|
|
Star India Pvt. Ltd, the News Corp. subsidiary that operates India’s leading general entertainment channel Star Plus, and Balaji Telefilms Ltd, the content provider responsible for some of the most successful soaps on Indian television, seem to be on the verge of a split after sharing an eight-year relationship. Star is mulling divesting, partially or fully, its 25.9% equity stake in the country’s largest television content production company, said a person close to the development who didn’t wish to be identified because of the sensitivity of the issue. “Of late, the exclusivity agreement has been creating a strain between the two partners as Star wants to try out new ideas and producers and Balaji now has many more buyers with a slew of GECs (general entertainment channels) launching,” the person said. The exclusivity agreement refers to the condition put by Star that no Balaji show will run on any other channel during the time slots on which Star had a Balaji serial running. Star, according to insiders in both firms, pays Balaji a premium of more than 200% above market rates for this exclusivity. While Star executives have always maintained that Balaji’s soaps owe their success to Star Plus’ leadership position, Balaji executives have argued to the contrary. Yet, the relationship between the two partners had been going strong till recently. […]
Mahindra & Mahindra’s (M&M) component arm Systech has acquired a controlling stake in Italian design firm Engines Engineering (EE) for an undisclosed amount. The Bologna-based firm, with annual revenues of about $12 million, develops motorcycle prototypes and two-wheeler designs. The acquisition further underscores reports that the Mahindras are interested in the growing two-wheeler market. ET had recently reported that the Anand Mahindra-led company, that is a market leader in tractors and sports-utility vehicles, has been talking to Indian and overseas players to shape its two-wheeler plans. The company is reportedly keen on high-end Italian design companies MV Agusta and Cagiva, while also showing more than a passing interest in Kinetic Motors and China’s Lifan. “Demand for offshoring of engineering services has been growing rapidly…acquiring this design house provides us the perfect vehicle to penetrate markets like Europe, China and Russia,” said Hemant Luthra, president of M&M’s components unit Systech. “Now that we have a design house in Italy, we will look for one in Germany to further penetrate the European markets, he added. […]
The Indian arm of UK-based Actis Advisers Pvt. Ltd and India’s ICICI Venture Funds Management Co. Ltd are among the handful of private equity firms eyeing a minority stake in Piramal Life Sciences Ltd, the recently demerged drug research company of Nicholas Piramal India Ltd, a person close to developments at the company said. “There are quite a few investment companies already in talks with us, but nothing has been concluded,” said Swati Piramal, a director with Nicholas Piramal. The Mumbai-based Piramal family, which holds a 58% stake in Piramal Life, is expected to sell a 9-10% interest in the company. “The company will engage a merchant banker by next week to handle the transaction,” the person close to the developments added, asking that he not be identified. Based on potential drug compounds it is developing, Piramal Life is valued at around $500 million (about Rs2,025 crore) by finance companies such as Lehman Brothers, Enam Securities Pvt. Ltd and Kotak Securities Ltd. In March, Piramal group chairman Ajay Piramal had said the new research company would bring in a strategic investor after it listed on the bourses. […]
New York-based PE firm Zephyr Peacock, which has around $1 billion under management globally, has invested in Miles Software, an IT company providing solutions to the financial services sector. The details of the investment were not known. Zephyr’s India MD Mukul Gulati said the private equity firm was bullish on financial services and education in India. “We believe the current downturn in the financial services is temporary. In long run, we are very bullish on the prospects for financial services in India,” said Mr Gulati. The firm is raising an India-dedicated fund from which most of its investments will be made. […]
Korean financial services giant Mirae Asset Financial Group is planning to enter the investment banking, wealth management and private equity segments in the country. Mirae Asset Financial Group chairman Hyeon-Joo Park said that the company recently launched its asset management business in India. “We are now preparing to launch our securities business in the country,” Park said, adding that Mirae was not eyeing the brokerage space. He refused to put a figure to the proposed investment into India. The group has been exploring an inorganic entry into India through an acquisition. “But we have not been able to find a suitable company,” said Park. Real estate too was on Mirae’s radar but regulations in India are dissuading the Korean company. “If the government of India softened the regulations, we would like to invest in real estate,” Park added. […]
