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India's leading consumer products company Dabur India is looking to acquire companies or brands overseas. The New Delhi-based maker of juices, cooking pastes and personal care products, is targeting small or mid-sized brands or businesses in south Asia, the Gulf region, North or West Africa.

The revenues of the target companies could be in the range of Rs 20-50 crore ($5-10 million), its CEO Sunil Duggal told Reuters. "We are pretty aggressively seeking an acquisition, and we have demonstrated with the Balsara acquisition that we have the ability to handle one," he said, referring to a 1.43-billion-rupee deal in 2005 to acquire brands like Promise toothpaste and Sanifresh cleaner. Dabur has revenues of $300 million in 2005, and it intends to double that by 09-10. [Via Moneycontrol.com]

The Hindu Business Line reports that the company is "in the process of conducting due diligence to acquire a vitamins or supplements company in the US, FMCG brands in Egypt and Malaysia. In India too, Dabur is in advanced talks to acquire an FMCG firm operating in the herbal/ayurvedic domain. Dabur has earmarked some Rs 500 crore ($111 million) for making these acquisitions.

Megasoft, an IP-driven technology solutions company in the telecom and life sciences space, is close to acquiring a US-based telecom software company, reports The Economic Times. Megasoft is also simultaneously looking for an acquisition in India to strengthen its back-office operations. “We are in the final stages of negotiations with a US company and a deal is likely in the next three months,” Megasoft CEO GV Kumar said. The targeted company has revenues of around $10-20 million. In India, the company is looking at acquiring a services firm with 300-400 employees.

Hinduja TMT, a minority shareholder in Hutchison Essar, a leading Indian telco, is believed to be exiting the company pre-IPO. Hutchison Whampoa, a major shareholder in Hutch, is said to have offered to buy the Hinduja group’s 5.11 per cent stake Hutch for $400 million, reports The Economic Times. It has also offered a gain of up to $50 million upon listing of the Indian entity. A value of $400m for a 5 per cent stake would mean a valuation of $8 billion for Hutchison Essar.

However, the report says that the Hindujas are not willing to accept the offer as it stands. The Hindujas feel that the offer is less than the $11.3 billion valuation offered by Egyptian conglomerate Orascom. Meanwhile, Essar, the the major Indian shareholder in Hutch, is also believed to be interested in hiking the stake. They are also said to be talking to Hinduja TMT. [Via The Economic Times]

Cognizant Technology Solutions, the Nasdaq-listed blue chip software services firm, is looking for a buyout in the business process outsourcing (BPO) space, reports Business Standard. The company is apparently in the final leg of its negotiations. Cognizant's earlier attempt to take over Bangalore-based software testing firm RelQ had not worked out. The BPO it's looking for could be a larger company. Cognizant had revenues of $885 million in 2005, and it's looking to cross a billion dollar this year. It employs 26,000 people.

Subhash Menon thinks big. His company Subex Systems is a mid-market IT company with roughly $40 million in revenues. But his acquisition price can get as big as three times of his own revenues. In the largest overseas acquisition by an Indian software company, Menon's Subex has acquired UK-based Azure Solutions for $140 million (Rs 620 crore). It's a stock-cum-cash deal (97 per cent stock and 3 per cent cash).

Subex is a telecom software and security solutions company. With the acquisition, Bangalore-based Subex will have 24 per cent share of the market globally.

In the merged entity, the Azure management will hold 12 per cent, while its three main investors, New Venture Partners, Doughty Hanson Technology Partners and Intel Capital, will hold around 22.5 per cent collectively. Menon will hold 12 per cent, down from the current 18.57 per cent. It will be renamed Subex Azure Ltd.

Subex closed 2005-06 with a top line on product revenues of Rs 116 crore (total, including services, revenue Rs 181 crore) with profits of Rs 39 crore. Azure is a $31 million firm. [Via Business Standard]

Pvt equity giants jostle for slice of India pie

Krolbert Kravis Roberts’ (KKR) acquisition of Flextronics Software is set to change the private equity landscape in India. The private equity investments in the country during the first three-and-a-half months of ‘06 crossed $2.5bn, surpassing the $2.3-bn investments made in the whole of ‘05.

