Merger talks between Tata Teleservices and Russia's Sistema have advanced substantially, with negotiations centered on a deal that transfers NTT DoCoMo's stake as well as part of the Tata Group's holding to Sistema, giving it a substantial shareholding. The two companies have appointed bankers Rothschild for Sistema, which operates under the MTS brand, and Standard Chartered Bank for the Tata Group. Japan's NTT DoCoMo had bought 26% stake in Tata Teleservices in November 2008 for around 13,000 crore, valuing the company at over Rs 50,000 crore (over $8 billion). ()

IRB Infra, SBI Macquarie may buy entire stake in road projects: GMR Infrastructure’s Farukhnagar-Jadcherla highway project, Shapoorji-Pallonji’s Ulundurpet-Padalur stretch, and MVR Infra’s Omallur-Salem-Namakkal road project will see a change in ownership soon. New investors have acquired a 74% stake in these projects. Following the Cabinet Committee on Economic Affairs decision last Friday to relax exit norms for existing promoters, the new investors will now look to buy the entire stake. For instance, IRB Infrastructure will now acquire the entire stake in MVR Infra’s Omallur-Salem-Namakkal project. IRB had acquired a 74% stake in the project last year. (Business Line)

GMR Infra-led Hyderabad airport to divest fuel farm business: GMR Infrastructure Ltd-led Hyderabad airport plans to create a separate arm for its fuel farm business and then sell a 74% stake in it. The move may help the airport company clean up its books as it seeks the airport regulator’s approval for raising tariffs, but the move could increase the cost of fuel. GMR Hyderabad International Airport Pvt. Ltd, or GHIAL, has appointed KPMG to advise it on hiving off the fuel farm business. The airport would transfer its fuel farm into a fully owned special purpose vehicle (SPV) that will divest a 74% stake. The SPV could be valued at Rs 142 crore ($27.17 million) and would have a debt-equity ratio of 1.5:1. Indian Oil Corp. Ltd and Bharat Petroleum Corp. Ltd own 37% each in Delhi Aviation Fuel Facility Pvt. Ltd; Delhi International Airport (P) Ltd, also run by GMR, holds 26%. (Live Mint)

Tata Teleservices to raise Rs 5 bn via bonds: Tata Teleservices Ltd. is planning to raise Rs 500 crore ($84.50 million) through triple-tranche bonds, a term sheet showed. The firm would raise Rs 250 crore ($42.25 million) in 3-year bonds and Rs 125 crore ($21.12 million) each from 4-, and 5-year bonds at 11% coupon. The bond is rated 'CARE A+' by CARE and the proceeds of the debt sale will be used to refinance existing debt and for meeting operating expenditure. Yes Bank is the sole arranger of the bond sale. ()

MSatyam-Tech Mahindra merger details likely this week: Days after the Andhra Pradesh High Court approved the merger of Mahindra Satyam with parent Tech Mahindra, the two companies are likely to this week unveil blueprint of the merged entity. The merger when completed will create the country's fifth largest software services firm. The two firms are likely to announce restructured organisation set-up and key management people. Anand Mahindra is likely to be named chairman of the merged entity. Besides Chairman, vice chairman, chief executive and head of finance are likely to be named in the announcement which was to come this evening but was called off at the 12th hour. Mahindras had in 2009 taken over Satyam Computers after the a multi-billion dollar scam by its founding chairman B Ramalinga Raju. Last year, the company announced the merger of two companies and has secured the mandate of both the boards and shareholders, barring the minority ones, who have challenged the swap-ratio in the Andhra High Court. ()

Karaikal Port looks for strategic partners to boost business: Karaikal Port Pvt. Ltd (KPPL) is scouting for strategic business partners to boost business volume and operational efficiency. The Chennai-based company, a unit of MARG Ltd, is looking to strengthen its four division’s coal handling, agricultural commodities, liquid cargoes and container handling through partnerships. The 47 million mmpta (metric tonnes per annum) deep-water Karaikal port project has a total investment requirement of Rs 4,000 crore and is expected to get completed by 2018. The firm is not raising fresh funds at the moment, KPPL is open to further equity dilution if needed. Standard Chartered Private Equity Ltd invested Rs.130 crore in June 2012. Jacob Ballas India invested Rs.200 crore in May last year. The port has also attracted private equity investments by IDFC Ltd and Ascent Capital Advisors in the past. (Live Mint)

Tata Steel may sell stake in group cos to Tata Sons: Tata Steel, facing rough weather due to high debt load and declining steel prices, is looking at the option of stake sales in various group companies, including Tata Motors. The attempt would be to raise Rs 7,200 crore ($1.2 billion). Tata Steel owns 5.6% in Tata Motors, worth Rs 5,041 crore, apart from stake in other Tata Group companies. Tata Steel might sell these stakes to its parent company, Tata Sons, to raise funds for expansion (in Odisha) and repay high cost loans. In 2012-13, say bankers, Tata Steel had sold a 4.37 per cent stake in Titan Industries, the entire stake in subsidiary Sila Eastern, and the entire stake in Wuxi Ltd (China), at a profit of Rs 940 crore. (Business Standard)

India Plans Stake Sale in Indian Oil: India has initiated the process to sell a 10% stake in its biggest crude oil refiner and fuel retailer India Oil Corporation, as the South Asian nation firms up plans to raise funds and trim its budget deficit. The government plans to sell 242 million shares in the company, or 10% of its stake, which could help raise up to Rs 5,500 crore ($921 million). Currently, the government holds 78.92% of Indian Oil. The proposed share sale in the Indian fuel retailer will be carried out via auction on stock exchanges. The company expects to select bankers by end June or early next month. (The Wall Street Journal)

Courtesy: VCCEdge

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