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News Roundup: Apollo Hospitals May Hive Off Biz To Raise PE

17 December, 2009

Shree Renuka Called Off Balrampur Deal – Shree Renuka Sugars has decided not to continue negotiations with the Saraogi family for control of Balrampur Chini because of differences over valuation. The deal is called off when promoters of Balrampur Chini, who own a 36.6% stake in the company, sought Rs 220 a share, while Shree Renuka was not offering more than Rs 180 a share. (ET)

Outsourcing Partners’ Investors Eye Exit – The key shareholders of Outsourcing Partners International (OPI) — a BPO firm specialising in the area of finance and accounting (F&A) — are looking for potential buyers for their stakes. OPI, which was formed through the merger of KPMG’s captive unit and another BPO firm with an offshore presence in Bangalore, has venture investments from Trident Capital, The Chatterjee Group and Cargill Ventures. Deutsche Bank is advising several OPI shareholders on the proposed deal. (ET)

Sumitomo To Buy Up To 40% In Bhushan Unit – Japanese Sumitomo is considering buying up to 40% in Bhushan Steel’s upcoming plant in West Bengal for about Rs 20,000 crore. The West Bengal project, with a capacity of 6 mtpa, will be developed in two phases of 3 mtpa each. Apart from buying steel from the Indian firm and selling them under its brand name to Japanese car makers operating in India, Sumitomo will also share its technology with its Indian partner under this pact. It also signed a marketing agreement with Bhushan Steel’s Orrisa plant that will commission 2.2 mtpa by next month and increase capacity to 5 mtpa by October 2012. (DNA)

Apollo Hospitals May Hive Off Biz To Raise PE – Apollo Hospitals Group, which is currently in the process of rolling out a chain of smaller hospitals in Tier II and III towns under the ‘Apollo Reach’ banner, may hive off this business into a separate company to attract private equity funding. Apollo Hospitals Group chairman Prathap C Reddy told reporters that some ten private equity investors have shown interest to put their money in Apollo Reach. Incidentally, International Finance Corporation (IFC) has recently given a $50-million term loan to Apollo for expansion of the Reach hospitals. (ET)

Tata Motors, M&M Eye Fiat Plant – Tata Motors and Mahindra & Mahindra (M&M), two auto majors in India, are eyeing on acquiring the Termini Imerese plant owned by Italy’s car maker Fiat. Fiat has already decided to relocate the Termini Imerese plant, preferably to cost-effective areas of Poland or Germany, in 2011. The plant has a daily production capacity of 400 cars, and employs 3,500 people. (BS)

Syndicate In Talks To Buy Bharti’s 25% In Bharti AXA – Manipal-based Syndicate Bank is in talks to acquire Bharti’s 25% stake in Bharti AXA Investment Managers, as part of its plan to enter the asset management business. It is expected that Syndicate Bank may succeed in closing the transaction at a comparatively low valuation, since the Bharti AXA portfolio is heavily skewed towards debt. As of November 2009, Bharti AXA has Rs 651-crore assets under management, while the equity schemes comprise just about Rs 117 crore. (ET)

Godrej Consumer To Raise Up To Rs 3,000Cr – Godrej Consumer Products has planned to raise up to Rs 3,000 crore for funding acquisitions. The bulk of the amount will be raised via debt, while the balance will be through equity. The company is in talks with bankers to raise the money. The group is actively looking at acquisitions in the household care and hair colour segments, both internationally and locally. (BS)

Abu Dhabi Fund Wants Citi Deal Scrapped – The Abu Dhabi Investment Authority (ADIA) is trying to abort an agreement to buy $7.5 billion of Citigroup Inc stock at eight times Wednesday’s price, saying the bank misled it about the investment. ADIA filed an arbitration claim alleging “fraudulent misrepresentations”, and is seeking more than $4 billion in damages if the deal is upheld. ADIA invested in November 2007, getting equity units that can be swapped into common stock at $31.83 to $37.24 a share from 2010. (BS)

GVK Sells Bonds To Fund Bangalore Airport Stake Buy – A unit of GVK Power and Infrastructure sold Rs 6.85 billion of bonds to fund the purchase of Larsen & Toubro’s stake in Bangalore International Airport. GVK had early this month said it plans to buy a 17% stake in Bangalore International Airport Ltd (BIAL) for Rs 6.87 billion from L&T Infrastructure Development Projects Ltd. (Reuters)


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News Roundup: Apollo Hospitals May Hive Off Biz To Raise PE

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