Pharma company Unichem Laboratories Limited is set to acquire a Brazilian drug company for about Rs. 110 crores. Unichem is at an advanced stage of negotiations with a firm that has a marketing network, a few product approvals, a warehouse and a quality control division.
The paper did not name the target firm but said the acquisition would be funded through internal accruals and debt. Unichem already has a presence in Brazil through a subsidiary, Unichem Farmaceutica do Brasil, but the deal would be struck by the parent and not the subsidiary.
Brazil's pharmaceuticals market, estimated at about Rs. 386 bn, is growing at 32% a year.
Unichem is also planning an acquisition in the Indian market. It is on the lookout for a formulations company that has less than 20% brands clashing with Unichem’s portfolio.
In December, Unichem bought out the remaining 40% stake in UK-based subsidiary Niche Generics Limited, making it a wholly-owned unit.
Read the articles in The Economic Times – 1 2.
Friday, January 19, 2007
Ranbaxy Labs to set up SPV for Merck Generics bid
Ranbaxy Laboratories is considering using the frequently-employed technique of taking the special purpose vehicle (SPV) route for launching a bid on Merck’s generic business. If Ranbaxy decides to take the SPV route, the debt and private equity funds as well as Ranbaxy’s own funds will be infused into the SPV.
Merck is looking to sell its generics division, in a deal that could be valued at $5.2 bn. The generics business clocks revenues of around $2.5 bn and if Ranbaxy is able to acquire it, the Indian company’s revenues could nearly triple to around $3.8 bn (See Related Post). The bidding process and due diligence are expected to begin in February. Leading generic companies such as Teva and Sandoz and private equity majors such as Blackstone and KKR could be in the race as well. Ranbaxy has in the past secured shareholders approval to raise $1.5 bn out of which it has already raised $440 mn through FCCBs. Ranbaxy has also taken a 14.9% stake in Hyderabad-based Krebs Biochemicals and Industries for around Rs. 9 crores (See Related Post).
Read the article in The Economic Times.
Merck is looking to sell its generics division, in a deal that could be valued at $5.2 bn. The generics business clocks revenues of around $2.5 bn and if Ranbaxy is able to acquire it, the Indian company’s revenues could nearly triple to around $3.8 bn (See Related Post). The bidding process and due diligence are expected to begin in February. Leading generic companies such as Teva and Sandoz and private equity majors such as Blackstone and KKR could be in the race as well. Ranbaxy has in the past secured shareholders approval to raise $1.5 bn out of which it has already raised $440 mn through FCCBs. Ranbaxy has also taken a 14.9% stake in Hyderabad-based Krebs Biochemicals and Industries for around Rs. 9 crores (See Related Post).
Read the article in The Economic Times.
Petroleos De Venezuela may buy big stake in MRPL refinery
Venezuela’s state-run oil company Petroleos De Venezuela SA (PDVSA) is looking to acquire a major equity stake in MRPL’s existing refinery as well as the 15 mmtpa refinery proposed to be set up in the Mangalore SEZ. Additionally, the company is seeking to pick up stakes in the discovered and producing assets of ONGC in India and abroad.
In MRPL, ONGC holds a majority stake of 71.62%, while HPCL holds 16.97% and is seeking to enhance its stake in MRPL to over 26%. Besides monetary considerations and offering them equity in their rich oil fields in Venezuela, PDVSA may enter into crude supply and product off-take arrangements with ONGC. PDVSA's business development unit Corporacion Venezulana de Petroleo (Venezuelan Petroleum Corporation) will be negotiating the stake deal with the Indian government and ONGC.
PDVSA is also in negotiations with OVL, the overseas arm of ONGC, to offer a 30% stake in the San Cristobal block. The company is in the process of procuring certification for the reserves in the block, which may take another 18 months. Preliminary estimates of the in-place reserves are 1.3 trn barrels of oil. The oil found is heavy and only 20%, or 235 bn barrels, is recoverable.
Read The Economic Times article.
In MRPL, ONGC holds a majority stake of 71.62%, while HPCL holds 16.97% and is seeking to enhance its stake in MRPL to over 26%. Besides monetary considerations and offering them equity in their rich oil fields in Venezuela, PDVSA may enter into crude supply and product off-take arrangements with ONGC. PDVSA's business development unit Corporacion Venezulana de Petroleo (Venezuelan Petroleum Corporation) will be negotiating the stake deal with the Indian government and ONGC.
