News Roundup: Blackstone nears $40M exit from BPTP arm

15 March, 2016

Blackstone Group LP is in talks to sell out of a New Delhi property investment for about $40 million (Rs 250 crore), two sources with direct knowledge of the matter told. US-based Blackstone is selling its nearly 30 per cent stake in a subsidiary of Indian property firm BPTP Ltd and is in talks with two potential buyers, one of which is BPTP’s controlling owner, the sources said. At $40 million, a sale would generate a return of about 2.5 times on the investment. Blackstone paid Rs 1 billion for the stake in March 2007. A deal could be announced later this week. () 

Flipkart is in talks to raise $125 mn from existing, new investors: Online retailer Flipkart.com is in the process of raising $125 million (around Rs 800 crore), merely three months after it raised $200 million. The investment is being sought by Flipkart Holdings Singapore, the Singapore-based entity created in February this year by the company’s founders to get around the Indian law that doesn’t allow foreign direct investment in e-commerce companies. The firm is in talks with its existing investors, Tiger Global Management Llc, Accel Partners, Iconiq Capital, and MIH (a part of South Africa media company Naspers Group) and at least two other US-based investors for the latest round. In July, Flipkart raised $200 million from its existing investors Tiger Global, Accel Partners, Iconiq Capital, and Naspers Group. (Live Mint) 

Lanco Infratech plans to sell minority stake in thermal power plant: Lanco Infratech Ltd is looking for a strategic investor to sell a minority stake in the thermal power plant and coal block project it won from Mahatamil Collieries Ltd, or MTCL. The infrastructure developer in August 2011 won a contract to develop and operate MTCL’s Gare Pelma-II coal block and a 2,000 megawatt thermal power plant in Chhattisgarh’s Raigarh district at an estimated investment of Rs 12,000-13,000 crore. The Gare Pelma-II coal block has estimated reserves of 768 million tonnes and is spread over 24.95 sq.km. Lanco has to contribute Rs 3,500-4,000 crore ($558 million – $638 million) as equity towards the project. According to the terms, Lanco cannot reduce its stake below 51% for the period of five years after commencing coal supply to the power plant. (Live Mint) 

Binani group mulls power play via acquisitions: Binani group, which has a presence in cement, zinc and glass fibre, plans to foray into power generation, mostly through acquisitions. The group has already begun a process of transferring group holding outfit Binani Industries’s 100% shareholding in Binani Energy Pvt.Ltd. to Binani Cement Ltd. Binani Energy would now be used in acquiring thermal power assets and also to set up own plants at a later stage. At the next stage, the energy subsidiary plans to set up 120 MW plant near its captive lignite mine at Nimbri in Rajasthan, which has extractable reserve of about 5.5 million tonne. In 2012, Binani Industries acquired a Belgian glass fibre maker for Rs 1,700 crore, while it has recently ventured into engineering, procurement and construction or EPC services by setting up a subsidiary BIL Infratech. (DNA) 

Sebi asks Goyal to sell 6% more in Jet: Market regulator Securities and Exchange Board of India (Sebi) wants Naresh Goyal to sell another 6 per cent stake in Jet Airways before the company makes its proposed 24% preferential allotment to the Abu Dhabi-based Etihad Airways. Though public shareholding in Jet is already down to the mandated 25%, the regulator wants its promoters to pare their stake further to ensure better corporate governance and broad-based shareholding. If Jet promoters sell 6% in the company, the holding will fall to 69% and after the allotment of 27 million equity shares is made to Etihad it will further fall to 51%. In June, the company’s promoters had sold 5% stake through an offer for sale (OFS) to meet the minimum public shareholding requirement. (Business Standard) 

Hero MotoCorp says open to acquiring companies: After stringing up a series of technology partnerships, Hero MotoCorp says it is open to acquiring companies, including full-fledged two-wheeler makers, as part of global expansion strategy. The company has not stopped efforts to find technology partners, it is an ongoing process, according Hero MotoCorp Managing Director and CEO, Pawan Munjal. In July, the company had picked up 49.2 per cent stake in US-based Erik Buell Racing (EBR) for $25 million, after entering into a technology sourcing pact last year. (Business Line) 

Bharat Petroleum keen on Bina Refinery IPO next fiscal: The second largest oil marketing company Bharat Petroleum Corporation Ltd (BPCL) is hopeful of taking its 6-million tonne Bina Refinery public next fiscal. The facility has already been making cash profit since the past fiscal and is operating at 106 per cent of its capacity and is getting the highest GRM (gross refining margin) for the company at USD 9.1 per barrel. Earlier, the company had said it would divest 24% of its 49% stakes in the refinery to public. BPCL owns 49% or majority stake in the Rs 11,397-crore Bina Refinery with the rest being held by Oman Oil Company, the Madhya Pradesh government and financial institutions. (Economic Times) 

ING Groep may sell 43% stake in Vysya Bank, Kotak Mahindra Bank emerges top suitor: ING Groep NV, the biggest Dutch financial-services company, is said to be seeking a buyer for its 43% stake in ING Vysya Bank, as the prospects of limited purpose banking in India and tough competition in retail market make it rethink its local strategy. ING, which has been selling assets across the Asian region and some in Europe itself to repay the Dutch government for bailing it out from the 2008 credit crisis, may exit the domestic banking business comprising retail, corporate and treasury, to focus on corporate banking. The group, which also has to bolster capital to meet the Basel III regulations, may get at least $600 million at current market prices, or even more for the stake depending on the transaction. (Economic Times)

Courtesy: VCCEdge


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News Roundup: Blackstone nears $40M exit from BPTP arm

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