Private equity biggie Blackstone has held preliminary talks with Jet Airways to buy a stake in the carrier's frequent flier unit, JetPrivilege. Senior Jet executives met with Blackstone in Mumbai. Jet could offer up to 50% stake in JetPrivilege. The talks follow the airline's move to demerge JetPrivilege into a separate entity in order to run the business from a retail standpoint that would see its customer base grow with increased programme partners. Recently Jet tied-up with the two of India's leading private sector banks, HDFC and ICICI, to bring out co-branded credit cards wherein customers get to enjoy privileges ranging from free tickets to discount coupons. (The Times Of India)

International Finance Corporation, Sabre back Global Hospitals: International Finance Corporation (IFC) and private equity investor Sabre Partners would make INR 225 crore ($41.79 million) equity investment in Hyderabad-based Global Hospitals. The deal values Global Hospitals at about INR 1,000 crore giving the two investors about 15% stake in the company. The World Bank's private funding arm IFC would lead the investment with a little over INR 150 crore (27.86 million), while Sabre is expected to bring in about INR 70 crore ($13 million). A final deal is likely to be clinched in the next few days. Investment bank Veda Corporate Advisors is the advisor to the transaction. Financial investors will now hold 49% shares in the healthcare chain, which already has Everstone Capital with about 35% interest. (The Times Of India)

Srei power arm on coal hunt in Africa: Srei group-owned India Power Corp Ltd is scouting for coal assets overseas, particularly in Africa, to feed its upcoming power projects. India Power has already incorporated a dedicated subsidiary for mine acquisition, named Swaymbhu Natural Resource Pvt. Ltd, to spearhead the search. The company, currently present only in the renewable energy space with 10.4 mw and 24.8 mw of wind power generation capacities in Karnataka and Gujarat, is foraying bigtime into thermal power. Work on a 300 mw plant in Haldia and a 540 mw plant in Raghunathpur, both in West Bengal, is in progress and the company also plans to set up 1320 mw capacities each in Bihar and Gujarat, as well as 660 mw in Madhya Pradesh. (DNA)

Tata Steel to raise $250 million in Singapore bonds: Tata Steel, the debt-laden metals company, is looking to raise about 250 million Singapore dollars in its first foreign currency bond issue this fiscal to repay some of its foreign loans. The company, whose fortunes began to slide after it bought the Anglo Dutch steelmaker Corus Group Plc, will meet investors in the island city this week to gauge their interest. Tata Steel would raise the money through its fully owned subsidiary ABJA Investment Co. Tata Steel is the guarantor to the bonds. (The Economic Times)

Xander to invest INR 280 crore in Supertech's Gurgaon project: Private equity firm Xander is close to investing INR 280 crore ($52 million) in a 125-acre township project in Gurgaon being developed by real estate firm Supertech. The Noida-based real estate firm has already bought over 100 acres of land, and part of the money raised would be used to buy more land and the rest for starting construction of the project. The term-sheet for the deal had been signed. (The Economic Times)

Scotts Garments plans to raise INR 139 crore via public issue: Scotts Garments plans to raise about INR 139 crore ($25.81 million) to put up a garment facility for trousers in Karnataka and a knitting and fabric unit at Kolhapur in Maharshtra. Besides, the company would also use part of the proceeds to retire existing debt and meet working capital requirements. The company will issue 1.05 crore equity share at a price band of Rs 130-132 a share. The issue will open for subscription between April 25 and 29. (Business Line)

Coffee Day Group readies $100 million PE fund raise: Coffee Day Group, which runs businesses from coffee cafes to wealth management to furniture to logistics, is understood to be readying the stage for a possible $100-million (INR 538.3 crores) fund raise through the private equity route. The funding will be at the holding company level, at which it raised a record $200 million in mid-2010, one of the large private equity transactions that year. The management of the Coffee Day Group has had discussions with a handful of private equity funds and have sounded off that they might be readying for the fund raise. As we understand there is some $130 million debt at the holding company level and the fresh funds may be used to partly pare down that, while the rest may be used to further expand the cafe business. (Business Standard)

Courtesy: VCCEdge

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