AB Nuvo to Issue Rs 1,000 Crore Warrants to Promoters - Aditya Birla Nuvo announced on Monday that it would allot 18.5 million convertible warrants to its promoters for Rs 1,000 crore after they chose not to convert an almost equal number of warrants, which they had subscribed to last year at a higher price, due to huge erosion in the valuation of the stock. Priced at Rs 540.5 each, the warrants are expected to be converted into equity shares within 18 months of their allotment. Promoters will have to put in 25% of the amount at the time of subscription and the remaining at the time of conversion. Promoters’ stake will go up by 10% to 51%, post conversion. (The Economic Times)
Amtek Auto, Sumitomo Metals in JV For Crankshafts - Amtek Auto and Sumitomo Metal Industries of Japan have signed a joint venture agreement for production and sale of forged crankshafts for automotive applications in India. The joint venture is to be formed with an investment of 50 per cent by Amtek, 40 per cent by Sumitomo Metals and 10 per cent by Sumitomo Corporation, which is the global partner of crankshaft business of Sumitomo Metals. (Business Standard)
AIG Plans Asia Listing For Life Insurance Subsidiary - Battered insurer American International Group (AIG), which has received billions of dollars from the US government, is looking to sell stocks of its subsidiary American International Assurance Company on an Asian bourse. The AIA Group, which is a leading life insurance player in the Asian region, has a significant presence in India. AIG today said it would accelerate steps to make AIA, an independent entity and also seek an initial public offering on an Asian stock exchange for the company. The planned listing would depend on market conditions and regulatory approval. (Business Standard)
HSIL Set To Acquire Firm in West Europe - HSIL Limited, the flagship company of Somany Group and the largest Indian manufacturer of sanitaryware products, is looking at overseas acquisitions in the building products segment and has earmarked Rs 250 crore in the current fiscal for the purpose. The company is in final stages of discussions for an acquisition in the Western Europe and is expected to soon announce the acquisition. Companies in Western Europe mainly in Italy, Germany and France, would be acquired for enhancing production and marketing in overseas markets. (Business Standard)
Rockworth to Invest Rs 80 Crore in Sri City SEZ - Chennai-based Sri City Private Limited has signed a memorandum of understanding (MoU) with Rockworth Systems Furniture (India) Private Limited for setting up a Rs 80-crore manufacturing facility in the special economic zone at Tada, Andhra Pradesh. Sri City is setting up the multi-product SEZ through public private partnership (PPP). Rockworth Systems is a joint venture between Dubai-based Al Reyami Group and Thailand-based Rockworth Public Company Limited. (Business Standard)
Manoj Kohli Acquires 80,000 Shares In Airtel - Manoj Kumar Kohli, the CEO and Joint Managing Director of Bharti Airtel has acquired 80,000 shares for Rs 3.04 crore in the company pursuant to conversion of stock options. The acquired shares represent 0.004% stake in the company The said transfer of shares is pursuant to the Employee Stock Option (ESOP) scheme 2001 of the company. (The Economic Times)
Dr. Reddy’s Takes Betapharm Hit - Pharma major Dr Reddy’s Laboratories Ltd has posted a net loss of Rs 978 crore in the fourth quarter ended March 31, 2009. The Hyderabad-based company, which earned a net profit of Rs 93 crore in the year-ago period, was hit by an impairment loss of Rs 1,400 crore pertaining to its German arm. The Betapharm impairment is a one-time, non-cash charge and does not impact the company’s cash position. Betapharm impairment loss means the de-valuing of the company by writing down intangible assets and goodwill. Post-impairment loss, Betapharm is now valued at €210 million. Dr Reddy’s had acquired Betapharm for €480 million in 2006. (The Hindu Business Line)
Nokia Unveils Its Cheapest 3G Phone - Nokia unveiled three new cellphone models on Monday, including the cheapest 3G phone to date from the world's top handset maker. The new 2730 Classic is expected to retail for 80 euros ($108), excluding taxes and operator subsidies, and go on sale from the third quarter of this year. An analyst said some smaller rivals might sell 3G phones for less, but this was the cheapest model on the market from any top-tier manufacturer. ()
MFs Declare a ‘Non-Business Day’ - Mutual funds have decided to treat Monday as a ‘non-business day’ though the benchmark stock indices gained more than 15 per cent on the day. The Association of Mutual Funds in India (AMFI) in consultation with its members has decided to treat today as a non-business day for equity schemes of mutual fund houses, said Mr A.P. Kurian, Chairman, AMFI. ( Hindu Business Line)
