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News Roundup: JP Morgan may invest $150M in Diligent Power

15 April, 2013

JP Morgan Asset Management may invest around INR 815 crore ($149.87 million) in the Bhaskar Group’s Diligent Power Pvt. Ltd, indicating renewed interest in India’s electricity sector. The deal is in an advanced stage. The investment banker for the deal is Avendus Capital. Diligent Power is in talks with various PE firms, including Actis, Khazanah Nasional Bhd, JPMorgan, Carlyle Group LP and IDFC Ltd, to raise money to finance its power projects. Avendus Capital was the financial adviser to Diligent Power when it sold a stake to Warburg Pincus Llc in 2011. (Live Mint)

Itochu & Toyota Tsusho in race for GSPC LNG stake: Two Japanese companies and at least four Indian players are in the race to pick up 25% stake in a liquefied natural gas venture promoted by state-owned Gujarat State Petroleum Corporation to build an LNG terminal at Mundra. Itochu Corp and Toyota Tsusho of Japan besides Gail India, Petronet LNG, Torrent Group and a JV between Reliance and British Petroleum have responded to the expression of interests invited by GSPC LNG for 25% stake. GSPC would hold 50% stake in GSPC LNG that is building a 5 mmtpa LNG terminal with an initial investment of INR 5,200 crore ($956.26 million) while, Adani Group would hold the rest 25% stake. (The Economic Times)

Dabur’s PE firm AHF to invest in dental chain: Asian Healthcare Fund, a private equity firm floated by Dabur Group chairman Anand Burman and former Dabur Pharma CEO Ajay Kumar Vij, is close to investing in a chain of dental clinics, its first investment since it was set up in 2011. Asian Healthcare Fund (AHF) would invest around INR 40-50 crore ($7.3 million – $9.19 million) in Mydentist, a regional dental care chain of 40 clinics with a focus in western India. The funding would be used to scale up its footprint in other geographies. In 2010, the Burmans invested in a radiology business operated by Diwan Chand Medical Services. But, this investment was made in their personal capacity and hadn’t been routed through the private equity firm. (The Economic Times)

Hindustan Aeronautics disinvestment likely in second half of fiscal: Government is likely to offload 10% stake in defence equipment maker Hindustan Aeronautics (HAL) through an initial public offer in the second half of the current fiscal. The stake sale is likely around November-December. The government has already appointed four merchant bankers SBI Capital, Goldman Sachs, Barclays and Axis Capital for managing the stake sale. Merchant bankers are conducting due-diligence on 29 production divisions, nine JVs and 10 Research & Design centres. The government had set up expert groups under former Cabinet Secretary B K Chaturvedi for restructuring of HAL. (The Economic Times)

iGate on lookout for acquisitions: After acquiring Indian IT firm Patni two years ago, iGate is now on the lookout for smaller acquisitions of about $ 25-50 million. The acquisition should help company to strengthen platforms and operations, especially in the banking, financial services and insurance space. In 2011, US-based iGate acquired nearly 63% stake in Patni Computer Systems for $ 1. 22 billion. The company has about $600 million in cash on its balance sheet as well as a debt of $ 1.1 billion. (Business Line)

ICICI Venture plans more exits this year; aims to raise $1.4 bn: ICICI Venture Funds Management Co. Ltd. plans to make about 10 exits this year even as most private equity firms are grappling to show returns. The firm has returned $650 million to its LPs on investments of about $250 million by exiting 30 deals over the past three years. The private equity fund partially exited Shriram City Union Finance Ltd early this month. The company is looking at exiting from Vikram Hospital, Express Towers (Nariman Point, Mumbai), I-Ven Townships (Pune) Pvt. Ltd, among others. ICICI Venture is also in the process of raising $1.4 billion through two funds in equal share an infrastructure focused fund and a special situations fund. The infrastructure fund has, in fact, already received commitments of $270 million. The fund would invest in hardcore infrastructure assets like power, roads and ports but not in green field projects. (Live Mint)

JSW Steel to refinance rupee debt with cheaper dollar loans: JSW Steel Ltd. plans to refinance as much as 55 billion rupees ($1 billion) of loans with dollar debt this year to lower interest costs. The steelmaker, owned by the billionaire Jindal family, plans to replace the rupee equivalent of $600 million of debt raised by unit JSW Ispat Ltd. (JSWI) this quarter and the remaining later this year. The move would help the company cut interest costs by more than 100 basis points from 11% to 12% at present. The firm has delayed raising funds for its $3 billion (INR 16,313 crore) steel project in the eastern state of West Bengal for lack of assured raw material supply. (Bloomberg)

Snapdeal plans for acquisitions: Snapdeal is looking for acquisitions. The company is looking to acquire technology and technology-based services companies. The firm is already in talks with 2-3 companies for the proposed acquisitions. If something works out, acquisition would happen in the next three months. (Live Mint)

Courtesy: VCCEdge


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News Roundup: JP Morgan may invest $150M in Diligent Power

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