Wockhardt in talks with KKR, Bain for funding; ADIA-backed Lake Shore buys mall
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Drugmaker Ltd Wockhardt Ltd has started discussions with private equity firms KKR and Bain Capital to raise $300 million (Rs 2,070 crore) in a bid to cut debt, a media report said.

The talks come after the loss-making company failed to raise funds via dollar bonds last year, The Economic Times reported, citing three people with knowledge of the development.

The report said the company is seeking a valuation of around $1 billion.

Mumbai-listed Wockhardt has a market value of around Rs 4,800 crore ($696 million). Promoters led by Habil Khorakiwala own a 74.07% stake in the company. If the PE deal goes through, it could result in a significant stake dilution by the promoters.

In another report, The Economic Times said that Abu Dhabi Investment Authority-backed Lake Shore India Advisory has bought a majority stake in a retail mall project in Hyderabad from Phoenix Group. The deal value is about Rs 1,000 crore and includes construction funding, the report said, citing people aware of the matter it didn't name. 

Hyderabad-based Phoenix will retain around 15% stake in the Phoenix Lotus Mall and the Irish fund Lotus will exit, the report said. Phoenix will construct the project while Lake Shore will be involved in planning and leasing, the report said.

ADIA, the sovereign wealth fund of the Emirate of Abu Dhabi, had formed the investment platform with Lake Shore to invest in retail properties in 2017.

Meanwhile, SoftBank-backed budget hotels chain Oyo is in discussion to acquire mid-sized hotel brand Qianyu to mark its first acquisition in China, The Economic Times reported. However, digital publication Entrackr reported that the deal closed last week.

Oyo, which has presence in about 280 cities in China, is aggressively ramping up its operations in the country.

Oyo recently closed its $1 billion investment round after raising $100 million from Chinese ride-hailing firm Didi Chuxing. Japanese conglomerate SoftBank, Singapore ride-hailing company Grab and others had previously invested $900 million in Oyo.

Oyo struck at least acquisitions in India last year. It bought Weddingz.in, an online marketplace for wedding venues and vendors; Internet of Things technology company AblePlus Solutions Pvt. Ltd; and Chennai-based service apartment company Novascotia Boutique Homes.

Separately, Flipkart’s board has granted in-principle approval to a plan to hive off digital payments unit PhonePe as a separate entity, The Economic Times reported, citing two people aware of the matter.

PhonePe will have an independent board and is looking to  raise up to $1 billion in external capital. PhonePe, which competes with SoftBank-backed Paytm, needs huge sums of capital to stay afloat, one of the person said. Flipkart had acquired PhonePe in 2016. 

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