IT Mid-Market M&A Space May See Activity Soon – Deal makers see a spurt in the IT sector mid-tier M&A (mergers and acquisitions) over the next two to three quarters tracking an anticipated recovery in the global economy. The prevailing economic crisis, which impacted valuations significantly, has put a curb on M&A over the past two quarters as companies restrained from selling a business anticipating better pricing, while the primary focus for most has been on maintaining revenue and profitability in a declining environment. (The Hindu Business Line)
Auto Risk Management in Joint Venture with Innovation Group – The Delhi-headquartered Auto Risk Management, a provider of underwriting service to non-life insurance companies, has entered into a joint venture agreement with the Innovation Group to form Innovation Auto Risk Management Services (IARMS). The new company would provide a globally recognised, customer-centric service to the insurance industry and revolutionise the claims processing process in the country. (The Hindu Business Line)
UK Billionaire Mike Ashley Eyes Minority Stake in Knight Riders – UK billionaire Mike Ashley is said to be negotiating a deal for picking up a minority stake in Kolkata Knight Riders (KKR). The founder of the UK’s leading sports retailer Sports Direct International, who also owns football club Newcastle United, has already employed lawyers in Mumbai to take forward the negotiation. KKR owner ShahRukh Khan has hired investment banker Ambit to find a buyer for 10-20% shareholding. (The Economic Times)
SpiceJet Open to Acquisition Opportunities – Predicting a shake out in the industry, Spicejet, which recorded a passenger growth of 12 per cent in the first quarter of 2009 when others were struggling to beat the downtrend, SpiceJet is looking at making acquisitions. An acquisition by SpiceJet is expected in about 10 months. The acquisition will depend on the synergy and the price the business will bring to SpiceJet. (The Economic Times)
BoI Eyes expansion, to buy bank in Kenya – Bank of India (BoI) is looking at acquisition in Kenya to increase its presence in the East African nation. It plans to buy a bank to tap the high-margin business and support the growing Indian investments and trade there. The Mumbai-based public sector bank already has four branches in Kenya. According to BOI, the business is very profitable since it yields high margins. While in India the margin between cost of deposits and yield on advances is 3-4%, it is 10-11% in Kenya. (Business Standard)
Reliance Infra to Raise Rs 4,300 Crore – Reliance Infrastructure today said it would raise up to Rs 4,300 crore through issuance of 42.9 million equity shares to its promoters (Anil Ambani Group), a move that would increase its promoters’ holding in the company to 48% from the current 38%. The board of directors at its meeting today have approved the issuance of 42.9 million shares to the promoters at a price of Rs 1,000 per share subject to shareholders approval.The equity shares would be alloted against an equal number of warrants issued in January, 2008. (Business Standard)
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