Financial Technologies (FT), the owner of Multi Commodities Exchange, has started talks with many private equity funds to sell 6% stake in Indian Energy Exchange (IEX) to pare its stake down to 25%. Central Electricity Regulatory Commission allows promoters of such exchanges to own 25% and trading members 5%. Power Trading Corporation, a trading member, recently reduced its stake to 5%. The company was originally promoted by FT and co-promoted by PTC.Indian power companies Adani Enterprises, Jindal Power, Lanco Infra, Reliance Infra, Rural Electrification Corporation, Tata Power, lender IDFC and PE funds Lightspeed Venture Partners, Bessemer Venture Partners and Multiple Alternate Asset management own up to 5% stake each in the company. In 2010, FT had sold 7% stake in the exchange for around INR 21 crore. Later, PTC had managed to sell some stake in IEX for more than INR 30 crore. (The Economic Times)
General Insurance Corporation now eyes global buys: India’s national reinsurer General Insurance Corporation (GIC Re) is considering acquiring a Lloyds Syndicate member as a stepping stone to meet its ambition of being among the top five reinsurers globally. GIC Re has been ranked 15th among international reinsurers by S&P. At present, GIC has a branch each in London, Dubai and Kula Lumpur. (The Times Of India)
Department of Disinvestment moves Cabinet for 10% stake sale in IndianOil: The Department of Disinvestment (DoD) has moved the Cabinet for selling 10% shares in Indian Oil Corp (IOC), to raise over INR 7,000 crore ($1.25 billion). DoD last week moved a draft note for consideration of the Cabinet Committee on Economic Affairs (CCEA) for selling 242.7 million or 10% shares out of government holding of 78.92% through an offer-for-sale (OFS). The DoD would by next month float the tender for appointing merchant bankers and legal advisors for managing stake sale of IOC. The proceeds from IOC disinvestment are likely to be the second largest after Coal India in the current fiscal. (Business Standard)
Mantri in talks with Morgan Stanley to raise private equity: Mantri Developers, the Bangalore-based privately-held realty player, had started discussions with global financial powerhouse Morgan Stanley on the possibility of raising private equity for its various projects. Morgan Stanley had during March 2006 invested $68 million in Mantri Developers at the enterprise level, making this among the first PE investments in the Indian realty sector. Mantri Developers, post that has raised private equity of close to INR 400 crore from the Xander Group for various projects. (Business Standard)
Sun Pharma plans for acquisitions: Sun Pharmaceutical Industries Ltd. is looking to acquire Germany-based Stada. The company could announce the deal along with its January-March earnings tomorrow. The company had also earmarked some funds for this purpose. The objective is mainly to expand capacity to sell generic medicines and gain control of manufacturing sites and sales networks through buyouts. (Business Standard)
Mumbai school among suitors of Thomas Cook head office property: Tour operator Thomas Cook is in talks with three financial services firms, a domestic company and a prominent missionary school to either sell or lease out its heritage head office property in South Mumbai as part of the plans to monetize its real estate in the city. Realty consultant JLL has been appointed to monetize the properties. Thomas Cook, which is looking to shift its offices to one of the places such as Lower Parel, Dadar, Bandra Kurla Complex or Andheri, is likely to take a decision in the next three to four months. The company may have to secure approval of the Municipal Corporation of Greater Mumbai for selling the building as it is a lessee of the civic body. (Business Standard)
Rajapalayam Mills plans to sell assets: Rajapalayam Mills Ltd. is planning to sell, lease or otherwise dispose the assets of the Tissue Culture Division viz., Shri Ramco Biotech subject to the consent of the Members of the company. The company has approved the proposal as mentioned above. The business of the above said Division has already been discontinued. (BSE)
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