Emami Leads Race For Paras Pharma – There is a strong buzz that homegrown FMCG major Emami is within striking distance of clinching the deal to acquirea 70% stake in Para Pharmaceuticals. Emami is said to be close to clinching the deal with a bid of around Rs 3,000 crore for a controlling stake in the Ahmedabad-based firm. While the promoters hold 30% stake in Paras, the remaining 70% stake is held by private equity firms Actis and Sequoia Capital. (Economic Times)
IGate To Raise $392M – IGate Corp., the California-based information technology (IT) services firm headed by former Infosys executive Phaneesh Murthy, has applied to the US Securities and Exchange Commission (SEC) to sell 16 million shares to raise up to $392 million. The issue of shares was to facilitate mergers and acquisitions (M&A) the company might want to do in the near term. Earlier reports said that iGate was looking to raise up to $700 million as part of its joint efforts with private equity firm Apax Partners Llp to acquire the promoters’ stake in Mumbai-based IT services firm Patni Computer Systems Ltd.
Hero, Honda Close To A Deal – In what may pave the way for Honda Motor’s exit from Hero Honda, their joint venture with India’s Hero Group, the latter has agreed to royalty payments of 8% of overall sales per annum to the Japanese automaker in return for a technology makeover and a stake sale. This would mean a three-fold increase over the Rs 500 crore Hero Honda presently pays every year as royalty fees to Honda Motor Corporation. The increased annual payment would be till 2014, when the present technology sharing agreement is to lapse. (Business Standard)
Former Citi Exec To Raise $350M Property Fund – Ravi Hansoty, the former Asia-Pacific head at Citi Property Investors, plans to raise as much as $350 million by the end of next year for an India property fund. The fund aimed to buy land to build apartments and hotels in India as early as June. Hansoty left Citigroup’s real estate asset management unit in November. He would set up his company in Mumbai. (Bloomberg Via BS)
Coal India To Buy 10% In Peabody – State-run Coal India is in advanced talks to buy 10% stake in the US-based Peabody Energy Corp’s asset in Australia. Peabody has offered Coal India 10% in one of their coal producing mines in Australia. The company had last month put the deal cost at less than $200 million. Coal India has been scouting for coal mines abroad and earmarked Rs 6,000 crore for this purpose.
Shakti Bhog To Buy 20% In India Unit of Chinese Telco – Shenzen-based Long Tel Communication Technology, a Rs 2,500-crore Chinese cellphone maker, may offload a 15-20 % minority stake in its Indian subsidiary to Shakti Bhog Foods. The stake is likely to be offered to Divyarth Health Care – a Shakti Bhog group company that distributes HTC smartphones. The Chinese handset maker plans to churn out some 2 million dual SIM mobile annually in Himachal in partnership with a local JV partner. (Economic Times)
Bharti Airtel, Punj Lloyd In Fray For Hexacom Stake – Bharti Airtel and Punj Lloyd are the only companies bidding for Telecom Consultants of India’s (TCIL) 30% stake in Bharti Hexacom. Sunil Mittal-promoted company , which has 70% in Hexacom, operates in six north eastern states (excluding Assam) and Rajasthan through Bharti Hexacom. The deal is estimated to be more than Rs 1,800 crore. (ET)
VA Tech Wabag Plans Overseas Buys – ICICI Venture backed VA Tech Wabag is sitting on almost about Rs 350 crore cash pile and is looking at a long list of companies for inorganic growth. The company will focus on emerging markets and developing countries where there is still growth. It will look at buys for either geographical region or the technologies. (Moneycontrol)