GVK Power & Infrastructure Ltd is in parleys to divest stake in its airport vertical and expects to close a deal before September. At least five interested parties have evinced in picking up stake. Those in the fray include Changi of Singapore, three other strategic investors and a financial investor. Of the three, the company had term sheets from two potential investors. Recently, two others have evinced interest in taking a stake in the company’s airport vertical. The company has total debt of about Rs 18,000 crore and this includes commitments of about Rs 3,000 crore at the holding company level. Rest is on the special purpose vehicles. (Business Line)
L&T plans to spin off hydrocarbon unit: The hydrocarbon division of L&T has to be necessarily carved out into a subsidiary to achieve its potential and tap global opportunities. The L&T board has approved a scheme of arrangement for consolidating the assets and liabilities of its hydrocarbon business with its wholly owned subsidiary L&T Hydrocarbon Engineering Ltd (LTHE). For this, LTHE would pay L&T Rs 1,760 crore in cash. The appointed date of the scheme is April 1, 2013. All assets and liabilities would be transferred at book value and there would be no issue of shares by LTHE to the shareholders of the company post the transfer of the hydrocarbon business. LTHE would continue to remain L&T’s 100% subsidiary. (Business Line)
OIL plans to raise $900 million for Mozambique buy, ONGC undecided: State-run Oil India Ltd (OIL) plans to raise $900 million (around Rs 5,400 crore) to finance the purchase of Videocon Mauritius Energy Ltd’s 10% stake in Mozambique’s Rovuma 1 offshore block. The company plans to shortly start communicating with around 20 banks such as Citigroup Inc., Barclays, HSBC and Deutsche Bank among others. OIL and ONGC Videsh Ltd (OVL) are together acquiring Videocon’s stake for $2.47 billion. The acquisition is expected to be implemented via a newly incorporated entity, in which OVL and OIL are expected to hold 60% stake and 40% stake, respectively. ONGC is yet to firm up the funding plans for its $1.48 billion contribution. The transaction is expected to close in the fourth quarter of 2013. (Live Mint)
ONGC is in talks with ConocoPhillips, Shell to sell stake in offshore block: India’s biggest energy explorer ONGC is in talks with ConocoPhillips and Shell for selling a stake in its KG Basin deep-sea block, which has large oil and gas reserves. The company has been scouting for a partner for its deepwater block after Norwegian oil major Statoil and Brazil’s Petrobras pulled out three years ago because of delays in regulatory approvals. Last November it formed a strategic alliance with INPEX Corp of Japan in for exploration of hydrocarbons in the basin. (The Economic Times)
Muthoot Finance files draft paper with Sebi to raise Rs 300 crore:Muthoot Finance which lends against gold, has filed the draft prospectus with market regulator Sebi for public issuance of secured non-convertible debentures (NCDs) of up to Rs 300 crore. The NCD issue aims at aggregating up to Rs 150 crore with an option to retain over-subscription of up to Rs 150 crore. The funds raised through this issue would be used for financing activities, including lending and investments, besides utilising them to repay existing loans, capital expenditure plans and to meet working capital requirements. ICICI Securities is the lead managers to the issue, while Link Intime India is registrar to the issue. (The Economic Times)
Indiabulls Housing Finance to raise Rs 10,500 crore debt in Fiscal year 2014: Indiabulls Housing Finance is looking to raise up to Rs 10,500 crore in liabilities this fiscal through multiple sources. Given the hardening of rates in the money market, the company would be re-jigging its strategy to increase the share of securitisation for fund raising. The 40% of the funds would be arranged through banks, while bonds would also account for a similar component and the portfolio sell down would increase to 20%. The company, listed on the bourses last month, has been doing securitisation transactions for over three years but this year its share will increase. (The Financial Express)
Jet Airways to raise $300 million ECB, use Etihad proceeds to retire debt Jet Airways, which today posted a loss for the second consecutive quarter, said the $ 749-million cash flow from the proposed deal with Etihad Airways would help it repair its balance sheet. The airline also plans to raise USD 300 million in external commercial borrowings (ECB) to retire high-cost debt. Last month, the Foreign Investment Promotion Board approved a Rs 2,058-crore deal under which Abu Dhabi-based Etihad proposes to buy a 24% stake in Naresh Goyal-led Jet Airways. Out of this, the airline is already in talks with banks to raise $150 million, while the rest would come from Etihad, once the stake sale deal is inked. (The Economic Times)
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