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PE Plans: Warburg-CGH, Balaji Telefilms, Sona Autocomp, Microqual

19 August, 2008

 

 

Here is a round up of some key private equity deals in the market:

Warburg Pincus-Casino Group: The Kochi-based Casino Group of Hotels (CGH) is in the market to raise capital. According to The Economic Times, private equity fund Warburg Pincus is in talks with the company to invest upto Rs 325 crore. CGH is a leading hospitality group in Kerala, and is wholly owned by the the Dominic family. The report adds that they may divest upto 20 per cent, which would value the enterprise at around Rs 1600 crore. The company needs funds for their domestic as well as overseas expansion. Casino Group operates under the CGH Earth brand and started operations in 1954. It currently operates 12 resorts (mostly eco-friendly) and also offers tour packages and heritage tours.

New York based-Warburg Pincus had picked up 27 per cent stake in Delhi-based Lemon Tree Hotels for Rs 280 crore in 2006. It also has 25 per cent exposure in Mumbai-based Radhakrishna Foodland for Rs 230 crore.

 

PE Firms Eye Star’s 26% In Balaji Telefilms: Three private equity funds including Singapore’s Temasek Holdings, European firm Permira and US-based Quadrangle Capital Partners are in the race for Star India’s 26 per cent stake in Balaji Telefilms. The Financial Express reports that other players including Astro Malaysia, Reliance Anil Dhirubhai Ambani Group and Eros International are also interested in the stake. The report added that the promoters, who hold 40 per cent, are not interested in buying back the stake.

Balaji Telefilms currently has a market capitalisation of Rs 1,040 crore and is trading near its 52-week low (Rs 156) at Rs 160. The 26 per cent stake is valued at Rs 271 crore but Star would like to get a premium above the current stock price. Star India owns this stake through its Dubai-based affiliate Asian Broadcasting FZ-LLC. It had acquired the 21 per cent stake in 2004 through preferential allotment from the promoters for Rs 123 crore, followed by an open offer which increased shareholding to 25.9 per cent.

 

Sona Group talking to PE players to raise $72 million: The holding company of Delhi-based Sona Group is talking to private equity players to raise $72 million, which would be partly used to retire a debt of $24 million and the rest will be used for expansion. The group is also close to acquiring a Chinese precision forging company, in which the deal size could be $24 million, reports The Economic Times. Sona Okegawa Precision Forgings Ltd, which is a JV between Sona Autocomp Holdings and Mitsubishi Materials had acquired German company ThyssenKrupp Präzisionsschmiede GmBH for $135 million in January this year.

The company was renamed Sona BLW. Sona Okegawa Group is one of the largest precision forgings group in the world. Sona Okegawa Precision Forgings Group has six plants in a all – 2 in India, 3 in Germany and 1 in USA. The group is also planning to list Sona Autocomp Holdings, the holding company of the group, in the next 2-3 years as per favourable market conditions. The Sona group currently has revenues of $715 million and plans to become a $1 billion group by 2010.

 

Microqual To Raise $20 Million: Mumbai-based Microqual Techno Private Ltd, company that provides microwave components to mobile operators and telecom equipment manufacturers, plans to raise $20 million in private equity fund. The company had earlier $10 million from NEA-IndoUS Ventures, JAFCO Asia and BTS India Fund.

Microqual is also planning an IPO next year, reports PTI. According to company CEO Mahesh Choudhary, the PE funds will own 48 per cent stake in the company after the second round of divestment.

 


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PE Plans: Warburg-CGH, Balaji Telefilms, Sona Autocomp, Microqual

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