A local media report said that Reliance ADAG was keen on acquiring stake in the airline, in which Tata Group has minority interest. The third largest listed private airline operator by sales had underperformed the market over the past one-month till 5 June 2008, declining 24.97% compared to the Sensex’s decline of 9.05%. It had also underperformed the market in the past one quarter, declining 42.49% compared to Sensex’s decline of 1.29%. The company’s current equity is Rs 240.65 crore. Face value per share is Rs 10. Vijay Mallya-promoted Kingfisher Airlines and the countrys largest private sector carrier Jet Airways are also said to be in fray for picking up a stake in SpiceJet. SpiceJet, which just completed three years of operations, is valued at around Rs 755 crore, according to its market capitalisation. Anil Ambani had also evinced interest last year to buy a controlling stake in Deccan Aviation. Rising aviation turbine fuel (ATF) prices will hit airlines. Airlines re suffering huge losses and they cannot pass the entire burden (of jet fuel price rise) on users as it negatively affected the number of passengers carried by them. […]
Telekom Malaysia will gain the management control of Spice Communications, reports CNBC-TV18, quoting sources. The Spice promoters – the Modis may exit or retain a marginal stake, sources add. Idea will pick up a stake in Spice and eventually merge Spice with Idea, they say. Earlier, CNBC-TV18 had learnt that BK Modi had said in the AGM that took place on Monday, that Telekom Malaysia was actually considering upping its stake in Spice Communications all the way up to 74%. Now does that actually indicate that the Modis are willing to exit because what CNBC-TV18 understands from the sources is that the Modis may actually exit the venture altogether and IDEA Cellular will come in as an Indian partner. And if that happens, then will Spice Communications be merged with IDEA – there is still no clarity as far as the M&A regulations are concerned and also as far as price is concerned because BK Modi had gone on record at that AGM to say that nothing less than Rs 60 per share would be agreeable to them and what we understand from our sources is that they are looking at over Rs 90 per share and what they are being offered at this point in time is a little over Rs 70 per share. CNBC-TV18 has learnt from sources that Telecom Malaysia will now gain management control of Spice Communication. The promoters of Spice and BK Modi will exit or retain marginal stake. […]
Trikona Capital Ltd., the leading fund management firm for institutional investment in Indian real estate and infrastructure, announced it has extended its relationship with SachsenFonds Holdings GmbH, a German fund manager with $7.5 billion under management, in a $150 million deal that includes minority stakes of current Trikona assets and investments in new projects. Trikona's divestments earned a return on capital of 115%. Trikona laid the foundation for this partnership last December when it sold assets in the portfolio of Trikona's London Stock Exchange-listed fund Trikona Trinity Capital PLC (LSE: TRC) to SachsenFonds for nearly $65 million, a return of 108% for Trikona. As part of the $150 million deal, Sachsen will join Trikona as co-investors in a $40 million investment in Mumbai to refurbish four acres of middle-class housing and build high-end luxury homes as part of Trikona's urban rejuvenation platform. Sachsen will contribute 55% of the investment cost. […]
Tanla Solutions Ltd. said it has bought Finland-based Openbit OY, which provides software to help pay for mobile content, for a total $18.6 million in cash. In a regulatory filing, Tanla said it has bought an 85-percent stake in Openbit for $15.81 million, and will buy the remaining 15 percent within three years. For the year to Dec. 31, 2007, Openbit had revenues of $15.88 million with an EBITDA of $0.79 million. Its clients include Nokia , Symantec , F-Secure and Quickoffice, and gaming companies like 3D Arts and Gamelion.(Forbes) […]
PVR Pictures, a subsidiary of PVR, has signed agreements with ICICI Venture Funds Management Company and JP Morgan Global Special Opportunities Group for an investment of Rs l20 crore in the company. JP Morgan and ICICI Venture will each invest Rs 60 crore in PVR Pictures. This transaction will enable the parent, PVR, to become a fully integrated film and entertainment company with interests across the entire value chain including production, distribution and exhibition. PVR is already one of the largest multiplex operators in India and contributes 15 per cent of the box office collections of any leading Bollywood film. The expansion into the production and distribution business through PVR Pictures will create further synergy f or the group by leveraging its exhibition circuit. […]
|
Post your messages.Please refrain from posting offensive messages. IndiaPE accepts no liability for the consequences of your reliance on these postings and messages.
|