Prime Focus may buy 55% in VTR

Prime Focus, one of India’s largest post-production houses, has agreed to acquire London-based media company VTR Plc for £4.5 million (approximately Rs 36 crore).

IIFC likely to raise Rs 10,000 cr in debt

India Infrastructure Finance Company plans to raise upto Rs 10,000 crore in debt this fiscal to fund long-term infrastucture projects in the country. "We are likely to raise about Rs 10,000 crore in 2006-07 through bonds or loans," said S S Kohli, Chairman of the newly founded IIFC.

TV18 to invest Rs 250cr in new ventures

The board of directors of Television Eighteen India (TV 18) today approved, in- principle, investments of Rs 250 crore in new ventures and potential acquisitions. According to a release issued by TV 18 to the BSE today, the majority of the projects are intended to be in television, Internet and `triple convergence' areas.

Manipal Group set to raise $70 mn

The Manipal Group is expected to raise $70-$90 million (around Rs 300 crore � Rs 400 crore) through the private equity route for its major expansion plans. The company is in talks with various investors and according to market information, IDFC is expected to lead the investment round.

So cleantech is catching on in India. Anil Ambani has made his first move into the sector. His Reliance Capital has acquired 51 pr cent stake in Chennai-based wind energy company NEPC for Rs 96 crore. Besides Ambani, stock broker Nimesh Shah has acquired 13 per cent in NEPC for Rs 15 crore and and Tarun Jain, CFO of Sterlite, has picked up 4 per cent.

The deal values NEPC at Rs 180 crore. While, Suzlon Energy, a company in the same space, has a market cap of Rs 30,000 crore and its MD Tulsi Tanti is one of the richest Indians on the Forbes list. [Via The Times of India]

It's not a good time to be Dubai Ports International. The company has lost out from the race to be a partner in the Rs 1,700 crore Gangavaram Port Ltd in Andhra Pradesh. Integrax Berhad of Malaysia has joined the port project as "technical partner", picking up 20 per cent equity in the consortium led by D.V.S. Raju.

According to Business Standard, the reason, however, is not related to security. The Malaysian company was ready to enter the port with 20 per cent equity while Dubai Ports demanded a stake not less than 26 per cent.

The port is expected to be operational by December 2007. Raju, his family and friends, owned 51 per cent, while the State Government held 11 per cent. "A well-known US international fund holds the remaining stake," Raju said in a press conference. [Via The Hindu Business Line]

Indian pharma companies have been acquiring assets abroad for the last few years. But since last year, it has gained momentum, and the size of the deals is getting bigger. Last year they acquired companies worth $1 billion. Now they have a warchest of $2.5 billion for overseas buys, especially in Europe.

Ranbaxy, which raised a foreign currency convertible bond (FCCB) issue of $440 million, has a board approval for raising another $1.06 billion. And it could be a through a combination of ADRs and GDRs. Wockhardt too is sitting with cash, so are Sun Pharma, Aurobindo Pharma, Dr Reddy's, Torrent Pharma and Jubilant Organosys. [Via Business Standard]

By now you all now that Aditya Birla Group is buying out Tata's 48.14 per cent stake in Idea Cellular for a little less than $1 billion (Rs 4,406 crore). Two Birla entities will buy the stake. Birla TMT Holdings, an unlisted company, will acquire 33.3 per cent, while Aditya Birla Nuvo will acquire 15 per cent. However, Birla TMT will hawk the stake of 33.3 per cent to other private equity investors.

The Economic Times report mentions that Birla TMT is likely to have already entered into a deal with some financial investors to place the Idea equity. Apparently about 10-12 investors are in the fray, and a final call will be taken in a fortnight.

The Birlas had acquired the stake in Idea at Rs 40.50 a share. After the private placement, Idea Cellular is planning to go in for an IPO.

Also read: Birla may take pvt placement route

Related:

Aditya Birla Group Buys Tata Stake In Idea Cellular For $985.7 Million