News Roundup: FrieslandCampina in talks to buy 60-75% stake in Parag Milk

12 May, 2014

Dutch dairy cooperative Friesland-Campina is in talks with promoters and investors of Parag Milk Foods to pick up 60-75% stake in the Pune-based company, three people with direct knowledge of the development said. The deal following the ongoing preliminary talks may see a complete sale by the shareholders, the people said, adding that the existing private equity investors Motilal Oswal PE and IDFC Alternatives could cash out with huge gains. IFC, Motilal Oswal and IDFC together own 45-50% in the company while the rest is held by promoter Devendra Shah. “The promoters are expecting valuations higher than that of Tirumala. Talks are currently on around the valuations and the structure of the deal,” a person involved in the talks said. “The deal could peg the company’s valuation at around $350 million (about Rs 2,100 crore).”  (The Economic Times)   

Dena Bank seeks INR 2,000 crore capital: State-run lender Dena Bank has sought Rs 1,200 crore ($200 million) in capital from Government in FY15 on the basis of its targeted business growth. He added that the Government holds 58% stake in the bank which limits the bank’s options for raising capital. It sold bad assets worth Rs 543.92 crore ($90.88 million) during the quarter, through which its income received a benefit of Rs 260.49 crore ($43 million), which included Rs 31 crore ($5.17 million) in cash while the rest was by the way of security receipts. (The Times of India) 

Genpact to spend $45 million on strategic investments in 2014: Genpact will spend $45 million this year on strategic investments and client-facing teams to add capabilities to help accelerate long-term growth of the US-based outsourcing services major. During the January-March 2014 period, Genpact’s capital expenditure stood at about 2.2% of the quarter’s revenues ($528.2 million). He added that approximately two-thirds of this is expected to be spent on client-facing teams, representing an increase from 4.7% of revenue in 2013 to about six per cent in 2014.  (The Economic Times 

LIC Nomura MF is open to acquisition, evaluating options: LIC Nomura Mutual Fund is open to acquisitions to grow its asset base and is evaluating a few options in this space, a top company official said. Bose also said the acquisition doesn’t only aim to increase the assets under management (AUM), but will also look at adding sound investor base. LIC Nomura Mutual Fund, which had an average AUM of Rs 10,584 crore by the end of last fiscal, aims to grow it to Rs 15,000 crore during this fiscal. The fund house, which has around 15% of assets under equity category with rest coming from debt products, also hopes 20-25% asset growth in these categories.   (The Economic Times)   

Tech Mahindra to Buy Firms to Curb Telecom Bias: Tech Mahindra (TECHM) Ltd., the Indian software-services company that bought Satyam Computer Services Ltd., is considering acquisitions to curb its dependence on telecommunications clients. The company, whose clients include Vodafone Group Plc and BlackBerry Ltd., wants to boost revenue from industries such as health-care and retail, Chief Marketing Officer Hari Thalapalli said in an interview in Hyderabad. About 47% of Pune-based Tech Mahindra’s sales come from the telecom sector, Thalapalli said. The company bought control of Satyam in 2009 and then merged with it in the middle of last year in an 89.9 billion-rupee ($1.5 billion) transaction. The merger made Tech Mahindra the fifth-largest Indian software exporter by revenue. (Bloomberg) 

ONGC Videsh to bid for oil and gas block in Tanzania: ONGC Videsh Ltd (OVL), the overseas arm of state-owned Oil and Natural Gas Corp. Ltd (ONGC), is likely to bid for deep-sea oil and gas blocks in Tanzania as it looks to expand its presence in energy-rich Africa. Tanzania is offering eight blocks in its fourth Offshore Licensing Round, bids for which close on 15 May. The bidding round includes seven deep offshore blocks and the Lake Tanganyika North Offshore Block. The deep-sea blocks are located in water depths of 2,000 to 3,000 metres adjacent to proven prospective blocks. The Lake Tanganyika North Block is located in water depth of up to 1,500 metres along the western arm of the East African Rift System that is proven prospective for commercial liquid hydrocarbons. As per ONGC Group’s Perspective Plan 2030, OVL’s oil and gas production should increase from the existing level of 8.36 million tonnes of oil and oil equivalent gas to 20 million tonnes oil equivalent by 2017-18 and 60 million tonnes by 2029-30. (Live Mint) 

Syndicate Bank may raise Rs 2,650 cr capital in FY15: Manipal-headquartered public sector lender Syndicate Bank plans to raise fresh capital of Rs 2,650 crore ($442.72 million) during the present fiscal. Of this, Rs 1,500 crore ($250.6 million) will be equity capital and the amount will be raised via Basel-III complaint Tier-II bonds. The bank will explore options like qualified institutional placement, rights issue and follow-on public offer for raising equity, a top official of the bank said. Talking to reporters, he said the board has also approved the bank to raise the funds through Medium Term Notes (MTN) in overseas market for funds requirements of London branch up to $2 billion as and when the interest rates are favourable and based on the Loan book building of London branch. (Business Standard) 

FTIL board to take a call on MCX stake sale on May 24: Financial Technologies India Ltd (FTIL) on Saturday said it would take a decision on divesting 24% of its stake in Multi Commodity Exchange (MCX) at its next board meeting, on May 24. FTIL has so far received 10 binding bids for its MCX stake. In a press release on Saturday, the company said its board had decided that the 10 bidders would need to place their final bids in the next two weeks. The company claims these 10 bidders remain interested in its stake in the commodity exchange in spite of the Forward Markets Commission (FMC) bringing in new guidelines for bourses. CME, Tata Capital and Warburg Pincus, are said to be forming a consortium to buy a combined 15% stake in MCX. (Business Standard)

Courtesy: VCCEdge


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IDFC Alternatives invests $29M in Parag Dairy; Motilal Oswal PE makes partial exit

IDFC Alternatives invests $29M in Parag Dairy; Motilal Oswal PE makes partial exit

Madhav A Chanchani 5 years ago
In the largest ever deal in Indian dairy space, IDFC Private Equity Fund III has invested Rs 155 crore ($29 million) in Pune-based Parag Milk...
Parag Dairy may look at an IPO next year, strategic sale on hold

Parag Dairy may look at an IPO next year, strategic sale on hold

Diksha Dutta 3 years ago
Pune-based Parag Milk Foods Pvt Ltd (Parag), which was reportedly in talks with various strategic players to sell out a majority stake, may look at...
Parag Milk eyes $300M valuation in IPO, snips fresh issue size

Parag Milk eyes $300M valuation in IPO, snips fresh issue size

Debjyoti Roy 1 year ago
Dairy firm Parag Milk Foods Ltd is seeking a valuation of as much as $300 million (about Rs 2,000 crore) through an initial public offering...
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News Roundup: FrieslandCampina in talks to buy 60-75% stake in Parag Milk

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