American private equity company KohlbergKravis Roberts (KKR) would purchase a 90% stake in specialized tyre maker Alliance Tire Group from rival PE fund WarburgPincus and owner Yogesh Kumar Mahansaria for an enterprise value of about $650 million, including a debt of $125 million. The deal is likely to be announced this week as all the three sides have agreed on the financial terms and have more or less completed the legal formalities. (The Economic Times)
Reliance communications to sell arm to Batelco for INR 6,000 crore: Anil Ambani-owned Reliance Communications will sell an 80% stake in its subsidiary Reliance Globalcom, a global communications service provider, to a consortium led by Bahrain Telecommunications Company (Batelco) for around INR 6,000 crore ($1 billion), as part of a series of deals that the Reliance Group proposes to stitch over the next two to eight weeks. Fresh after a INR 1,200-crore deal with elder brother Mukesh Ambani’s Reliance Industries last week for use of RCOM’s optical fibre network, the firm also giving the final touches to another transaction with Reliance Jio Infocomm to lease out telecom towers. Besides, the company would also sell off its DTH business to South-based Sun Group for an estimated INR 2,000 crore ($366.52 million). As far as Reliance Globalcom is concerned, RCOM would retain a 20% share in the company for the first year, following which it has the option to sell that portion of the equity as well. (The Times Of India)
JLL mulls INR 1,200 crore realty fund: After launching its INR 300 crore private equity fund late last year, the US-based property brokerage Jones Lang LaSalle (JLL) is looking at a new realty fund in India which will be four times the size of the first one. While its maiden INR 300-crore ($54.97 million) fund was focused on residential properties, the second one from segregated funds group of JLL will focus on office properties and have a corpus of INR 1,200 crore ($219.91 million). The fund is expected to get launched by the end of this year. While the first fund was domestic, no decision has been taken yet on whether the next one would be offshore or home-bound. (Business Standard)
Petronet LNG plans to raise INR 600 crore via non-convertible debenture: Petronet LNG Ltd. plans to raise INR 600 crore ($110 million) in debt to fund expansion of its Dahej LNG terminal in Gujarat. The company would raise funds through non-convertible debenture (NCD) to fund the capex towards construction of a second jetty and additional storage/regasification facilities at the Dahej terminal. The company has also entered into long-term tolling arrangements for 2.5 million tonnes of capacity with GAIL and 2.25 million tonnes with GSPC. Besides dahej terminal expansion, Petronet is also setting up a new 5 million tonnes terminal at Gangavaram in Andhra Pradesh. (The Economic Times)
Bilcare Tech plans to sell 26 pc to raise INR 300 crore: Anti-counterfeiting solutions provider Bilcare Technologies, a subsidiary of listed Bilcare, has decided to sell around 26% stake to an strategic or financial partner to raise around INR 200-300 crore ($36.65 – $55 million) to fund its future growth and market its various products across the globe. The company is in talks with private equity funds and global companies to raise money. The company has mandated financial service provider Tata Capital to look for a partner. The fund would help the company to reduce its debt pile. (The Economic Times)
Iridium to re-enter India with domestic partners: Thirteen years after stopping services in the country, US-based mobile satellite communications company Iridium Communications Inc is set to re-enter India with a plan to establish a dedicated gateway in the country. Nasdaq-listed Iridium is in talks with state-run Bharat Sanchar Nigam Ltd (BSNL) and MTNL, besides a private Indian group with interest in the telecom sector and a few individuals, among others, to float an Indian firm Iridium India. In joint venture, Iridium would have a 49% stake through the automatic route and up to 74% after requisite approval from the Foreign Investment Promotion Board (FIPB). (Business Standard)
ONGC arm eyes $10bn assets abroad this quarter: State-owned energy major ONGC is likely to dominate India’s outbound M&A space, given that most private players are reeling under debt and those that have cash are adopting a wait-and-watch strategy amid global economic uncertainties. ONGC’s overseas arm OVL is in advanced stages of negotiations to buy $10 billion worth of energy assets this quarter alone. The firm has already concluded a $1-billion deal to acquire a participating interest in Azerbaijan. The assets OVL is targeting include a 20% stake in Mozambique gas fields for $5 billion and an 8.4% stake from ConocoPhillips in Kashagan field for another $5 billion. If things go as planned, both these deals could be sealed in the current quarter. (The Times Of India)
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