After the Bangalore-based Seventymm.com, another online DVD rental company, this time in the nation’s capital, gets venture funding. Delhi-based Madhouse Media has closed an angel round of $228,000 (Rs. 1.05 crore) from Band of Angels in Delhi and Mumbai, and other couple of investors.
First-time entrepreneurs Sameer Guglani, Nandini Hirianniah and Ankur Agrawal founded the company in December 2004. Madhouse has both online and offline presence and it claims to be the only one to have such a model. The company is currently focused on North Indian markets – Delhi-NCR, Chandigarh, Panchkula and Mohali regions. It plans to do a national roll-out in the next two years.
It is currently working on some key business alliances to serve the customers better; one such alliance being with Netkode Solutions, which provides end to end technology solution to Hollywoodclicks.com, Singapore’s largest online DVD rental service. Netkode will work as a technology partner with Madhouse.
Tuesday, January 2, 2007
Videocon’s Daewoo acquisition in jeopardy
Videocon along with US-based private equity firm Ripplewood have proposed a price cut of up to 13% on the $730 mn acquisition of Daewoo Electronics after conducting due diligence of Daewoo. This has not gone down well with the creditors of Daewoo who are collectively running the company since the Daewoo conglomerate collapsed under $80 mn debt in 1999.
The creditors, led by Woori Bank, are going to come to a decision regarding the price cut in the first week of January 2007. Unless more than 75% of the creditors agree to the proposal, the deal would be cancelled. In case creditors did not agree to the price cut, the process for sale of the ailing company would have to start afresh. Videocon officials refused to comment on the issue.
Read The Financial Express article.
The creditors, led by Woori Bank, are going to come to a decision regarding the price cut in the first week of January 2007. Unless more than 75% of the creditors agree to the proposal, the deal would be cancelled. In case creditors did not agree to the price cut, the process for sale of the ailing company would have to start afresh. Videocon officials refused to comment on the issue.
Read The Financial Express article.
Merrill Lynch, ChrysCapital invest in Shriram City Union
Chennai-based Shriram City Union, the financial services arm of the Shriram Group has received private equity funding of Rs. 192 crores from Merrill Lynch, ChrysCapital and Cambridge Place Investment Management. The investors have picked up a 30% stake in the company by way of buying 40 lakh shares each at a price of Rs 160 a share.
The Shriram City's equity capital base would increase to Rs. 43 crores from Rs. 27.1 crores, and promoters' holding would come down to 54% from 73.37%. Spark Capital facilitated the deal.
Shriram City reported a net profit of Rs. 22.34 crores in the half year ended 30 September 2006 on a total income of Rs. 143.75 crores against PAT of Rs. 14.81 crores on income Rs. 94.03 crores during the same period last year. On BSE, it closed at Rs. 160.05 a share down 0.22% from the previous close of Rs. 160.40 a share.
The Shriram Group companies have been attracting a lot of private equity funding of late. Its engineering company Shriram EPC has attracted financing from TPG Newbridge, UTI Venture Funds, Bessemer Ventures, ChrysCapital are some of the PE firms that have been investing in the Shriram Group companies.
Read The Economic Times article.
The Shriram City's equity capital base would increase to Rs. 43 crores from Rs. 27.1 crores, and promoters' holding would come down to 54% from 73.37%. Spark Capital facilitated the deal.
Shriram City reported a net profit of Rs. 22.34 crores in the half year ended 30 September 2006 on a total income of Rs. 143.75 crores against PAT of Rs. 14.81 crores on income Rs. 94.03 crores during the same period last year. On BSE, it closed at Rs. 160.05 a share down 0.22% from the previous close of Rs. 160.40 a share.
The Shriram Group companies have been attracting a lot of private equity funding of late. Its engineering company Shriram EPC has attracted financing from TPG Newbridge, UTI Venture Funds, Bessemer Ventures, ChrysCapital are some of the PE firms that have been investing in the Shriram Group companies.
