| Log in

News Roundup: Mallya’s UB Group Mulls Buying Cobra Beer

17 December, 2008

Golden Gate Properties Plans to Raise Rs 500 Crore Through PE –  Golden Gate Properties is looking at raising Rs 500 crore for its budget housing projects through private equity. According to reports, the Golden Gate Property is in talks with PE firms for the same. The private equity arms of HSBC, Credit Suisse and the UK-based private equity investor, Actis are expected to participate in the fund raising. Golden Gate plans to invest around Rs 2,000 crore to construct two budget townships each in Bangalore and Hyderabad under the brand name -Commune. The apartments will measure between 995 sq ft and 1,122 sq ft, with prices starting at Rs 19 lakh. (The Economic Times)

UB Group Mulls Buying Cobra Beer – With U.K. based cobra beer announcing its decision to exit beer business, UB Group is expected to bid for it. The UB Group Chairman, Vijay Mallya said that he was interested in Cobra Beer’s U.K business and not in its India operations. According to industry sources, the total valuation of the beer business of Cobra Beer is about £200 million. The UK-based N.M. Rothschild & Sons have been mandated to find a buyer for Cobra Beer. (Business Line)

Morgan Stanley to Buy 30% Stake in Biotor for Rs 200 Crore – Morgan Stanley, US financial services giant is on the verge of closing a private equity deal with Biotor industries, world’s largest integrated producer of castor oil and its derivatives. If the deal is finalised, it will help Biotor fund its expansion plans as well as capital needs. Presently, the Kapadia family holds 100% stake in the Mumbai based company. However, Morgan Stanley is investing Rs 200 crore through a PE fund for a 30% stake in the company, valuing the firm around Rs 667 crore. with a turnover of Rs 1,000 crore, Biotor has profit margin of 6-7%. (Times of India)

Martifer Agrees To A New Payment Schedule For Suzlon – Martifer SGPS SA has agreed to a new payment schedule for the its 22.4 % stake in Germany’s REpower Systems that India’s biggest wind turbine maker was buying. As per the new payment schedule, Martifer, which constructs metal frames for turbines, will receive Euro 65 million this month, Euro 30 million in April and Euro 175 million in May from suzlon. Earlier this year Suzlon suspended a rights offer which may have raised Rs 1,800 crore ($376 million) to fund the stake. Suzlon already holds 66% stake in REpower. (Business Standard)

Country Club Plans to Acquire London based Firm – BSE listed entertainment major is planning to acquire a London based firm. If finalised, the acquisition would help country club enter the European markets. The cost of the acquisition would be $80-100 million. Country Club expects to close the deal, which will by March 2009 or early next fiscal. The deal will be funded through internal accruals. Country Club is adopting inorganic growth strategy aggressively. (DNA)

Union Bank to Raise Rs 500 Crore by March 2009 – Union bank will raise Rs 500 Crore in the remaining months of the current fiscal to meet capital requirements. The funds might be raised from Tier II and perpetual bonds together. The bank expects its capital adequacy ratio of over 12% under basel II norms by the end of current fiscal year. The bank expects the deposit rates to come down. Once that happens the benefit would be passed on to the borrowers. (DNA)

Freshthrop to Enter Fruit Juice Business – Fresh fruits exporter, Freshthrop Fruits Ltd. (FFL) plans to enter the fruit juice business. The company is setting up a food processing unit near Nashik at an investment of Rs. 25 crore for the same. It is expected to start operations by January 2009. The juice will not be sold directly in the domestic market but will be produced for the juice maker companies. After the food processing unit begins operations, Freshthrop’s turnover will increase by Rs 50 crore. (Business Standard)

Satyam ADR Plunge by 54% – Satyam Computer’s ADR in New York stock exchange tumbled by over 50%. At 8.45 pm IST, the ADR plummeted by about 54 per cent to trade around $6.15 against the previous day’s close of $12.05. Reports suggest that Templeton, an investor is against the deal. Templeton representatives feel that returning the money to the share holders is a better option. (Business Line)

FOMC cut rate 0.75% point to 0.25% – The Federal Open Market Committee lowered its target for overnight interest rates by three quarters of one percent to a record low 0.25%, on Tuesday. The central bank, at the same time, released a statement that signaled an aggressive posture. It said that while it would keep its rates low for some time, it would continue to expand its balance sheet to stabilise the economy. The vote to lower the Fed funds rate was unanimous.

