Jupiter Metal raises open offer price to buy 30% in Kalindee Rail: The battle for buying a controlling stake in Kalindee Rail Nirman (Engineers) Ltd has intensified with Jaipur-based engineering and construction company Jupiter Metal Pvt. Ltd raising the offer price for its hostile bid. The company has increased its open offer price to Rs 70 per share from Rs 65 to buy 30% of Gurgaon-based Kalindee Rail in order to counter an offer made by Kolkata-based rail wagon maker Texmaco Rail and Engineering Ltd’s at a price of Rs 68 a share. On 20 July, Texmaco Rail had decided to offer to buy a 30% stake in Kalindee Rail from shareholders after buying out the entire promoters’ stake of 11.74% in the firm. Texmaco Rail currently owns 36.64% stake in Kalindee Rail and is looking to acquire more via the open offer. On 13 July, Kalindee Rail decided to sell 24.9% of equity through preferential allotment of shares to Texmaco Rail at Rs.63.13 per share to preempt Jupiter Metal’s hostile bid. (Live Mint)
PE funds eye Elder Pharma sale: The battle for acquiring the domestic business of Mumbai-based Elder Pharma is getting fierce as buyout funds have entered the fray. According to sources, private equity giants TPG, Kohlberg Kravis Robert & Co (KKR) and Carlyle have shown interest in Elder Pharma’s local formulation business and engaged in talks. Last week, the debt-ridden Elder announced plans to restructure business to clear debt worth Rs 1,300 crore ($281.04 million), accumulated after multiple acquisitions abroad. The board approved plans involving either raising of capital, hiving of assets or other strategic options. European pharma giant Sanofi and US major Novartis are also engaged in discussions with the Elder Pharma management for an acquisition.
New Silk Route goes slow on fresh investments: New Silk Route (NSR), a private equity fund with focus on India and a few other Asian markets, has applied brakes on fresh investments, sources said. NSR has gone “absolutely slow” on fresh investments and is holding on to the resources to make selected follow-on investments. The $1.4-billion fund, which has so far invested around half of its corpus has sounded out the bankers that it would focus heavily on exits of its portfolio companies, as part of its bid to raise a new fund. The fund, which has invested in Coffee Day Group, Vasudev Adiga’s Restaurant, Ascend Telecom Infrastructure (formerly Aster Infrastructure), besides various others, has added that it intends to work towards one of its earlier stated strategy of building a food platform with an investment of $100 million in that segment. ()
Café Coffee Day owner is in talks to raise funds to fuel growth: Coffee Day Holdings Co. Pvt. Ltd is in talks to raise Rs 500-700 crore ($108 million – $151 million) in debt and equity, and has already got a letter of intent from a private equity firm to invest in it, according to people familiar with the development. At least half a dozen global, deep-pocketed PE firms met Siddhartha and one has offered a term sheet (letter of intent) for equity transaction of Rs 500 crore to Rs 600 crore. Siddhartha is also considering buying back the stakes of at least two investors in Coffee Day Resorts with the latest fund raising. Existing investors include global PE firms KKR and Co. LP, New Silk Route Partners LLC and Standard Chartered Private Equity. In 2010, the three firms picked up a 25% stake in the holding company for around $200 million. In the stake buyback, Siddhartha typically offers 16% to 20% internal rate of return (IRR) to his investors. (Live Mint)
JSW Steel joins race to buy Stemcor’s iron assets: JSW Steel has expressed interest in buying British steel trader Stemcor’s Indian iron ore assets, joining at least three other interested parties. Among the other firms interested, is steelmaker Jindal Steel and Power, a firm run by Indian member of parliament Naveen Jindal, brother of JSW Steel’s boss Sajjan Jindal. Stemcor appointed Goldman Sachs to find a buyer for its Indian assets which include a iron ore mine and iron processing facilities in the state of Odisha, valued by an industry source at about $700-750 million. (Economic Times)
Shriram Properties to raise Rs 450 crore from private equity funds: Bangalore-based real estate firm Shriram Properties is raising Rs 450 crore ($97.28 million) from private equity funds to acquire multiple residential projects in Chennai and Bangalore. The firm is in talks with exiting investors like ICICI Prudential Asset Management Company, TPG, Kotak Real Estate, ASK Property Investment Advisors and Sun Apollo to raise the money by the year-end. The company is currently doing due diligence on four projects in Bangalore and three in Chennai totaling 200 acres with a development potential of 70 million sq. ft. While six of the proposed acquisitions is land with all approvals, the other is an incomplete residential project. The proposed money would come in separate special purpose vehicles that would be created to purchase mostly discounted real estate assets from the market. While Shriram Properties would invest Rs 250 crore, the remaining amount would come from private equity funds. The company is expected to divest up to 60% equity at the SPV level. (Economic Times)
Thomos Cook plans to sell SoBo Property: Travel and tour operator Thomas Cook India (TCIL) has put one of its back office premises at Nariman Point in south Mumbai (nicknamed SoBo for South Bombay) on the block. The move is part of consolidation of TCIL’s workplaces. TCIL is understood to own around 32 properties or 1.26 lakh square feet (sq ft) of office space across the country. In addition, it reportedly owns over 60,000 sq ft and 43,000 sq ft in Mumbai and Delhi, respectively. In fact, the tour operator’s another SoBo property (at Fort) is estimated to be worth up to Rs 250 crore ($54 million). In May last year, Fairbridge Capital (Mauritius) had acquired a 76.69% stake in TCIL from its erstwhile UK-based parent. (DNA)
L&T seeks shareholders’ nod to raise $600m: Infrastructure major Larsen and Toubro (L&T) has sought shareholders nod to raise up to $600 million (about Rs 3,200 crore) through issuing securities. The board be and is hereby authorised to offer, issue and allot in one or more tranches, to investors, whether Indian or foreign, including foreign institutions. The company plans to use the proceeds on expansion. (Financial Chronicle)