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News Roundup: GE, Carlyle in Race for Stake In PNB Housing Finance

11 February, 2009

GE, Carlyle Among 5 Bidders for Acquiring Stake In PNB Housing Finance – GE Capital, Carlyle, New Silk Route and Tata Capital are in the race for acquiring a stake in Punjab National Banks housing finance company. Punjab National Bank, which is the second largest state owned bank, is planning to sell 49% stake in its subsidiary, PNB Housing Finance. According to the sources, five bidders have been short-listed and the due diligence is likely to be completed in 10 days. PNB Housing Finance has an asset base of Rs 2,000 crore. The mortgage bank has 28 branches across major cities and reported a net profit of Rs 40.59 crore for the year ended March 31, 2008. (The Economic Times)

Wockhardt promoters Pledge 40% Shares – The Khorakiwala family, the promoters of pharmaceutical and biotechnology firm Wockhardt, pledged a 40% stake with financial institutions such as Infrastructure Leasing and Financial Services (IL&FS) to raise around Rs 350 crore. The promoters currently hold 73.64% in the Rs 2,650 crore pharmaceutical company. The funds raised from IL&FS would be invested to expand the group’s hospital chain, Wockhardt Hospitals. The promoters are also finalising a private equity deal for Wockhardt Hospitals. According ot banking sources, The promoters have provided fixed assets such as real estate as collateral to banks and institutions in addition to pledging their equity stake. (The Economic Times)

Walt Disney Studios in Distribution Deal with Steven Spielberg – Walt Disney Studios has entered into an exclusive long-term agreement with filmmaker and Dream Works co-founder Steven Spielberg to distribute their upcoming movies made with partnership with Reliance Big Entertainment. Under the terms of the agreement, Disney will handle distribution and marketing for approximately six Dream Works films each year. The first film to be released under the Touchstone Pictures banner is scheduled to hit the theatres in 2010. Dream Works partnered with Reliance Big Entertainment last year to form a new film production company. (The Economic Times)

Tatas to Pledge Shares Again – Tata Sons, the main holding company of the Tata group, has pledged shares of group companies to raise funds and will continue to do so if the need arises, as it has adequate shareholding in most companies, as well as, high credit ratings. various group companies have announced further details of the quantum of shares pledged by their main promoter, Tata Sons. This included a 8.1% stake in automobile firm Tata Motors and a 3.5% holding in Indian Hotels Company, which owns the Taj Group of hotels. Tata Tea’s entire shareholding of 57.5% in Tata Coffee has been pledged with lenders. (The Economic Times)

M&M Creates Trust to Hold 8.7% Stake Post Merger of Arms with Itself – Mahindra & Mahindra has created a trust which will hold 8.7% equity stake of the company after the merger of the two subsidiaries, Punjab Tractors and Mahindra Holding Finance, with the vehicle company. The trust has acquired 4.96% stake in M&M following the merger of Mahindra Holding Finance with M&M. This has raised the trusts total holding in M&M to 8.7% after the merger with Punjab tractors. The s hares have been transferred to a trust to avoid cancellation of share of Punjab Tractors held by M&M. The beneficiary of the trust is M&M. Pursuant to the scheme, M&M’s shares will be issued to the trust based on the swap ratio of 1:3. ()

Sikorsky to Set-Up $1 Billion JV with Indian Co for Airframes – Sikorsky Aircraft Corporation (SAC), an American helicopter and aircraft maker, is in advanced stages of negotiations with an Indian corporate house for setting up a $1 billion joint venture (JV). The proposed JV will develop airframes for aircraft and will cater to the Indian and the Asia-Pacific market. Sikorsky is a part of the $ 58 billion United Technologies Corporation (UTC). SAC has also sent a proposal to the public sector Hindustan Aeronautics Limited to co- develop medium left helicopter involving a technology transfer  agreement. SAC also plans to bring H-92 to India for demonstration flights. It is also exploring the possibility of co-developing the X-2 technology with Indian companies. (The Economic Times)

PTC India to Enter into PE Business – PTC India, the country’s leading power trading company, is planning to foray into the private equity business with an initial investment of more than Rs 500 crore. The PE firm will in turn raise funds from other institutional investors, domestic and overseas. According to sources, the company is contemplating to raise up to Rs 1,500 crore through various routes, which will be partly used to start the PE fund. Of this, Rs 1,200 crore will be raised by PTC through private placement of non convertible debentures (NCDs) and warrants. Another Rs 300 crore will be mopped up by PTC Finance Services (PFS), the financial arm of PTC India. (Business Standard)

DLF to Secure Rs 2,000 Crore Long-Term Debt in 2 Weeks – DLF Ltd, the country’s largest real estate developer, is expected to secure Rs 2,000 crore of long-term debt in two weeks from public sector banks and other financial institutions. The company has already secured another Rs 1,000 crore of long-term debt over the last few months. The funds will be used to pay off some short term loans.according to sources, DLF has paid Rs 400 crore ahead of maturity. Sources also suggest that company has secured Rs 750 crore from Punjab National Bank, and Rs 1,250 crore from Life Insurance Corporation, Bank of India and other PSU banks. The Delhi-based developer now has around Rs 3,600 crore of short-term debt out of its total gross debt of Rs 14,600 crore. (DNA Money)

IL&FS to Take Control over Maytas Infra – Infrastructure Leasing and Finance Company (IL&FS) is on the verge of acquiring management control of the troubled infrastructure company Maytas Infrastructure owned by the sons of Ramalinga Raju, former chairman and managing director of Satyam Computers, who confessed to financial fraud last month. The leading non-banking finance company is emerging as a government preference given its prominent role in infrastructure finance in the country. according to sources, a high-level meeting between senior officials of the state government and IL&FS officials took place on Tuesday. (Business Standard)

Shares of ITC, Axis Bank and L&T Likely to Stay with SUUTI – Shares of ITC, Axis Bank and Larsen & Toubro (L&T) are likely to stay with the Specified Undertaking of the Unit Trust of India (SUUTI), which was to be wound up in June. Legal opinion received by the government suggests that SUUTI can exist as long as all investors in one of the schemes floated by the erstwhile Unit Trust of India have not redeemed their investment. The value of the shares of the three blue chips alone was estimated at over Rs 15,000 crore. In addition, there are investments in many unlisted companies, the value of which has not been ascertained by the government or SUUTI. The entity has opted for a negotiated settlement in many cases. (Business Standard)

Artinvest Hikes Stake in Pritish Nandy Communications to 3.25% – One of the promoters of Pritish Nandy Communications, Artinvest India, has hiked its stake in the firm to 3.25% for about Rs 1.15 crore. The promoter has bought 3,60,361 shares, representing 2.49 per cent stake, of the company through open market transactions. Prior to the transaction, Artinvest India had had 0.75% stake in Pritish Nandy Communications. Artinvest India is the on-line gallery that showcases art and new collectors alike. (Business Standard)

Nimbus to Raise Rs 250 Crore by Issuing Preferential Shares to Institutional Investors – Harish Thawani controlled Nimbus Communications is planning to raise Rs 250 crore by issuing preferential shares to its institutional investors, including Cisco, 3i and Oman Investment Fund (OIF). According to the sources, the stake of institutional investors will increase by 7-8% to 54% after the transaction. The proceeds of the transaction will be used for launching two niche channels under the Neo brand at an investment of Rs 175 crore. The remaining Rs 75 crore will be used for buying more telecast rights. Consequent to the transaction, Nimbus’ stake in Neo Sports Broadcasting will also increase. (Business Standard)

 


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News Roundup: GE, Carlyle in Race for Stake In PNB Housing Finance

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