News Roundup: KKR In A Rs 650 Cr Deal With Sajjan Jindal


  • 16 Jun 2010

KKR In A Rs 650 Cr Deal With Sajjan Jindal - Private equity giant KKR has given a Rs 650-crore loan to the privately-held investment company of the Sajjan Jindal group to help part-finance its Rs 7,000 crore expansion plans in steel. The money has been provided by KKR’s non-banking finance company (NBFC) in India. The deal is a form of structured sponsored finance, a mixture of fixed income payments, equity and cash. (Economic Times)

Canara Bank Launches Rs 500 Cr Fund - Canara Bank subsidiary Canbank Venture Capital Fund launched a venture fund with a corpus of Rs 500 crore mainly targeted at mid-sized unlisted companies. The Emerging India Growth Fund is the fifth venture capital fund unveiled by the company. Venture capital is provided as seed funding to early-stage and high-potential growth companies. Investors in the fund include PSBs like Punjab National Bank, Bank of Baroda, Oriental Bank of Commerce and Bank of India besides development institutions like IFCI, Sidbi and United India Insurance Company. (ET)

GSPC IPO May Be Postponed - Gujarat State Petroleum Corporation (GSPC) may put off its plans to raise Rs 3,000 crore from public for funding its ambitious E&P plans in KG Basin. ET could not get an official confirmation on the postponement. The government of Gujarat-promoted GSPC has been mulling an IPO since 2007 but could not do so in view of bad market conditions. The state entity, that filed for the DRHP in March, was scheduled to bring out the issue by June 30. (ET)


Punjab & Sind IPO In A Month - Punjab & Sind Bank is likely to come out with an initial public offer next month to sell 25% government stake. The only unlisted state-run lender plans to file the draft red herring prospectus with Sebi in a week's time. Currently, the government owns 100% stake in the bank. (ET)

Cipla To Buy Stakes In Two Cos For $65 mn - Drug maker Cipla will acquire significant minority stake in two biotech companies — one each in Goa and Shanghai — for $65 million (approximately Rs 300 cr) to consolidate its presence in the growing biotech sector. Cipla will buy a 40% stake in Goa-based Mab Pharm and a 25% stake in Bio Mabs, Shanghai, through subscription of fresh shares. The company will fund the acquisition through internal accrual. (ET)

Emami Close To Buy Manufacturing Unit In Egypt - Emami Limited, a Kolkata-based manufacturer of cosmetics products, is close to acquiring a manufacturing unit of an FMCG company in Egypt. The deal, estimated to be around Rs 100 crore, is likely to be announced soon. Emami plans to fund the acquisition through internal accruals. The move was part of company’s plan to set up its base there to market its products in the Middle East, Africa, CIS and other neighbouring countries in South Asia. Emami has earlier acquired domestic FMCG firm Zandu Pharmaceuticals in 2008. (BS)


Relaince Infra Seeks FIPB Nod To Raise Foreign Fund - Reliance Infrastructure Ltd, a Reliance ADAG enterprise in power utility and infrastructure space, is seeking approval from the Foreign Investment Promotion Board (FIPB) for raising overseas funds for investment in the road sector. The fund raise is part of company’s plan to boost its eleven road projects worth around Rs 12,000 crore. It plans to utilise the proposed fund for design, finance, construction and maintenance related work for the projects. (DNA

NTT Data Still In Talks With Patni Promoters - NTT Data Corporation, the Japanese information technology (IT) services firm which was likely to buy Intelligroup for $199 million (around Rs 895 crore), is still in talks to acquire stake in Patni Computer Systems. NTT is reportedly in advanced talks with the promoters of Patni Computer to buy their combined 46.5% cent stake in the firm. The Patni brothers, Narendra, Gajendra and Ashok, who have reached an internal agreement to sell their stake, have hired investment management and brokerage company Ambit Capital as adviser for the deal. (BS)

Ruia Group Starts Due Diligence For Ssangyong Buy - Ruia Group, a diversified company with interest in tyre manufacturing, has begun the due diligence process on troubled Korean SUV maker Ssangyong Motor. The company will take final decision on the bid once the due diligence is over. Earlier this month, Ssangyong, owned 10% by China's SAIC Motor Corp, said it had short listed six firms out of seven firms that submitted letters of intent to buy the car maker. Apart from Ruia Group, India's top utility vehicles maker Mahindra and Mahindra, France's Renault SA together with Japan's Nissan are in the race for Ssangyong. (DNA)


GTL Leads Race For RCom Tower Biz - Reliance Infratel, part of Reliance ADAG, has approved a merger deal that could see its tower assets combine with smaller rival GTL Infrastructure in exchange for Rs 15,000 crore in cash and a significant stake in a new entity for shareholders of its parent company. The proposed deal, which is yet to be signed, values Reliance Communications’ tower assets at around Rs 30,000 crore and GTL Infrastructure at just short of at Rs 15,000 crore. RCom, which owns 95% of its tower subsidiary, will get Rs 15,000-crore cash and its shareholders will get a 50% stake in the new combined entity. (ToI)

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