Domestic private equity fund India Value Fund Advisors (IVFA) has decided to exit its eight-year old investment in Meru Cabs – India’s largest radio taxi company. Investment bank JP Morgan has a mandate from IVFA to seek potential buyers for Meru which could include buyout private equity funds and domestic and international radio taxi companies. Some potential buyers have been informally sounded out and a formal process is expected to begin shortly, said multiple sources aware of the developments. Today IVFA owns 75% in Meru. (Economic Times)
Sree Metaliks promoters may lose control over loan default: Sree Metaliks, a maker of sponge iron in Odisha, could well be the second company where promoters may end up relinquishing management control over loan default. Agarwals, the founders of the company, face the prospect of losing the company as its key lender, IFCI, plans to sell its convertible debentures to any bidder to recover its dues. The move to change management of a defaulting company is rare and comes within a month of the Reserve Bank of India and finance ministry prodding lenders to chase away defaulting borrowers. Bankers led by the Delhi-based financial institution IFCI has put on block the optionally fully convertible debentures (OFCD), which on conversion to equity shares, will give acquirer a controlling stake of 76 per cent in the company. (Economic Times)
Embassy hijacks Four Seasons deal: India’s leading tech park developer Embassy Group has swooped down to hijack a Rs 515-crore acquisition of India’s second Four Seasons Hotel project in Bangalore from cross-town rival RMZ Corp, multiple people involved with the matter said. Flamboyant billionaire Jitu Virwani-led Embassy, with whom private equity giant Blackstone Group has a strategic partnership, has entered into last minute discussions with one of the project’s promoters to take the deal away from RMZ. The mixed-use development CityView, comprising a 230-key Four Seasons hotel and 110 serviced residences, is majority owned by Wall Street bellwether Goldman Sachs (73% stake), leaving Dayanand Pai’s Century Real Estate Holdings with a 26% stake. This may involve Pai triggering the buyback option from Goldman Sachs and selling it to Embassy and its financial partner Blackstone subsequently, sources added. (Times of India)
HCL Technologies Founder Seeks Buyers for $10B Stake: The billionaire founder of HCL Technologies Ltd. 532281.BY +2.71% is sounding out buyers for his $10 billion (Rs 61,752 crore) stake in India’s fourth-largest software and outsourcing firm, according to two people briefed on the matter, in what could be the biggest sale ever of an Indian company. Mr. Nadar has received bids for HCL in the past but has consistently said he has no plans to sell. But now, the 69-year-old businessman is open to considering a deal because his only child, daughter Roshni Nadar, isn’t interested in continuing in the technology business, one of the people sai. Mr. Nadar, who controls 62% of Bombay Stock Exchange-listed HCL through holding company HCL Corp., has yet to hire bankers to advise him on a sale. (Wall Street Journal)
IFC plans to invest Rs 154.38Cr ($25 million) in Asia Environmental: International Finance Corpoartion (IFC), which is part of the World Bank, plans to invest Rs 154.38crore ( $25 million) in Asia Environmental Partners II, LP (AEP II), a 10-year Rs 1852.56 crore ( $300 million) target size private equity fund from Olympus Capital. The fund focuses on the fast growing environmental and clean energy industries across Asia, including India. Olympus Capital, an independent regional private equity firm, launched the fund in 2008. It focuses on investing in middle market companies across Asia including China, India, Japan, South Korea and Southeast Asia. (Business Standard)
FT open for a strategic partner: Financial Technologies (India), which has been in the news for a potential buyout, said on Friday that it was open for a strategic partner. The company, which is the main promoter of scam-hit National Spot Exchange (NSEL), also said that by the end of the year, it would become debt-free, with the worst behind it. Responding to a question of a shareholder at the company’s 25th annual general meeting (AGM) as to whether FTIL was in talks with Tech Mahindra or others for a stake stale, Jignesh Shah, FTIL founder and group chairman, said, “I don’t want to say any specific names. We don’t need money, but if someone who takes the company to a high-growth phase and has got new-generation technology, we are open for it. (Business Standard)
Viom plans to raise Rs 1,500Cr, may list on LSE: Telecom tower company Viom Networks, a joint venture of the Tata Group and Kolkata-based Srei Group, has appointed Credit Suisse and Citigroup to advise it on raising about Rs 1,500 crore ($242.12 million) of growth capital through listing on a foreign bourse. The firm is most likely to list its shares on the London Stock Exchange (LSE), it is also considering the New York Stock Exchange (NYSE) and the Singapore Stock Exchange. The listing is expected over the next three to six months. Gurgaon-based Viom will be the first Indian telecom tower company to go for listing abroad. It has yet to finalize the amount of equity it will dilute through the initial public offering (IPO) both Tata Tele and Srei Group might look at reducing their holding in Viom. Viom Networks and its shareholders have engaged international financial advisors to explore options for raising growth capital. (Business Standard)
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