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Advent to pick up majority stake in Manjushree; Bandhan may buy into PNB Housing
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US-based private equity firm Advent International is set to acquire a majority stake in India’s largest PET maker, Manjushree Technopack, The Times of India reported. PET is the plastic often used to make bottles.

The proposed deal is valued at Rs 2,300 crore ($330 million).

Bengaluru-based packaging solutions supplier Manjushree makes and sells plastic preforms, containers and blow films. The company has an overall capacity of about 155,000 tonnes a year, according to its website.

Vimal Kedia, promoter and managing director of Manjushree, will hold a minority stake and continue to manage the company, the report said.

Kedia told the newspaper that talks are still on and nothing is finalised yet.

In the proposed deal, private equity investor Kedaara Capital will sell its entire 24% stake in the company, the report added.

As on 31 March 2017, Kedaara and Ladoga Holdings held 40% stake in the company.

 In another report, The Economic Times reported, citing people, that microlender-turned-bank Bandhan Bank Ltd is planning to buy a controlling stake in PNB Housing Finance Ltd.

Bandhan is in talks with a few sovereign wealth funds, like Singapore’s GIC, and global financial institutions to form a consortium for buying stake in PNB Housing Finance, according to the report.

Bandhan is likely to make a stock or a cash-and-stock offer, according to the report.

Punjab National Bank and The Carlyle Group have initiated a joint strategic sale process to offer a minimum 51% stake in PNB Housing Finance.

Punjab National Bank holds 32.79% stake in the mortgage lender and The Carlyle Group 32.36%.

Other suitors in the fray for a stake in PNB Housing Finance include Kotak Mahindra Bank, Fullerton, Aditya Birla Capital, Blackstone, KKR, Bain Capital, Apax Partners, Temasek and Canada Pension Plan Investment Board (CPPIB), according to the report.

Separately, financial services firm Centrum Capital is set to acquire L&T Financial Services’ supply-chain lending business, The Times of India reported, citing people aware of the development.

L&T Financial Services is selling the portfolio to scale back its wholesale lending and sharpen focus on rural and housing segments, the report said.
The supply-chain lending business had a loan book of Rs 1,220 crore as on 30 June.

The companies are expected to sign a definitive agreement early next week, the report added.

In another report, The Economic Times, citing people, said that Japanese financial services company Orix Corporation may raise its stake in Infrastructure Leasing & Financial Services (IL&FS) through participation in a Rs 4,500 crore rights issue.

Orix Corp. may increase its shareholding by 5%, the report added.

IL&FS Employees' Welfare Trust and Central Bank of India may forego the rights issue, according to the report.

The issue is likely to be priced at around Rs 200 a share, the report said.

Separately, Mint reported, citing people, that India’s largest power trading firm PTC India Ltd is weighing the sale of its wind power business.

PTC Energy Ltd, a subsidiary of PTC India, has a wind power asset portfolio of around 290 megawatts, according to the report.

PTC India told the financial daily that it is considering various options for funding the growth of PTC Energy by bringing in a suitable investor.
However, there is no deal under discussion in this regard, PTC India added.

Citing a person, the report said PTC doesn’t want to put further money in the asset generation business.

In another development, JM Financial Asset Reconstruction Company has made an offer to buy out State Bank of India’s loan to Bombay Rayon Fashions Ltd for Rs 900 crore, Mint reported, citing two bankers in the know.

State Bank of India has an exposure of Rs 2,260 crore to Bombay Rayon, the report added.

As of 30 June, State Bank of India held 29.28% stake in the company. The promoters hold 38.35% stake in Bombay Rayon.

Separately, private sector lender Lakshmi Vilas Bank is in talks with investors to sell 26-51% stake, The Economic Times reported, citing two people aware of the development.

JPMorgan & Chase is advising the bank on the stake sale, the report added.

Parthasarathi Mukherjee, managing director of Lakshmi Vilas Bank, told the financial daily that the lender is looking to raise capital from institutional investors or preferential allotment.

He added that the funds will be used as growth capital.

As on 30 June, the bank’s gross advances stood at Rs 26,127.13 crore. The total deposits were Rs 32,473.26 crore. The lender has a network of 567 branches and 1,039 ATMs.

In another report, The Economic Times said, citing two people, that New Delhi-based water treatment firm Earth Water Group is planning an initial public offering (IPO) to raise Rs 650-850 crore.

The company is expected to file the IPO draft prospectus in the next few weeks, the report added.

IIFL and ICICI Securities are advising Earth Water Group on the IPO, according to the report.

In September 2012, CLSA Capital Partners had invested $15 million in Earth Water Group.

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