Global private equity (PE) funds are understood to have come back to the table to discuss an acquisition of Bangalores UB Towers, the 17-storey corporate head office of UB Group, in a close-to-Rs 600-crore ($93 million) deal. After an earlier attempt failed last year, apparently due to differences over valuation, this is the second time that PE funds are discussing a possible transaction with UB Group. According to real estate investment bankers, the talks with PE funds are for a sale and lease-back of the landmark corporate head office. Global funds, including Blackstone, KKR and Singapore-based Mapletree, are learn to be in various stages of discussions with UB Holdings, the primary holding company of the Vijay Mallya-controlled UB Group. (Business Standard)
RCF is eyeing assets in the Middle East, Africa: Rashtriya Chemicals and Fertilisers, India’s public sector fertiliser company, is gearing up for its next level of growth through its focus on acquisition of raw material assets overseas. Also, its Thal III urea project and coal-gassification project at Talcher are gathering momentum. The company is looking to make acquisitions in Middle East and Africa. (DNA)
Phoenix plans to raise Rs 1,000 crore: Mixed-use developer Phoenix Mills Ltd (PML) is expected to soon kick-start the process of raising Rs 1,000 crore ($155.26 million) following shareholder nod for the proposal at its 108th annual general meeting. The funds mobilisation will be in one or more tranches through a public issue or a private placement or a preferential issue or any other kind of public issue or private placement as may be permitted under applicable laws from time to time. However, it is very likely that the company may use some portion of the Rs 1,000 crore towards repaying debt. PML’s standalone debt as of June 30 stood at Rs 284 crore, stake-wise effective gross debt at Rs 2,025.3 crore and consolidated gross debt at Rs 2,400.5 crore. (DNA)
Reliance Life plans to sell up to 5% to bancassurance partner: Private insurer Reliance Life is exploring a distribution tie-up with several banks, including from the public, private and cooperative sectors, and may offer a stake of up to 5% for the same. The move comes close on the heels of the Insurance Regulatory and Development Authority (IRDA) allowing banks to act as distributor for multiple Insurance companies. The company is in talk with multiple banks, including commercial and co-operative, for a long-term strategic partnership and might offer a small equity stake up to five per cent to a bank of critical size and reach. ()
Birla to seek $2.7 billion debt refinance: Hindalco Industries Ltd, the country’s aluminum maker, is seeking improved terms on as much as $2.7 billion (Rs 17,362 crore) of debt as projects funded by the rupee loans come on stream. The Kumar Mangalam Birla-controlled company wants to refinance loans worth $2.7 billion in the year ending March 31. Hindalco, whose debt swelled 39 per cent as of March 31, is seeking to reduce interest costs that are eroding profit. (Business Standard)
Cairn Energy values Cairn India stake at $956 million: The UK-based Cairn Energy, which is set to sell its stake in Cairn India, has valued its 10.3 per cent stake in the Indian company at $955.6 million (Rs 6,144 crore). Though a proposal by Vedanta Resources to take over Cairn Energy’s residual stake in Cairn India is still there, it is yet to formalize. In December 2011, Vedanta had acquired a controlling stake in Cairn India for $8.67 billion. Vedanta has 59 per cent holding in Cairn India. Terming the minority stake as “available-for-sale”, Cairn Energy in its half-yearly report filed at the London Stock Exchange said the financial asset had a market value of $956 million on June 30, a 22% reduction from the value at the date of initial recognition. (Business Standard)
Canara Bank board plans to decide on Amanath co-op takeover soon: The Board of Directors of Canara Bank would take a decision on the takeover of assets and liabilities of Bangalore-based Amanath Cooperative Bank once the due diligence report is submitted. The bank is undertaking due diligence of the crisis-hit cooperative bank and the report is expected by the end of August. The process of due diligence got delayed due to Ramzan and it is in the final stages now. Presently, the cooperative bank is going through a crisis after the Reserve Bank of India (RBI) issued a circular in May this year directing the bank not to allow withdrawal of more than Rs 1,000 in six months. Subsequently, the depositors had damaged properties of the bank. Later, the RBI had ordered the bank to cease all operations till further orders. (Business Standard)
Capital First plans to raise funds: Capital First Ltd. is planning to raise up to Rs 300 crore ($46.5 million). The fund would be raised through various domestic or international options including qualified institutional placement or external commercial borrowing wth conversion into shares or foreign currency convertible bonds, American depository receipts, global depository receipts etc. ()
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