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In one of the biggest buy outs of any Indian company by an MNC, Japanese major Daiichi Sankyo has picked up the promoters – Malvinder Singh and Shivinder Singh's – 34.8% stake at Rs 737 per share in drugmaker Ranbaxy Labarotaries. This means complete exit of Ranbaxy promoters from the company. However, the senior Singh (Mr Malvinder Singh) is expected to continue to head the management for sometime. The story was first broken by ET. As ET reported earlier, the Japanese company may buy the promoters' stake at Rs 737 per share or around 30% premium over Ranbaxy's share price of Rs 560.75 on Tuesday. At this share price, the company is valued at around Rs 27,492 crore while the promoters will get around Rs 9,573 crore. The Japanese major will also make a mandatory open offer, as per the Indian laws, to buy an additional 20% stake in the company. The source added that Daiichi Sankyo plans to hold a controlling 51% stake in the Indian company. […]
Investors may be worried that big buyout firms are changing their investing style, but it’s not stopping them from turning over more money to the asset class. With credit markets at a standstill and the pace of private equity deal-making having slowed dramatically, almost three-quarters of institutional investors worry that private equity firms will stray into less familiar strategies or geographies in the quest to find a home for all of the capital raised in recent years, according to Coller Capital’s just-released Global Private Equity Barometer, a semi-annual survey of institutional investors. The survey included 103 institutional investors from North America, Europe and Asia. They have good reason to worry about this so-called “style drift”; many of the biggest private-equity firms are already getting creative with their investment strategies. Some are taking minority stakes in public companies, such as TPG Capital’s recent investments in Washington Mutual and UK-based lender Bradford & Bingley. Others are pumping money abroad, particularly into emerging markets such as China, India or even Africa. […]
Indian firms are increasingly warming up to the idea of tapping global private equity (PE) funds. Going beyond just raising capital, they are increasingly utilising the PE firm to develop a global edge, to gain inroads into international markets and develop strategic tie-ups with foreign partners. Noida-based Phoenix Lamps Ltd, in which UK-based Actis bought a controlling stake last year, is cashing in on a slew of global tie-ups with international lighting firms, aggressive forays into international markets including Europe and West Asia, and rapid ramping up of capacity. Aurangabad-based Endurance Technologies, in which Standard Chartered Private Equity Fund picked up stake a couple of years ago, has been on a roll since, acquiring three European firms and opening a Detroit office. Gokaldas Exports, India’s largest garment exporter, decided to sell out to Blackstone Group for $165 million in August last year to leverage Blackstone’s financial muscle and contacts in the key US market. […]
Idea Cellular is set to acquire BK Modi’s 40.8 per cent stake in Spice Communications for around Rs 2,200 crore at Rs 77.50 per share. A top industry source confirmed that the two companies have finalised the deal at Rs 77-78 per share, a premium of 45 per cent to Spice’s closing share price of Rs 53.2 on Monday. The deal pegs the valuation of Spice Communications at Rs 5,347 crore. The company is likely to make an announcement in the next few days. After buying out the Modis, Idea Cellular will make the mandatory open offer for 20 per cent stake in Spice that is currently held by the public. The two companies will be subsequently merged, said a source. Telekom Malaysia, which currently holds 39.2 per cent in Spice Communications, will be given a proportional stake in the combined Idea-Spice entity, sources said. […]
Infrastructure Development Finance Co plans to list a $1.25 billion infrastructure fund, a source said on Tuesday, underlining the country's need for cash to modernise its power and transport. A source with direct knowledge of the fund, which would be India's first listed infrastructure fund, said it has raised over $500 million so far. He said the fund will likely list in India, but declined to give a timeline. “The fund will buy assets such as ports, roads, airports and oil and gas pipelines that can generate steady, predictable returns for investors,” said the source, who declined to be identified because the fund raising was still ongoing. Investors are increasingly looking for firms with stable earnings prospects as they seek refuge from recent turmoil in financial markets. […]
