Canada's second-biggest public pension fund, La Caisse de dépôt et Placement du Québec (CDPQ), is in advanced talks with investment holding company CLP Holdings Ltd to pick up to 40% stake in its India arm CLP India for about $400-450 million (Rs 2,597-2,921.6 crore), The Economic Times reported.
CLP India is a wholly-owned subsidiary of Hong Kong-listed CLP Holdings Ltd. CLP entered India in 2002 when it acquired a 655-megawatt gas-fired power plant in Gujarat’s Bharuch.
Citing sources, the report said sections of the senior management in CLP Group are bullish on India but the board is not willing.
The proceeds will be used to fund acquisitions and growth plans in not only generation business but also transmission and distribution business, according to the report.
CLP India has operational and committed renewable energy capacity of more than 1,000 megawatts (MW). Its only solar power project, with a capacity of 100 MW, is under construction in Telangana. It has a thermal energy capacity of 1,975 MW, according to its website.
Separately, venture capital firm Kalaari Capital is in early talks with promoters of e-tailer Snapdeal to sell its stake in the company, The Economic Times reported.
Citing sources, the report said Kalaari could sell its stake for Rs 40 -50 crore.
It currently holds 8% of Snapdeal, which was once valued at $400-500 million.
Kalaari is likely to have had discussions with other investors for the sale of its shares in Snapdeal, according to the report.
Kalaari had first backed Snapdeal in 2009 and pumped money in several subsequent rounds. It had invested close to $27 million in the e-tailer.
It partially exited Snapdeal in 2015, netting Rs 216 crore.
In another development, Housing Development Finance Corporation (HDFC) has emerged as the frontrunner to pick up a 30% stake in a cash-and-stock deal for state-run Canara Bank’s housing finance arm, Can Fin Homes, The Economic Times reported.
Citing sources, the report said HDFC is likely to offer upfront cash for 14% stake and offer shares in HDFC for the remaining 16% stake.
Can Fin Homes’ market capitalisation is around Rs 7,300 crore as on the close of trading on Wednesday.
Singapore investor Temasek and RBL Bank are the other contenders in fray for a stake in Can Fin Homes, according to the report.
In March 2017, Singapore’s sovereign wealth fund GIC Pte. Ltd bought a 13.45% stake in Can Fin Homes from Canara Bank for Rs 753.77 crore ($113 million).
Canara Bank had then said the deal was part of its plan to sell non-core assets.
Separately, UltraTech Cement has raised its bid for Binani Cement to about Rs 6,600 crore from about Rs 6,200 crore earlier, Bloomberg reported, citing Ultra Tech’s chief financial officer Atul Daga.
The development comes at a time when a joint bid by Dalmia Bharat Cement and Bain Piramal Resurgence Fund has been chosen as the highest bid, the report said.
Bain Piramal Resurgence Fund is a joint venture between the diversified Piramal Enterprises and Bain Capital Credit, the credit arm of US-based global alternative investment firm Bain Capital.
Daga told Bloomberg the bidding process is not transparent and equitable. He said the company had approached the National Company Law Tribunal (NCLT) and the matter is slated for hearing on Monday.
According to earlier reports, the Dalmia Bharat consortium had made an offer of Rs 6,700 crore for Binani Cement.
Binani Cement has been undergoing insolvency resolution initiated by NCLT. The company owes around Rs 3,900 crore to a consortium of lenders, which includes Edelweiss Asset Reconstruction Company, State Bank of India, Canara Bank and Bank of Baroda.
A subsidiary of Binani Industries Ltd, Binani Cement has an annual manufacturing capacity of 11.25 million tonnes globally, with a plants in India and China, and grinding units in Dubai, according to its website.