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Dutch financial services conglomerate ING Groep NV, among the top 20 companies in the world based on market capital, is looking to buy an established private equity, or PE, fund house in India, according to a company executive familiar with the development. New Delhi-based Avigo Capital Partners, a PE fund manger with a focus on small and medium enterprises (SMEs), is a potential candidate, this person said, asking not to be named as the target is not finalized yet. “We are looking to buy out a PE fund house or acquire strategic equity stake in one of them,” the ING executive said. The deal is being explored from ING’s Hong Kong office at One International Finance Centre on Harbour View Street, he added. But, Vivek Subramanian, a founding partner at Avigo, said the firm is not in talks tosellout the business. Small funds will not survive long in the PE business, which is “essentially a large capital play”, said Jon Schahinger, who heads ING’s PE business in Asia from its office in Australia. “As the market grows, small funds perish if they aren’t taken over by larger funds.” […]
A rumoured counter-bid by Pfizer for Ranbaxy is eerily similar to the US firm’s actions in November 1999 when it launched an aggressive bid to stop Warner-Lambert from being bought by American Home Products. To acquire Warner-Lambert, Pfizer ended up paying $20 billion more than what American Home Products offered. The jewel in Warner-Lambert’s crown was Lipitor — the cholesterol-fighting drug, in which Ranbaxy is the generic leader. The speculation now is Pfizer will go all out to outbid Daiichi. On November 4, 1999, hours after executives of the American Home Products and Warner-Lambert announced a $70-billion merger agreement, Pfizer scuppered the deal with a $82.4-billion hostile bid for Warner-Lambert. Though the Warner-Lambert board rejected the bid initially, Pfizer managed to acquire the company for $90 billion. The anti-cholesterol drug’s patent is on the verge of expiry in the US and European markets. Ranbaxy has entered into a legal battle with Pfizer to launch the drug in the US and European markets. Though Ranbaxy has not been greatly successful in its legal strategy, industry analysts feel that by acquiring Ranbaxy, Pfizer can control the generic market of Lipitor and the market for other blockbuster generic drugs. […]
After a long lull, the Reserve Bank of India (RBI) has allowed a string of foreign venture capital (VC) funds to invest in the country. While this decision could be driven partly by fears of a slowdown and drying capital inflows, the shift in mood may also have a lot to do with these funds changing their charter of investments and making upfront commitments to convince RBI. In the last two months, the central bank has cleared applications from as many as six foreign VC funds. Though many funds are still waiting in the wings, the industry perceives it as a positive development. Advisors to some of the funds say that among other reasons, this could have been achieved only after they changed their charters to insert a specific clause that there will be no investment in the real estate sector. Till now, the funds were only giving an undertaking, which is just a letter to RBI, stating that they will stay away from real estate – a simple declaration which the regulator thought was inadequate. There are other changes that foreign VCs are making to push their case. Significantly, they are refraining from making any mention of sectors which have certain sensitivity in terms of foreign direct investment. For instance, as funds spell out the segments they would be interested to invest in, there is no reference to industries like retail, non-banking finance companies and banking. […]
India's real estate developer Unitech Ltd. said Lehman Brothers Real Estate Partners has agreed to acquire a 50 percent stake in the initial phase of the company's project on the Western expressway in the city of Mumbai for around $175 million. The project is being jointly developed by Unitech and its local Mumbai partners, the company said in a filing with the BSE. Lehman Brothers Real Estate Partners will contribute 50 percent of the construction costs with a collective similar contribution from Unitech and its local Mumbai partners. The initial phase entails development of one million square feet of office space out of the total developable area of around 18 million square feet. (Forbes) […]
Gemini Communication Ltd said on Monday it has acquired 51 percent stake in Chennai-based Veeras Infotek Pvt Ltd for 70 million rupees. The acquisition, funded through internal accruals, would start contributing to revenues from the current quarter, Executive Director R.Ramkumar told Reuters. The acquisition will extend Gemini's network security capabilities and increase its client base, he added. “They have a solid skill base, which is a big value addition. Their customer-base will also be added to ours,' he said over the telephone. Veeras has about 400 clients across the country while Gemini has more than 1000 clients. “We will be able to extend our services across the globe,” Ramkumar said. […]
