Steel Authority of India Limited (SAIL) is about to acquire a 30% strategic stake in Canada-based coal mines, Wolverine Coalfield, owned by the Western Canadian Coal Corporation (WCCC). SAIL has been offered a 20-30% stake in the mines located in North-East British Columbia and is currently negotiating with the WCCC.
SAIL is also eyeing coal properties in Australia, notably, Millennium Coal Mines in Queensland, which has 60 mn tonnes of coal and has offered 5% stake to SAIL, and Anglo Coal, which is yet to make a definite offer. Marcarthur Coal and Tiaro Coalfields, both of Australia, have also made offers to SAIL.
Read The Economic Times article for more details.
Tuesday, December 26, 2006
SABMiller may buy Mt Shivalik stake; EV seen at Rs. 300-350 crores
SABMiller Plc, the $14 bn beer giant, may buy a 50% stake or go for a complete buyout of Mt. Shivalik, the largest independent brewer in the country. The deal could carry an EV of Rs. 300-350 crores. Mt. Shivalik’s beer brand, Thunderbolt, has a 6% share of the growing domestic beer market. ABN-AMRO has the mandate from Mt. Shivalik to look for strategic options. Other global players like Carlsberg may also bid for the company.
Mt. Shivalik was recently offered $35-40 mn by Asia Pacific Breweries (APB), a Singapore-based arm of Heineken. Since then, its valuation has soared manifold. SABMiller had also placed a bid for majority stake in Mohan Meakins’ beer business after the promoter family invited business. However, the deal process has been in limbo for a while now. Earlier this year, SABMiller inked $120-million deal to buy the brand rights and beer assets of Foster’s in India giving it an additional 2% share of the domestic consumption.
With the acquisition of Mt. Shivalik, SABMiller can expect to see its market share jump to almost 44%, rather close to that of 45% of United Breweries. The Indian beer market has reported a growth of 25-30% in the current year.
More in The Economic Times article.
Mt. Shivalik was recently offered $35-40 mn by Asia Pacific Breweries (APB), a Singapore-based arm of Heineken. Since then, its valuation has soared manifold. SABMiller had also placed a bid for majority stake in Mohan Meakins’ beer business after the promoter family invited business. However, the deal process has been in limbo for a while now. Earlier this year, SABMiller inked $120-million deal to buy the brand rights and beer assets of Foster’s in India giving it an additional 2% share of the domestic consumption.
With the acquisition of Mt. Shivalik, SABMiller can expect to see its market share jump to almost 44%, rather close to that of 45% of United Breweries. The Indian beer market has reported a growth of 25-30% in the current year.
More in The Economic Times article.
Matrix Partners India invests Rs. 20 crores in digital signage company vJive
Matrix Partners India has invested Rs. 20 crores in vJive, an out-of-home media and digital signage network owned by Digital Music India (DMI) Pvt. Ltd. has received a VC funding of Rs. 20 crores. This is the first of the tranches of an overall Rs 100 crores for the company. Matrix’s Avnish Bajaj has joined the board of directors of DMI.
This is Matrix’s fourth investment in the year. It had earlier invested $7 million in Seventymm.com, an online DVD rental company, $5.5 mn in Moods Hospitality, the owners of food chain Yo! China Restaurants, and an undisclosed sum in a stealth mode start-up Four Interactive.
This is Matrix’s fourth investment in the year. It had earlier invested $7 million in Seventymm.com, an online DVD rental company, $5.5 mn in Moods Hospitality, the owners of food chain Yo! China Restaurants, and an undisclosed sum in a stealth mode start-up Four Interactive.
Mahindra & Mahindra to buy German forging firm Schoneweiss
Mahindra & Mahindra (M&M) is acquiring 90.47% stake in Germany-based forging company Schoneweiss. Schoneweiss is one of the top five axle beam manufacturers in the world, and specializes in suspension, power train and engine parts. The acquisition would be through its subsidiaries. However, financial details of the transaction were not disclosed.
Read The Calcutta Telegraph article.
M&M has been quite active on the acquisitions front. Last month, it announced the acquisition of casting and ferrites firm DGP Hinoday Industries. Then, in September, M&M announced that it would acquire a 67.9% stake in Jeco Holding AG, one of the top five forging companies in Germany, for an enterprise value of Rs. 830 crores (€140 mn). Last year, M&M bought Rajkot-based SAR Transmission. This was followed by the Amforge Chakan unit and Stokes Forging of the UK.
