Chennai-based chemicals maker Chemplast Sanmar plans to sell a minority stake to private equity funds or strategic investors to raise about Rs 1,200 crore ($198 million), three people aware of the development said. The Sanmar group-owned maker of polyvinyl chloride (PVC) resins, caustic soda, chlorochemicals, refrigerant gas and industrial salts is working on a plan to trim debt, which stood at about Rs 700 crore as on March 31, 2012. The company had delisted from the stock exchanges a year ago. The company has appointed investment bank NM Rothschild to scout for investors. (Economic Times) 

Vedanta sweetens deal to buy out Govt’s stake in Hindustan Zinc, Balco: Anil Agarwal-promoted Vedanta Resources has sweetened its offer to buy Government’s residual stake in Hindustan Zinc and Balco. The company has increased its initial offer by over $40 million (Rs 2.4 billion). Currently, the Indian Government has 29.5% stake in Hindustan Zinc and 49% in Balco. Proceeds from the residual stake sale will be part of total disinvestment earning of the Government. The Centre aims to mobilise Rs 55,000 crore from disinvestment during 2013-14, including Rs 14,000 crore in non- Government companies. According to the regulatory filing at the London Stock Exchange, Vedanta has sought shareholders approval for spending limit on combined purchase of Government’s residual stake in HZL and Balco to $3.48 billion. For Balco, however, it has capped the spend at not more than $487 million. (Business Line) 

Adani Group’s Australian port company to raise $1.2 billion: The Adani Group-controlled Adani Abbot Point Terminal Pty Ltd, which owns a coal terminal in Australia, plans to raise $1.2 billion through multiple debt instruments to refinance the port company’s borrowings. The port company, owned by Adani family, has a debt of nearly $2 billion. The documentation of this debt issuance is at the final stages. The entire process is done out of Australia,” the person said. In June 2011, Adani Ports (then Mundra Port and SEZ Ltd), acquired Abbot Point Coal Terminal at Queensland in Australia for nearly $2 billion from the state of Queensland. The deal was originally funded by State Bank of India and Standard Chartered Bank. (Live Mint) 

Reliance, Cairn India eye city gas business: Private sector energy companies are firming up plans to venture into city gas distribution (CGD) supplying auto gas (or CNG) for vehicles and piped gas (PNG) into kitchens. While Mukesh Ambani’s Reliance Industries and its global partner BP Plc are already working on plans to foray into CGD business, NRI billionaire Anil Agrawal-promoted Cairn India is also said to be keen to join hands with state-owned GAIL India Ltd, a leader in the CGD segment. Cairn India has already expressed its interest to partner an existing joint venture of the Rajasthan State Petroleum Corporation Ltd (RSPCL) and GAIL Gas that together hold about 50% in the JV company. Gail has a 26% stake while RSPCL holds 24%.Cairn has expressed its interest to pick up a portion of the remaining 50% equity share available to private investors. () 

Varroc Group in talks with PE firms to raise around Rs 400 cr: Aurangabad-based auto parts makers Varroc Group is in talks with private equity (PE) firms, including Tata Capital’s recently raised Tata Opportunities Fund, to raise nearly Rs 400 crore ($66 million) by divesting a minority stake to pare debt and fund its growth. The talks are in advanced stages and the deal could close in a couple of months. In May, the PE fund announced the final close of its $600 million fund. (Live Mint)

Courtesy: VCCEdge

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