News Roundup: PE firms eye 24% stake in Bombay Dyeing

07 October, 2013

At least three global private equity firms are in talks to acquire up to 24 per cent stake jointly in Bombay Dyeing, the flagship company of the diversified Wadia Group, according to merchant banking sources. The deal could be valued at over Rs 500 crore ($82 million), they said, adding that the exclusivity period of the due diligence is likely to end in next few days. However, that the PE firms eyeing the stake include big global names like WL Ross, Sequoia Capital and JC Flowers. Promoters currently own about 52.3% stake in Bombay Dyeing, while domestic institutions and foreign funds together have about 20% stake in the company. (Economic Times) 

Red Ford Capital to invest Rs 1,000 crore in Lotus Green: Local private Equity fund Red Ford Capital will purchase a minority stake in various projects developed by residential real estate developer Lotus Green for Rs 1,000 crore ($163 million) in a year. Lotus will develop two townships in Delhi, a senior company official said. Lotus Greeen also has interest in hotels, healthcare and education. The PE firm would invest over Rs 635 crore ($104 million) in new projects that will be jointly developed with Lotus Green and rest Rs 365 crore ($59 million) would be invested in two existing projects which includes a township project Gurgaon and another on Yamuna Expressway. Red Fort Capital would pick up about 50% stake in these projects from the conceptualisation stage. (Economic Times) 

Allied Blenders may buy Sentini’s blending unit for Rs 300 crore: Kishore Chhabria-promoted Allied Blenders & Distillers (ABD) is in advanced talks to buy the blending and bottling unit of Andhra Pradesh-based Sentini Bioproducts for around Rs 300 crore ($ 49 million) as it tries to boost in-house production. The plant has a capacity of 1.25 lakh litres that can cater to some of the Southern states, including Andhra Pradesh, which accounts for nearly 15% of the total liquor industry. The deal should take place in another two months once ABD manages to raise Rs 500 crore from private equity players by selling its own stake. Currently, more than 80% of ABD’s bottling operations are outsourced and it plans to reduce this to 50% by acquiring distilleries and bottling operations. (Economic Times) 

AND Designs plans to go global with new PE investor: Designer Anita Dongre-promoted AND Designs India plans to offload 33% stake to a new ‘global’ investor as it plans to take its brands to the international markets. The deal would bring in an additional Rs 100 crore ($16.3 million) into the company and also can expand stores in GCC countries and South-East Asian markets. PE players such as General Atlantic are in the race to invest in the 14-year-old company. In 2008, Future Ventures picked up a 23% stake in the apparel company when its turnover was Rs 10 crore. It is now in the process of offloading that stake with an additional 10% to a new investor with ‘global’ experience. (Business Line) 

Pennar is in talks to buy Chennai hydraulics products company: Pennar Industries Ltd is in negotiations to acquire Bailey Hydropower, a Chennai-based hydraulic products and systems manufacturer. According to sources close to the development, the negotiations between the Hyderabad-based company and the target company are at advanced stage. The deal is estimated at over Rs 50 crore ($8.1 million) and is expected to be concluded in a couple of days. (Business Line) 

Helion is in talks to invest in start-ups: Helion Advisors is planning to invest in businesses that leverage a lot of technology, such as online and e-commerce companies and firms that develop mobile applications. The company is also looking at investing in companies developing enterprise software, both software-as-a-service (SaaS) hosted on cloud and premise-based software. The firm, which typically invests about $50 million across seven or eight companies every year, is in talks with a number of start-ups to invest from the latest fund. The firm raised the third fund in March 2012 from foreign institutional investors such as large universities, sovereign funds, fund-of-funds (funds that invest in other funds) and ultra high networth individuals. (Business Line) 

Courtesy: VCCEdge

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News Roundup: PE firms eye 24% stake in Bombay Dyeing

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