The Reserve Bank of India (RBI) deputy governor Shyamala Gopinath has put a question mark on three investment proposals of the State Bank of India (SBI) relating to its exposure in private equity companies, two of which are aimed at floating real estate funds. Sources said Ms Gopinath, who is the RBI nominee on the board of the country’s largest bank, had expressed her reservations about the proposed investments. The entities, which SBI has identified for investment are Sage Capital, promoted by Manish Kanchan, Unitech’s Unitech Realty Investors, and South Asian Real Estate (SARE), promoted by Anuj Gupta, an NRI. Sources said Unitech and SARE proposals were approved internally by the SBI investment committee. However, when the bank circulated the proposal papers among board members as an agenda for a subsequent board meeting, Ms Gopinath voiced her concerns. The question, however, remains as to why the RBI deputy governor had objected to the proposed investments. […]
Reliance Communications and South Africa's MTN have agreed “broad contours” of a deal to create a global telecoms powerhouse but are still working out share swap details, a report said Monday.RCom, which has 48 million subscribers, is valued at 28 billion dollars while MTN, which has 68 million subscribers in 21 markets in Africa and the Middle East, is valued at 38 billion. Analysts expect any deal to offer a premium of over 20 percent which would value MTN at over 45 billion dollars. Under a deal, RCom would become the largest single shareholder in MTN and the South African giant would be the biggest holding company of the Indian telecoms firm, India's leading financial daily the Economic Times said. “Both parties are learnt to have agreed on the broad contours of the deal,” the newspaper said, basing its report on unidentified sources. A spokesman for Reliance Communications (RCom), India's second largest mobile firm, declined to comment on the possible tie-up, which would create an 116 million subscriber base, eclipsing most Western mobile phone businesses.Ambani wanted 66 MTN shares for 100 RCom shares while MTN was seeking 51 MTN shares for 100 Reliance Shares, the report said, adding a top RCOM team was at MTN's headquarters in Johannesburg and was due back Tuesday.But Ambani would join the MTN board as either chairman or co-chairman. MTN CEO Phuthuma Nhelco was expected to keep his current role, according to the report. […]
Leading Australian-based registry & financial services company Link Group (“Link”) and Intime Spectrum Registry Ltd., (“Intime”) announced that they have agreed to join forces in order to tap the growing potential in the Share Registry market in India. Link proposes to acquire a majority stake in Intime (subject to Regulatory approval) , and thereafter Intime will be known as Link Intime. Intime has been No. 1 in terms of number of IPO's handled during the last 3 fiscal years, and serves over 850 companies in the share registry space. Head quartered in Mumbai, Intime operates in 7 other major cities across India. Mr John McMurtrie, Managing Director of Link said “Intime is a very well managed and successful Registry business. We believe we can together build on this success, including by providing additional services to clients”. […]
Sadbhav Engineering Ltd, which is into mineral prospecting and infrastructure development, has acquired a 74 percent stake in the Hong Kong-based mining company Ocean Bright Corporation Limited (OBCL), a move that gives it entry into Africa. Gujarat-headquartered Sadbhav made the acquisition through a wholly-owned subsidiary, Sadbhav Natural Resources Pvt.Ltd. OBCL, directly and through its subsidiaries, holds complete prospecting rights in three provinces in Mozambique; it can prospect for ore and copper (spread over 24,400 hectares in Tete province), limestone (over an area of similar size in Nampula), and coal (over 5,230 hectares) in Manica. “The acquisition has paved the way for us to enter mining in Mozambique,” Sadbhav chairman Vishnu Patel said. The Mozambique government is now considering a new application from OBCL for prospecting coal in Niassa province. […]
Drugmaker Zydus Cadila on Monday announced it will acquire 70 per cent stake in South Africa's Simayla Pharmaceuticals for an undisclosed amount. It will be the second buy by Cadila, India's fourth-largest pharmaceutical company, in less than a fortnight. 'South Africa has been one of our key focus markets and Simayla's expertise and promising growth will unlock value for us as we look to consolidate and grow our business in this market rapidly,' Cadila Chairman Pankaj Patel said in a statement. The remaining 30 per cent stake will be held by the promoter of the Simayla Pharmaceutical, Ben Classen, who would continue to head the company's operations, Cadila informed the Bombay Stock Exchange in a filing. The acquisition will be carried out through its wholly-owned subsidiary Zydus Healthcare SA Pty Ltd. […]
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