Larsen & Toubro (L&T) is in the final stages of negotiations to sell its 50% stake to Japanese partner Komatsu in their hydraulic equipment manufacturing joint venture, L&T Komatsu. The decision signals the Mumbai-headquartered firm's desire to exit non-core businesses at a time its core engineering and construction operations are under severe stress. JP Nayak, advisor to the chairman and the key architect behind the restructuring plan, was also part of the talks. (The Economic Times)

Etihad deal: Goyal rejigs promoter stake: NRI entrepreneur Naresh Goyal is putting in place a multi-phase, structured deal that would allow Abu Dhabi's Etihad Airways to buy a substantial stake in Goyal's Jet Airways valued at $1.2 billion. The structuring would also see Goyal and Etihad jointly hold 75% in the listed carrier, complying with Sebi's new public shareholding norms. Jet is 80% held by Tail Winds, an overseas corporate body (OCB) incorporated in the Isle of Man, a tax haven, while Goyal and his wife directly own just about 11,000 shares or 0.01%. An OCB is an entity in which at least 60% is owned by a non-resident Indian. In the second phase, Goyal would sell 11% of Jet Airways through an offer for sale (OFS) to comply with Sebi's new norms that cap promoter holding at 75%. After the OFS, Etihad, through a fresh issue of shares, will acquire a significant stake in the Mumbai-based carrier. (The Times Of India)

Puravankara promoters to pare stake for INR 500 croreBangalore-based realty major Puravankara Projects is looking to raise INE 500 crore ($9.24 million) by diluting promoters' stake to institutional investors through private placement. The company plans to sell 4.5 crore shares at a price range of INR 100- INR 110 apiece to meet the Sebi's guidelines for a minimum public holding of 25%. The company is learnt to have mandated J P Morgan for the share sale through the institutional private placement (IPP) route. J P Morgan is in talks with The Master Trust Bank of Japan, Motion Fund, Morgan Stanley, HSBC Global, GIC, SBI MF, Reliance MF to conclude the sale by next week. Currently, the promoters hold 89.96% stake in the target company. (The Times Of India)

New drugs tempt Lupin to spend up to $1 billion: Lupin Ltd. (LPC), the drugmaker founded by Indian billionaire Desh Bandhu Gupta, is seeking to acquire brands in the U.S. to expand its most profitable business, and may spend as much as $1 billion on a deal. The company may buy a pediatric brand in the U.S. as well as a company that makes generic products such as oral contraceptives in Brazil. The firm would borrow funds to fund acquisitions. (Bloomberg)

Kennametal India promoters to dilute 13.16% stake via OFS: The US-based Kennametal Inc will sell nearly 29 lakh shares, or 13.16% stake, in its Indian subsidiary Kennametal India through an offer for sale on March 14 which could fetch the company a little over INR 166 crore ($30.62 million). Currently, the promoters hold 88.16% stake in the target company. (Business Line)

United Bank to raise INR 300 cr thru rights issue early next fiscal: Kolkata-based United Bank of India plans to come out with a rights issue to raise INR 300 crore ($55.34 million), early next fiscal. The company has already received nod from its board of directors for the rights issue. The firm would soon approach the government and Reserve Bank of India seeking their approval. The rights issue could happen by the first half of 2013-14. Meanwhile, the company received ts shareholders’ approval to raise INR 100-crore worth Tier-I capital by way of preferential allotment to the Union Government by end of this month. (Business Line)

Private equity firm CX Partners to raise capital for mezzanine fund: Private equity firm CX Partners aims to raise the first round of capital for its new mezzanine fund by May as it seeks to broaden its portfolio in a volatile market for risk capital. The $250-million ( INR 1,358- crore) Intermediate Capital Fund, headed by former JPMorgan Chase principal Shishir Jain, could have its first close between $100 million and $150 million. The fund has a substantial commitment from one anchor investor and is looking to get one more anchor investor on board. (The Economic Times)

Etihad Airways may buy JetPrivilege pie for $150 million: Jet Airways (India) Ltd. may sell a stake in its frequent flier unit to Etihad Airways PJSC as the Gulf carrier seeks to buy a a stake in India’s biggest publicly traded airline. The company may raise about $150 million (INR 813 crore) from selling as much as a 50% stake in the frequent flier unit. Last month, Etihad purchased three pairs of slots at Heathrow airport from Jet for $70 million and leased it back to the Indian carrier. The Indian airline may seek shareholders’ approval to transfer JetPrivilege, its frequent flier programme, into a separate entity. (DNA)

HUL plans to sell property in metros to raise INR 100 croreAfter selling or leasing out its landmark commercial properties, including its former headquarters, last year, fast-moving consumer goods giant Hindustan Unilever Ltd (HUL) is now focusing on disposing its residential properties and land parcels. The company has put on the block about two dozen apartments and land parcels in posh localities in cities such as Mumbai, Kolkata and Hyderabad, which are expected to fetch over INR 100 crore ($1.44 million) to the company. Last year, the company sold its former training centre Gulita on Worli Seaface in Mumbai to the Ajay Piramal Group for INR 452 crore. (Business Standard)

Ficus Pax set to sell strategic stake to German major: Ficus Pax, the Bangalore-based specialised provider of transport packaging goods and services, is understood to be closing in on an important strategic move to offload 50% take to a German global corporation in a healthy transaction. The company is expected to be valued at as much as 20 times its operating profit of INR 12 crore, taking the enterprise valuation close to INR 250 crore ($46.12 million). Ficus Pax has been receiving lot of interest from global PE and strategic investors and is understood to have taken over a year to finalise a strategic fit in the German major. (Business Standard)

Courtesy: VCCEdge



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