Lilliput On The Block; Investors To Exit – Lilliput, the country’s largest kidswear brand, is heading towards a slump sale. Founder Sanjeev Narula, embroiled in a bitter public battle with private equity investors Bain Capital and TPG, will sell the brand and its retail assets, along with his two estranged partners. At least five firms including Mahindra & Mahindra, and private equity funds Kohlberg Kravis Roberts & Co, Blackstone, L Capital and India Value Fund have signed non-disclosure agreements. Lilliput has run up debt of over 700 crore. (Economic Times)
Lanco In Talks With Two Firms To Raise $750M – Lanco Infratech is known to be in talks with international energy majors like AES of United States and Gaz de France to sell a part of its power business. The company had recently said it planned to sell a minority stake in its power business and raise $600-$750 million (Rs 2,940- Rs 3,675 crore). It has retained Macquarie. (Business Standard)
IL&FS PE May Buy Hershey’s Stake In Godrej JV – IL&FS Investment Managers Ltd (IIML) is in advanced stages of negotiations to buy out The Hershey Company’s 51% equity stake in its joint venture with the Godrej group. The deal, if completed, will allow IL&FS to regain ownership over the company as its PE arm was the financial investor from whom Hershey had bought a 40% stake in 2007 for a reported $60 million (Rs 270 crore at that time). Another 11% was bought from Godrej Industries. (Economic Times)
Red Fort Capital Invests Rs 150Cr In 3C Project – Private equity firm Red Fort Capital Advisors Pvt. Ltd has invested Rs.150 crore in a residential project conceived by the 3C Company in Gurgaon, a suburb south of New Delhi, its latest offer of funding to the real estate developer. 3C, which is based in Noida, east of the Capital, plans to develop premium apartments priced between Rs.50 lakh and Rs.1.5 crore in the yet-to-be-named project on a 47.5 acre site in Gurgaon.
Fidelity In Two Minds Over AMC Sale – Bidders for the India business of Fidelity Mutual Fund are picking up confusing signals from the fund house. Fidelity’s decision not to part with its equity fund management team and overseas advisory business has not gone well with many bidders. Fidelity Mutual Fund, in its ‘request for proposal’ document, has stated it is keen to retain the equity fund management team headed by Alexander Treves. (Economic Times)
GTL Infra To Get Rs 1,000Cr From Aircel – GTL Infra may get about Rs 1,000 crore from Aircel since it will not be able to deliver on its promise to rent 20,000 additional towers by mid-2013. GTL Infra had acquired 17,500 towers from Aircel for Rs 8,062 crore, which is among the highest valuations in the tower industry. However, around Rs 1,200 crore was for a right of first refusal to host 20,000 more airwave transmission sites for Aircel over the next three years. (Economic Times)
Kingfisher Airlines Converts Debentures – Debt-crippled Kingfisher Airlines said on Tuesday it had allotted equity shares against optionally convertible debentures (OCDs), a development that would help the country’s third-biggest carrier by market share save interest outflow on such instruments. Kingfisher said in a filing to the Bombay Stock Exchange (BSE) that it had issued 79.8 million equity shares to LKP Securities, Redect Consultancy and Star Investments at Rs 25.01 apiece, in lieu of conversion of debentures. (Business Standard)
South Indian Bank To Launch QIP By March – Thrissur-based South Indian Bank (SIB) has revived its plan for a qualified institutional placement (QIP) of Rs 1,000 crore. The bank has decided to complete the issue in the current financial year. SIB had planned to launch the QIP in July and had also appointed merchant bankers for this excercise. However, the unfavourable market conditions played spoilsport. (Business Standard)