The stake dilution process at Rajkot-based Balaji Wafers is getting warmer, with one more multinational giant in the fray. According to people in the know, Kellogg’s India, the breakfast cereal maker, has started discussions with the management of Balaji for acquiring a 10-15% stake in the wafer maker. The deal size is expected to be Rs 350-400 crore ($56 million – $64 million). The minority stake buyout in Balaji is likely to help Kellogg’s India explore the wafers market. Another major, Agrotech, has met the Balaji management and conducted a due-diligence but have decided the company is ‘too regional’, with operations restricted to a few states. According to media reports, private equity entities Actis Capital and Capital International have also engaged in discussion to buy the stake. Advisory firm E&Y has been mandated to find buyers. (Business Standard)
India eyes Kazakhstan’s Eurasia project: India is likely to be a part of the Eurasia Project of the Kazhakhstan government to develop oil and gas assets in the north Caspian Sea. According to sources, India is keen to participate in the consortium through ONGC Videsh Ltd (OVL). The Kazakhstan government had already rolled out a red carpet for India to participate as a consortium partner. This comes after Kazakhstan transferred an 8.4 per cent stake in its giant Kashagan oil field to China National Petroleum Corp (CNPC), playing spoilsport to an OVL deal with US giant ConocoPhillips last year. Though OVL and ConocoPhillips had struck a deal for $5 billion, the local government exercised its preemptive buy-out right and acquired the stake by ConocoPhillips and later transferred it to CNPC. (Business Standard)
FCI seeks govt nod to raise Rs 8,000 crore through bonds: Faced with liquidity crunch, the Food Corporation of India has sought government’s approval to raise up to Rs 8,000 crore ($1.28 billion) through long-term bonds for meeting working capital requirement. The corporation had approached the ministry a few months ago with a similar proposal, but it failed to get the nod for issuing long-term bonds. In order to ensure smooth procurement operations, FCI has a cash credit limit of about Rs 55,000 crore with a consortium of 62 banks which is secured by mortgaging stocks. It also has the government approval to raise Rs 20,000 crore through short term loans. (The Economic Times)
Air India plans to sell 7 Dreamliners to raise $840 million: National carrier Air India plans to raise up to $840 million (Rs 5,209 crore) by way of sale of its seven Boeing 787-8 Dreamliner planes, which it will then lease back, to pay off the bridge loans taken against these aircraft. A part of the proceeds will also be used for operational requirements, sources said here. The carrier has already taken the delivery of 11 Dreamliners and three more are expected to join the fleet by March of next year. Apart from this, the national carrier had also booked 43 planes from Airbus, which have already been inducted into its fleet. (The Times of India)
Complex options for Diageo: British firm Diageo Plc, whose stake in United Spirits (USL) is now reduced to below 20 per cent, following the Karnataka High Court’s judgment on Friday, has the option to again raise its holding via creeping acquisition. Or, to launch yet another open offer for USL shareholders, say lawyers. The company should first appeal against the HC order in the Supreme Court. And, technically, the creeping acquisition route is open to them, which allows a promoter to raise stake by five per cent annually. Creeping acquisition will be costlier, as the USL share price had shot up 85% to Rs 2,670 a share as on Friday, compared to the Rs 1,440 a share it paid last year while acquiring from Vijay Mallya. (Business Standard)
L&T seeks FIPB nod for Rs 2,000-cr infusion in IDPL: Larsen & Toubro, the engineering conglomerate, said on Friday it had sought approval from the Foreign Investment Promotion Board (FIPB) for a foreign direct investment (FDI) proposal which could infuse as much as Rs 2,000 crore ($322 million) into its infrastructure business. The unnamed global investor is looking to initially infuse Rs 1,000 crore ($161 million). This could be followed by a second tranche of Rs 1,000 crore ($161 million) or such higher amount as agreed between investor and the company. The second round will be a year after the initial investment, which will be subject to further approvals as and when required. The deal is subject to due-diligence processes, agreement on governance, regulatory and authority approvals and market conditions. (Business Standard)
GMR, IFC pact for hydropower project: GMR Energy Ltd., a subsidiary of GMR Infrastructure Limited, the Bangalore-based infrastructure major, today signed a Joint Development Agreement (JDA) with the International Finance Corporation (IFC), the private sector lending arm of the World Bank, to jointly develop the Upper Marsyangdi-2 hydropower project (600 Mw) in Nepal. The 600 Mw Upper Marsyangdi-2 Project is in advanced stages of development. The total investment in the project is estimated at $1 billion (about Rs 6,200 crore) and is targeted for commissioning by FY 2021. GMR in is in talks with IFC for a possible stake in the project. (Business Standard)
TVS Capital upbeat about agriculture, food businesses: Chennai-based growth equity company TVS Capital Funds Limited, which manages Rs 1,200-crore investments, is bullish on agriculture, food with the Food Security Bill in place. Besides, it is also looking to invest in the manufacturing sector. TVS Capital essentially invests in domestic consumption sectors including education, healthcare, agriculture and food, and retail. The deal size for it ranges from Rs 50-100 crore. (Business Standard)
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