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News Roundup: LIC to Increase Stake in Axis Bank

28 March, 2009

Walt Disney to Hike stake in UTVi – UTV Software Communications, in which Walt Disney Company holds a majority stake, is planning to increase its shareholding from 20 to 49% in a Special Purpose Vehicle (SPV) that owns and controls the business news channel UTVi. Walt Disney currently holds 59.9% in publicly-listed UTV Software Communications, in which Ronnie Screwvala holds 23% and the rest lies with the public. UTV Software Communications, in turn, holds 20% in an SPV that owns UTVi. Screwvala and associates hold the rest. Because of Walt Disney’s majority holding in UTV Software Communications, the company is considered a foreign company under the pre-2009 FDI guidelines, so the SPV will be considered a foreign-owned company. The proposal, which was made at a UTV board meeting on Friday, would effectively mean that, on a pro-rata basis, Walt Disney’s stake in the SPV would go up to 29%. (Business Standard)

Tata Group Prepares for Three New Successors – In seven months from now, Tata Group’s top three companies- Tata Motors, Tata Consultancy Services (TCS) and Tata Steel will make way for successors. The three companies account for 80% of the group’s total turnover. The first to pass on the baton will be Tata Motors Managing Director (MD) Ravi Kant. He retires in June, according to the group’s policy that all executive directors must retire at the age of 65 years. The other two are the MD of Tata Steel, B Muthuraman, and his long-time counterpart at TCS, S Ramadorai. They retire in September and October, respectively. The emergence of three new stars is being identified in tune with the succession plan that is directly overseen by Group Chairman Ratan Tata. Since the retirement age of non-executive directors has been fixed at 75 years, all three veterans in the group can continue to be in the group in various important capacities. (Business Standard)

LIC to Increase Stake in Axis Bank – The Life Insurance Corp. of India (LIC), the country’s largest insurer, has sought regulatory approval to increase its stake in Axis Bank Ltd, pitching for a greater say in India’s third largest private bank’s operations. LIC holds 10.36% in Axis Bank and needs approval from the Insurance Regulatory and Development Authority (Irda) as well as the Reserve Bank of India (RBI) to hike its stake. As per RBI norms, one bank cannot own more than 5% in another bank but institutions and promoters can hold up to 10% stake. Irda regulations, too, cap an insurance firm’s holding at 10% in any company, which applies only to instances of new investments. (LiveMint.com)

Genpact Aims to Bag 30 Outsourcing Deals in India – Genpact is eyeing around 30 outsourcing deals in India across sectors like manufacturing, telecom, utilities and financial services. The country’s largest BPO firm by sales has also zeroed in on China, Japan and West Asia as growth markets. Genpact is focussing on the financial services sector in Japan for services, including transaction processing. The company, which has cash of about $319 million, is in no hurry to make acquisitions. Genpact is scouting for companies that can offer IT platforms, finance and accounting capabilities, or have expertise in catering to the healthcare and financial service verticals. Genpact plans to increase its headcount by 10% to 39,000-40,000 this year.(The Economic Times)

More Companies Queue Up to Buy Back FCCBs – The list of companies buying back their foreign currency convertible bonds (FCCBs) is growing as steep discounts on the bonds, of 40-50%, and the recent extension of the deadline by RBI to buy back the bonds, encourage companies to repurchase the instruments. In the past week alone, more than four companies have announced plans of buying back the bonds, indicating that the tight liquidity situation witnessed in the past two quarters of the current financial year could be abating. JSW Steel, the flagship company of the Sajjan Jindal group is the latest to buy back FCCBs worth about Rs 241 crore. Other companies that have carried out similar repurchases include Moser Baer, Firstsource Solutions and Financial Technologies. (The Economic Times)

DDA to Lend Rs 100 Crore to Emaar – Delhi Development Authority (DDA) has agreed to lend Rs 100 crore to cash strapped realty firm Emaar MGF to ensure the Commonwealth Games Village project is completed on time. The development agency is also willing to consider lending more.  DDA would extend the Rs 100 crore loan if Emaar MGF offers apartments worth the same value as either collateral or for outright sale to the government run body. The village will have 1,168 apartments to accommodate 8,500 to athletes likely to participate in the Commonwealth Games. (The Economic Times)

 


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News Roundup: LIC to Increase Stake in Axis Bank

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