McDonald’s estranged India partner Vikram Bakshi has sold two prime retail properties and is in the process of selling a third one in Delhi’s Connaught Place as he prepares for a prolonged and expensive legal battle with the US burger chain. Bakshi has recently sold a 2,000 sq ft property where Apple has its store for over Rs 16-17 crore ($2.6 million-$2.7 million) and a 2,700 sq ft property leased by McDonalds itself for close to Rs 19-20 crore ($19 million-$3.2 million). A third property, a 6,500 sq ft store that originally housed fast food chain Wimpy and was recently split into two to house Dunkin Donuts and Dominos, is in the process of being sold for around Rs 38-40 crore ($6 million- $6.4 million), a person close to the development said. (The Economic Times)
Hindustan Motors gets shareholders’ nod to sell Chennai Plant: Hindustan Motors has got shareholders approval for sale or disposal of it Chennai Car Plant. The company sought shareholders approval for a special resolution, to partially of fully dilute stake in the Plant. According to company’s BSE announcement, the resolution has been duly approved by requisite majority of the shareholders, said the company. Earlier, the company said it was planning to raise Rs 150 crore by divesting stake in its Tiruvallur plant, near Chennai. The facility currently produce Pajero, Cedia and others for Mitsubishi Motors Corporation and also into contract manufacturing with Isuzu Motors. (Business Standard)
Engineers India FPO to hit market on Feb 6: The follow-on public offer (FPO) of Engineers India Ltd (EIL) will hit the capital market on February 6, a top official said today. The government will sell 10% stake in Engineers India Ltd (EIL) through FPO route, that is expected to fetch Rs 500 crore ($80 million). “The FPO will open on February 6. It will remain open for three days,” Petroleum Secretary Vivek Rae told reporters here. ICICI Securities, IDFC and Kotak Mahindra Capital, Edelweiss Financial Services and IDBI Capital are managing the disinvestment. (Business Standard)
ONGC, OIL want to buy IOC shares: State-owned Oil and Natural Gas Corp (ONGC) has informed the government that it will buy 5% stake in Indian Oil Corp (IOC) at six month average trading price and not at current market rates. The Board of ONGC a few days back deliberated on the offer to buy half of the 10% stake that the government wants to disinvest in IOC, sources with direct knowledge of the development said. Sources said a similar view has also been taken by the board of Oil India Ltd (OIL) which is to buy the remaining 5% stake of the government in the oil marketing company. (Business Standard)
Thomas Cook may buy Sterling Holiday Resorts for Rs 852 crore: Chennai-based Sterling Holiday Resorts, whose turnaround inspired some of the biggest stock market names such as Rakesh Jhunjhunwala and Radhakrishna Damani to invest in the company, may be taken over by leading travel and tour operator Thomas Cook. Three people close to the situation said the Prem Watsa-controlled Thomas Cook is in advanced talks to buy Sterling at a 36% premium to the firm’s market price. Thomas Cook is likely to pay Rs 125 per share, 36% premium to Sterling’s price of Rs 98 a share, valuing the firm at Rs 852 crore ($136 million). Bay Capital, which bought 13.67% in Sterling in 2009, is expected to review Thomas Cook’s final proposal by the end of this week, the three investment bankers said. (The Economic Times)
IDBI, Canara Bank, SBI seen in talks to sell CARE Ratings stake: State-run lenders IDBI Bank, Canara Bank and State Bank of India are in talks with potential investors to sell a 36.25% stake they jointly hold in CARE Ratings, market sources said. A senior IDBI Bank official said many private-equity firms, foreign institutional investors and portfolio managers have approached the bank for its stake in the ratings company. IDBI Bank holds a 16.69% stake in the ratings firm, while Canara Bank owns 13.25% and SBI 6.31%. (The Economic Times)
Suzlon to sell turbine business to Repower: In a bid to pay off its debt, wind turbine maker Suzlon Energy is amalgamating its wind and services business with its cash-rich German subsidiary REpower. This may fetch Suzlon over $1 billion, with which it could pay off its rupee debt (of Rs 5,300 crore or $846 million) and come out of the ‘corporate debt restructuring’ – a bankers’ scheme that helps defaulting companies recast their loans. In a parallel move, REpower is also likely to come up with a public issue in Europe. Suzlon might dilute 25-35 per cent of its holdings in REpower, subject to regulations prevalent in Europe, sources in the banking industry told. Suzlon has debt of Rs 14,150 crore on its books, of which Rs. 9,500 crore is being restructured under the CDR programme. REpower is cash-rich, but its parent Suzlon is unable to make use of the German subsidiary’s reserves to pay off its debt because German banks do not allow it. (Business Line)
UK firm KeyPoint to dilute 15-20% to raise £7 million: KeyPoint Technologies, a UK-based user interface technology solutions company, is in discussions with private equity players to infuse £5-7 million to fund its plans to enter the US and China markets. The company will dilute 15-20% to invite the first round of institutional investments into the company, which has bulk of its employees operating out of India. The company has so far been funded family and friends. The company is planning to close the deal by June. The proceeds will be used to expand presence in the North American and Chinese markets. (Business Line)
Private equity firm MPC Synergy Real Estate to exit Anil Nanda’s Akme Projects: Private equity firm MPC Synergy Real Estate is exiting its investments in Akme Projects, the real estate developing firm of Anil Nanda Group, two people with direct knowledge of the development said. “The fund does not want to continue business with Akme Projects as the relationship did not go as planned. Some projects are yet to take off,” said a person involved in the transaction. MPC Synergy is a joint venture between Geneva-based private equity investment fund Synergy Asset Management Fund and Germany’s largest close-ended fund manager MPC Capital. Akme had formed a 50:50 joint venture with MPC Synergy in 2008 to develop premium housing projects with an equity investment of about IR 1,000 crore ($160 million). (The Economic Times)
IDFC PE-Led group eyes stake in GVK’s Airport biz: A group of investors led by IDFC Private Equity is in initial talks with the Reddys of the GVK Group to buy a significant minority stake in its airports business for $400 million (Rs 2,500 crore), two people with knowledge of the matter said. IDFC PE will anchor the investment in GVK Airports Holdings. The PE firm that invests in roads, power and airport developers had recently raised $644 million for an infrastructure fund. For GVK, the deal will help reduce debt and raise money to expand its airports capacity. The stake sale is being discussed at the holding company level for the airports business. IDFC can bring up to $150 million in the deal while the rest will come from other investors. (The Times of India)
Indian Oil may buy minority stake in Canada shale gas & LNG project for $1B: State-run Indian Oil Corporation (IOC), country’s biggest refiner and fuel retailer, plans to acquire a minority stake in a Canadian shale gas and liquefied natural gas project for about $1 billion (Rs 6,250 crore). The Cabinet is expected to approve it this month, senior government and industry officials said. The company is in advanced talks of negotiations for the assets that include a 10% stake in Progress Energy Resources Corporation, officials with direct knowledge of the matter said. The preliminary due diligence exercise is almost over. The proposal has been discussed with top government officials before seeking approval of the Cabinet Committee on Economic Affairs (CCEA) by the end of Februar. (The Times of India)
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