PDVSA is also in negotiations with OVL, the overseas arm of ONGC, to offer a 30% stake in the San Cristobal block. The company is in the process of procuring certification for the reserves in the block, which may take another 18 months. Preliminary estimates of the in-place reserves are 1.3 trn barrels of oil. The oil found is heavy and only 20%, or 235 bn barrels, is recoverable.
Read The Economic Times article.
HPCL to sell 50% stake in Vizag refinery to French oil firm Total
Hindustan Petroleum Corporation Limited (HPCL) is selling 50% stake in its Vizag refinery to French oil major Total SA. Total may pick up the stake in collaboration with Kuwait Petroleum for a consideration of Rs. 6000 crores.
HPCL is setting up a 9 mn tonne export-oriented refinery adjacent to the existing refinery at Vizag at an estimated investment of Rs. 12,000 crores. The refinery would be completed in 2011. HPCL is also planning a 1 mmtpa petrochemical chemicals plant at the refinery site.
The company may also look to raise funds through an initial public offering of the Vizag refinery. In a related development, the Lakshmi Mittal Group has reportedly shown interest for a 49% stake in HPCL’s 9 mmtpa Bhatinda refinery in Punjab.
Read the article in Business Standard.
HPCL is setting up a 9 mn tonne export-oriented refinery adjacent to the existing refinery at Vizag at an estimated investment of Rs. 12,000 crores. The refinery would be completed in 2011. HPCL is also planning a 1 mmtpa petrochemical chemicals plant at the refinery site.
The company may also look to raise funds through an initial public offering of the Vizag refinery. In a related development, the Lakshmi Mittal Group has reportedly shown interest for a 49% stake in HPCL’s 9 mmtpa Bhatinda refinery in Punjab.
Read the article in Business Standard.
Tech Mahindra to buy iPolicy Networks India
Tech Mahindra has entered into an agreement for acquiring upto 100% equity in iPolicy Networks India, a wholly-owned subsidiary of US-based iPolicy. Tech Mahindra will also buy out iPolicy's assets including customer contracts, movable assets and vendor contracts.
Qatar’s RasGas to acquire 10% in Petronet LNG; stake valued at Rs. 460 crores
RasGas from Qatar may buy around 10%s equity stake in Petronet LNG (PLL) for a consideration of around Rs. 460 crores. PSU oil majors ONGC, BPCL, GAIL and IOC each having a 12.5 % stake in the company will divest 2.5% each to RasGas. RasGas is doing the due diligence.
RasGas is the first supplier of LNG to India and currently supplies 7.5 mn tonnes a year to Petronet’s LNG terminal at Dahej in Gujarat. RasGas and Petronet are in a 25-year sale and purchase agreement for LNG supplies. After diluting 10% stake to RasGas, BPCL, IOC, GAIL, ONGC and Gas de France will have stakes of 10% each in PLL. ADB will retain its 5.2% stake, while the remaining 34.8% lies with the Indian public.
The company requires Rs. 1700 crores for the expansion of Dahej LNG terminal from 5 mmtpa to 12 mmtpa. The company has tied up for a debt of $300 mn ($100 mn through FCCBs) and the balance would be funded by internal accruals. The company also envisages building the Kochi terminal at a cost of Rs. 2500 crores by 2010. The company has also allocated Rs. 300 crores for vessels, Rs. 460 crores for new jetty and Rs. 150 crores for solid cargo port.
Read the article in The Economic Times.
RasGas is the first supplier of LNG to India and currently supplies 7.5 mn tonnes a year to Petronet’s LNG terminal at Dahej in Gujarat. RasGas and Petronet are in a 25-year sale and purchase agreement for LNG supplies. After diluting 10% stake to RasGas, BPCL, IOC, GAIL, ONGC and Gas de France will have stakes of 10% each in PLL. ADB will retain its 5.2% stake, while the remaining 34.8% lies with the Indian public.
The company requires Rs. 1700 crores for the expansion of Dahej LNG terminal from 5 mmtpa to 12 mmtpa. The company has tied up for a debt of $300 mn ($100 mn through FCCBs) and the balance would be funded by internal accruals. The company also envisages building the Kochi terminal at a cost of Rs. 2500 crores by 2010. The company has also allocated Rs. 300 crores for vessels, Rs. 460 crores for new jetty and Rs. 150 crores for solid cargo port.
Read the article in The Economic Times.
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