Deutsche Bank Buys 20% Stake in Rama Cylinders – Deutsche Bank is buying 20% stake in Rama Cylinders, a Mumbai-based high-pressure cylinder manufacturer, for Rs 84 crore. According to the deal, Rama Cylinders, promoted by Vashu Ramsinghani, has been valued at Rs 420 crore. The transaction involves issue of around 60 lakh equity shares and warrants to Deutsche Bank by the Indian company. The proposed investment is set to take place in two tranches through fresh issue of equity by the Indian company. First, Deutsche Bank would buy around 45 lakh shares in Rama Cylinders. Then, the remaining stake would be bought over after conversion of around 15 lakh warrants into equity shares. (The Economic Times)
Corporate Affairs Ministry Orders Inspections Against Educomp, 6 PSUs – Inspections have been orders against 6 public sector undertakings, other than education company, Educomp Solutions Ltd, which has been in the public eye in the recent past. Official sources said based on adverse comments made by the auditors and non-filing of balance sheet and annual account by these companies, the Ministry last week ordered inspections. The six public sector undertakings include Bharat Coking Coal Ltd, Hindustan Copper Ltd, Central Coalfields Ltd, Bihar Rajya Pul Nirman, Bihar State Tourism Development Corporation Ltd, Bengal Chemicals and Pharmaceuticals Ltd. Sources indicated that inspections are being considered against more companies across sectors, and a number of them may be sent to the Serious Fraud Investigations Office. (Business Line)
Geopost to Buy 60% Stake in Continental Air Express – French government-owned postal services company, Geopost has been allowed to pick up 60% stake in the privately-held express parcel delivery firm Continental Air Express for an undisclosed amount, following the intervention of the French ambassador to India. The proposal has been cleared with some riders following a letter from the ambassador, Jerome Bonnafont, to the then finance minister, P Chidambaram, asking him to reconsider the proposal. The proposal had been rejected by the Indian authorities more than once. FIPB had earlier rejected the proposal after the department of post raised reservations against what it termed a ‘backdoor entry into India’. It also accused the French firm of violating global postal conventions. (The Economic Times)
GAIL and IFFCO to Set Up JV Company – India’s principal natural gas companies, GAIL and IFFCO have entered into an agreement for cooperation in gas sector projects and related opportunities. This would include setting up of a gas based power project and the formation of a JV company between GAIL and IFFCO to implement the identified projects. Memorandum of Understanding (MoU) has been signed between the Chairman and MD of Gail, UD Choubey and the MD of Iffco, US Awasthi. Under the cooperation agreement, both companies would evaluate the potential of setting up a gas-based power power plant and other industries including chemicals, fertilisers, compressed natural gas and piped natural gas (PNG) in Indian besides exploring the possibility of sourcing natural gas/LNG for the identified projects. (The Economic Times)
Geodesic Holdings Limited to Acquire 100% of Software Company – Geodesic Holdings Limited, a wholly owned subsidiary of Geodesic Limited will acquire 100% of a privately held software company, headquartered in Uruguay. Geodesic Holdings has already signed a Share Purchase Agreement for the same. The company focuses on developing advanced messaging and collaboration solutions for Telecom operators, and has implemented their solution across 12 carriers in Latin America, South Africa and Asia. The name of the company has not been disclosed yet. (Medianama)
IL&FS Realty Fund Acquires 15% Stake in Akruti City SPV – IL&FS Realty fund, an India focused realty fund managed by IL&FS Investment managers, has acquired a 15% equity stake in Infrastructure Ventures India, an SPV floated by the Mumbai based developer Akruti City, for Rs 200 crore. Infrastructure Ventures India is a public-private partnership project formed for developing housing infrastructure for Mumbai Police in Ghatkopar, a Mumbai suburb. (The Economic Times)
Bhushan Steel to Raise Rs 450 Crore – Bhushan Steel will raise Rs 450 crore by issuing 15 lakh redeemable cumulative preference shares, to a couple of undisclosed strategic investors. The amounts raised will be used to finance it ongoing steel venture in Orissa. The company will issue 10% redeemable cumulative preference shares of Rs 100 each to be issued at Rs 3,000 per share, which includes a premium of Rs 2,900, in one more tranches. The board of directors of Bhushan Steel has considered and approved the decision. (The Economic Times)
Duke to Sell Stake in MRO Unit to MADC – Mumbai based Duke Aviation is in talks to sell a minority stake in its upcoming MRO (maintenance, repair and overhaul) facility in the Nagpur SEZ to the Maharashtra Airport Development Company (MADC). The MRO facility will undertake heavy maintenance of aircraft. Both, MADC and Duke have sealed the deal and an announcement is expected to be made later. Financial details of the deal have not yet been disclosed. (The Economic Times)
