Mumbai-based Dewan Housing Finance Ltd. has entered into negotiations to acquire majority stake in DLF Pramerica Life Insurance Company, a joint venture with US-based Prudential Financial. The firm would take some more time, may be around three months to complete the transaction, a person close to Dewan Housing Finance said. Sources close to the deal say DLF is likely to exit at marginal premium over the Rs 235 crore it had invested for a 74% stake in the joint venture with Prudential Financial. The latter holds the remaining 26% in the JV. Prudential Financial is being advised by leading investment bank Goldman Sachs and Kapil Mehta, who was earlier the chief executive officer of the joint venture. DLF and Prudential were earlier in discussion with Shiv Nadar-controlled HCL group for almost two years and had agreed to bring HCL as Indian partner in the first stage. Subsequently, the plan was for HCL to have bought out DLF stake after receiving regulatory approval. However, the deal was called off earlier this year, because HCL did not agree with some of the terms of the US partner. (The Times Of India)
Alok Industries puts its UK retail chain on the block: Alok Industries, the $2-billion textile major, has started the process to sell UK retail chain Store Twenty One, which it had acquired five years ago. The move tracks the selloff activity by Indian organizations of their overseas assets as the weakening global economy impacts business. The sale is part of Alok’s strategy to focus on sustainable profit growth oriented units, sources said. The Jiwarjkas-controlled Alok, which counts Macy’s, JC Penney and Nordstrom among its clients, had purchased the retail chain from Hamsard 2353 Ltd, owned by a group of private investors, in 2007. (The Times Of India)
YES Bank gets nod to raise Rs 2,650 crore: The Cabinet Committee on Economic Affairs (CCEA) has given its nod for YES Bank to bring in foreign investment of up to Rs 2,650 crore ($500 million) into the private sector lender. Foreign holding in the equity capital of the bank can go up to 60%. The bank’s shareholders had on June 8 given their nod for it to raise up to $500 million capital from foreign investors through qualified institutional placement of equity shares or global depository receipts. This shareholders’ approval is valid for one year. (Business Line)
IDFC PE may exit unlisted waste management firm Hanjer Biotech Energies: Private equity fund IDFC Private Equity along with other institutional investors is seeking a multi-bagger exit from unlisted waste management firm Hanjer Biotech Energies in which they own 51% stake after a failed attempt to sell stake in a public offer in 2012. The investors, which are seeking a valuation of Rs 3,500 crore ($628.39 million), have started the process of hiring a global investment bank. “The exit at this valuation would mean around 5-6 times returns for IDFC PE, said a person with direct knowledge of the deal. In fiscal 2009, IDFC Alternatives India Infrastructure Fund had invested Rs250 crore in waste management company owned by the Mumbai-based Furniturewala family. (The Economic Times)
OCS Group invests Rs 200 crore, eyes more acquisitions in India: OCS Group, the UK’s facilities management company, has earmarked $ 80 million (Rs 480 crore) for further mergers and acquisitions in Asia, after recently investing Rs 200 crore to acquire four companies in India. The company has invested Rs 200 crore ($36 million) for acquiring high quality service providers in India such as Absotherm Facilities Management (engineering), Radiant Hospitality Services (housekeeping), Cannon Hygiene India (hygiene and sanitation) and Central Investigation & Security Services (security services) in the last 18 months period. (The Economic Times)
EGoM to decide on Hindustan Copper stake sale on Tuesday: The panel of ministers on disinvestment would meet on Tuesday to decide on the base price for 4.01% stake sale of Hindustan Copper and the issue is likely to hit the markets on July 3. The Empowered Group of Ministers (EGoM) on disinvestment is headed by Finance Minister P Chidambaram. Currently, the government holds 94.01% stake in HCL. The sale would make the company complaint to the minimum 10% public holding norm of market regulator Sebi. The sale of 4.01% stake or over 3.48 crore shares through the Offer For Sale (OFS) route could fetch around Rs 240-250 crore ($43 million – $45 million) to the exchequer, sources said. (The Economic Times)
SIDBI to raise Rs 13,500 crore through bonds, Certificate of Deposits in FY14: Small Industries Development Bank of India (SIDBI) plans to raise Rs 13,500 crore ($2.42 billion) through a mix of bonds and other instruments during the current fiscal to fund its business activities. The funds would be raised through various instruments including bonds, Certificate of Deposits (CDs) and fixed deposits. (The Economic Times)
Srei arm scouts for wind power farms: Srei group-owned thermal power generation and distribution outfit DPSC Ltd on Thursday floated expression of interest (EoI) for acquiring wind power farms. The company is looking to expand its renewable portfolio and is interested to acquire existing operational wind farms, capacity in the range of 20-100 mw. The firm is also looking overseas, particularly in Europe for buying out existing wind farms. The firm is in advance talks to acquire farms in Europe. The acquisition of an 100 mw wind power asset in Europe would entail an investment of at least Rs 500 crore ($90 million). (DNA)
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