Flush with cash from his wireless telephony company's sale, industrialist B K Modi is negotiating to acquire 39 per cent stake in Indian television company, Multi Screen Media (MSM), earlier known as Sony Entertainment Television. Modi, who was earlier eyeing the 32 per cent stake held by Indian shareholders, is now looking at acquiring an additional 7 per cent held by trusts. He is also planning to re-brand the television channel as Sony Spice TV. “We are in talks to buy Sony from the present shareholders and now we are close to acquiring 39 per cent stake in the company. We are also open to take our stake further to get majority control,” a top executive of Spice group said, on condition of anonymity. Apart from buying the Indian promoters' 32 per cent shares in the company, Modi is talking to various equity funds to garner another 7 per cent. With this buyout, Modi will become the largest shareholder in the company after Sony Pictures, which holds 61 per cent. The unlisted MSM is one of India's leading television channels and its minority promoters were looking at exiting the company for a long time. […]
Downturn in the world economies notwithstanding, India is witnessing increasing number of private equity (PE)deals with the total value touching $6.39 billion so far this year. PE deals in the country have fared well since the beginning of this year despite global credit crunch, high oil prices, inflation among others. “The total number of PE deals during the first five months of 2008 stands at 170, with an announced value of $6.39 billion as against 159 deals amounting to $4.97 billion during the corresponding period in 2007,” global consulting major Grant Thornton said. Meanwhile, another global deal tracking firm Zephyr said India is among the top 10 countries in terms of value of private equity deals across the world. […]
The Saraswat Co-operative Bank Ltd has asked for Reserve Bank of India's permission to take over South Indian Co-operative Bank, sources at the bank said on Friday. “We have applied to the RBI to take over South Indian Co-operative and we expect the formalities to be completed in a couple of months,” a senior official at the bank told Reuters on the condition of anonymity. Another official said the bank management has met officials at the central bank on Thursday to discuss the proposal. Officials at the South Indian Co-operative Bank and the central bank were not immediately available for comments. Saraswat Bank has a deposit base of 110 billion rupees and an advances base of 70 billion rupees as of March, the official said. (Reuters) […]
Telekom Malaysia is understood to have picked up a little less than 15% stake in Aditya Birla group’s company Idea Cellular at a price of Rs 158 a share through a preferential offer paying above $2 billion for the acquisition. This values the Birla company over $10 billion. The preferential offer has been made to Telekom Malasyia (TM) at a substantial premium to the current market price of Idea Cellular. Idea’s scrip closed at Rs 108.25 on BSE, on Friday. Its market cap stood at Rs 28,527 crore. Sources said TM is learnt to have paid Rs 158 a share for about 15% additional stake in Idea Cellular. Idea would now buy out the Modi's 40.8% stake in Spice Communications and merge with it and TM would have 20% equity in the merged entity. While an Idea spokesperson declined to comment on this, the company in a filing to stock exchange said the company keeps pursing growth opportunities and can not comment on the reports of TM picking up 15% additional stake in Idea Cellular and as and when any definitive proposal of any nature is considered and approved by the company's board, the company shall inform the exchange. […]
The New York Times Co. intends to buy a 5% stake in Sieger Solutions, an advertising arm of India-based newspaper publisher Deccan Chronicle Holdings Ltd. If the deal goes through, DCHL will print its Financial Chronicle in association with the Times-owned International Herald Tribune, the Indian publisher announced in a filing with the Bombay Stock Exchange on Friday. That would include a daily four-page section from the Tribune in the Indian financial newspaper. The sale, the value of which has not been disclosed, will also be subject to statutory approvals and respective board approvals, the filing stated. The publisher’s Deccan Chronicle is one of India’s most widely circulated English dailies in competition with The Hindu and The Times of India. […]
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