Orient Ceramics on the Hunt for an Overseas JV Partner – Tiles manufacturer, Orient Ceramics and Industries Ltd is scouting for overseas partners to set up a new manufacturing plant in Andhra Pradesh with an estimated cost of up to Rs 250 crore. The company has already purchased 40 acres of land in Andhra Pradesh for setting up the tiles manufacturing plant, and is currently in talks with foreign players from Italy and Spain for the joint venture. The company is waiting for assured gas supply for its plant before progressing further and once the issue of gas is sorted out, the company expects to finalise the details within six months. (The Economic Times)
DE Shaw or Symphony Capital May Exit Funds From DLF Assets – One of the two investment funds US-based DE Shaw and UK-based Symphony Capital, who have put in money in DLF Assets (a privately held firm floated by the promoters of DLF), is looking at exiting its investments. DE Shaw and Symphony Capital have investments of around $400 million and $650 million respectively in DLF Assets (DAL), a company that buys IT SEZs developed by DLF. Either of the two companies is looking at exiting at the time of listing o r before that. (The Economic Times)
Mujrani Family to Divest Gucci Stores in India – The Mohan Murjani family, which built iconic names such as Gloria Vanderbilt and Tommy Hilfiger through the ‘70s and the ‘80s, is planning to sell a part of its fashion business in India. It has also appointed a banker for the same. The New York-based family’s Indian arm, Brand Marketing India (BMIL) is in the market to divest the Indian operations of global lifestyle brand Gucci. (The Economic Times)
LIC Hikes Stake in Canara Bank – Life Insurance Corporation (LIC) has raised its stake in state-run Canara Bank to 5.08% through open market transactions estimated over Rs 7 crore. LIC has acquired 4.24 lakh shares, representing 0.10% stake in the bank. Based on the closing price of Canara Bank as on January 29, the deal value comes to Rs 7.51 crore. Post acquisition, LIC now holds 2.08 crore shares representing 5.08% stake in the PSU lender. (Business Standard)
GMR Infra Bargains to Buy 100% in SA Company – GMR Infrastructure, the Bangalore-based infrastructure developer, is learnt to be driving a hard bargain to gain 100% control over South Africa based Homeland Mining & Energy at a little less than $100 million, a third of the initial valuation. GMR Energy, a part of GMR Infrastructure, had valued this coal mining firm at $310 million when it acquired a small stake in April 2008. GMR Energy initially had offered to buy 50% stake in a two-step process – first it bought a 5% stake for $15 million and it reserved the right to increase it by another 45% by September 2008. But, after a thorough due diligence, GMR Energy is understood to have indicated to Homeland that it will not be increasing its stake to 50% and that they wanted to walk away from the deal. After various negotiations, GMR took a stand wherein either it gets its $15 million back or gets to hold a stake in the holding company. GMR Energy is also understood to be finalising papers to acquire 100 per cent stake of a coal mining firm in Indonesia, which has coal reserves of 100 million tonnes for $80 million. (Business Standard)
Shobha Developers to Raise Rs 750 Crore – Shobha Developers, the Bangalore-based real estate developer is planning to raise Rs 750 crore through a combination of preferential share sale, land sale and bringing in strategic investors in some projects in an attempt to reduce debt. The company, which has a debt of Rs 1,846 crore, or 1.6 times of its equity, plans to sell a part of the 3,000-acre land bank it owns. The company intends to bring the debt equity ratio to 1:1. It plans to get into project development by forming various special purpose vehicles to raise majority of the Rs 750 crore. The company will attempt to raise Rs 500 crore by offloading its land bank and plans to raise an additional Rs 250 crore through a preferential allotment of shares to investors. (Business Standard)
PNB to Merge PNB Gilts with Itself – Punjab National Bank (PNB) will now merge its primary dealership subsidiary PNB Gilts with self instead of selling the company. Punjab National Bank holds 74.07 per cent stake in PNB Gilts. The decision has been taken as the value offered to PNB by interested parties was not up to its expectations. Necessary legal process for the merger will soon be initiated and the company is expected to complete it by the next fiscal year (2009-2010). The bank’s earlier decision to exit the primary dealership business was part of its plan to exit non-core businesses. PNB had, thus invited bids to sell controlling stake in PNB Gilts in July last year. (Business Standard)
Kamat Hotels to Divest 60% Stake in Concept Hospitality – Kamat Hotels India has decided to divest its 60% stake in the subsidiary, Concept Hospitality Ltd to other group of shareholders. The decision was taken in the board meeting held on February 1. The company has authorised the Executive Chairman and Managing Director to do all necessary acts, deeds and to sign necessary documents in this regard. (Business Standard)
Parsvnath Developers Pledge 10% Shares – Parsvnath developers have pledged 10% shares with financial institutions as collateral for loans in different projects. Parsvnath Developers’ chairman, Pradeep Jain has clarified that the promoters have not pledged any shares for their personal investments. Parsvnath has a total debt of Rs 1,800 crore on its balance sheet, of which Rs 75 crore is due by March, 2009. (The Economic Times)
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