Reliance Entertainment May Bid For MGM – Anil Ambani-controlled Reliance Entertainment is likely to put in a bid for the iconic film studio Metro-Goldwyn-Mayer Inc (MGM), an American media company as it seeks to increase its presence in Hollywood beyond its existing tie-up with Steven Spielberg’s DreamWorks Studio. MGM has been put on the block by its lenders, a consortium of over 100 financiers led by JPMorgan. Reliance Entertainment is expected to finalise its bid for MGM next week. (ET)
Essars To Transfer 2.63% Vodafone Stake – Essar Group is indirectly transferring part of its Indian holding in Vodafone Essar to its overseas investment company, using the provisions of the relaxed foreign investment norms issued last year. The deal will result in the effective transfer of around 2.63% economic interest in Vodafone Essar. The group, owned by the Ruia family, will transfer its 49% stake in Essar Telecommunications Holding Pvt Ltd (ETHPL), that holds 10.97% in Vodafone Essar, to Mauritius-based Essar Telecom India (ETIL) for Rs 530 crore. (ET)
Shree Renuka Plans Second Acquisition In Brazil – Shree Renuka Sugars Ltd is planning to buy a majority stake in Brazilian sugar and alcohol maker Equipav Group. It has submitted a binding bid for the sugar and alcohol assets of Equipav Group. The value of the deal is estimated at around Rs 1400 crore. Earlier in November 2009, the firm acquired Brazilian sugar and ethanol producer Vale Do Ivai SA Acucar E Alcool for $82 million. (Reuters)
Wipro To Float $1B Sponsored ADR Offering – Wipro Limited, India’s third-largest software exporter, is set to launch a sponsored American Depository Receipts (ADR) offering that could possibly see the promoters and promoter group led by Azim Premji offloading some of their stake in the company. The company has been in active discussions with investment banks Goldman Sachs, Morgan Stanley, Credit Suisse and Citi to manage the proposed offering. The size of the issue could be above $1 billion. (ET)
Govt To Sell 10% Stake In Engineers India – The government of India has decided to disinvest 10% of its holding in state-owned technical services company Engineers India Limited (EIL) through a public offer. Post-issue, government’s shareholding in the company would come down to 80.40%. EIL is a listed entity with government holding of 90.40% and balance holding with the general public. (ET)
Jubilant FoodWorks Plans IPO – Jubilant FoodWorks Ltd, the exclusive franchisee for Domino’s Pizza chain in India, has planned to go for an initial public offer (IPO). It has fixed the price band of Rs 135-145 per equity share for the offer. The company plans to raise between Rs 308 crore and Rs 329 crore from this offer, out of which around Rs 35-40 crore will be used to clear off some debt. Kotak Mahindra Capital Company is the sole book-running lead manager for the offer. (DNA)
Wockhardt-Abbott Deal May Be Blocked – A group of investors led by New York-based QVT Financial Lp is planning to block troubled Indian drug maker Wockhardt Ltd’s Rs 620 crore nutrition business divestment deal with US multinational Abbott Laboratories Inc. Wockhardt had sold $110 million (Rs500 crore today) worth FCCBs in 2004 and these investors bought 40% of those bonds. The $9 billion hedge fund QVT, along with a few other investors in FCCBs, has filed a winding up petition in the Bombay high court after rejecting Wockhardt’s proposal that envisaged a significant loss to the bondholders. (Mint)
Reliance Infratel IPO Gets Sebi Nod – Reliance Communications has received an approval from the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO) to raise money for its tower business, Reliance Infratel Ltd. It got regulator’s approval to raise about Rs 5,000 crore through the IPO. Reliance Infratel will offer 10% equity through a proposed issuance of 15.6 crore shares. (DNA)
ITC Arm Hikes Stake In Hotel Leela – ITC’s investment arm Russell Credit has raised its stake in Hotel Leela venture to 7.37% —an increase of 2.26 percentage points. However, the promoters of Mumbai-based Leela group said they were not interested in tying the knot with ITC as a strategic partner in the growing hotels business. Leela, which is coming up with nine new hotel properties, already has relations with Kempenski Hotels and all projects are already funded. (BS)
Idea Cellular To Invest Rs 5K Cr This Fiscal – Idea Cellular, one of India’s leading mobile service providers with dominant presence in north India, plans to invest Rs 5,000 crore in rolling out operations in new circles. This Aditya Birla Group company has recently launched its mobile service in the North East India. However, the company made it clear that there is no such plan to acquire any new operator for the expansion. (Business Line)
GSS Gets Board Nod To Raise $75M – The board of directors of GSS America Infotech Limited has approved the company’s fund raising plan of up to $75 million for acquisitions. The board, which met recently, considered the plan to raise the amount through Foreign Currency Convertible Bonds (FCCB), Global Depository Receipts (GDR), American Depository Receipts (ADR) or Qualified Institutional Placement (QIP). (Business Line)
China 2009 FDI Falls For First Time Since 2005 – China’s inbound foreign direct investment fell in 2009 for the first time in four years, with cash-strapped firms outside the country undoubtedly affected by the financial crisis. China drew $90 billion from foreign companies investing in the country’s factories and other productive assets in 2009, 2.6% less than in 2008. However, the country sees investment picking up and in December alone, China attracted $12.1 billion in FDI, up 103% from a year earlier. (Reuters)
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