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News Roundup: SBI Mutual Fund nearing a deal to buy Daiwa MF

28 January, 2013

SBI Mutual Fund, is in the final stage of negotiations to purchase Japanese asset management firm Daiwa Mutual Fund, which manages assets worth around INR 500 crore ($93.19 million). SBI is likely to pay around 1.5% of the assets Daiwa manages as the seller has less attractive equity schemes and more debt schemes. Last year, L&T Finance paid INR 550 crore, or 6.2%, to purchase Fidelity Asset Management with INR 8,880 crore worth of assets under management. (The Economic Times)

Leyland to divest non-core biz: Ashok Leyland is looking to divest non-core businesses in a bid to reduce debt. The company, which has total debt of INR 5,000 crore ($937.98 million) including a INR 1,500 crore ($280 million) short-term loan, intends to sell stake in businesses like software and wind energy to pay off part of the debt. The firm is planning to generate INR 500 crore ($93 million) and plans to do it over the next one year. As part of the plan, the company is looking at selling part of its stake in German subsidiary Albonair GmbH, which provides solutions for reduction in automotive emissions, along to divest Defiance Technologies and Defiance Testing, which provide services in design engineering, testing and validation. (DNA)

BEE plans venture capital fund for energy efficient projects: The Bureau of Energy Efficiency (BEE) plans to set up a venture capital fund to provide financial support for projects that improve energy efficiency. According to a notification by the agency, it has invited proposals for project appraisal unit for the same. The project appraisal unit is expected to manage the fund by entering to an agreement with BEE. BEE has also set up a partial risk guarantee fund (PRGF) to enhance financing options for energy efficiency projects. (mydigitalfc.com)

Cholamandalam picks banks for $56 million share sale: Cholamandalam Investment and Finance Co Ltd have picked four banks including Citigroup for a share sale to institutional investors to raise up to $56 million (INR 300 crore). The Chennai-based non-bank finance company plans to launch the share sale within a few weeks, depending on market conditions. JM Financial Services, Kotak Mahindra Capital, a division of Kotak Mahindra Bank, and Axis Capital, a unit of Axis Bank are the brokers handling the transaction. (mydigitalfc.com)

Goldman gets Rs 350Cr bid for stake in Bangalore’s Four Seasons Hotel: Global investment house Xander Group and listed southern developer Nitesh Estates have offered INR 350 crore ($65.23 million) to acquire 73% stake of Goldman Sachs in the upcoming Four Seasons Hotel in Bangalore. The indicative offer is well short of the INR 450-crore ($83.87 million) asking price for the stake, which may prompt Goldman Sachs to run a formal sale process to exit the troubled investment. The company is in talks with potential suitors, including the Xander and Nitesh combine, and a few ultra HNIs until now. Goldman has valued the nearly 1 million-sqft mixed-use project, where land owner Century Real Estate and developer Westcourt own the remaining shares, at INR 611 crore ($113.88 million). The family estate of YES Bank founder Rana Kapoor and Nadathur Holdings of Infosys co-founder have explored a deal but have not made any offer till now. (The Times Of India)

Reliance Power to raise Rs 4,400Cr for Arunachal power plant: Anil Ambani-led Reliance Power is in the market to raise INR 4,400 crore($800 million) to achieve the financial closure of its first 700 MW Tato hydro power project in Arunanchal Pradesh. The company is setting up seven hydro projects with capacity of 4,620 MW in Arunanchal Pradesh & Uttrakhand. he company is in talks with the Indian lenders to secure debt for the project and the loan may be refinanced with cheaper overseas borrowings at a later stage. Reliance Group has in-principle agreement with the US and Chinese export credit agencies for funding of $15 billion for its power and telecommunications business. (The Times Of India)

Private equity biggies vie for Rs 400Cr VLCC stake: L Capital, the private equity arm of LVMH, is vying with Kohlberg Kravis Roberts & Co (KKR) to buy up to INR 400 crore ($74.5 million) stake in homegrown slimming and beauty services chain VLCC, adding that the company is worth more than $300 million. ChrysCapital is another contender with the promoter, the Luthras, and existing investor Evertsone Capital short-listing three suitors, as they head for a final call in the next two-three weeks. Evertsone has 16% interest in the company and plans to offload shares depending on the valuation. The promoter too could offer some shares to the new investors, who will come in with a significant minority ownership. The deal basically is to provide an exit to Everstone. Currently, the Luthras, who hold just under 85% stake in VLCC. (The Times Of India)

Axis Bank to raise Rs 6,000 crore from qualified institutional players this week: Axis Bank is all set to raise around INR 6,000 crore ($1.11 billion) through private placement of its equity shares to qualified institutional players (QIPs) during the current week. The board of the company has already approved the proposed issue, a banking source, who is directly involved in the process. JP Morgan, Morgan Stanley and Citi Bank are appointed as the managers to the issue. (The Times Of India)

Courtesy: VCCEdge

 


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News Roundup: SBI Mutual Fund nearing a deal to buy Daiwa MF

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