Japanese trading conglomerate Itochu Corporation is discussing an acquisition of Redington India — a distributor of IT and telecom products, and a large reseller of Apple phones for as much as $500 million, or about Rs 3,000 crore, people directly aware of the matter said. Singapore-based NRI family Kewalram Chanrai, Standard Chartered Private Equity and Taiwanese IT distributor Synnex together own over 55% stake in the Chennai-based Redington, which is run by an independent management team under R Srinivasan. A possible majority share acquisition followed by a mandatory open offer could cost Itochu between $450-500 million, a banking source privy to the matter said. (The Times of India) 

GMR Energy withdraws draft prospectus for IPO: GMR Energy, a subsidiary of GMR Infrastructure, has withdrawn its draft prospectus for the initial public offering to raise close to $296.22 million (Rs 1,800 crore). GMR Energy filed the DRHP with SEBI last month for its IPO. "Due to various business reasons GMR Energy along with the selling shareholders have withdrawn the DRHP (Draft Red Herring Prospectus) filed with the SEBI," GMR Infrastructure informed the stock exchange. The company was planning to utilise the IPO proceeds for meeting its equity commitment and for debt reduction. GMR Group has interests in airports, energy, highways and urban infrastructure sectors. (The Economic Times

PE investors, Srei Infrastructure to sell Viom Networks stakes: Private equity investors, apart from Srei Infrastructure andTata Teleservices, are expected to sell part of their stakes in telecom tower company Viom Networks, said Srei Infrastructure Vice-Chairman Sunil Kanoria. Macquarie SBI Infrastructure, GIC Investments, IDFC Private Equity and Funderburk Mauritius hold 30 per cent stake in Viom Networks and are planning to exit the company. Tata Teleservices owns 54 per cent of Viom Networks and Srei Infrastructure the rest."Nothing has been finalised yet but we will have a clearer picture in a few weeks," Kanoria said from the US on Friday. Syed Safawi, chief executive officer, Viom Networks, said the company was looking at an offshore listing. "We may decide on the route to raise capital by the end of the second quarter of 2014-15. STJ Advisors have been engaged. We are exploring an overseas listing on either the New York Stock Exchange or the London Stock Exchange," he said. Bankers said other private equity players like Carlyle and Axiata were among those interested in buying Viom Networks. (Business Standard)

Canara Bank may raise cash to fund business: Canara Bank will consider raising funds through the qualified institutional placement (QIP) route or through preferential allotment during the current financial year. The publicly held bank said this fund-raising would be to meet Basel-III guidelines and also to fund the general business needs of the bank. The bank’s board has constituted a committee of directors to decide on the modalities of the two options. This announcement by Canara Bank to raise funds through QIP or through preferential allotment came hardly a month after it said it planned to raise Rs 1,000 crore from bonds to fund business growth. The bond committee during late March decided to raise additional capital of Rs 1,000 crore through issue of Basel-III compliant tier-II bonds. In January, the bank had raised Rs 1,500 from bonds to enhance capital base.(Business Standard)

REC to raise up to Rs 30,000 cr via debentures: State-owned Rural Electrification Corporation will issue debentures of up to Rs 30,000 crore ($4.9 billion) during the current financial year. "Board of Directors of the company have approved issuance of Non-Convertible Debentures up to Rs 30,000 crore through private placement during the current fiscal (2014-15)," REC said in a regulatory filing. REC had targetted to raise Rs 30,000 crore last fiscal, 2013-14. Of that, it raised close to Rs 27,000 crore till December including via Rs 4,500 crore tax-free bond issue. The funds raised through the bond issue are meant for general lending operations of the company and other associated business objectives besides repaying existing loans. (Business Standard

Courtesy: VCCEdge

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