the shares of MTN to raise the funds and also provide some sort of guarantee to the lenders. Sources in the know said Deustsche Bank, HSBC and Barclays, among others, are putting in place short-term financing for RCOM to finance the deal. A few Indian banks and a host of European banks have also offered an underlying commitment to lend money for the transaction. RCOM will have to repay this debt in a year or so by raising long-term funding. RCOM’s 45-day exclusivity period (during which MTN could not consider any alternative partner) ends on July 7. It’s unlikely that the transaction would be completed by then, said a source in the know. Instead, the exclusivity period might be extended. The entire transaction is expected to be routed through a special purpose vehicle (SPV). In addition to RCOM, other partners could also pick up equity in this SPV. RCOM is learnt to have been in talks with a Middle East-based sovereign wealth fund and a couple of private equity players to offer stake in the SPV. It is learnt that the private equity funds are not-so-keen to participate in the SPV, while the sovereign fund is interested in it. RCOM will likely hold a majority equity stake in the SPV. […]

Auto ancillary maker Amtek Auto is reported to be making a bid to acquire German castings company KSM Castingsfor around 250 million euros (around Rs1,700 crore). Apart from Amtek Auto two global private equity players are also reported to be in the race to acquire the firm for which the bidding has entered the second round. The Frankfurt-based KSM Castings supplies light metal casting products for the automotive industry. The proposed acquisition is part of Amtek's strategy to boost its revenues from overseas operations. If the deal is successful, it will be one of the largest acquisitions by an Indian company in the automotive forging category. KSM Castings' clientele includes Volkswagen Group, Daimler, BMW, Ford, Porsche, Bosch, and Mann & Hummel. The German company reported sales of e355 million last year. […]

After acquiring a stake in Air Deccan last year, UB Group chairman Vijay Mallya is all set to expand his wings further in the domestic aviation space. According to sources, now Mallya is eyeing a stake in low-cost carrier (LCC) SpiceJet. Last year when Kingfisher Airlines took a 26% stake in Air Deccan, Mallya had evinced interest in picking up a stake in SpiceJet but things did not move forward. “I am interested in SpiceJet but I am not a predator,” he had said then. Kingfisher is now learnt to be eyeing a part of either the 12.9% stake held by SpiceJet's promoter, UK-based NRI Bhupendra Kansagra or the 13.4% stake held by Dubai-based investment firm Istithmar PJSC. Kansagra was under a lock-in period, which barred him from selling any part of his stake in SpiceJet. The lock-in period ended a few months ago. Kingfisher's executive vice president Hitesh Patel said he would not comment on the issue, but added: “I can see additional consolidation in the industry in next 12 to 18 months. All these airlines won't be hanging around that long. If as predicted, crude hits $178 to a barrel in September, it will kill some players…. The access to funds of Kingfisher is strong and the backing of UB Group is a strong plus.” […]

Umicore has reached an agreement to acquire Anandeya Zinc Oxides Private Limited, located in Goa, India. The company will be fully integrated into Umicore's Zinc Chemicals business and will support the business unit's strategy of growing its position as one of the worldwide leaders in the manufacturing of high-purity, specialty zinc compounds. The acquisition and the intended additional investment amount to some USD 10 million. The intended investment involves expanding Anandeya's current zinc oxides product range to different zinc chemicals in order to provide broader support for the growth of Umicore's global customers in the expanding markets of India and the Middle East. The acquired site has spare land for the expansion of zinc chemicals production or for the incorporation of other industrial activities. The experience gained in the transaction will also benefit Umicore in its pursuit of future growth possibilities in India. The transaction is subject to certain standard closing conditions and is expected to be completed by early August. […]