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News Round UP: Unitech to Raise $300-$500 Million via Debt Issue

24 December, 2008

Unitech Plans to Sell Orissa Sponge Stake, Seeks Buyers – Unitech plans to sell 25 per cent stake in Bhubaneswar-headquartered Orissa Sponge Iron & Steel Ltd to monitise funds. Unitech promoters, Ramesh Chandra and his family are in talks with Indian as well as global steel giants for the same. Reports suggest that Chandras are also in talks with Korean steel giant Posco. They expect to close the deal at an enterprise value of around Rs 2,000 crore, value of their stake, hence, being Rs 500 crore. (Business Standard)

Dishman Arabia and Saudi Aramco in Talks for a JV – Dishman Arabia is in talks with Saudi Aramco, the world’s largest oil producer, for a 50:50 joint venture to tap the potential in the disinfectant sector. Dishman Arabia is a 50:50 joint venture between Ahmedabad based Dishman and Saudi Arabia-based Takamal. Dishman Arabia will pump in about Rs 100 crore for setting up a formulations unit in Riyadh to produce disinfectants. The unit will also cater to hospital and hospitality sector besides oil and gas. The Saudi Industrial Development Fund (SIDL) has extended soft loan up to $ 40 million (Rs 200 crore) at 0% interest for a period of 15 years. Dishman and Takamal have together invested about Rs 50 crore in the new company. (Business Standard)’

World Bank Bars Satyam for 8 Years – Satyam Computer Services has been barred by the World Bank from doing any business with it for the next 8 years. The IT major’s share prices tanked 13.5% on the rumours that B Ramalinga Raju, founder and chairman, has resigned. It was also speculated that Wipro technologies might acquire Satyam, however, both the firms denies this. (Business Standard)

Vishal Retail Promoters to Raise Their Stakes by 10% – Promoters of Vishal Retail plan to raise their stake in the company by up to 10 per cent over the next two years via the creeping acquisition route. Shares of Vishal Retail did not react to the news of the promoters planning to raise stake. The company might miss its earlier revenue guidance of Rs 1,800 crore for the current fiscal year. Vishal Retail reported a net profit of Rs 4.08 crore on a total income of around Rs 361 crore during July-September, 2008. (Business Standard)

Unitech to Raise $300-$500 Million via Debt Issue – Unitech is planning to raise $300-500 million by issuing convertible debt instruments to multiple private equity investors. The realty firm is looking at issuing debt instruments that will be converted to equity in the next 18 months or so. Reports suggest that Unitech is holding negotiations with TPG Axon, Carlyle, Och-Ziff, Sun Apollo and IL&FS funds. $300-500 million would equate to 22-36% of the company’s equity stake at the current market capitalisation. The promoters, Ramesh Chandra and family, own 74.5% stake in the company. (The Economic Times)

Warring Bajaj Brothers Finally Decide For Peace – Bajaj brothers have agreed to put an end to the 6 year long tiff as Rahul Bajaj has agreed to give control of Bajaj Hindusthan to younger brother Shishir. Shishir Bajaj would acquire shares in Bajaj Hindusthan that Rahul would buy from family members and group companies Bachhraj & Co and Jamnalal Sons. After the transfer of shares, Shishir will have 32.47 per cent stake in Bajaj Hindusthan. (Business standard)

World Bank Bars Satyam for 8 Years – Satyam Computer Services has been barred by the World Bank from doing any business with it for the next 8 years. The IT major’s share prices tanked 13.5% on the rumours that B Ramalinga Raju, founder and chairman, has resigned. It was also speculated that Wipro technologies might acquire Satyam, however, both the firms denies this. (Business Standard)

Yash Birla Group Buys 100% Stake in JV Birla Perucchini – Yash Birla group has acquired 100 % stake in joint venture Birla Perucchini. The stake has been bought from Italy-based Fonderia Perucchini. The plant will be named Birla AccuCast. The company currently has an installed capacity of 6000 metric tonne per annum. Birla AccuCast is a foundry that produces shell moulded ferrous castings, straddling the entire spectrum of nodular, vermicular and Grey Cast Iron, for automotive, hydraulic and engineering industries. (Business Standard)

Dow Chemicals to Exit Petrochemicals Business in India – Dow chemicals plans to exit the petrochemical business in the country to focus on speciality chemicals The petrochemical business contributes about 30% of Dow Chemical India’s projected sales of about Rs2,500 crore for the year through end-March. Howevev, the company is not planning layoffs in India. In fact the company plans to double its headcount by next year. Dow Chemical Co., is going through a restructuring as it has closed 20 plants, suspended 180 factories and has laid off 5,000 of its 46,500 employees across 175 countries. (LiveMint.com)

 

 

 

 


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News Round UP: Unitech to Raise $300-$500 Million via Debt Issue

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