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News Roundup: ChrysCap Slashes Fund Size By $300 Million

01 June, 2010

ChrysCap Slashes Fund Size By $300 Million – ChrysCapital, a New Delhi-based private equity fund specialising in management buy-outs, is relooking at the India investment story. The PE firm has slashed its fund size, three years after raising the fund. It has raised $1.25-billion in ChrysCapital Fund V, but in an unprecedented move, has cut the fund size, by returning $300 million of capital to the fund’s Limited Partners (LPs). The fund has already made investments worth $500 million in four listed companies via the public market route, and plans to invest the reminder over the next two years. It focuses investments on the business services, consumer goods and services, financial services, healthcare and pharmaceuticals, infrastructure, and manufacturing sectors. (BS)

MTN To Reopen Merger Talks With RCOM – After failed attempt in 2008, South Africa’s MTN could reopen merger negotiations with Reliance Communications (RCOM). The current proposal to the MTN board is very similar to the one in 2008 when RCOM had proposed to merge with MTN by swapping Anil Ambani’s 67% equity holding in the Indian cellular company with MTN shares. If the deal eventually fructifies, RCOM will become a subsidiary of MTN while Anil Ambani could end up with a 20-25% holding in MTN, making him its single-largest shareholder. (ET)

Dorf Ketal In Talks To Buy Johnson Matthey’s Vertec Biz – Dorf Ketal Chemicals Pvt Ltd, a Mumbai-based specialty chemicals firm, is in advanced talks to acquire Vertec business of UK-based chemical giant Johnson Matthey. The proposed acquisition will help Dorf Ketal support its expansion plans in the global market. Vertec manufactures specialist organic titanates used in inks, paints and polymers, and had annual revenues of around $20 million. The firm has reportedly been making losses for several years. Dorf Ketal has earlier acquired the global speciality catalysts business of DuPont Chemicals and Fluroproducts in January this year. (ET)

Investors Line Up For A Slice Of OTCEI – The Anil Dhirubhai Ambani Group (ADAG), MCX and the BK Modi group have expressed their interest in buying an equity stake in Mumbai-based over-the-counter exchange of India (OTCEI) from some of its existing institutional investors, including the Specified Undertaking of Unit Trust of India (SUUTI). OTCEI is one of the country’s oldest small-and-medium enterprise (SME) exchange, and is promoted by banks and financial institutions such as ICICI Bank, SUUTI, IFCI, IDBI Bank, LIC, Canbank Financial Services and GIC. Some of the investors in OTCEI have appointed a domestic investment bank for the proposed stake sale. Negotiations are under way for a deal that would pave the way for these new players to enter the SME space. (ET)

ITC Hikes Stake To Over 10% In Hotel Leelaventure – ITC, the Kolkata-based tobacco-to-hotels major, has further raised its stake in the Nair family-promoted Hotel Leelaventure to over 10% through the acquisition of shares from the open market. ITC has more than doubled its stake in the city-based hospitality major, a luxury-class hotels and resorts company, in less than a year. ITC, along with its investment arm, Russell Credit Ltd (RCR), has hiked its stake to 10.02% from a mere 4.17% at the end of first quarter last year. (BS)

Morgan Stanley Raises Stake In JM Financial To 4.8% – Foreign fund house Morgan Stanley Mauritius has raised its stake in financial services provider JM Financial to 4.80% after acquiring additional shares worth Rs 68.24 crore through open market transactions. Morgan Stanley Mauritius has acquired an additional 18.4 million shares, or 2.45% stake in JM Financial at Rs 37.06 per share, totalling Rs 68.24 crore. As of BSE data for the March quarter, Morgan Stanley Mauritius earlier held a 2.35% stake in the company. (BS)

NSR To Hike Stake In INX Media – Private equity firm New Silk Route (NSR) will spend up to $20 million to raise its holding in INX Media Ltd to 70%. The firm will buy out stakes of two existing investors, Temasek and Kotak Private Equity, while New Vernon is likely to continue to be invested in the company. The proposal for stake hike is pending for approval with the Foreign Investment Promotion Board (FIPB). Currently, NSR holds 20% in INX. (BS)

