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News Roundup: Reliance Capital May Sell 20% In AMC

19 January, 2010

Reliance Capital May Sell 20% In AMC – Anil Ambani-led Reliance Capital is looking to sell up to 20% stake in Reliance Mutual Fund to a strategic foreign partner. The company is likely to appoint investment banks JP Morgan and UBS as advisors to the transaction. Reliance Capital holds 93.37% in Reliance Capital Asset Management Company. In 2007, the AMC had sold 5% stake to New York-based Eton Park for Rs 500 crore. (ET)

IDBI Bank To Acquire Federal Bank – State-owned IDBI Bank is believed to have zeroed in on Kerala-based private sector lender Federal Bank for acquisition. It has also completed due diligence for the acquisition. The acquisition, if it materialises, would enable IDBI to consolidate its position among state-run banks by strengthening key segments such as branch network, human resources and client acquisition, besides augmenting its deposit base. Federal Bank is one of the largest private sector banks in the south having 641 branches with a total business of around Rs 59,000 crore and deposits of Rs 33,439 crore. (BS)

Everstone Capital To Raise $550M Second Fund – Everstone Capital, the private equity arm of Kishore Biyani-owned Future Capital Holdings, is on its way to raising its second fund, Indivision India Partners II, with a corpus of $550 million. The fund, to be raised fully from offshore investors, is expected to be closed in three months. Indivision India Partners I, the first fund worth $425-million, was raised in 2006. (FE)

Carrefour, Future JV Likely Soon – Carrefour, Europe’s biggest retail chain, has agreed with Kishore Biyani of Pantaloon Retail to set up franchisee stores in India after six years of wandering partnerships, including with Mukesh Ambani’s Reliance Retail and real estate group DLF. A deal is expected to be signed between the two companies by March this year. The Carrefour franchisee is likely to be a part of the Future Value Retail, a 100% unit of Pantaloon Retail, which owns hypermarket chains Big Bazaar and Food Bazaar. (ET)

Unitech Drops $700M Convertible Bonds – Unitech, the New-Delhi-based real estate developer, has withdrawn its application to the Foreign Investment Promotion Board (FIPB) for approval to raise $700 million through foreign currency convertible bonds (FCCBs). The company withdrew the application on Monday just hours before the FIPB meeting where the matter was to be taken up. However, the company did not mention clear reason on the withdrawal of the application. (DNA)

Anant Raj Buys Land In NCR For Rs 200Cr – Anant Raj Industries, an infrastructure development and construction firm, has acquired land in the National Capital Region (NCR) for about Rs 200 crore for its development projects in the commercial and residential segment. The company has over Rs 750 crore of cash reserves, and had earlier allocated Rs 300 crore towards the execution of projects and Rs 450 crore for land acquisitions. Anant Raj, with almost zero debt on its books, is looking to take advantage of the distress-sale deals available in the market. (DNA)

GAIL, ONGC Videsh Buying Myanmar Pipeline Stake – State-owned gas transmission and marketing company GAIL India Ltd plans to pick up 4.17% equity in the $2.01 billion pipeline for exporting gas from Myanmar to southern China. China National Petroleum Corp is laying the 870 km pipeline and will own 50.9% equity in the project. ONGC Videsh (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corp (ONGC), also plans to buy 8.35% equity in the pipeline. (DNA)

Tata Tea Ups Stake In Everest To 50% – Aimed at consolidating similar businesses under a single roof, Tata Tea, which had gradually increased its stake in Mount Everest Mineral Water over 10 months, has now acquired management control, with a 50.24% stake. The company is likely to merge the mineral water company with itself. The likely merger would pave the way for a uniform corporate brand, with sub-brands for each division such as tea, coffee, water, juices and energy drinks. (BS)

Wadhwa Group Buys Mumbai Plot For Rs 571Cr – In one of the biggest land deals in the country in the past one year, the Mumbai-based Wadhwa Group had bought 18.18 acres in Mumbai’s Ghatkopar suburb for Rs 571 crore from Hindustan Composites Ltd. The deal works out to Rs 7,210.31 a square feet. The developer has tied up Rs 300 crore from the Indiabulls Group to pay for the land and will use internal accruals to fund the rest of the deal. In 2008, K Raheja Universal had almost bought the same land for Rs 700 crore but the deal did not go through. (BS)

Infotech Buys US Engineering Services Firm – Infotech Enterprises, a Hyderabad-based provider of engineering design, geospatial information and information technology (IT) services, has acquired US-based Daxcon Engineering Inc in an all-cash deal for an undisclosed sum. Daxcon, which specialises in off-road heavy engineering and aerospace sectors, will bring eight large customers, including Caterpillar, Terex and Boeing to Infotech. Daxcon reported revenues of $21 million in 2008, while the 2009 revenue of the company stands at $14 million. (BS)

R-Infratel Plans Pre-IPO Sale To Raise Rs 2,500Cr – Reliance Infratel, a subsidiary of the Anil Ambani-led Reliance Communications Ltd, plans to raise Rs 2,500 crore from a pre-IPO placement that will dilute its stake by 4-5%. JM Financial, the lead banker in R-Infratel’s initial public offering (IPO), has initiated talks with investors to find a buyer before the IPO opens. The company is looking to raise Rs 5,000 crore from the sale of a 10% stake in the primary market. (BS)

GB Corp Eyes Telecom Sector – Bahrain-based Global Banking Corporation (GB Corp) is focusing on the global food, health and telecoms sectors for its investments. The Islamic investment house last week took an 11% stake in Indian telecoms operator S Tel, jointly owned by Batelco and India’s Siva Group. The bank plans to make more investments in a sector seen as more stable than the property sector that has burned investors in the GC region. The company is also studying opportunities in food processing space in Africa and India. (Gulf Daily News)

Spice Finance Likely To Acquire Khandwala Securities – Continuing the consolidation in the financial services industry, Spice Finance, part of the BK Modi-promoted Spice Group, is set to acquire a mid-sized brokerage. The company is in talks with BSE-listed Khandwala Securities, and a deal is expected soon. (DNA)

 


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News Roundup: Reliance Capital May Sell 20% In AMC

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