SBI Looks At Overseas Buyouts - State Bank of India (SBI) is looking to expand its overseas presence with acquisition of a mid-sized foreign bank. The deal size is expected to be between $1.5-2 billion. SBI is yet to appoint an investment banker on the deal. It has earlier acquired banks in Mauritius, Indonesia and Kenya and has a network of 92 braches in 32 countries. (Economic Times)
Sobha Developers In Talks With PEs - Real estate major Sobha Developers is in talks with private equity funds like Actis, JPMorgan, and IL&FS Private Equity to raise funds for its projects at an SPV level. The Bangalore-based firm is also looking at s QIP to reduce its debt to Rs 800 crore. Besides these steps, the firm is also looking at capital raising by divesting some of its land bank assets. (ET)
Bidding War for Great Offshore - Drilling company Great Offshore has become the epicentre of a bidding war, with Bharati Shipyard saying it will top rival ABG Shipyard’s Rs 375-a-share offer for a controlling stake in the company. Bharati, which holds 14.89% of Great Offshore after buying the stock pledged with it last month, will revise its offer price to more than Rs 403. Bharati has bought 4.58% of Great Offshore from the founders - the Sheth family.
While the block deal price is 17% higher than Bharati’s original open offer price of Rs 344, it is 7.4% more than ABG’s counter-offer that was made earlier in yesterday. (Business Standard)
IARC Plans Rs 500 Crore Fund for NPAs - International Asset Reconstruction Co (IARC) is planning to float a Rs 500-crore debt fund to purchase non-performing assets (NPAs). The lending agency is working towards floating a domestic fund and plans to raise the corpus in the current financial year itself. The business plans for the proposed fund, which is likely to be focused on industrial assets, are still in the works. (Business Standard)
LIC Plans to Up Stake in South Indian Bank - Insurance behemoth Life Insurance Corporation of India (LIC) is planning to acquire more shares in Thrissur-based private sector South Indian Bank (SIB). The corporation has already acquired 1.91% in SIB in the past 10-12 months through open market purchase. LIC is showing keen interest in enhancing its stake holding in the bank and for having strong business relations with the bank. According to the present banking regulations, an insurance company can have a maximum of 10% holding in a private sector bank. (Business Standard)
LIC to divest its stake in UTI AMC - LIC will divest its stake in UTI Asset Management Company (UTI AMC) along with other shareholders in the company. UTI AMC has decided to rope in a strategic partner. The deal is yet to be frozen, and has not come to a critical stage. UTI AMC has four shareholders,— State Bank of India (SBI), Life Insurance Corporation of India (LIC), Bank of Baroda (BoB) and Punjab National Bank (PNB), holding 25% stake each. Each of them is likely to divest 6.5% of their holdings. UTI AMC is likely to offload a 26% stake to a strategic investor by the end of the month. (Business Standard)