Essar Energy Plc’s said its largest shareholder, Essar Global Fund Ltd, has made a possible offer of 70 pence per share for the 22% stake it does not own in the London-listed oil and gas producer. The proposal outline valued Essar Energy, which is controlled by privately held Indian conglomerate Essar Group, at more than 900 million pounds. Essar Global also made a possible offer to buy Essar Energy’s 4.25% convertible bonds due 2016 for 80 pence per share. Standard Life, which holds a minority stake in Essar Energy, criticised Essar Global’s plans, cautioned that the bid would deprive small shareholders of the company’s future growth value. ()
United Bank of India plans to raise Rs 1,000 crore equity capital: United Bank of India will raise up to Rs 1,000 crore ($162 million) as capital through issue of bonds or equity to the government. The board of the state-owned bank has approved raising tier-I capital of up to Rs 1,000 crore either through bonds on private placement basis to the eligible institutions or issue of preference shares to the central government or other institutional investors. The company has also approved the fund raising by issuance of equity shares through preferential allotment to government, the bank has said in a filing to the BSE. The government holds 87.99% in the Kolkata-headquartered bank. (Live Mint)
Raghuram Rajan’s fight against loan defaulters faces first test; SBI-led consortium moves to take control of Sai InfoSystem: A key element of Reserve Bank of India governor Raghuram Rajan’s plan to cleanse the Indian banking system of bad loans is likely to be tested shortly as lenders take management control of Sai InfoSystem, the biggest defaulter in the information technology sector. The move, which might otherwise have been tangled in legal issues, has been made easier because promoter Sunil Kakkad is untraceable. A consortium of banks led by the State Bank of India has hired Alvarez & Marsal, a top US firm that specialises in recovery from defaults and supplies management to companies in distress. State Bank of India, IDBI Bank, Allahabad Bank, IDBI Bank, Corporation Bank and State Bank of Bikaner & Jaipur have lent close to Rs 1,200 crore ($194 million) to the Gujarat-based company whose promoter has been absconding since June 2013. (Economic Times)
5 MFs vie for ING’s local asset management biz: At least five mutual funds (MFs) L&T Mutual Fund, Axis Mutual, BNP Paribas, Pramerica and Edelweiss have evinced interest in buying ING Investment Management, the ING Group’s domestic asset management business. ING, the Dutch financial services company, is planning to exit its asset management and insurance businesses in Asia. Sources said L&T was a leading contender to acquire ING Investment Management, whose assets under management (AUM) in its domestic MF business stood at Rs 672 crore as on December 31, 2013. Under the portfolio management services business, its AUM is at about Rs 400 crore. Overall assets managed by the MF sector are about Rs 9,00,000 crore ($145.80 billion). (Business Standard)
L&T Info hunts for a buy in US, Europe: Information technology (IT) outsourcing services provider L&T Infotech is planning to buy a company abroad to cross $1 billion (Rs 6,230 crore) in revenue. The Mumbai-headquartered fully owned arm of engineering and construction giant Larsen & Toubro is talking to a few companies in the US and Europe, hoping to close a deal soon, senior executives said. The privately held company is looking at companies with a revenue of $50-100 million. So far, L&T Infotech has made one major acquisition. In February 2011, it bought Citigroup’s Canadian IT outsourcing arm, Citigroup Fund Services Canada, for $40 million (Rs 180 crore). (Business Standard)
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