News Roundup: Bain Capital, Carlyle May Buy Aditya Birla Insulators

29 January, 2009

Bain Capital and Carlyle May Acquire Aditya Birla Insulators – Aditya Birla Group has planned to divest non-core assets and is looking for a buyer to sell its electrical insulator business. Sources suggest that Bain Capital and Carlyle could be among those interested in the possible deal to acquire Aditya Birla Insulators. An investment banker, acting on behalf of the group, has approached buyout funds to sell the insulator business with an asking price of around Rs 700 crore. The insulator business is now a subsidiary of AV Birla Nuvo and claims to be the world’s fourth-largest electrical insulator manufacturer, with a top line of around Rs 350-400 crore. (The Economic Times).

Nokia and HCL to Enter Into JV to Sell Value Added Services – Mobile Phone handset manufacturer Nokia and IT firm HCL are planning to enter into a joint venture to sell value added services (VAS) and entertainment content for mobile devices directly to consumers. The JV is subject to regulatory approvals and is expected to start operations later this year. Nokia has also announced its internet services strategy globally under the brand name Ovi with specialised offerings in music, navigation, games and livelihood enhancing services for the semi-urban and rural population in the form of Nokia Life Tools. (The Economic Times)

Piramal Healthcare Acquires RxElite Holdings for $4.2 Million – Piramal Healthcare Ltd has acquired the entire issued outstanding capital of RxElite Holdings Inc, the wholly owned subsidiary and the inhalation anesthetic gas distribution arm of RxElite Inc for cash consideration of $4.2 million. In addition, RxElite Holdings has retained around $3.2 million of outstanding indebtedness. A significant portion of the net proceeds from the sale will be used by RxElite Inc to retire a portion of its long term debt. (The Economic Times)

Mjunction Shelves IPO Plan as Tata Agrees to Back Management Team – Mjunction services, an e-commerce company promoted by Steel Authority of India (SAIL) and Tata Steel, has shelved its initial public offering (IPO) plan after Tata Steel indicated it would back the management team for its future expansion plans. Sources suggest that Mjunction did not go ahead with negotiations with a private equity investor in view of the promoter’s commitment. Better cash flow from operations, strong treasury operations and negligible debt on its books have also influenced the decision of the company. (Business Standard)

RIL Scraps Rs 1,500 Crore Captive Power Plant – Reliance Industries has scrapped a Rs 1,500 crore captive power plant after the government decided to allocate gas from its eastern offshore fields to existing power and fertiliser plants only. RIL had proposed to set up a 345 MW power plant at Nagothane in Maharashtra for captive use and was looking at piping its KG basin gas to the plant. The Empowered Group of Ministers (EGOM), has however, decided to allocate the initial 40 million standard cubic metre per day of gas from KG-D6 basin to the existing power and fertiliser plants and proposed units like the captive power plant at Nagothane did not figure in the scheme of things. (The Economic Times)

Unitech May Sell stake in Orissa Sponge for Rs 40 Crore to Bhushan Steel – Unitech chairman Ramesh Chandra and his family may raise Rs 40 crore by selling its shares in Orissa Sponge Iron and Steel to Bhushan steel. Bhushan Steel already holds 6% stake in Orissa Sponge. Ramesh Chandra and family had been trying to sell its 12.11% stake in Orissa Sponge after its pervious negotiations with Posco failed to materialise. Chandra family is expectd to get Rs 160-170 per share, which is 50% premium over Orissa sponge’scurrent share price that closed at Rs 111.95on BSE yesterday. If the deal pulls through, Bhushna steel will hold 18% stake in Orissa sponge. Consequently, SEBI rules would compel Bhushan Steel to make an open offer to buy another 20% from the market. Chandra’s own their stake in Orissa Sponge though its investment arm Prakausali Investments, which also owns 36% in Unitech. (The Economic Times)

GEECL Plans Rs 700 Crore Public Issue – Great Eastern Energy Corporation (GEECL), the only producer of coal based methane gas in India, is planning to launch a Rs 700 crore public issue. The offer includes issue of fresh shares and divestment of shares held by foreign investors as global depository receipts (GDRs). The company has got the clearances from SEBI and is expected to raise the capital within the next two months. According to the analysts, the script is expected to be priced at around Rs 80 per share. The issue would constitute 15.45%of the fully diluted post issue paid up capital of the company. The company’s GDR is listed on the Alternative Investment market (AIM) of the London Stock Exchange and each GDr represents 5 ordinary shares. (The Economic Times)

Headstrong Acquires Lydian Data Services – The 200 million global financial services consulting firm, Headstrong has acquired Lydian Data Services (LDS), headquartered in Boca Raton, Florida. The acquisition of LDS will strengthen Headstrong’s US operations, through the addition of processing centers in Atlanta, Georgia and Boca Raton, Florida. Lydian Data Services operates in the mortgage BPO and Technology services having processed mortgage volumes of over $150 Billion over the last four years. (The Economic Times)

DLF Assets to Raise Funds Through Private Equity – Real estate giant, DLF Assets, which plans to raise over Rs 2,000 crore from private equity investors is expected to finalise the deal in the next one month. According to sources, the talks with few private equity players are in advance stage. DLF Assets expects to receive in excess of Rs 5,000 crore by the end of this financial year in a mixture of debt and equity. (Business Standard)

Asian Paints Promoters Pledge 15% Stake in the Company – The promoters of Asian Paints have pledged almost 15% of their stake in the company. The executive VC and MD Ashwin Dani and executive chairman Ashwin Choksi pledged 13.52% and 1.46% stake respectively through associate companies. The promoters hold a 50% stake in the company. (The Economic Times)

Dena Bank Raises Rs 200 Crore Through Private Placement of Bonds – Public sector lender Dena Bank has raised Rs 200 crore from bonds through private placement to augment resources and meet future capital adequacy ratio. The funds were raised through lower Tier II bonds. The bonds carry a coupon rate of 9.5% per annum and are redeemable after 120 months from the deemed date of allotment. Dena Bank shares closed at Rs 32.20, up 2.88 per cent on the Bombay Stock Exchange. (Business Standard)

Oman Oil Refuses to Hike Stake in BORL – Oman Oil, the joint venture partner of Bharat Oman Refinery (BORL) has refused to raise stake in the Joint venture for its ongoing Rs 10,000-crore refinery project in Bina, Madhya Pradesh. BORL is aggressively scouting for a new partner and is expected to complete this project by March. BORL was promoted by BPCL and Oman Oil as an equal joint venture, with both the companies investing Rs 75 crore each in the JV. Oman Oil, has however, decided to not invest further in the project citing inordinate delays in obtaining various clearances as the reason. BORL has already shelved its plan to go public to mop up Rs 2,000 crore, which was slated to open in March 2008. the company is setting up a 6 million tonne refinery in Bina. (Business Standard)

 

 

 

 

 


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News Roundup: Bain Capital, Carlyle May Buy Aditya Birla Insulators

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