News Roundup: Apollo Hospitals group may raise Rs 600Cr from KKR-led consortium

16 March, 2016

A consortium headed by Kohlberg Kravis Roberts and Co (KKR) is close to concluding a deal with Prathap C Reddy-controlled Apollo Hospitals group which could see an investment of Rs 500-600 crore ($74 million – $88.77 million). The investors, which may include a sovereign wealth fund besides the private equity company, will pump money into the unlisted holding company of the Reddy family through quasi-equity instruments. Apollo Hospitals is likely to use the money to part-fund its expansion plans and cut debt. ()

Catholic Syrian Bank proposes public issue, stock options: The Catholic Syrian Bank is considering an initial public offer of shares. The bank has not made a public issue of shares since inception, a notice to shareholders said. A special resolution for the public float is sought to be moved at the 92nd annual general meeting to be held at Thrissur on September 23. Another special resolution proposes the introduction of an employee stock options scheme. As for the public issue, the current proposal is to authorise the board to make further issue of capital to the extent of shares remaining in the bank’s authorised capital. In 1994, Bangkok-based non-resident businessman Surachan Chawla had bought 2.14 million shares in the bank, acquiring a 38% stake. (Business Line)

Rolta Promoter plans to raise stake to 51%: Kamal K Singh, the promoter of Rolta, is on the verge of becoming the majority owner of the information technology company, and is also considering the option of going private. Currently, he holds 49% stake and intends to go to 51% in the next couple of months. The stake would be raised in the next year through continued share acquisitions, or an open offer. ()

HPL stake sale bids soon: Final price bids for Haldia Petrochemicals Ltd (HPL) stake sale are expected to be submitted by mid September, according to officials with direct knowledge of the matter.  Earlier, West Bengal government which holds about 40% stake in eastern India’s biggest petrochemical company had said it would select the final bidder by end of September. That looks almost impossible as bidders had raised issues with the share purchase agreement. At present, Mukesh Ambani-led Reliance Industries, Cairn India and state-run Indian Oil Corp, GAIL India and Oil and Natural Gas Corp are in the hunt for the stake in eastern India’s biggest petrochemical company. Even after selection of the final bidder, the state government has to give a month’s time to The Chatterjee Group (TCG), another key promoter, to match the price offered by the highest bidder. Purnendu Chatterjee-led TCG has the right of first refusal over the government’s share in HPL. (Business Standard)

ONGC , Shell may take stake in Nagarjuna’s Cuddalore refinery: State-run Oil and Natural Gas Corporation (ONGC), along with Shell India, is in talks with Nagarjuna Oil Corporation for a strategic stake in Nagarjuna’s Cuddalore refinery, said three people in the know of the development. According to investment bankers aware of the deal, Indian Oil Corporation is also in the fray. Hindustan Petroleum Corporation and Bharat Petroleum Corporation, which were said to be considering the deal are no longer in the race. A few strategic investors are doing the due diligence. This is expected to be finalised by October, including the stake that needs to be diluted. To implement the refinery project, Hyderabad-based Nagarjuna Group has partnered with the Tamil Nadu government and Tata Petrodyne Ltd. (Business Standard)

Future Group is in talks to sell 65% stake in ACK Media: India’s Future Ventures is in talks to sell its 65% stake in entertainment and education company ACK Media for about $25-$29 million (Rs 168 crore – Rs 195 crore). ACK Media owns the country’s leading children’s magazine brands Amar Chitra Katha, Tinkle and Karadi Tales. Toshniwal, CFO of Future Group, had earlier told Reuters the company was trying to raise 6-8 billion rupees by offloading stakes in fashion brands to strategic and private equity players. Elephant Capital, owned by promoters of healthcare products firm Dabur India is the other investor in the company. (Reuters)

Mindtree scouts for acquisition in US, Europe: Mid-sized IT firm Mindtree is scouting for acquisition in the US and Europe, and may buy a $30 million-$50 million firm to strengthen its offerings in infrastructure management and package application solutions. The acquisition would be aimed at helping the company build deeper domain capabilities in its industry verticals banking, financial services and insurance, retail, travel and hi-tech. The company has a cash and cash equivalents reserves of around $200 million. The Bangalore-based company had last made an acquisition in 2009, when it had bought Chennai-based focused infrastructure management company 7Strata. (Business Standard)

Courtesy: VCCEdge


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KKR-led investor consortium in talks to invest in Apollo Hospitals promoter’s private arm

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TEAM VCC 4 years ago
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News Roundup: Apollo Hospitals group may raise Rs 600Cr from KKR-led consortium

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