The Ahmedabad-based Adani Group has finalised the terms and conditions to buy out construction major Larsen & Toubro (L&T) and Tata Steel’s stakes in Dhamra Port Company Limited (DPCL) in Odisha for an enterprise valuation of close to $1 billion (about INR 5,500 crore). The deal was agreed in a recent meeting. An announcement is expected in the next few days. L&T and Tata Steel own 50% stake each in the Dhamra project. L&T currently owns 50 per cent in DPCL through its subsidiary, Infrastructure Development Projects Ltd ( IDPL), and had identified this property as a non-core asset. (Business Standard)

Jet-Etihad deal: Expect announcement by Feb 3: Jet Airways India Ltd. is likely to sign the stake sale deal with Etihad between January 22 and February 3. Both companies are currently finalising valuations for the deal. Post the deal announcement both carriers would expand presence in Europe and US markets. (

IOC keen to join in Haldia Petro share auction: Indian Oil Corporation (IOC) is keen to participate in the share auction process of cash—strapped Haldia Petrochemicals for which due diligence is on. The final decision could be taken by IOC board. The company had earlier expressed interest in HPL and also acquired 8.9% in the company. Recently, West Bengal government through WBIDC decided to pull out of the project and appointed a transactional advisor Deloitte for valuation of the shares. The entire process would be completed by the end of the current financial year. (Business Line)

Batelco plans to re-enter India: Bahrain Telecommunication Company (Batelco) is looking to re-enter India through the acquisition of a telecom company. The company is not interested in participating in the upcoming 2G spectrum auctions in India to secure licences and set up a new joint venture in India and plans to enter India again by investing in existing telcos. Batelco had formed a special purpose vehicle with Dubai-based Millennium Private Equity to acquire 49 per cent stake in Indian mobile services provider S Tel for $225 million in 2009. Last February, Supreme Court had cancelled 122 licences, including those of S Tel. (Business Line)

NHPC to raise Rs 1,500 crore through bonds by February: State run-hydro power generator National Hydroelectric Power Corporation (NHPC) would raise $275.31 million (INR 1,500 crore) through domestic bonds to fund its ongoing projects. The company would raise the funds by the first week of February. The bonds would be in tenures of fifteen years, though the company is yet to finalize the pricing of the bonds. NHPC has so far raised $275.31 million (INR 1,500 crore) in the current fiscal year to fund its projects. (The Economic Times)

Pfizer considers Strides' injectables unit purchase: Pfizer, is among companies weighing a purchase of the injectable-medicines unit of Indian drug supplier Strides Arcolab. The company began due diligence last week for a possible acquisition of the Bangalore-based company’s division known as Agila Specialties. The unit may be valued at about $2 billion (INR 11,000 crore). Agila has also drawn interest from Canonsburg, Pennsylvania-based Mylan, Swiss drugmaker Novartis AG, and Fresenius SE, which is based in Bad Homburg, Germany. 

Indian Railway Fin Corp to raise INR 8,886 cr via tax-free bonds: Indian Railway Finance Corp. Ltd. is looking to raise over $1.63 billion (INR 8,886 crore) through tax-free bonds. The issue of tax free, secured, redeemable, non-convertible bonds with a face value of Rs 1,000 would close on January 29. The funds raised through this issue would be utilised towards financing the acquisition of rolling stock which will be leased to the Railway Ministry in line with present business activities. The bonds could carry a coupon rate of 7.68% for retail investors including for 10 years and 7.84% for 15 years. (Business Standard)

Govt wants to sell off TCIL in current fiscal: The government is pushing hard for outright sale of Tyre Corporation of India Ltd (TCIL) in the current fiscal and has shortlisted three eligible companies for buying out the ailing PSU. DoD wants to sell 100% equity in TCIL in the current fiscal. The department is working hard to complete the stake sale process. SBI Capital Markets was appointed as an advisor to manage the company's sale process. Sanjay Budhia's Patton, Pawan Kumar Ruia-led Ruia Group and Titagarh Group headed by J P Chowdhary has been shortlisted for the final bidding for TCIL. (Business Standard)

Aliaxis eyes 51% in Ashirvad Pipes for INR 800 crore: The $3-billion Belgian pipe maker Aliaxis Group is in advanced talks to acquire a little more than 50% stake in Bangalore-based Ashirvad Pipes for $150 million (INR 800 crore). The deal with four decade-old Ashirvad would give Brusselslisted Aliaxis a significant entry into India’s INR 17,000-crore plumbing industry, growing at 17% annually. The potential transaction values the Indian company at roughly 2.5 times the revenue. (The Times Of India)

Japanese giant Uniqlo set to partner Arvind in India JV: The $10-billion Japanese fashion retailer Uniqlo is set to partner Arvind to build a $1-billion business in India by the end of the current decade. Uniqlo’s parent Fast Retailing Co, which rivals Zara, H&M, and Gap, is finalizing an equity joint venture with Sanjay Lalbhai-led Arvind to open doors in a key growth market. A definite deal could be struck in the second quarter of 2013. (The Times Of India)

Courtesy: VCCEdge


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