Abu Dhabi government's flagship public utility holding company Abu Dhabi Water & Electric Authority (ADWEA) has emerged as the frontrunner to acquire two mega operating hydro-power projects in Himachal Pradesh from the diversified infrastructure conglomerate Jaypee Group. Jaypee's listed power arm Jaiprakash Power Ventures Ltd. is in advance negotiations with ADWEA and its underlying operating companies to sell the 300 mega watts (MW) Baspa II and the 1000 MW Karcham Wangtoo project on the Sutlej river for around Rs 12,000 - Rs 13,000 crore ($1.84 -$2 billion). The total project cost for the two is close to Rs 8900 crore, which includes Rs 2600 crore equity. The technical and financial diligence is in final stages and a formal agreement is expected soon, these sources add. ADWEA's separately listed international business arm Abu Dhabi National Energy Company PJSC also known as TAQA will possibly be the vehicle for this acquisition. (Economic Times)
HCG front runner for Sterling Hospitals: HealthCare Global (HCG), the Bangalore-based cancer-care chain, is understood to be the front-runner to acquire Ahmedabad-based healthcare chain - Sterling Hospitals for close to Rs 500 crore ($77 million). Acits Private Equity is holding controlling stake in Sterling Hospitals, which has been put on the block. HCG is understood to be in discussions with the same fund for further resources to finalise the transaction with Sterling Hospitals. (Business Standard)
Ashok Leyland looks to reduce debt by Rs 1k cr this fiscal: Hinduja flagship company Ashok Leyland today said it is looking to reduce its debt by Rs 1,000 crore by the end of current fiscal, as a part of which it would consider divesting non-core assets. The debt is about Rs 6,000 crore ($925 million). The company is looking to sell some non-core assets and selling some non-strategic investments. (MoneyControl)
Vedanta may sweeten offer for govt's stake in HZL by 10%: Vedanta Plc, the London-based metals and energy giant, might sweeten its offer for the Union government’s stake in Hindustan Zinc Ltd (HZL) by another 10%. And, then, merge it with its India holding company, Sesa Sterlite Ltd, by early next financial year. The government and Vedanta are currently in discussion on the stake sale to the Anil Agarwal-led company. Vedanta is aiming to buy the shares by the end of this year. A merger of Sesa Sterlite with HZL will help the latter to repay the loans worth $3.5 billion it took to acquire Cairn India; this would come for repayments over the next three years. The Vedanta group holds call options on the government’s shares. The government owns 29.5% in HZL and its stake is valued at Rs 15,630 crore ($2.5 billion). (Business Standard)
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IL&FS Transport has to raise fresh funds to avoid pressure on earnings: The company is planning to raise funds for upcoming projects. The management is looking to fund the equity requirements through accruals from operational projects, toll project securitization and the construction business. While the additional revenues would come in handy, these alone will not be sufficient to meet the funding requirements. In the next 18 months, the company is expected to start around 10 projects. As a way out, the board of the company has approved a proposal to raise Rs 1,000 crore ($154 million) through issuance of preference shares. (Live Mint)
Financial Technologies plans to raise Rs 1,000 crore: The embattled Financial Technologies Ltd, the promoter of the National Spot Exchange Ltd, has sought shareholder approval to raise Rs 1,000 crore ($154 million) to fund its future growth opportunities. NSEL, which shut the exchange abruptly on August 1, is facing investor wrath for failing to settle their dues worth Rs 5,600 crore. The company intends to explore all the fund-raising opportunities, including international and domestic public offerings, Global Depository Receipts, American Depository Receipts and any other security linked to shares in both the domestic and international markets. The board of directors has already approved the proposal and is being placed before the shareholders for approval in the forthcoming annual general meeting to be held on September 25 in Chennai. (Business Line)
