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News Roundup: Birla, Vedanta in race for Canada-based miner

18 March, 2013

The Aditya Birla Group and the Vedanta group, are in talks with bankers to evaluate a bid for Rio Tinto’s Canada-based Iron Ore Company. Metal companies across the world are also in the race to buy the Rio Tinto company, valued at close to $1.7 billion (INR 9,164 crore). Rio Tinto has hired Credit Suisse and Canadian Imperial Bank to sell its stake. The mining major is selling the company to reduce its debt. In January, billionaire L N Mittal sold his 15 per cent stake in several iron ore mines in Canada to South Korea’s Posco for $1.1 billion. (Business Standard)

IRFC to raise up to INR 6,000 Cr within 2 weeks: Indian Railway Finance Corp. Ltd., the fund raising arm of the Indian Railways, would mobilize INR 6,000 crore ($1.1 billion), in the remaining two weeks of the current fiscal from the domestic market. The Funds raised by IRFC are used to pay for buying locomotives, wagons and coaches for Indian Railways. IRFC raised about INR 7,000 crore through its tax-free bond issues in the current fiscal, which is INR 3,000 crore short of the INR 10,000-crore permitted to IRFC through tax-free bonds for the fiscal. (Business Line)

Dhanlaxmi Bank to raise INR 51 cr via pref. issue: Dhanlaxmi Bank Ltd has proposed to mobilize INR 51 crore ($9.46 million) by issuing 8.5 million equity shares with an issue price of INR 60 per share with a face value of INR 10 each. The bank plans to raise funds to augment its long-term capital. The shares will be issued would be on a preferential allotment basis, subject to the approval of RBI, SEBI and other authorities concerned. (Business Line)

L&T to raise over 2,500 crore by selling 20% in infra arm: L&T Infrastructure Development Projects is in advanced negotiations to divest up to 20% stake to marquee investors, including Malaysian sovereign fund Khazanah. Abu Dhabi-headquartered Mubadala Development Corporation and US-based fund Capital International are also in the final list of potential investors. The infrastructure arm of Larsen & Toubro, which handles assets worth INR 45,000 crore, would raise up to INR 2,500 crore ($463.76 million) by selling stakes to potential investors. The proposed transaction will value the infrastructure company at around INR 12,500 crore, or just under $2 billion. (The Economic Times)

Aptus Industries plans for acquisitions: Aptus Industries Ltd. is looking to acquire UK based Soft Sync Ltd. The company is planning to acquire 100% stake in Cloud Technology based SaaS (Software as Service) for corporates and retail segment powered by CISCO and Microsoft Cloud Technologies. (BSE)

Coal India’s 10% stake sale to fetch INR 18,000 crore next fiscal: As its disinvestment programme picks up, the government may next fiscal sell up to 10% stake in the world’s largest coal producer Coal India Ltd. (CIL) to rake in over INR 18,000 crore ($3.33 billion). The government is considering offloading up to 10% stake in Coal India through the offer for sale (OFS) route in the next financial year. The department of disinvestment would soon invite bids from merchant bankers and legal advisers for managing the CIL stake sale. The government currently holds 90% stake in CIL. (Live Mint)

SEIL plans to tie up funds for pellet plant soon: City-based listed company Steel Exchange India Limited (Seil) is targeting to achieve financial closure for its proposed INR 300-crore ($55.65 million) pellet plant soon. The company would tie up INR 200 crore ($37.1 million) from banks, promoters would invest the remaining as equity. The company has already applied for environment clearance and once the company gets the approval, the firm would approach financial institutions. (Business Standard)

OMCs, EIL wish to join GAIL’s Surat-Odisha pipeline: The INR 9,000-crore ($1.66 billion) pipeline between Surat and Paradip has become a prized asset even before state-run GAIL India formally begins work on it. In addition to Indian Oil Corporation (IOC), in talks with GAIL since November, three state-run entities Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Engineers India Ltd (EIL) have evinced interest in buying stakes in the 1,550-km natural gas pipeline, from South Gujarat to the Odisha coast. IOC is looking to acquire up to 30% stake in the project. GAIL would hold 51% stake. (Business Standard)

Reliance Communications, Sun Group in talks to merge their DTH businesses: In less than six months after the digitization drive kicked in, two large players are in talks to consolidate their DTH businesses. Reliance Digital TV and Sun DTH are in preliminary talks to merge their businesses into a single entity. The deal is still at a nascent stage and the valuations are yet to be finalized. The Sun Group is likely to own a majority stake in the merged company while Anil Ambani’s Reliance Communications is likely to own less than 26% in the company. (The Economic Times)

NLC explores possibilities of acquiring coal blocks: State-owned Neyveli Lignite Corporation (NLC) is exploring the possibility of acquiring coal blocks both in India and abroad. The company also planned to set up 50 MW wind power plant and a 10 MW solar photo-voltaic power plant as an initiative into green energy. The firm also plans to undertake a coal-based power plant at Ghatampur, Uttar Pradesh with a capacity of 1980MW to be implemented jointly with Uttar Pradesh Rajya Vidhyut Uthpadhan Nigam Ltd. (The Economic Times)

Courtesy: VCCEdge

 


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News Roundup: Birla, Vedanta in race for Canada-based miner

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