(The Wall Street Journal)

Reliance Money Ties Up With Infinity Financial Services to Enter Malaysia – Reliance Money has tied up with a financial products and services distribution company in Malaysia, Infinity Financial Solutions. This partnership will enable Reliance Money to offer its services to non resident Indians (NRIs) and persons of Indian origin (PIOs) in Asia. Through this alliance, Reliance Money will also launch its portfolio management services (PMS), among other investment services. Reliance Money’s PMS in Malaysia will be offered at a threshold level as low as $50,000. (Business Standard)

NTPC Bhel power projects Ltd. Defers Divestment Plans – Adverse market conditions and lack of revenue visibility have forced NTPC Bhel Power Projects Ltd to defer its plan to divest 50% equity. The plan to dilute equity has been postponed to three years till the company starts getting orders for the manufacture and supply of power equipment. NTPC Bhel Power Projects Ltd is a joint venture between power utility NTPC Ltd and power equipment manufacturer Bharat Heavy Electricals Ltd (Bhel). The government wanted to sell stake in the joint venture of the two state-owned firms to give it full flexibility to work as a private company. (DNA)

ABG Shipyard Risks Cancellation of Rs 1,000 Crore Order – ABG Shipyard, might have to face cancellation of orders worth Rs 1000 crore owing to the financial crunch that the prospective Norwegian buyer for three seismic surveyor vessels is facing currently. The Norway-based seismic data acquisition company, Scan Geophysical, failed to sign a sale and leaseback deal for the three vessels. (Business Standard)

UTV Motion Pictures enters into strategic alliance  with Moser Baer – UTV Motion Pictures and Moser Baer Entertainment Ltd. (MBEL) have entered into a strategic alliance that gives mbel exclusive rights to UTV’s home video catalogue which comprises of 10 films. Moser Baer Entertainment will also get home video rights to all UTV productions released until mid 2009. The alliance would also give MBEL access to UTV’s premium content. The estimated size of the deal stands at Rs 25 crore. (Business Standard)

UTV Motion Pictures enters into strategic alliance  with Moser Baer – UTV Motion Pictures and Moser Baer Entertainment Ltd. (MBEL) have entered into a strategic alliance that gives mbel exclusive rights to UTV’s home video catalogue which comprises of 10 films. Moser Baer Entertainment will also get home video rights to all UTV productions released until mid 2009. The alliance would also give MBEL access to UTV’s premium content. The estimated size of the deal stands at Rs 25 crore. (Business Standard)

Suzuki Motors Buys Out Local Partner – Suzuki Motor (SMC) has bought out its local partner, Satya Sheel Khosla and family in the joint venture firm Suzuki Motorcycle India (SMIPL). It is estimated that SMC has picked 26% stake in the motorcycle company for around Rs 180-200 crore, making it a wholly-owned company. Mr. Khosla has been closely involved with Suzuki’s Indian operations for past two years and was also a director on the board of Maruti Suzuki. (The Economic Times)

 

 

 

 


Leave Your Comment
Golden Gate Properties Lines Up Assets For Sale

Golden Gate Properties Lines Up Assets For Sale

Boby Kurian 8 years ago
Golden Gate Properties Ltd, a Bangalore-based mid-tier real estate developer, is...
News Roundup: Jupiter Metal raises open offer price to buy 30% in Kalindee Rail

News Roundup: Jupiter Metal raises open offer price to buy 30% in Kalindee Rail

TEAM VCC 4 years ago
Jupiter Metal raises open offer price to buy 30% in Kalindee Rail: The...
Cobra Beer's Billimoria May Sell Out As Talks With Diageo Fail

Cobra Beer’s Billimoria May Sell Out As Talks With Diageo Fail

Madhav A Chanchani 9 years ago
India-born beer baron Karan Billimoria may now look to exit Cobra Beer earlier...
No Comments

News Roundup: Mallya’s UB Group Mulls Buying Cobra Beer

Powered by WordPress.com VIP