Read The Economic Times article.
BE Billimoria & Co. receives funding from Indivision
Indivision, the private equity fund promoted by Future Capital, has acquired a 26% stake in Mumbai-based contract construction company BE Billimoria & Co. for an estimated Rs. 75 crores. This is the $425 mn-fund’s first investment in the real estate sector and Future Capital has announced plans to enter the hospitality sector. The management of BE Billimoria estimates turnover for this year to be around Rs. 200 crores and is looking at trebling this figure in the next five years through a pan-India presence. The company is also considering a possible IPO in a year.
Currently, the promoters, Kaiyoze Billimoria and Digant Kapadia, each hold 16.5% stake in the company, while the rest is held by Merrill Lynch Capital Markets (4%), Indivision (26%) and other equity investors.
BE Billimoria has worked on residential and commercial projects with different partners. Some of the major projects that that the company has completed are IDBI Towers, Imax Theatre, Hotel Leela, Hotel Hyatt Regency and Reserve Bank of India among others, in the commercial space and Cadbury House, Hinduja Plaza and Palm Beach are some of the company’s projects in the residential space. The company has partnered with HDFC, Sun Group, IDFC and other real estate funds for various projects. This is the first time they have received private equity funding. The real estate sector, valued at $12 bn, is growing at 35-40% per annum. The sector has seen some large equity deals in the last few months with nearly $350 mn in investments flowing into the sector.
Read the article from The Economic Times.
Currently, the promoters, Kaiyoze Billimoria and Digant Kapadia, each hold 16.5% stake in the company, while the rest is held by Merrill Lynch Capital Markets (4%), Indivision (26%) and other equity investors.
BE Billimoria has worked on residential and commercial projects with different partners. Some of the major projects that that the company has completed are IDBI Towers, Imax Theatre, Hotel Leela, Hotel Hyatt Regency and Reserve Bank of India among others, in the commercial space and Cadbury House, Hinduja Plaza and Palm Beach are some of the company’s projects in the residential space. The company has partnered with HDFC, Sun Group, IDFC and other real estate funds for various projects. This is the first time they have received private equity funding. The real estate sector, valued at $12 bn, is growing at 35-40% per annum. The sector has seen some large equity deals in the last few months with nearly $350 mn in investments flowing into the sector.
Read the article from The Economic Times.
Aurobindo Pharma acquires Pharmacin
As reported earlier in our blog, Aurobindo Pharma has acquired a company in the Netherlands. The company happens to be Pharmacin International BV, a €6 mn generic pharma company. The acquisition was made through Aurobindo’s Dutch subsidiary Agile Pharma BV for an undisclosed sum. This is Aurobindo’s second acquisition in Europe after Milpharm in the UK in Feb 2006.
Agile Pharma acquired 100% of Pharmacin International B.V. from Jerim B.V. and Jonghoud International B.V. Pharmacin is engaged in supply and licensing of generics in Netherlands and in key markets in Europe. Pharmacin has over 200 product registrations for 63 customers in the Netherlands and Europe. Its strengths include cGMP warehouses close to Rotterdam, a strategic distribution location in Europe.
Read article from The Economic Times.
Related post: Aurobindo Pharma all set to buy a company in The Netherlands
Agile Pharma acquired 100% of Pharmacin International B.V. from Jerim B.V. and Jonghoud International B.V. Pharmacin is engaged in supply and licensing of generics in Netherlands and in key markets in Europe. Pharmacin has over 200 product registrations for 63 customers in the Netherlands and Europe. Its strengths include cGMP warehouses close to Rotterdam, a strategic distribution location in Europe.
Read article from The Economic Times.
