News Roundup: Aditya Birla PE to buy 8% in Thyrocare from CX Partners

10 February, 2014

Aditya Birla Private Equity is close to acquiring an 8% stake in Thyrocare Technologies, majority-owned by medical entrepreneur A Velumani, as financial investors build up interest in the domestic diagnostic services sector, people briefed on the matter said. The Birla PE firm will mop up the shares through a secondary deal with peer CX Partners, which is cutting its stake in the Mumbai-based Thyrocare valued at about Rs 1,600 crore. This pegs the deal size at Rs 125-130 crore ($20.14 million – $21 million). CX Partners had earlier sold a 2% stake to an affiliate of ICICI Bank at a valuation topping Rs 1,300 crore last year, and retains 20% equity interest post the Birla entry. Former Citigroup veteran Ajay Relan-led CX Partners had purchased a 30% stake in Thyrocare for Rs 188 crore in 2010, valuing the company at Rs 600 crore then. (Times of India) 

Andhra Bank planning to raise Rs 800 crore in FY 15: The Andhra Bank is planning to raise Rs 800 crore ($129 million) during FY 15 to fund its growth plans. The company would raise the funds either from the Central Government or through a QIP. The bank plans to complete the fundraising exercise by the third quarter of FY 15. Last year, the Centre put in Rs 200 crore to the Andhra Bank. “With this, the share of the government has moved up to 60%,” Rajendran said. (Times of India) 

Central Bank of India will exit IL&FS, sale could fetch Rs 3,000 crore: State-owned Central Bank of India, or CBI, has begun the process of selling the 8.34% stake it holds in Infrastructure Leasing and Financial Services Ltd (IL&FS) in order to shore up capital in the face of rising bad loans and ahead of stricter provisioning norms. The bank has appointed Axis Capital, the investment banking arm of rival Axis Bank, to scout for a buyer for the holding in India’s largest unlisted infrastructure developer and lender, said two people with direct knowledge of the development. The sale could fetch CBI around $500 million (Rs 3,000 crore), he said. Life Insurance Corporation of India (LIC) and Orix are the biggest shareholders in IL&FS, with 25.64% and 23.31%, respectively. (Times of India) 

Madhucon plans to sell 74% stake in project: Madhucon Projects Ltd, a Hyderabad-based road developer, plans to sell at least 74% stake in Madhucon Agra–Jaipur Expressways Ltd to IDFC Alternatives Ltd, the private equity (PE) arm of IDFC Ltd, two people close to the development said. The project was awarded by the National Highway Authority of India (NHAI) with a concession period of 25 years starting 31 October 2005. Tolling on the expressway commenced in May 2009. Srei Infrastructure Finance Ltd, which holds a minority stake in the road project, may also exit it as part of the transaction. (Live Mint) 

Lanco is in talks with four buyers for Udupi project: Gurgaon-based power, mining and construction company Lanco Infratech Ltd is in talks with four firms, including Kolkata-based CESC Ltd, for the sale of its 1,200 megawatts (MW) Udupi Power Corp. Ltd in Karnataka as it attempts to pare its debt burden. Lanco which is looking at a valuation of around Rs 3,000 crore for the imported coal-based thermal power project, recently announced the sale of its 70MW Lanco Budhil hydropower project and two smaller plants of 5MW each in Himachal Pradesh to Hyderabad-based clean energy producer Greenko Energies Pvt. Ltd for €77 million (around Rs 655 crore). In December, Lanco Infratech’s bankers approved a proposal to restructure a total of Rs 7,700 crore ($1.24 billion) of the company’s debt, allowing the power generator a two-year interest holiday. (Live Mint) 

Buyout PE funds like Actis, Apax Partners in race to take control of CARE ratings: A clutch of high street private equity funds, General Atlantic Partners, Actis, Baring Private Equity Partners Asia and Apax Partners are negotiating with the principle shareholders of Credit Analysis and Research Ltd (CARE), a leading credit ratings firm, for a controlling stake in the company, said multiple sources directly involved in the ongoing negotiations. Last Thursday, these four buyout and growth equity funds were short listed from a wider group of potential suitors after they submitted of non-binding offers by state run lenders IDBI Bank, Canara Bank and SBI. Earlier this year, these shareholders had reached out to several potential investors offering a minimum of 32% and a maximum of 38% in CARE. Together they own 38% with IDBI being the single largest shareholder with a 16.6% stake as on December 2013. (Economic Times) 

Punj Lloyd may sell 17% stake in Medanta to KKR for about Rs 654 crore: Punj Lloyd may sell its 17% stake in Gurgaon-based multi speciality Medanta Medicity Hospitals to the US-based private equity firm Kohlberg Kravis Roberts (KKR) for about Rs 654 crore ($105 million). Industry sources said Punj Lloyd may be looking at selling its entire 17% holding in Medanta to cut its debt. KKR has been investing in healthcare space in India and has earlier invested $89 million in Apollo Hospitals. In December 2013, Carlyle Group bought 26% stake in Medanta Medicity from US PE firm Aventus Capital for Rs 960 crore, valuing the company at Rs 3,550 crore. (Economic Times)

SKS Microfinance likely to raise Rs 4500 crore during FY 15: SKS Microfinance may raise up to Rs 4,500 crore to meet its lending requirements during the next financial year, including Rs 400 crore ($65 million) though diluting maximum 20 per cent stake though the QIP route. The company expects to raise Rs 1,500 crore ($242 million) of the total fund requirement through securitisation deals during next year. (Economic Times) 

Shriram Transport plans to raise Rs 2000 crore through NCDs in FY15: Used truck lender Shriram Transport Finance (STF) is targeting an expansion of up to 2 per cent in its margins during the January-March quarter on the back of higher securitisation, a top company official has said. The firm also has a “tentative” plan of raising up to Rs 2,000 crore ($322 million) from its non convertible debentures issue route in FY15. The Chennai-headquartered STF had target of doing securitisation deals worth Rs 9,000 crore during the fiscal, of which a majority Rs 4,000 crore ($645 million) has been kept for the last quarter, Revankar said. (Economic Times)

Government approves FCI plan to raise Rs 8,000 crore via long-term bonds: Government has approved a proposal of the Food Corporation of India to raise up to Rs 8,000 crore ($1.23 billion) through long-term bonds to meet working capital requirement. The nodal agency for procurement and distribution of foodgrains, FCI is facing problems in running operations in view of non-payment of food subsidy worth Rs 40,000 crore from the government. The firm had moved a similar proposal in the second quarter of the current fiscal also, but it failed to get the nod for issuing long-term bonds. (Economic Times) 

Courtesy: VCCEdge


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News Roundup: Aditya Birla PE to buy 8% in Thyrocare from CX Partners

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