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News Roundup: Vedanta advised to acquire London’s Cairn Energy

11 March, 2013

A number of investment bankers have, over the past few weeks, made presentations to top officials of Cairn India, owned by Vedanta’s Anil Agarwal, on global acquisition opportunities in the oil & gas sector. One of the options suggested to Cairn India was buying the London Stock Exchange (LSE) -listed Cairn Energy, which has 50 production blocks across the world and a 10% stake in Cairn India. The suggestions were made after Cairn India sought bankers views on how it could deploy its extra cash in oil & gas assets across the world. The company has $2.7 billion (INR 14,670 crore) of cash and is expected to generate cash flows – after meeting all the capital expenditure requirements of the Rajasthan block – of $1 billion every year for the rest of this decade. Vedanta took over Cairn India in 2010 for $8.6 billion from Cairn Energy, which has a varied shareholding structure, without any single promoter. (Business Standard)

Dredging Corporation in talks with ports to raise funds for dredgers: State-owned Dredging Corporation of India is talking to some cash-rich ports to raise money for buying two 9,000 cub mt capacity dredgers at a cost of about INR 1,200 crore ($221.34 million). With 60 per cent of its fleet of 15 dredgers over 20 years old, the firm is looking to replace its aged assets to improve overall productivity. The company came out with a public issue of tax-free bonds on Friday to raise up to INR 500 crore to finance acquisition of one of the three 5,500 cub mt capacity dredgers it has on order. (Business Line)

GMR may sell 5-Star hotel at Hyderabad Airport: Infrastructure builder GMR Group has put its INR 300-crore ($55.33 million) five-star hotel at the Rajiv Gandhi International Airport here up for sale as it realigns its assets. This would be the third property that GMR has put on sale this year in line with the group’s ‘Asset Light, Asset Right strategy’. The company has appointed HVS India as its transaction advisor. The 5-Star Hotel which is currently managed by Accor Group. The transaction would be by way of parent company divesting its 100 per cent equity stake in the Hotel Company. The proposal envisages transfer of all assets and liabilities and a Share Purchase Agreement shall be executed accordingly. (The Economic Times) 

Shankara Infrastructure to raise second round of private equity: Shankara Infrastructure, the Bangalore-based privately-held company specialising in manufacturing steel tubes, is understood to be looking to raise its second round of private equity to the extent of $20 million (INR 108.4 crore). The company had during 2011 raised around INR 80 crore ($14.75 million) from Reliance Alternative Investment Fund. It is understood that in this second round of fund raise, the Anil Ambani-owned private equity fund may look to exit partially. (Business Standard)

Biyani, Hong Kong billionaire to form JV: Future Group founder Kishore Biyani has planned a 50:50 venture with the family investment vehicle of Hong Kong-based billionaire Victor K Fung, for imports and wholesaling. The joint venture will be outside Future’s listed entity, Pantaloon Retail, and be part of Future’s investment vehicles. Future and Fung Group already have a partnership with Bangalore-based Sattva Properties to develop a wholesale market in the city. Fung Group has 26% stake in FSC, which it had bought for $30 million. Fung Group is also looking at increasing its stake in FSC. (Business Standard)

GMR said to be eyeing sale of two more power projects: GMR Group seems to be on a selling spree. After selling its power plant in Singapore this week, the infrastructure major might consider selling two domestic power projects. was looking for offers with a suitable valuation to monetise its 1,050-Mw Kamalanga power project in Odisha and the 600-Mw project in Warora, Maharashtra, acquired from Emco. Both the projects have commissioned one unit each recently. The firm is known to be in talks with investment bankers to find suitors for the two projects. (Business Standard)

Aditya Birla Group Fund may buy 50% in Peninsula Land’s Pune project: Aditya Birla Group’s real estate fund is close to buying a 50% stake in AshokPiramal-led realty developer Peninsula Land’s 30-acre township project in Pune for over INR 115 crore ($21.21 million). The deal values the project’s total development potential of 2-million sq ft at INR 230 crore and may offer Aditya Birla Real Estate Fund returns of nearly 25%.The fund has also agreed to share returns above this threshold of 25% with the Mumbai based listed developer. “The process of due diligence is already over. Both parties are negotiating final terms and valuation. The transaction is likely to be concluded soon after the board of Peninsula Land clears it. (The Economic Times)

Courtesy: VCCEdge

 

 


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News Roundup: Vedanta advised to acquire London’s Cairn Energy

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