L Capital Asia, a major investor in Genesis Luxury, wants to exit the company and has asked its founder to either buy out its 40% stake or sell the luxury brands marketing firm altogether as it is unhappy with the way it is being run. LVMH-owned L Capital has asked Genesis Luxury to get its accounts audited by one of the ‘Big Four’ accounting firms and added that the private equity firm feels that that the management of the company is indifferent to its suggestions. While L Capital is an investor in Genesis Luxury, three other private equity funds – Sequoia Capital, Henderson and Mayfield – are investors in Genesis Colors, the parent company which owns 60% of Genesis Luxury. ()
Manipal Health to buy back Kotak’s 10% stake for $32 million: India’s third largest healthcare chain Manipal Health Enterprises Ltd is expected to buyback 10% stake held by Kotak Private Equity in a deal estimated at about Rs 200 crore, or $32 million. Kotak, which invested Rs 110 crore in the hospital network three years ago, is discussing a possible exit with promoters led by Ranjan Pai. The deal making would see Kotak exiting with an internal rate of return exceeding well over 18%, though final details are still being worked out. Pai had bought back minority shares of tech czars Azim Premji and NR Narayana Murthy from the group’s education arm earlier this year. Last year, Manipal Health Enterprises saw an equity infusion of $100 million from India Value Fund for a large minority stake, and Pai still has the option of drawing down another $80 million as part of this transaction. (Times of India)
Birla plans to bring in new auto tech partner for Chennai entity: The C.K. Birla Group has drawn up plans to bring in a new strategic and automotive technology partner for its SUV and luxury car-making Chennai entity, based at the Hindustan Motors Ltd (HML) facility. The proposed business restructuring scheme, which was approved by the shareholders of HML on Monday at a court-convened meeting, the two manufacturers would add new partners, products and capital bases and also change their names. The restructuring scheme pertains to transfer of the HML’s Thiruvallur plant to Hindustan Motors Finance Corporation Ltd, a wholly-owned subsidiary, with retrospective effect from April 1, 2012. The plant assembles Mitsubishi vehicles and HML markets them in India. (Business Line)
OVL mulls raising stake in $20 billion Venezuela oil project: ONGC Videsh Ltd and its partners are mulling raising stake in Venezuela’s $ 20 billion Carabobo-I oil project even as India looks at raising crude oil imports from the Latin American country. OVL, which has 11% stake in the project that will produce 400,000 barrels per day of oil (20 million tonnes) in four years, is looking at buying a similar stake that Malaysia’s Petronas has decided to give up in the project. On the other hand, Reliance Industries Ltd, which gets about 20 per cent of its oil needs from Venezuela, is looking at raising imports while state-run firms like Indian Oil Corp (IOC) and HPCL-Mittal Energy Limited (HMEL) are keen to start buying oil from the Latin American nation. Venezuela has offered RIL 2-3 oil blocks including Boyaca 4 block and a separate section in the Ayacucho area of the Orinoco belt. Both these areas can produce 2,00,000 bpd (10 million tonnes a year) each. ()
Naresh Goyal to buy 1.11% stake in Jet Airways from Tail Winds: Jet Airways Chairman Naresh Goyal will purchase over one per cent stake in the airline from another promoter entity, Tail Winds, for up to Rs 45 crore. Goyal would acquire 9,60,369 equity shares, accounting for a 1.11% stake, in Jet Airways from Tail Winds on September 30. Currently, Goyal holds 5,69,73,296 shares or 65.99% stake in Jet, which would rise to 67.1% after the proposed share purchase. On the other hand, Tail Winds holds 77,76,212 equity shares or 9.01% stake in Jet, which would decline to 7.89% stake or 6,815,843 shares after the proposed transactions. ()
L&T said to plan biggest road IPO in Singapore: Larsen & Toubro Ltd., India’s engineering company, is considering a Singapore listing for its toll-road projects that could raise about $700 million (Rs 4,376 crore). Larsen may sell units in a business trust backed by assets from L&T Infrastructure Development Projects Ltd.’s road network next year. The company runs 13 expressways and has five more under construction. The proceeds will help Larsen’s unit, which is also developing a metro rail project, raise equity without seeking funds from the parent whose debt jumped 31% in the year ended March 31. (Bloomberg)
