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News Roundup: PE interest in Heidelberg cement unit

21 May, 2013

HeidelbergCement is said to be in talks with private equity players to offload a minority stake in its Indian unit. Speculation suggests Bain Capital is conducting a due diligence to pick up a little over 10% in Heidelberg India, and that others such as Carlyle and Sequoia may also be interested. If the deal happens, it would be the second after the recent transaction involving Lafarge India. Baring Private Equity Asia is acquiring a 14% stake in the domestic subsidiary of France-based Lafarge SA for 200 million euros (Rs 1,400 crore). (Telegraph)

US hedge fund to pick 49% in Nitesh Estates’ SPV: New York-headquartered Forum Capital Partners, a $6 billion global hedge fund focused on the real estate market, is investing Rs 300 crore ($54.63 million) for a 49% stake in a special purpose vehicle (SPV) floated by south-based developer Nitesh Estates. The BSE listed developer is carving out 5-million sqft of marquee residential projects with total sale value of Rs 2,500 crore ($455.27 million) across Bangalore, Chennai and Goa into a SPV, Nitesh Housing Developers. The fund would be investing Rs 225 crore ($40.97 million) through equity and the remaining Rs 75 crore ($13.65 million) would be channeled through non-convertible debentures. (The Times Of India)

Ex-executives may face off to buy MphasiS: The past and the present leadership of MphasiS may face off in a takeover bid for the IT services company with revenues of over $1 billion (Rs 5,491 crore). Hewlett Packard’s decision to sell the controlling stake in MphasiS has seen private equity biggies approach original founder Jerry Rao and former CEO K Jeyakumar separately to partner in ‘management buy-in’ deals. Last month, Hewlett Packard has started work with Citigroup to sell its 60% stake in Bangalore-based MphasiS, which has seen revenue from the parent wobble and share price tank in the past two years. But HP has not yet launched an official sale process. HP has had discussions with buyout funds such as TPG, Advent, Carlyle and Kohlberg Kravis Roberts & Co (KKR) in the run-up to their decision to exit MphasiS. Some of these funds have approached Jerry Rao – who sold MphasiS to Electronic Data Systems (EDS) in 2006 – to help them structure an acquisition. (The Times Of India)

Gammon Infra in talks with global companies to partner in Indira Container Terminal at Mumbai Port: Gammon Infrastructure Projects, the infrastructure arm of Gammon India, has started discussion with international port companies to operate the Indira Container Terminal at Mumbai Port, to replace its current partner, Spanish logistics firm Dragados. Gammon Infra and Dragados had jointly won the rights to develop and operate the 1,400-crore Indira Container Terminal at Mumbai Port in 2007 but the terminal is yet to start operations due to a wide range of problems at the port which include cargo evacuation concerns and inadequate depth. The company is also looking to acquire 24% stake that Dragados held in the joint venture. ()

Sun TV promoters to sell 2 per cent stake via OFS: Promoters of Chennai-based Sun TV Network, are likely to sell 2% stake through offer for sale (OFS) to comply with the Securities Exchange Board of India’s minimum shareholding norms. The issue price seen is seen in the range of Rs 410-420 per share. The promoters, who own 77% stake in the company, are likely to raise around $65 million (Rs 357 crore) via OFS route. IIFL, BNP Paribas and Enam are bankers to the issue. ()

Tata Sons to divest 1% stake in TTML by June 4: The promoters of Tata Teleservices (Maharashtra) Ltd. would sell 1% stake comprising 1.89 crore shares, in the company by June 4. Last week, Tata Sons had cancelled the offer for sale of shares to divest 2.72%stake in the company that was aimed at meeting the minimum public shareholding norms. The SEBI has recently relaxed norms for TTML’s offer for sale of shares by promoters. (The Economic Times)

Mallya prepares for 10% preferential allotment to Diageo: Close to six months after signing a landmark deal with Diageo, the global spirits major, liquor baron Vijay Mallya is preparing to make a 10% preferential allotment in his flagship company, United Spirits (USL), to the former. This is a sequel to the tepid response by the public shareholders of USL to the open offer by Diageo. The latter got just 0.44% of the intended 26% of equity. It is understood the preferential allotment of 10% would happen before May 26, for which Diageo will be paying Rs 2,094 crore ($381.33 million). (Business Standard)

IL&FS eyes acquisitions to grow merchant banking: Infrastructure Leasing and Financial Services (IL&FS) is looking to acquire merchant banking and broking outfits to increase capacity for providing capital market services, especially to infrastructure sector companies. IL&FS had exited this space in 2008 by selling its stake in IL&FS Investsmart Ltd. to HSBC. The UK banking giant had signed a pact to acquire 73.21% of IL&FS Investsmart for around $241.6 million in May 2008, paving its entry into the retail brokerage arena. The non-compete period after the pact with HSBC has come to an end, making the road clear for it to enter the space again. (Business Standard)

Promoters of Styrolution ABS plans to sell stake: Styrolution Jersey Ltd., the promoter of Styrolution ABS India Ltd., is planning to sell up to 2.16 million equity shares representing 12.33% stake in the company on May 21, 2013 exclusively through a sale on the separate windows provided by the BSE Ltd. and the National Stock Exchange of India Ltd. respectively for this purpose. Citigroup Global Markets India Pvt. Ltd. is appointed as the manager to the issue. (BSE)

Thomas Cook plans to monetise real estate assets: Thomas Cook is looking to monetise its land assets across India. It is understood that cash generated from the exercise will go towards working capital requirements of the company. The firm owns 32 properties across India and is sitting on 1,26,000 sq ft of office space. In Mumbai, the company owns over 60,000 sq ft space and has another 43,000 sq ft in the heart of Delhi. This decision comes on the heels of the company’s Institutional Placement Programme (IPP), which was oversubscribed by 22%. The company has appointed Jones Lang LaSalle a real estate services firm specialising in commercial property management, leasing, and investment management to help with the monitisation of its land assets. (Moneycontrol.com)

Courtesy: VCCEdge


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News Roundup: PE interest in Heidelberg cement unit

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