News Roundup: TPG, Danone in talks to buy 80% in Tirumala Milk for $293M

17 March, 2016

Global private equity giant TPG group and French dairy giant Danone are in advance talks with promoters and investors of Hyderabad-based Tirumala Milk Products to purchase South India’s second-largest dairy company valued at more than Rs 2,000 crore ($325.6 million). Tirumala Milk, funded by private equity firm Carlyle, is owned by four farmers from Hyderabad. Carlyle, which had bought 20% stake for Rs 110 crore in June 2011, is also looking to sell its stake. The company has so far engaged with PE giants like Advent, Barings Asia and Blackstone. The buyers are looking at 75-80% stake for Rs 1,800 crore ($293 million). Carlyle would get at least three times returns on its investment.  () 

JSW Steel eyes stake in Karnataka iron ore mines: JSW Steel Ltd is in talks with six-seven iron ore miners in Karnataka for purchasing stakes in its quest for raw material security, and could seal deals in about a year. The target companies want to have a joint venture or partnership of some sort, said Vinod Nowal, deputy managing director of JSW Steel. Nowal said all of the potential selling parties are from the A and B category of mines in Karnataka, as segregated by the Supreme Court during the course of hearing a two-year environment and illegal mining case that ended in April. In May, Nowal had said the company had 50 proposals for buying assets from around the world from miners who were putting their assets on the block owing to the fall in profit margins on the back of the softer metal prices. (Live Mint) 

Hindustan Motors board approves sale of forge, foundry shops: Hindustan Motors, maker of the iconic Ambassador car, today said its board has approved plans to sell the forge and foundry shops at its Uttarpara plant in West Bengal. The board of directors at its meeting held on October 30, 2013, approved divestment of the whole or part of the business or interests of the company. Earlier this year, the company’s board had also approved the demerger of its Chennai car plant that manufactures Cedia, Pajero, Pajero sport, Montero and Outlander brands from its Japanese partner Mitsubishi Motors Corporation, to a wholly-owned subsidiary, Hindustan Motor Finance Corporation. () 

Vedanta Resources gets shareholders’ nod to raise offers for Hindustan Zinc, Balco: Shareholders of mining conglomerate Vedanta Resources today approved proposals to empower the company to raise offers for acquiring remaining government stake in Hindustan Zinc and Balco by up to 43% or up to Rs 24,663 crore ($4 billion). The approval was given by an overwhelming majority as over 92% voters supported the resolutions, the company said in a filing to the London Stock Exchange. Vedanta at present holds 64.92% stake in Hindustan Zinc Ltd (HZL) and 51% stake in Bharat Aluminium Company (Balco). () 

Being Human licensee Mandhana Retail in talks for stake sale: Mandhana Retail Ventures, the licensee of Salman Khan’s Being Human brand, has begun talks with private equity funds to raise Rs 120-150 crore ($19.6 million – $24.5 million) by selling up to 30% stake in the company. The extra money will help the company expand its distribution network in the overseas market as well as diversify its products portfolio. Khan’s Being Human Foundation has given the global licensing rights to Mandhana Retail Ventures for which it earns a royalty between 7% and 10% on sales of Being Human merchandise, which is used for education and healthcare initiatives. The company has mandated Mumbai based investment bank Pioneer Investcorp to scout for investors. The talks are at an initial stage and are likely to get term-sheets by end of November. () 

Piramal plans to sell stake in Vodafone only next year: The Piramal Group expects the transaction to sell its stake in Vodafone India back to the telecom company’s UK parent only in the next financial year starting April 1, the pharmaceutical company’s chairman said, adding that the returns on the group’s investment will be “as planned”. On Tuesday, Vodafone Group said it sought the government’s approval to invest Rs 10,141 crore to raise its stake in its India unit to 100%, becoming the first overseas telecom operator to take advantage of a relaxation in foreign investment rules in the sector. Vodafone, which entered the country in 2007 by buying Hutchison Whampoa’s local mobile phone business for around $11 billion, currently directly owns 64.38% in Vodafone India Ltd (VIL). It, however, indirectly holds 84.5% in VIL. Piramal Enterprises holds about 11%, while the balance is owned by financial investors, including Analjit Singh, Vodafone India’s non-executive chairman. () 

Jyothy Laboratories to raise Rs 400 crore via zero-coupon bonds: Jyothy Laboratories plans to raise Rs 400 crore ($65.4 million) via three-year zero coupon bonds at a yield-to-maturity of 11 percent, two sources with knowledge of the deal said. Axis Bank, ICICI Bank and ICICI Securities Primary Dealership are arrangers to the deal, the sources said. ()

Courtesy: VCCEdge


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News Roundup: TPG, Danone in talks to buy 80% in Tirumala Milk for $293M

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