Mallya says ready to buy MCF stake from Zuari, Deepak Fertilisers: UB Group Chairman Vijay Mallya on Tuesday said he was ready to buy stakes from Zuari Chemicals and Deepak Fertilisers in Mangalore Chemicals and Fertilizers Ltd (MCF), reiterating his stand on retaining control of the UB Group company. Deepak Fertilisers and Zuari have been repeatedly purchasing shares of MCF in the open market. However, Mallya asserted he had received assurances from the two firms that they would not attempt a hostile takeover of the firm. Deepak Fertilisers, with a current stake just shy of the 25% required to trigger an open offer, is not expected to increase its stake without Mallya’s consent. Saroj Poddar of Zuari Chemicals, which holds about 16% of MCF, has said it increased its stake in the firm on an assurance from Mallya that he would part with his stake. (Business Standard)
Idea trying to rope in equity investors: Aditya Birla group company Idea Cellular has kicked off the process of roping in equity investors into its company. The third-largest telecom operator has been meeting investors in roadshows both in India and abroad in the last few weeks, talking to them about how fortunes have reversed in the telecom sector, in their favour. The company has taken an enabling resolution to raise around Rs 3,000 crore ($479 million) through a qualified institutional placement (QIP) at the end of first quarter. Though the company has said that it has it had no immediate equity requirements, some of the operator’s licences are up for renewal in two years. In May this year, Qatar Foundation Endowment (QFE) invested $1.2 billion (Rs 6,796 crore) for a five per cent stake in Bharti Airtel. (Business Standard)
Prisma plans 3 acquisitions in digital media space: Mumbai-based information technology solutions company, Prisma Global Ltd., is on the lookout for acquiring three companies in the digital media space at various intervals in the next three years. The company open to acquiring companies in India and abroad for anywhere between $3 million and $5 million each. Prisma Global, had in August this year, acquired Prisma Gmbh, a German company focused on business intelligence, enterprise content and management systems, for euro 3.3 million (Rs 27 crore). (Business Standard)
Vedanta begins talks for Cairn’s residual 10%: Anil Agarwal’s Vedanta group has begun formal talks to buy London-based Cairn Plc’s 10 per cent residual stake in oil and gas producer Cairn India Ltd, valued at close to Rs 6,000 crore ($957 million). Vedanta group’s Indian holding company, Sesa Sterlite, now owns 58.77% in Cairn India. Vedanta had earlier bought the company from Cairn Plc, to make an entry in the energy sector here. Talks have begun with bankers on when to buy the stake and on the price. (Business Standard)
New Silk Route is in talks with strategic buyers to sell 9X Media: New Silk Route (NSR), the private equity (PE) giant that owns about 80% in 9X Media, a leading music television network, has started discussions to sell its controlling stake. According to NSR officials, talks with strategic investors are in the initial stages. Pradeep Guha, managing director, holds a minority stake in the channel. NSR has appointed an investment bank to find a buyer for 9X. It had raised its stake in 2009, when Peter Mukherjea, who had launched 9X Media, exited from the business. (Business Standard)
JP Morgan may be eyeing an entry in one of the largest real estate deals: JP Morgan, the global financial powerhouse, is understood to be eyeing a entry in the one of the largest real estate transactions in India which is shaping up in Bangalore. Global private equity giant Blackstone along with Bangalore-based Embassy Developers are working on sewing up a Rs 1,950 crore ($311 million) deal to buy out 106 acre SEZ development under Vrindavan Tech Village. It is understood that JP Morgan is understood to be looking at picking up a stake in this project if an investor in the consortium is opting out or paring stake. HDFC Property is the other fund which is working with Blackstone and Embassy in this transaction. JP Morgan has been in discussions with Embassy to invest upto $500 million in a range of residential projects, the discussions for which have been moving slowly. (Business Standard)
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