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News Roundup: R-Power in Talks to Sell 15% to Foreign Investor

01 July, 2009

R-Power in Talks to Sell 15% to Foreign Investor – Reliance Power Ltd (R-Power), part of the Reliance Anil Dhirubhai Ambani (ADA) group, is in talks with five leading global power companies to sell 15 per cent equity stake in the company. Preliminary talks have started with three Chinese power companies, which include China Light and Power Holdings (CLP), and French and Canadian companies. According to sources, Anil Ambani was in China last week to hold discussions with Chinese power companies for a possible stake sale. The company is willing to place the equity to one or two power companies. (Business Standard)

Corporation Bank to Raise Rs 1000 Crore via Bond Issues – Public sector lender, Corporation Bank, is planning to raise Rs 1,000 crore capital through bond issuances in the current financial year. The bank had recently raised Rs 1,000 crore upper tier II capital and it may raise another Rs 1,000 crore this year through tier 1 perpetual bonds or upper tier II capital. (Business Standard)

Tech M Open Offer Ends Today, Sees Negligible Response – Tech Mahindra is expected to subscribe to fresh equity shares of Satyam Computer Services (now Mahindra Satyam) through a preferential issue to increase its stake in the troubled company, as the ongoing open offer has failed to enthuse shareholders to tender their shares at Rs 58, the price quoted under the offer that is closing tomorrow. (Business Standard)

Vodafone Can Offer ISD, STD Services, Hive Off Tower Business – Vodafone Essar, the country’s second-largest GSM-based mobile operator, has finally received the go-ahead from the Foreign Investment Promotion Board (FIPB) to hive off its towers and related infrastructure to a separate arm called Ortus Infratel. The nodal government agency for clearing foreign investment proposals earlier deferred Vodafone Essar’s plans to create Ortus Infratel twice after the revenue department had raised concerns over the telco’s application. The FIPB has also cleared the company’s applications for national and international long distance (NLD & ILD) and internet service provider (ISP) licence. (The Economic Times)

Patni, MphasiS in Race for AIG Unit – Patni Computer and MphasiS are among the potential suitors looking to acquire the Indian software unit of troubled insurance giant AIG.The software unit, AIG Systems Solutions, is on the block as part of the insurance behemoth’s plans to divest assets globally and focus on its core business. Deloitte is running a sale process for the unit. (The Economic Times)

Old Lane to Raise Stake in KVK Energy – Citigroup-owned hedge fund Old Lane is increasing its stake in KVK Energy & Infrastructure in a deal worth Rs 116 crore. Old Lane will invest by subscribing to compulsorily fully convertible debentures of the Indian infrastructure development company. After conversion into equity, the total foreign direct investment in privately held KVK Energy & Infrastructure will rise to 70% from 33%. (The Economic Times)

DLF’s Plan to Buy DE Shaw’s Stake in DAL Hits Roadblock- Plans by the promoters of top real estate company DLF to buy out hedge fund DE Shaw’s investment in family-owned DLF Assets (DAL) could hit a roadblock because of a little known rule in the country’s foreign exchange laws. Under a ‘put’ option signed between DE Shaw and three companies controlled by DLF-promoter KP Singh’s family in May 2007, the US-based fund, which invested $400 million in convertible preference shares of DAL, could exit its investment and get a fixed return of at least 27%. But the rule in the country’s Foreign Exchange Management Act (FEMA) classifies all equity investments that carry a fixed return as debt, which could bring DE Shaw investment under the purview of ECB guidelines. With ECBs not allowed in the real estate sector, investors holding convertible stock with fixed returns could find their exit option blocked. (The Economic Times) 

SEBI for Ban on Price Waterhouse – Even as the tainted auditors of scam-hit Satyam Computer Services (now Mahindra Satyam) are languishing in jail (Andhra Pradesh High Court on Monday rejected the bail pleas of two former auditors of PriceWaterhouse, S Gopalakrishnan and his deputy Talluri Srinivas), the stock markets regulator Securities Exchange Board of India (Sebi) is all for prohibiting Price Waterhouse and the jailed auditors from any furtherissuance of compliance certifications to listed companies in the country.The regulator is also of the view that PW and auditors should be restrained from accessing the securities market henceforth. (DNA

JPMorgan Closes Fund Run by Former Citi Execs – JPMorgan Chase is winding down a $600m-plus private equity fund run by former Citigroup executives Robert Willumstad and Marjorie Magner in a sign the crisis is forcing banks to be more conservative with their capital. JPMorgan is believed to have exercised a right to buy back Brysam’s $600m-plus-worth of investments, which include stakes in Russia’s Vozrozhdenie Bank, Colombia’s BCSC, two institutions in Mexico and two in India. As a result, the fund, which has two investments in India, is likely to be wound down in its current form. (FinancialTimes.com)

 

 


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News Roundup: R-Power in Talks to Sell 15% to Foreign Investor

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