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Future Group in talks to buy HyperCity; Blackstone Group eyes stake in IARC

11 September, 2017

Kishore Biyani-led Future Group is in talks to buy retail supermarket HyperCity Retail India Ltd, a report in a financial daily said, citing people aware of the development.

HyperCity’s enterprise value could range between Rs 600-1,000 crore, The Economic Times reported, citing one of the persons mentioned above.

“The deal involves Rs 250 crore of debt with HyperCity, which will move to Future Retail’s books, Rs 250 crore in cash and the remaining Rs 500 crore in Future Retail’s shares,” the report quoted one person as saying.

The deal is expected to close by the end of the month, ET reports.

As on 31 March 2017, HyperCity has 19 stores across the country.

In 2016-17, the company registered total revenue of Rs 1,107.02 crore and a net loss of Rs 83.99 crore. Shoppers Stop Ltd holds 51.08% stake in the company and the rest is held by the promoters.

Blackstone’s stressed assets acquisition
US-based private equity giant Blackstone Group LP will acquire a controlling stake in Mumbai-based asset reconstruction firm International Asset Reconstruction Company Pvt. Ltd (IARC), financial daily Mint reported, citing two people in the know.

Initially, the PE firm will invest about $150 million for a large minority stake and this will become a majority one in some years. Blackstone’s purchase will be executed through the Singapore arm of the company’s Tactical Opportunities division, the report added, citing one person in the know.

Established in 2002, IARC’s institutional shareholders include HDFC Bank Ltd, Tata Capital Financial Services Ltd, City Union Bank Ltd, FMO, Netherlands, ICICI Bank Ltd and Standard Bank Plc. As on 31 March 2016, HDFC Bank Ltd held 29.41% stake and Tata Capital Financial Services Ltd owns 25.36% stake in the company.

Norwest Venture to acquire stake in Ess Kay Fincorp
Multi-stage private equity investor Norwest Venture Partners (NVP) is in advanced stages of discussions to acquire about 34% stake in Jaipur-based non-banking financial company (NBFC) Ess Kay Fincorp Pvt Ltd for about Rs 200 crore, a report in Mint stated, citing two people aware of the development.

Ess Kay Fincorp provides financing for automobiles, construction and agriculture equipment, as well as for small and medium enterprises (SME). Ess Kay launched its SME business in September 2015.

In 2012, BanyanTree Growth Capital LLC had invested in the NBFC. As on 31 March 2017, BanyanTree Growth Capital held 25.25% stake in the company.

“Banyan Tree is looking to completely exit the company but it may also settle for a partial exit in the forthcoming round,” Mint quoted a person as saying.

Shapoorji Pallonji and SSG eye power distribution firm Jyoti Structures
A unit of business conglomerate Shapoorji Pallonji group and Singapore-based stressed assets investor SSG Capital are jointly set to bid for a controlling stake in power transmission firm Jyoti Structures Ltd, Mint reported, citing two people aware of the development.

Sterling and Wilson Pvt. Ltd (SWPL), the engineering, procurement and construction unit of Shapoorji Pallonji, is the participating entity in the deal.

The final bidding process is expected to be completed in two months, the report added, citing one person as saying.

KEC International Ltd, part of the RPG group, and Kalpataru Power Transmission Ltd (KPTL) are also expected to bid for Jyoti Structures, Mint reported.

Jyoti Structures was among the 12 defaulters named by the Reserve Bank of India for immediate bankruptcy proceedings.

Lanco Infratech to exit real estate play
Debt-laden Lanco Infratech Ltd is set to exit its real estate investments to focus more on its core infrastructure business, a report in The Economic Times states, citing two people aware of development.

The firm is also looking to close its project—Lanco Hills Technology Park in Hyderabad—with Bangalore-based real estate firm DivyaSree Developers. This will be its last project, the report added.

Hyderabad-based Lanco Infratech is one among the 12 defaulters named by the RBI for immediate bankruptcy proceedings.

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Future Group in talks to buy HyperCity; Blackstone Group eyes stake in IARC

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