Read The Calcutta Telegraph article.
M&M has been quite active on the acquisitions front. Last month, it announced the acquisition of casting and ferrites firm DGP Hinoday Industries. Then, in September, M&M announced that it would acquire a 67.9% stake in Jeco Holding AG, one of the top five forging companies in Germany, for an enterprise value of Rs. 830 crores (€140 mn). Last year, M&M bought Rajkot-based SAR Transmission. This was followed by the Amforge Chakan unit and Stokes Forging of the UK.
India closes $9.5 bn worth of M&A deals; has 1.3% of global M&A transactions
Some $9.5 bn worth of M&A deals were closed in India for the year 2006, compared to $5.37 bn in 2005. India’s share in the global M&A deals stands to around 1.3%, up from 0.72% in 2005.
Indian companies accounted for 53 overseas buyouts valued at $3.91 billion, whereas foreign companies struck 60 deals worth $5.69 billion.
India was the 18th most preferred destination for bidders, while among buyers, India was 26th on this list.
Read the Business Standard article.
Indian companies accounted for 53 overseas buyouts valued at $3.91 billion, whereas foreign companies struck 60 deals worth $5.69 billion.
India was the 18th most preferred destination for bidders, while among buyers, India was 26th on this list.
Read the Business Standard article.
GHCL unit buys US firm HW Baker Linen for $6.75 mn
GHCL has acquired HW Baker Linen from US-based Best Manufacturing Goup for $6.75 mn, through a competitive bidding process. The acquisition was made through GHCL’s step-down subsidiary Dan River, Inc. HW Baker supplies textile products, amenities and guest room supplies to hotels and motels across USA, and had revenues of about $70 mn last year. This is fourth acquisition closed by GHCL over the last one year. It had earlier acquired Rosebys, a home textile retail chain in the UK, soda ash maker SC Bega Upsom in Romania and Dan River, a textile company in the US.
Read The Economic Times and Business Standard for more details.
Read The Economic Times and Business Standard for more details.
Reliance Life close to $1 bn US buy; to invest £32.2 mn in UK-based GeneMedix
Reliance Life Sciences, the biotech arm of Reliance Industries Limited, may acquire a US company, operating in the genetics and nanotechnology space, for about a $1 bn, reports Business Standard.
In a related development, Reliance Life Sciences is planning to invest £32.2 mn ($63.2 mn) in UK bio-pharmaceutical company GeneMedix Plc. the initial investment will be made through subscription for around 1.1 bn shares at 1.25 pence to raise £14.6 mn, representing a controlling interest of 74% of the enlarged share capital of GeneMedix. Reliance may also further invest up to £17.5 mn in the company. Read Business Standard for more details.
In a related development, Reliance Life Sciences is planning to invest £32.2 mn ($63.2 mn) in UK bio-pharmaceutical company GeneMedix Plc. the initial investment will be made through subscription for around 1.1 bn shares at 1.25 pence to raise £14.6 mn, representing a controlling interest of 74% of the enlarged share capital of GeneMedix. Reliance may also further invest up to £17.5 mn in the company. Read Business Standard for more details.
Premier Tissues to acquire UK tissue converting company
Bangalore-based Premier Tissues, a manufacturer and exporter of tissue papers, is acquiring an UK-based tissue converting company in a deal worth £8-10 mn. In addition to the company’s bankers, Bank of India and the EXIM Bank have also shown interest in financing the deal. The company is also holding talks with a couple of venture capital firms to fund the deal. The acquisition is expected to be consummated by March 2007. Presently, Premier Tissues is one of the largest exporters of tissue products to UK. By February 2007, with this expansion, the company will be able to export about 700 tonnes of tissue products per month.
Read The Economic Times article.
It is to be noted that Bennett, Coleman & Co. (BCCL), the media group that owns The Times of India and The Economic Times, had recently picked up 6.42% stake in Premier Tissues. The company was set up in 1998 in technical collaboration with Premier Tissues of Malaysia. It now has a sales revenue of 35 crore, of which up to 25% comes from exports.
Read The Economic Times article.
It is to be noted that Bennett, Coleman & Co. (BCCL), the media group that owns The Times of India and The Economic Times, had recently picked up 6.42% stake in Premier Tissues. The company was set up in 1998 in technical collaboration with Premier Tissues of Malaysia. It now has a sales revenue of 35 crore, of which up to 25% comes from exports.
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