Radico Khaitan, India’s liquor maker, has begun preliminary talks to sell a minority stake to Japan’s oldest liquor company Suntory Holdings, underscoring the growing attraction of the local liquor market to foreign firms. The makers of Magic Moments vodka and 8 PM whisky is examining the option of offering 26% in the company to Suntory, investment bankers close to the transaction said. The Japanese spirits major is expected to pay close to Rs 870 crore ($135 million) for the stake, valuing Radico Khaitan at Rs 3,500 crore ($543 million) or close to 20 times its FY13 operating profit. British drinks giant Diageo bought 53.4% in Vijay Mallya’s United Spirits close to Rs 12,000 crore ($1.86 billion) in November 2012 at a valuation of 20 times the operating profit of USL. The proposed deal is likely to include a provision to buy another 23% stake at a later date. (The Economic Times)
Kotak PE eyes 20% stake in Hyderabad-based SemanticSpace Technologies: Kotak Private Equity is in talks to pick up an over 20% stake in Hyderabad-based SemanticSpace Technologies (SST), marking its return to the IT/ITeS sector. The investment will see Kotak buy out the 18% stake held by financial investors Ascent Capital and New Vernon, besides acquiring some primary shares. The deal values SemanticSpace, founded by serial entrepreneur Satya Bolli, at $75 million or about Rs 500 crore. The latest deal comes after the company’s IPO plans failed to materialize last year. In 2008, SST had acquired US-based Prolifics, a systems integrator in IBM technologies, and its testing solutions subsidiary, Arsin Corporation. Investment bank MAPE is advising on the deal. (The Times Of India)
TPG arm, AMP vie for 49% in KMC Hospitals: A mid-market investment arm of private equity giant TPG and Australian investor AMP Capital are vying to acquire about 49% stake in Trichy, Tamil Nadu-based KMC Hospitals, including shares owned by a healthcare fund of billionaire investor Ajay Piramal. TPG Growth has issued a term-sheet to Kavery Medical Centre and Hospitals for a $30-million (Rs 180 crore), investment deal through purchase of secondary and primary shares. AMP Capital has also entered the fray with an offer valuing the hospital company at Rs 350 crore ($54.34 million). Piramal’s healthcare fund India Venture Advisors holds at least 30% equity in the hospital network, which it picked up four years ago. (The Times Of India)
Suzlon Energy plans to raise up to Rs 5,000 crore: Wind turbine maker Suzlon Energy, would seek shareholders’ approval to raise up to Rs 5,000 crore ($776.33 million) through issue of securities. The proceeds would be utilised to meet the company’s financial requirements. The funds would be raised by way of allotting equity shares or global depository receipts or American depository receipts or foreign currency convertible bonds or non convertible debentures with warrants or such other securities. (The Economic Times)
Ramco Systems files papers for Rs 125-cr rights issue: Chennai-based software firm, Ramco Systems, has filed a draft offer letter to raise up to Rs 125 crore ($19.4 million) through a rights issue of shares. The company proposes to repay or prepay loans worth Rs 94.5 crore ($14.67 million) through the fund-raising programme during FY14. The rights issue was approved by the Ramco board on May 30. (Business Line)
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