FatPipe Networks Plans Rs 490-Cr IPO – FatPipe Networks India Ltd, a Chennai-based inventor and multi-patent holder of router clustering technology, is planning to enter the capital market with an initial public offering of Rs 490 crore. The fund raise is part of company’s plan to expand its product line with enhanced research and development activities. FatPipe has fixed the price band for the issue at Rs 82-85 a share. The issue will open on June 7 and will close on June 9. (Business Line)

Lupin To Buy Second Generics Firm In Japan – Mumbai-based drug maker Lupin Ltd is close to making its second acquisition in Japan, where it became the seventh largest generics player after buying local firm Kyowa Pharmaceuticals Ltd in 2007 for $100 million. The target company is in the generic injectable drugs segment, and will likely be valued in the same range as Kyowa. The deal will be signed in six-eight months. (Mint)

McLeod Russel Eyes Buys In India, Africa – McLeod Russel India Ltd, the B M Khaitan owned tea major, has made cash accretion of Rs 260 crore in 2009-10 riding on higher tea commodity prices. The company is now scouting for acquisitions in India and Africa, besides its plan to increase its crop production in Assam, Vietnam and Uganda this year. The firm has reduced debt by Rs 135 crore during FY10 from a high of Rs 415 crore in the beginning of FY09. (DNA)

Govt Plans Partial Stake Sale In Shipping Corp – The shipping ministry, which is looking at divesting stake in its public sector enterprises, has indicated that a partial stake-sale in Shipping Corporation of India (SCI) is likely. The ministry is currently evaluating a number of proposals, and nothing has been finalised yet. One of the proposals being considered is part disinvestment and part follow-on public offer. The proposed divestment will happen in three public sector units which include SCI, Dredging Corporation of India (DCI), and Cochin Shipyard Ltd. (DNA)

Unitech, Omkar Called Off Slum Projects JV – Unitech Ltd, India’s second-largest realtor by market capitalisation, has parted ways with Omkar, its Mumbai joint venture partner for slum rehabilitation projects. Omkar is a part of the Ghasiram Gokalchand Group, a steel business house in the metropolis. Unitech has already infused Rs 250 crore into the equal joint venture company, which had launched projects at discounted prices in prime localities like Worli in order to raise cash upfront. Unitech now plans to continue with the projects through special purpose vehicles (SPVs). (DNA)

Enam Holdings To Raise $400-500M Infra Fund – Enam Holdings Pvt Ltd, a leading investment firm, is planning to launch a $400-500 million dedicated infrastructure fund by the end of 2010. The company has also roped in Jayesh Desai from consulting firm Ernst & Young in February this year to head its infrastructure fund. (ET)

Khaitan Chemicals To Buy Jairam Phosphates’ Facility In Chhattishgarh – Khaitan Chemicals & Fertilisers Ltd, a manufacturer of super phosphate fertilizer and edible oil, has entered into an agreement with Jairam Phosphates Ltd to acquire their fertilizer manufacturing facilities in Chhattishgarh. Both the firm have entered into a memorandum of agreement (MoA) for the deal.  The target unit has the capacity to produce 66,000 TPA of single super phosphate and 49,500 TPA of sulphuric acid. The financial terms of the transactions were not disclosed. (BS)

Pru, AIG Deal Near Collapse – Insurance major Prudential’s bid for rival AIG’s Asian unit appeared close to collapse after AIG rejected the British insurer’s lowered offer of $30.38 billion in cash and shares. Prudential, which had asked for a reduction of $5 billion in talks with AIG over the weekend, is now likely to abandon the bid formally rather than push it through on its original terms. Prudential was dramatically forced to reopen price negotiations with AIG last week because it might fail to attract the required 75% approval at an investor vote scheduled for June 7. The takeover is to be funded in part by a record $21 billion rights issue. (Reuters)


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News Roundup: ChrysCap Slashes Fund Size By $300 Million

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