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News Roundup: PE firms eye Future Ventures’ stake in Biba, AND brands

17 May, 2013

Several private equity (PE) firms have shown interest in Kishore Biyani-led Future Ventures India Ltd’s stake in apparel brands Biba and AND. The brands could jointly fetch Future Ventures Rs 450-500 crore ($82.4 million-$91.6 million). PE firms like Norwest Venture Partners, L Capital, General Atlantic and Sequoia Capital are in the race for the proposed acquisition. Term sheets have been signed and the deal will take a few weeks to get finalised. Future Ventures has 22.86% stake in AND and 28.3% stake in Biba. (Live Mint)

UK’s Actis ends $2B road JV with Tatas: Private equity major Actis is ending a high-profile road projects joint venture with the Tata Group, selling its 35% stake to the salt-to-software conglomerate’s private equity arm. The JV between Tata Realty & Infrastructure (TRIL) and Actis, struck three years ago, was expected to invest as much as $2 billion to develop highway projects. But UK-based Actis is now realigning its infrastructure interests with particular focus on energy assets even as road development projects face delays in terms of land acquisition and financial closures. The JV’s initial equity investment was pegged at $200 million, with TRIL putting in $122.5 million and Actis contributing $77.5 million, reflecting the 65:35 shareholdings. Actis, managing assets worth over $5 billion, is selling the TRIL Roads stake to Tata Opportunities Fund. (The Times Of India)

ICICI Venture eyes $50M stake in Shetty’s Adlabs Imagica: Private equity fund ICICI Venture is in talks to invest $50 million (Rs 273 crore) in entertainment industry veteran Manmohan Shetty’s recently opened theme park Adlabs Imagica. A serial entrepreneur, Shetty, who sold his Adlabs Films to Anil Ambani’s Reliance Group, wants to dilute 20%-25% equity stake in Imagica. ICICI Venture has offered a term sheet (a preliminary non-binding agreement) for a potential investment into the entertainment theme park. (The Times Of India)

Gujarat NRE Coke arm to raise Rs 373Cr Down Under: Gujarat NRE Coking Coal, the Australian Stock Exchange-listed arm of Gujarat NRE Coke, is planning a rights issue to finance ongoing mining activities in two underground mines in the Illawarra region of New South Wales. The rights issue will be in the ratio of one share for every four shares held at 20 cents a share, aggregating $68.33 million (Rs 373 crore). Parent Gujarat NRE Coke intends to participate and subscribe to its rights entitlement. The company is also in the process of raising close to Rs 2,050 crore ($375.5 million) from Indian institutions like Axis Bank and State Bank of India in one or more tranches. (DNA)

Fortis Healthcare plans to raise $59M via IPP: Fortis Healthcare plans to raise Rs 322 crore ($59 million) through sale of nearly 3.5 crore shares to institutional investors. The placement of shares to qualified institutional buyers is to meet market regulator SEBI’s minimum public shareholding norm for listed companies. The company will issue 34,993,030 shares and at the price of Rs 92 a unit, the sale will fetch nearly Rs 322 crore. The proceeds will be utilised for repaying debt, funding expenses and general corporate purposes. A portion of the net proceeds from the issue may also be used to repay a lender which is an affiliate of one of the book running lead managers. Standard Chartered Securities (India), JPMorgan India and Religare Capital Markets are the book running lead managers to the issue. (The Economic Times)

Puravankara Projects to sell up to 21.5M shares via IPP route: Realty firm Puravankara Projects Ltd is planning to sell stake in the company. The company will issue up to 21.5 million equity shares, worth about Rs 210 crore ($38.47 million), to institutional investors. In case of over-subscription, the company has the right to allot up to 21,56,850 additional shares to eligible qualified institutional buyers. The price band and the issue opening & closing date will be announced later. Currently, the promoters hold 89.96% stake in the target company. The company is launching the IPP to meet market regulator SEBI’s guidelines of minimum 25% public shareholding by June 30 for private sector listed companies. (Live Mint)

Karnataka Bank plans to raise $91.6M: Mangalore-based private sector bank, Karnataka Bank, is planning to raise up to Rs 500 crore ($91.6 million) through a qualified institutional placement issue. The capital adequacy ratio is at 13.2 and as & when there is aggressive credit growth, the bank may go in for fundraising. Karnataka Bank had raised Rs 160 crore ($29.31 million) in January 2010 through the QIP route. (Business Standard)

Bharti suggested to sell tower asset in Africa to Infratel: Investment bankers have suggested that Bharti Airtel’s top management hive off the company’s African telecom tower assets into a separate company and then sell it to its listed subsidiary, Bharti Infratel, at a valuation of $2 billion (Rs 10, 916 crore). Consequently, Bharti Airtel will be able to raise the much-needed funds for its own growth and help pay off its high-cost loans while its Infratel arm will be able to expand its business. The company has already initiated the process to hive off its telecom towers in Africa, which is expected to be completed by the end of the financial year. Based on recent valuation of around Rs 88 lakh a tower, Bharti Infratel will have to shell out close to Rs 11,300 crore ($2.07 billion) to buy out the company’s assets. (Business Standard)

General insurance arm stake sale by December: Reliance Capital is planning to sell 26% stake in the general insurance business. The company wants to complete the process over the next two quarters, i.e., by December. Reliance Capital posted a decline in consolidated profit for the quarter ended March 2013, to Rs 265 crore, compared to Q4 FY12, when the profit stood at Rs 329 crore due to a one-time gain from selling stake in the life insurance company. (Business Standard)

Yes Bank to raise around $300M via QIP: Yes Bank is likely to raise around $300 million (Rs 1,637 crore) through qualified institutional placement for expansion of its retail business. According to sources, the QIP will be priced at Rs 560-570 per share. The bank is expected to begin road shows for domestic investors from today. The offer may also include greenshoe option. However, Yes Bank plans to complete fundraising in the current year but denies institutional placement starting today. Morgan Stanley and Bank of America Merrill Lynch are among the bankers to the issue. (The Economic Times)

Macro International plans to sell stake in the company: Macro International Exports Ltd is planning to sell 3,38,200 equity shares or 8.51% stake in the company on the floor of the BSE for meeting the minimum public shareholding requirement. The sale opened on May 14, 2013, and will be closed on June 3, 2013. (BSE)

Courtesy: VCCEdge


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News Roundup: PE firms eye Future Ventures’ stake in Biba, AND brands

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