RFCL’s Mallinckrodt Baker Acquisition Getting Delayed: RFCL’s plans to acquire the US-based speciality chemicals maker Mallinckrodt Baker is is facing revaluation hurdles owing to the global slowdown and poor earnings of the foreign company in the year ended September 2008. RFCL, an entity owned by the ICICI Venture Capital Fund, was to acquire the firm in a $325-350 mn deal, with I-Ventures planning to part-finance the acquisition by selling a stake in RFCL to private equity investors. I-Ventures, after failing to evoke the required PE interest, will wait till the announcement of the US company’s December quarter results before peppering the deal with a fresh price tag.
Govt. Mulls Allowing FDI in Investment Companies: The government is considering the proposal for allowing foreign direct investment (FDI) in ‘investment companies’. Currently FDI is allowed in 18 NBFC activities which do not include investment companies. Since FDI is allowed in holding companies with permission from the Foreign Investment Promotion Board (FIPB), it is felt that the same facility should be provided to investment firms which may invest foreign funds in downstream businesses. When allowed, such ‘investment companies’ would require approval from FIPB and minimum capital norms as similar to those applicable for other NBFC activities. The issue came up with a proposal by Tata Group to bring FDI into an investment company owned by it.
ExlService Lines Up Funds for Acquistion: BPO firm ExlService Holdings is looking at acquiring companies that provide expertise in the insurance, utilities and banking verticals in the range of $50-70mn. These acquisitions would strengthen ExlService’s expertise in key verticals and help in expanding its presence in new outsourcing destinations. It expects the current economic crisis to force sellers and valuations of target companies to go to the negotiating table with more realistic terms. With $110 mn cash on its books, ExlService recently had announced a $10-mn share buyback programme that would be executed over 2009.
ATC plans the Indian Dream: US-based American Tower Corporation (ATC) is looking at casting an investment of about $500 million to acquire a stake in an Indian telecom tower company. Its acquisitions could vary from small and medium to large companies. Through these acquisitions it is looking at creating a platform for which would support its future growth in the Indian market. Under the current government policy, telecom companies are allowed to undertake passive infrastructure sharing (towers) in order to reduce their capital costs.
Khattar And Chhabria Likely To Ink A Pact For India’s First Car Customisation Studios : Jagdish Khattar, who is ready to launch the first few outlets of Carnation Auto (his multi-brand auto sales and service outlets) by the end of this financial year — is probing the possibility of rolling out India’s first organised car customisation studios if talks between him and Chhabria go through.
Ruias Acquire JJ Polymers : Kolkata based Ruia group has acquired two-wheeler tube manufacturing company JJ Polymers as part of its capacity expansion plan. The Mysore-based JJ Polymers earlier had a production capacity of 375,000 units a month. Another group company Monotona Tyres, acquired by the Ruias in 2007, is producing 500,000 tubes per month. With Falcon Tyres, acquired by the group in 2006, having a capacity of 350,000 tubes per month, the Ruias now have a two-wheeler making capacity of 1.7-1.8 million units per month.
Cummins To Sell Its Rental Business To Aggreko Plc : Cummins India Ltd, manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets, has entered into an agreement to sell its rental business to the Indian subsidiary of Aggreko Plc for Rs 29.1 crore plus applicable duties subject to shareholder approval. Aggreko Plc, player in the rental of power, temperature control and oil-free compressed air systems, serves customers in over 100 countries. In 2007, Aggreko had revenues of approximately £700 million.