With its tier-I capital adequacy ratio slipping below eight per cent, IDBI Bank plans to raise up to Rs 1,860 crore ($300 million) through Basel-III-compliant bonds by the end of March. The company want tier-I capital adequacy ratio to be above eight per cent for March. The bank aims to raise Rs 1240-1860 crore ($200-300 million) by issuing tier-I bonds by the end of this financial year. IDBI Bank’s profitability has come under pressure due to high provisioning towards non-performing loans and restructured assets. (Business Standard)
Suzlon to merge German subsidiary with parent: Suzlon Energy is in the process of consolidation of Suzlon and German subsidiary Senvion. And negotiations are currently being carried out by the banks. Post-merger, Suzlon expect a strong capital structure that will help to raise funds and capital for the company, said Tulsi Tanti, Chairman, Suzlon Group. Senvion, which was formerly known as REpower, was acquired by Suzlon in 2009. Suzlon has net debt of Rs 14,495 crore ($2337.85 million) as on December 30. (Business Line)
Airtel, Safaricom seek to buy Essar’s Yu in Kenya: Kenya’s two biggest telecom operators, Safaricom and the local unit of Bharti Airtel Ltd., have made a joint bid for the smallest operator, Indian group Essar Communications’ Yu. The Communications Commission of Kenya (CCK) said it had received applications from the firms to allow the transaction that will see Safaricom and Airtel spend a combined Rs 620 crore ($100 million). Safaricom, which is 40% owned by Vodafone, will get Yu’s infrastructure such as base stations in a bid to improve the quality of its network, while Airtel is expected to acquire the subscriber base. (Live Mint)
IOC eyes stakes in LNG terminals at Mundra, Dahej and Dighi: Public-sector oil giant IndianOil Corporation (IOC) has said it plans to acquire stakes in liquefied natural gas (LNG) terminals at Mundra and Dahej in Gujarat and Dighi in Maharashtra. The company is looking at a 25% stake in the Rs 5,200 crore ($838 million) LNG project in Mundra, which is being set up by Gujarat State Petroleum Corporation (GSPC). In Dahej, Petronet LNG Ltd, operates an LNG terminal with a capacity of 10 million tonnes a year, which is expected to increase 15 million tonnes at an estimated cost of Rs 2,950 crore by end-2016. IOC is also in talks with three foreign companies for the proposed Rs 4,512-crore LNG terminal project at Ennore. (Business Standard)
Nava Bharat to tie up funds for 300-Mw Zambia power project by June: Nava Bharat Ventures Ltd., a Hyderabad-based company with interests in power, coal mining, ferro alloys and sugar, expects to achieve financial closure (on a non-recourse basis) for its mine-mouth, coal-fired power project in Zambia by June 2014. Of the total investment of around Rs 4,340 crore ($700 million) proposed to be infused in the project, the loan component comprises Rs 3464 crore ($560 million). About 65% work on the project, being developed by Nava Bharat’s unit Maamba Collieries Ltd, has been completed. It has entered into power purchase and transmission agreements with Zambian state power company Zesco for the 300-Mw. (Business Standard)
Security firm SIS to buy Indian companies, targets 40% growth: Homegrown security services firm SIS India is preparing a war chest of over Rs 750 crore ($121 million) with the help of funding from private equity player CX Partners for acquiring companies in India and is targeting a 40% growth in its business over the next two years. The firm is targeting to pick up companies in the cash logistics, guarding and facilities management businesses, banking on the India story. Back in 2007, SIS diluted close to 10% stake to bring in US hedge fund DE Shaw and raised about Rs 50 crore that was later used in 2008 to acquire Australian-firm Chubb Security, which was seven times larger in revenues compared to SIS but its business margins were very low. (The Economic Times)
IDBI Bank to divest its stake in SHCIL: IDBI Bank today said it plans to sell its part or full stake in Stock Holding Corporation of India Ltd (SHCIL). The Board at its meeting held on February 28, 2014 accorded its in-principle approval for initiating the process for part or whole divestment of bank’s shareholding in SHCIL, IDBI Bank said in a filing on the BSE. IDBI owns 18.9% equity in SHCIL, with the other shareholders being IFCI 33%, GIC 14% and SUUTI and LIC with 17% each. (Money Control)
Viom Networks ropes in advisors for overseas listing: Telecom tower firm Viom Networks has roped in London-based STJ Advisors for a possible listing on the London Stock Exchange (LSE). Apart from LSE, other overseas stock exchanges being explored include New York, Hong Kong and Singapore. It is looking at mopping nearly Rs 1,500-2,000 crore ($242 million – $323 million) from overseas listings. According to people having knowledge of the matter, Credit Suisse and Citigroup have also been roped in as possible advisors. (Business Line)
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