Former i-flex Officials Bid For Oracle Unit – Former officials of Oracle’s Indian subsidiary have come together to bid for the company’s services business, in a transaction that has the potential to become India’s largest management buyout. About 25-30 people, who were part of the management team of the erstwhile i-flex-now called Oracle Financial Services Software (OFSS)-have put together a bid backed by a financial investor for the company. The other bidder is multinational IT services vendor CapGemini. OFSS is estimated to have a value of $250-300 million. (Economic Times)
Lillput Kidswear Picks Bankers For IPO – Lilliput Kidswear Ltd., a clothing maker backed by Bain Capital and TPG Growth, picked three banks to help it raise about $150 million in an initial share sale in India. JPMorgan Chase, Kotak Mahindra Capital and UBS will manage the offering, which may be completed by March. Bain Capital and TPG Capital may sell part of their stakes along with Lilliput’s founder, Sanjeev Narula. Lilliput has 300 stores across India and exports to regions including Africa, the Middle East and China, according to its website. (Bloomberg)
Shriram Confirms Orix Interest – Japan’s Orix Corp. is in talks with US-based TPG Capital to buy the private equity firm’s 20% stake in Shriram Transport Finance Co. Ltd in a transaction that may be valued at close to Rs.3,000 crore. Shriram Transport mostly finances second-hand trucks for small operators. Separately, South Africa’s Sanlam Group, which was interested in buying a 20% stake in Shriram Transport’s holding company Shriram Capital, will take a decision on this before the end of the 2011. Sanlam’s investment could aid any plans Shriram Capital may have for entry into the banking sector.
Vodafone In Talks To Sell Stake To Analjit Singh – Vodafone Plc, the world’s largest mobile company, today said it was in talks with its partner Analjit Singh and other investors to decide on who would pick up the 1.5% stake in its Indian venture. With Vodafone buying out Essar’s 33% stake for $5 billion, it will need an Indian investor to pick up this stake, else it would breach the foreign direct investment (FDI) cap of 74% in the telecom sector. Analjit Singh holds 6.2% stake in Vodafone Essar, while the rest is being held by IDFC. (Business Standard)
VA Tech Wabag Eyes Acquisitions – Chennai-based water and waste water management company VA Tech Wabag Ltd is looking for overseas acquisitions of around Rs 1,300 crore to improve its growth momentum. The company has shortlisted a few target companies for acquisition and would enter into due deligence soon. The targets for acquisition were in the fast-growing markets such as China, Middle East and North Africa. The plan is to either improve penetration in these markets or to bring in new technology.VA Tech has a cash balance of around Rs 350 crore and it could leverage other means to fund the acquisition. (Business Standard)
ITC Hotels Takes 26% In Espirit Hotels JV – ITC Hotels has picked a 26% stake in a joint venture with Espirit Hotels to build a luxury hotel in Hyderabad. The stake is valued at Rs 45 crore. The proposed project is close to the existing ITC Kakatiya at Hyderabad, in which the hotel chain holds 68% and also operates. (Economic Times)
Vishal Retail To Sell Properties For New Chain – Vishal Retail today said it plans to sell four properties for an estimated value of Rs 50 crore to clear Rs 30 crore debt and partly fund new expansion under the ‘V2 Retail’ brand. The company is in the process of setting up eight new stores (five in Delhi-NCR, two in Himachal Pradesh and one in Jamshedpur) with a total area of one lakh square feet. In March, Vishal Retail had announced sale of its retail business to the Shriram Group and the wholesale business to private equity firm TPG for Rs 70 crore after getting into financial trouble. (Business Standard)
Clearwater-backed Flexituff’s IPO In July – Flexituff International plans to raise around Rs 100 crore through an initial public offering (IPO) in July. The IPO would also mark the part-exit of Clearwater Capital, which holds a 25% stake in the company. Post dilution, the founders will hold 60% stake and Clearwater Capital will hold 11% stake. The IPO funds will be utilised for the expansion of manufacturing facilities at the company’s SEZ and DTA units at Pithampur, for a dripper project in Kashipur. (Business Line)