Citibank wants its pound of flesh whenever software firm Polaris Financial Technology, in which it holds a strategic stake, sells its services division. Armed with veto rights on any M&A and divestment by Polaris, the Citi Venture Capital International (CVCI), the private equity arm of Citigroup, has spelt out that it must be given an exit when an acquirer buys out the company's services business. While the PE investor has not yet threatened to exercise its veto and block the proposed restructuring, it is keen to receive pro-rata share of the consideration for the services division. The Citi arm is the second largest shareholder in Polaris, owning over 19%, followed by the promoter group which holds about 29%. About a fortnight ago, the PE fund and its legal advisors shared their views with Polaris. They even suggested a tripartite consolidated transaction under which CVCI's exit and a demerger could be initiated simultaneously. (The Economic Times)

Biyani taps PEs for 500 crore stake sale in Biba, AND: Retail magnate KishoreBiyani has shortlisted private equity investors for selling stakes in two apparel companies Indian ethnic wear brand Biba and designer Anita Dongre's AND to raise about Rs 500 crore ($84 millin). Future Ventures, formerly an investment arm of Biyani, has transitioned into a fast moving consumer goods company and wants to offload minority investments in these fashion businesses. The company had earlier transferred majority-owned fashion brands to a new group company, Future Lifestyle Fashions. CX Partners, ChrysCapital, TA Associates and General Atlantic Partners are in the reckoning to acquire about 30% stake in Biba valued at Rs 1,000 crore ($167.87 million). L Capital, an investment arm of French luxury conglomerate LVMH, and the newly floated $500-million private equity house Kedaara Capital, are in the short-list to buy stake in AND. Biyani has completed a prolonged restructuring of the group's businesses, including sale of some, to pare debts. The group now has three operational companies - Future Retail, Future Ventures and Future Lifestyle Fashions. (The Times Of India)

BGR Energy promoter plans to sell 3% stake: Sasikala Raghupathy, the promoter of BGR Energy Ltd. is looking to sell over 21.75 lakh shares or 3% stake in the company at a minimum price of Rs 118 apiece. The offloading, through the Offer for Sale (OFS) route, would help the company in meeting the 25% minimum public shareholding norms as stipulated by market regulator Sebi. Currently, the promoters hold 78.01% stake in the target company. Promoter Sasikala Raghupathy, who holds around 12.93% stake, would offload 3.02% shareholding in the company. (The Economic Times)

GMR plans to raise Rs 550 crore by selling SEZ land: GMR Infrastructure, the Bangalore-based publicly held infrastructure developer, is understood to have zeroed in on two potential buyers to exit a part of its land holdings on which it was planning to develop a special economic zone (SEZ) in Krishnagiri district of Tamil Nadu. GMR is understood to be looking to sell a total of 1,100 acres of the close to 3,000 acres it has Rs Rs 550 crore ($92.33 million). This move to sell a part of its land holding in one of its SEZ is part of an overall move by GMR to exit some of its assets as part of its 'asset light - asset right' strategy. GMR had earlier exited a power project in Singapore for Rs 2,500 crore, while parallely divesting a 74% stake in a highway project and another coal mine in South Africa. The company during 2013 has been pretty much aggressive on shedding assets through which it has raised close to Rs 3,000 crore already during the first half of the year. (Business Standard)

Deepak Fertilisers may call on Saroj Poddar to buy his stake: Deepak Fertilisers, which made a surprise entry into the Vijay Mallya-controlled UB Group’s Mangalore Chemicals & Fertilisers (MCF), might now approach Saroj Poddar to buy out his stake in MCF. Poddar, chairman of the Adventz Group, acquired a 10% stake in MCF in April with the intent of eventually taking over MCF. With Wednesday’s block deals, Deepak Fertilisers stands as the holder of the largest block of shares in MCF with a 24.5% stake. The UB Group has 22% stake in the company, followed by Poddar’s 10% stake. (Business Standard)

Courtesy: VCCEdge

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