Singapore state-owned investment company Temasek Holdings is investing Rs 240 crore ($40 million) for a significant minority stake in Star Agriwarehousing and Collateral Management Limited, one of the country’s fastest growing agri-solutions companies. The investment reflects Temasek’s growing interests in agri-solutions businesses and assets as rising populations and emerging middle class boost food demand worldwide. Last year, Temasek made its boldest bet in the space in India when it pumped in Rs 572 crore for a 19.9% stake in Godrej Agrovet, a diversified agri-business company of the eponymous group, furthering its partnership with the conglomerate. (The Economic Times)
New Silk Route looks to exit Rolex Rings: Global private equity fund New Silk Route is looking to exit its seven-year-old investment in Rolex Rings, a bearings races maker. The fund is looking to sell its 26% stake in the loss-making company and is expected to write down some part of its investments in the company, two people with knowledge of the development said. New Silk Route, promoted by Rajat Gupta and Parag Saxena, bought around 26% stake in the Rajkot, Gujarat-based Rolex Rings for $40 million in 2007. The PE fund has stayed its course in the company and is now looking at exiting by either selling to another private equity investor or a strategic investor,” an investment banker with knowledge of the development said. (The Economic Times)
Helion may lead $8m investment in Housing.com: Early- to mid-stage, India-focused venture fund Helion Venture Partners may lead an $8 million investment round in Mumbai-based Housing.com, one of the country’s hottest technology startups. The company has already raised three rounds of funding since its inception in 2012. Existing investor Nexus Venture Partners may also participate in the latest investment round, which is nearing closure, said sources directly aware of the matter. (The Times of India)
US company in talks to acquire Educomp: A large US-based strategic acquirer is in fairly advanced talks to buy majority shares in Educomp Solutions, a diversified education services provider, as its founder seeks to restructure the debt-laden company. The potential acquirer may invest about $300 million (Rs 1,800 crore) through a combination of primary shares and mandatory open offer to emerge as the majority shareholder in Educomp, people directly familiar with the matter told. The ongoing negotiations are veering towards the acquirer subscribing to primary shares giving it an over 40% ownership, thereby triggering an open offer to public shareholders. (The Times of India)
Religare Health Insurance in talks for PE funding: Religare Health Insurance Co. Ltd has initiated stake sale talks with domestic and global private equity (PE) firms to raise capital, according to three people, including two directly involved with the transaction. The transaction includes raising of about Rs 200 crore ($33.33 million) in lieu of a minority stake,” said one of the two people directly involved in the negotiations. The talks have just begun and the final contours of the deal are yet to emerge. If any of the foreign funds buy a stake in the company it should not be less than 26%. But since Religare Health Insurance is willing to sell more than 26% stake, domestic funds too have been approached. The company is in talks with global investors including LeapFrog Investments, TPG Capital and General Atlantic, among others, said the third person. (Live Mint)
GVK wants to sell Punjab unit to NTPC: GVK Power & Infrastructure is looking to monetise its 540 Mw Goindwal Sahib power plant in Punjab. The company is known to have approached state-owned power generator NTPC for a possible sale. The plant has coal linkages with the Tokisud and Seregarha mines from Jharkhand. It is still under construction and is expected to commission in the first quarter of the coming financial year. It also has a 25-year power purchase agreement with Punjab State Power Commission. The cost of setting up the project is around Rs 2,000 crore ($333 million). The talks are yet to begin on the deal but the paperwork has begun, said a source. (Business Standard)
JSPL to focus on debt reduction: After investing Rs 12,500 crore ($2.08 billion) this year, the Naveen Jindal-promoted Jindal Steel & Powerd plans to focus on debt reduction in 2014-15, along with an increase in earnings before interest, tax and amortisation (Ebitda). The group debt is around Rs 35,000 crore ($5.83 billion) and the plan is for a three-fold strategy-restructuring debt, partially offloading equity in some projects and not investing any capital in the coming year, Uppal told BS. The company’s subsidiary, Jindal Power Ltd (JPL), has announced commissioning of its second 600 Mw unit at the Tamnar power plant in Chhattisgarh. (Business Standard)
Suzlon Energy plans assets sale to raise Rs 1,500 crore: Pune-based Suzlon Energy Limited, the world’s fifth-largest wind turbine supplier, is planning to sell its assets and raise about Rs 1,500 crore ($250 million) through it. The company is in the process to sell assets in India and overseas. Two of the fifteen assets, which the company plans to sell, are in abroad. These assets have components manufacturing facility and old plants. Suzlon wants to sell some of its assets in Gujarat, Maharashtra, Tamil Nadu and Pondicherry. Vagadia said “We successfully divested our 75 per cent stake in China last year. We have identified non-critical assets and are at various stage of selling. (Business Standard)
Tech Mahindra looks for buys to grow maintenance services unit: Tech Mahindra Ltd, the information technology (IT) services company of the $16.7 billion Mahindra Group, is looking to buy firms in the US, the UK and Australia to strengthen its fast-growing infrastructure management services (IMS) business. The company wants to grow double and maybe higher than the overall IT company growth rate, and aspire a rate of 30-40% over the next couple of years, said Pravin Bolar. In 2013-14, Tech Mahindra won more than 12 deals (such as BASE Co., subsidiary of the KPN Group, and Volvo Car Corp.) in the IMS sector, with a total deal size of about $500 million. (Live Mint)
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