Related post: Aurobindo Pharma all set to buy a company in The Netherlands
Aban Offshore to acquire remaining stake of Norwegian company Sinvest for $800 mn
Chennai-based drilling rig operator Aban Offshore Limited has offered to acquire Norwegian drilling company Sinvest with an open offer of $800 mn on Oslo Stock Exchange. Aban holds around 39% of Sinvest’s equity. In June 2006, AOL had bought 33.76% stake in Sinvest for $446 mn in one of the largest cross-border acquisitions by an Indian company, through its Singapore subsidiary, Aban Singapore. Subsequently, the company had raised the stake by an additional purchase of 5.4% from the market. This had cost Aban around $82 mn, to make the total at $528 mn. The threshold limit for making an open offer is 40% under the Norwegian exchange.
The total deal size is expected to be around $1.3 bn. Aban has already spent $528 mn to acquire around 40% of Sinvest so far. This stake is currently held by Aban Singapore. Of this total investment, $450 mn is debt. Of the total additional $800 mn needed for the open offer, $625 mn will be debt. Thus, of the total $1.35 bn spent on the acquisition, $1.075 bn is debt. Sources say that Aban Offshore has availed the facilities of non-recourse debt. On the equity side, Aban Singapore is raising $150 mn via convertible notes by private placement. These notes will account for 10.37% of Aban Singapore’s equity after conversion, valuing Aban’s stake at $1.296 bn. The market cap of the parent company, Aban Offshore, was $1.462 bn at Friday’s closing price of Rs. 1, 383 on the BSE on Friday.
The open offer will be made by the Aban International Norway, a Norway-registered company and a wholly-owned subsidiary of Aban Singapore. The offer price set for Sinvest shares is Norwegian Kroner (NOK) 135, according to Oslo Stock Exchange filing by Aban.
Like Aban, Sinvest is also an owner of jack-up drilling rigs. Drilling rigs and offshore vessels are required for exploration and production of oil and gas. The charter rates for these rigs have shot up in the past few years due to the continued strength in oil prices and consequently, an increase in exploration activities globally. The offshore scene in India has also witnessed frenzy, with a large number of New Exploration and Licensing Policy (NELP) blocks in that space. Large gas discoveries by major operators like Reliance Industries, GSPC and ONGC in the recent past will also lead to higher demand for such rigs and offshore assets. India-based offshore companies have placed orders for six drilling rigs in 2006.
Read the Economic Times articles - 1 2.
The total deal size is expected to be around $1.3 bn. Aban has already spent $528 mn to acquire around 40% of Sinvest so far. This stake is currently held by Aban Singapore. Of this total investment, $450 mn is debt. Of the total additional $800 mn needed for the open offer, $625 mn will be debt. Thus, of the total $1.35 bn spent on the acquisition, $1.075 bn is debt. Sources say that Aban Offshore has availed the facilities of non-recourse debt. On the equity side, Aban Singapore is raising $150 mn via convertible notes by private placement. These notes will account for 10.37% of Aban Singapore’s equity after conversion, valuing Aban’s stake at $1.296 bn. The market cap of the parent company, Aban Offshore, was $1.462 bn at Friday’s closing price of Rs. 1, 383 on the BSE on Friday.
The open offer will be made by the Aban International Norway, a Norway-registered company and a wholly-owned subsidiary of Aban Singapore. The offer price set for Sinvest shares is Norwegian Kroner (NOK) 135, according to Oslo Stock Exchange filing by Aban.
Like Aban, Sinvest is also an owner of jack-up drilling rigs. Drilling rigs and offshore vessels are required for exploration and production of oil and gas. The charter rates for these rigs have shot up in the past few years due to the continued strength in oil prices and consequently, an increase in exploration activities globally. The offshore scene in India has also witnessed frenzy, with a large number of New Exploration and Licensing Policy (NELP) blocks in that space. Large gas discoveries by major operators like Reliance Industries, GSPC and ONGC in the recent past will also lead to higher demand for such rigs and offshore assets. India-based offshore companies have placed orders for six drilling rigs in 2006.
Read the Economic Times articles - 1 2.
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