The Bangalore-based publicly-held infrastructure developer, GMR Infra, is understood to have kick-started the process to exit from the Istanbul Sabiha Gokçen International Airport, which it manages in Turkey. In this project, the company holds 40% stake, involving a capital expenditure of $550 million (Rs 2,697 crore), since May 2008. While GMR is understood to have invested a little over $60 million as its equity share in the company. The company would be looking to realise at least 1.5-2 times their investment. Early this year, the company exited its 70% stake in a gas fired power project in sigapore, releasing around $125 million. Later, the firm also sold its stake in coal mines in soft Africa, ranking in around $50 million. (Business Standard)
Rana Kapoor eyes Four Seasons Bangalore: The family offices of YES Bank founder Rana Kapoor and NRI tycoon Ravi Pillai are vying with global investors such as Blackstone, GIC of Singapore and Tishman Speyer to acquire India’s second Four Seasons Hotel and private residences project in Bangalore, where Bollywood actress Deepika Padukone and Infosys founders have bought homes. Wall Street bellwether Goldman Sachs, which owns 73% stake in the lifestyle project, kicked off the bid three weeks ago, which could fetch a distress sale price of about $100 million (Rs 570 crore). Investment bank MAPE is running the sale process, which has also attracted the interest of developers RMZ Corp, Oberoi Realty and Nitesh Estates. The 1-million sqft mixed use development has an enterprise valuation of about Rs 1,100 crore ($224.28 million), of which approximately Rs 200 crore ($40.77 million) is debt. The bidders would have to bring in roughly Rs 400 crore as construction cost to see the project through completion. Goldman, which invested though real state fund Whitehall, has been looking to sell the project for more than a year. Century Real Estate, along with Westcourt, holds the remaining 27% stake in the project and would be making an exit along with Goldman. (The Times Of India)
Essel Group & Shyam Telecom put communications JV co on the block: The promoters of Essel Shyam Communication Ltd., a joint venture between the Essel Group and Shyam Telecom are exploring strategic options, including selling a majority stake in their leading satellite communications and media outsourcing company. Both Essel Group and Shyam Telecom own 30% stake in the company, private equity firm Kubera Capital owns another 30% while the residual 10% is with employees and IL&FS. Essel Shyam had acquired the local V-SAT business of Australian telco Telstra where IL&FS was an existing investor and after the buyout, IL&FS came on board as a financial investor. In 2008, Kubera Cross-Border Fund, an investment company traded on the AIM market had pumped in $22 million for a minority stake. The company has already mandated its advisors to scout for potential partners. Several private equity buyout funds and MNC satellite operators have already been sounded out even though it is still early days of negotiations. (The Economic Times)
HDFC expects Central Bank approval for $500 million loan soon: Housing Development Finance Corp. expects central bank approval soon for a plan to borrow $500 million overseas to finance home loans for the poor. The proceeds from the dollar-denominated borrowing would be used to fund low-cost affordable housing projects. Mortgage lenders would cap individual home loan amounts at 2.5 million rupees ($43,800), and the cost of the property cannot exceed 3 million rupees under the rules. About half the population in India’s financial hub, Mumbai, lives in slums. (Bloomberg)
Piramal Systems, US defence tech firm in talks for joint venture: Piramal Systems and Technologies of the Ajay Piramal-led group is in talks for a joint venture deal with US-based surveillance technology developer Global Technical Systems. Not content with picking up a 27.83% stake in Bluebird Aero Systems, an Israel-based unmanned air systems manufacturer, for about Rs 40 crore ($7.2 million) in August 2012. Piramal Systems plans to collaborate with Global Technical Systems for maritime and internal security, and an announcement is expected soon. (Business Line)
Private equity firms evince interest in redBus: India’s bus ticketing company redBus.in has been approached by private equity firms for a possible stake sale. According to investment banking sources, a number of PEs have evinced interest in the ticketing site over the last few months to buy stake, in part or in full, for a valuation of around Rs 800-900 crore ($163.11 million – $183.5 million). The talks are in very early stages, according to the source. The company has tie ups with all major bus operators such as SRS, VRL Travels and others. (Business Line)
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