TPG Capital India is set to buy a majority stake in Karaikal Port Pvt. Ltd. The US-based private equity (PE) firm has entered into a so-called exclusivity agreement with the port and will invest at least Rs 1,000 crore ($160 million) to acquire stake from existing investors and promoters. A final valuation is yet to be arrived at and decisions pertaining to dilution of promoter stake and exit of existing private equity investors are still being finalized, the port official said. At present, the private equity investors hold about 49% stake in Karaikal Port, a unit of infrastructure development firm Marg Ltd. (Live Mint)
Somany Ceramics plans to scale up capacity through joint ventures: Tile major Somany Ceramics is planning to invest Rs 200 crore to fund new acquisitions, expand its capacities and scale up its dealer network. The company is looking to focus more on value-added products and was outsourcing plain vanilla products to smaller manufacturers with which it had forged joint ventures or contract manufacturing. The company currently has capacity of 35 million sq m, while could be increased to 41 million sq m. (Business Line)
SAIL may team up with RINL, MOIL to set up ferro alloy plant: Steel major SAIL may join as the third partner in RINL-MOIL joint venture for manufacturing ferro alloy as its plan for a separate unit with the manganese ore producer may not see the light of day. State-run MOIL Ltd, formerly known as Manganese Ore India Ltd, had earlier inked two separate JV pacts with SAIL and Rashtriya Ispat Nigam Ltd to set up two ferro alloy plants with a total outlay of Rs 600 crore. Ferro alloys are used in steel-making for de-oxidising purposes. The earlier plan of setting up a 50:50 joint venture with MOIL has not been scrapped. (The Economic Times)
UK’s CDC Group to step up investments in India: CDC Group, UK government’s development finance institution, will step up its investments in India despite a slowing economy, stalled reforms and a hyper-competitive private equity landscape, dotted with few exits and dismal returns. In the last six weeks, CDC has invested $260 million through five transactions, chief executive Diana Noble told. Most of this has been through its traditional role as a ‘fund-of-funds’ investment firm which invests in other private equity (PE) funds. CDC agreed to invest $200 million in a new infrastructure fund (called IIF2) of IDFC Alternative — the asset management arm of infrastructure company IDFC. The company has also revived its strategy of investing directly in companies, something it had stopped doing in 2004. The firm has also invested $25 million in independent renewable energy firm Green Infra, which has also attracted recent funding from the Ajay Piramal Group. (The Economic Times)
PE major squaring up to pick up stake in JW Marriott property in Bangalore: Global private equity majors are understood to be sizing up to bid for a stake in the recently launched hospitality property in Bangalore which is managed by J W Marriott Hotels & Resorts and developed by The Advantage Raheja Group. It is understood that private equity players are keen on this prime development, which is in the hub of commercial development in Bangalore on Vittal Mallya Road. According to investment bankers in the know, the property would be valued at close to Rs 3 crore per key taking the enterprise valuation to close to Rs 900 crore. (Business Standard)
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