German banking major, Deutsche Bank, has emerged as the number one arranger of foreign currency bonds for Indian borrowers in 2006. Deutsche Bank AG has managed a number of landmark deals in India, including a $400 mn deal for ICICI Bank, a $ 150 mn deal for UTI Bank as well as the longest-dated bond in Japanese yen from an Asian borrower, with a 10-year deal for Reliance Industries. In equity-linked deals, Deutsche Bank executed the largest ever capital market financing for an Indian pharmaceutical, with a $440 mn deal for Ranbaxy Laboratories Limited. The bank was also the sole book-runner on the $500 mn convertible bond for the Anil Ambani-spearheaded Reliance Communications Limited.
Read the article on the Zee News website.
Thursday, February 1, 2007
Security service provider Topsgrup to acquire UK-based firm for £70 mn
Topsgrup, a Mumbai-based security services provider, is in the process of acquiring 100 % stake in a UK-based firm for a consideration of around £70 mn in an all-cash deal.
The company has short-listed two British companies that are into the guarding business, and has already initiated negotiations with them. It will finalize one of the companies, acquisition value of which would be in the range of £40-70 mn. The deal is expected to be wrapped up by next month.
The acquisition would be financed using the funds received by way of dilution of 16% equity to ace investor Rakesh Jhunjhunwala one-and-a-half years ago. The company is also planning to come out with an initial public offer in 2008.
The security industry worldwide is currently pegged at $127 billion that includes guarding, investigation and electronic security. In India, the security industry is being termed as a sunrise industry in the financial, investment and business circles, and is estimated to be at around Rs. 1000 crores, fragmented by the unorganized sector at Rs. 200 crores. It is growing at a CAGR of 20%, and is going to be a dominating sector in the coming years.
Read the Business Standard article.
The company has short-listed two British companies that are into the guarding business, and has already initiated negotiations with them. It will finalize one of the companies, acquisition value of which would be in the range of £40-70 mn. The deal is expected to be wrapped up by next month.
The acquisition would be financed using the funds received by way of dilution of 16% equity to ace investor Rakesh Jhunjhunwala one-and-a-half years ago. The company is also planning to come out with an initial public offer in 2008.
The security industry worldwide is currently pegged at $127 billion that includes guarding, investigation and electronic security. In India, the security industry is being termed as a sunrise industry in the financial, investment and business circles, and is estimated to be at around Rs. 1000 crores, fragmented by the unorganized sector at Rs. 200 crores. It is growing at a CAGR of 20%, and is going to be a dominating sector in the coming years.
Read the Business Standard article.
CLB tells West Bengal to sell out of Haldia Petrochemicals to The Chatterjee Group
The Company Law Board has directed the West Bengal government to transfer 155 mn shares of Haldia Petrochemicals Limited (HPL) to The Chatterjee Group (TCG) at Rs. 10 a share agreed upon earlier by the West Bengal and TCG, and another lot of 520 mn shares at Rs. 28.80 or a price determined by an independent valuer. Following the stake transfer, TCG would hold 52% (760 mn shares) stake in HPL, which has a paid-up equity of Rs. 1460 crores (1.46 bn shares of Rs. 10). The increased stake would bring TCG closer to taking over the management control of HPL after a prolonged legal battle with the West Bengal government.
TCG holds its stake in HPL mainly through Chatterjee Petroleum (Mauritius) and India Trade (Mauritius). The 155 mn shares was earlier issued to Chatterjee Petroleum India (CPIL) but was not confirmed.
West Bengal industry minister Nirupam Sen told reporters at the sidelines of a seminar organized by Bengal National Chamber of Commerce that the order was not acceptable for the state and indicated that it would move the Supreme Court against the order.
Read the Business Standard article.
TCG holds its stake in HPL mainly through Chatterjee Petroleum (Mauritius) and India Trade (Mauritius). The 155 mn shares was earlier issued to Chatterjee Petroleum India (CPIL) but was not confirmed.
West Bengal industry minister Nirupam Sen told reporters at the sidelines of a seminar organized by Bengal National Chamber of Commerce that the order was not acceptable for the state and indicated that it would move the Supreme Court against the order.
Read the Business Standard article.
Oak Hill Partners may merge portfolio companies Genpact and Vertex; merged entity to be listed
US-based private equity firm Oak Hill Capital Partners is reportedly working on merging its two BPO portfolio companies, Genpact and Vertex Data Systems.
Oak Hill and General Atlantic bought 60% in Genpact in 2004 from GE for around $500 mn. Vertex Data Systems, a BPO subsidiary of UK-based United Utilities, was bought out by an Oak Hill-led consortium comprising GenNx360 and Knox Lawrence International in a $425 mn cash, debt-and-liability readjustment deal.
Genpact employs around 27,000 people and has a dominant presence in India and operations in China, Hungary, the Philippines, Romania, the US and Mexico. It serves the banking/financial services, insurance, manufacturing, transportation, automotive and business services verticals. Genpact is understood to have revenues of close to $650 mn (Rs. 3000 crores) and is targeting $1 bn by 2008.
Vertex has around 9000 employees, roughly 1500 of them in India, with 12 units in Europe, the US, India and Canada. It offers a range of services across private enterprise, financial services, utilities, and central and local government sectors.
The merged entity would raise an initial public offering (IPO) that may be listed on a foreign or domestic bourse. The merger will allow investors to maximize efficiencies in the two companies’ overlapping verticals and geographies and leverage their separate areas of expertise.
Read the Business Standard article.
Oak Hill and General Atlantic bought 60% in Genpact in 2004 from GE for around $500 mn. Vertex Data Systems, a BPO subsidiary of UK-based United Utilities, was bought out by an Oak Hill-led consortium comprising GenNx360 and Knox Lawrence International in a $425 mn cash, debt-and-liability readjustment deal.
Genpact employs around 27,000 people and has a dominant presence in India and operations in China, Hungary, the Philippines, Romania, the US and Mexico. It serves the banking/financial services, insurance, manufacturing, transportation, automotive and business services verticals. Genpact is understood to have revenues of close to $650 mn (Rs. 3000 crores) and is targeting $1 bn by 2008.
Vertex has around 9000 employees, roughly 1500 of them in India, with 12 units in Europe, the US, India and Canada. It offers a range of services across private enterprise, financial services, utilities, and central and local government sectors.
The merged entity would raise an initial public offering (IPO) that may be listed on a foreign or domestic bourse. The merger will allow investors to maximize efficiencies in the two companies’ overlapping verticals and geographies and leverage their separate areas of expertise.
Read the Business Standard article.
IL&FS to float $1 bn PE fund with Abu Dhabi Investment Company
IL&FS and Abu Dhabi Investment Company (ADIC) have joined hands to float a $1 bn private equity fund to invest in infrastructure projects in West Asia and North Africa. Both the companies are expected to commit around $50 million to the joint venture. The fund would look for investment opportunities in the upstream energy sector, in addition to roads, power and water supply management projects. ADIC would also consider investing in the Indian downstream sectors such as power.
Read more in the Business Standard article.
Read more in the Business Standard article.
Local microfinance fund Bellwether gets $2.4 mn from Dutch firm
Bellwether Microfinance Fund has received an investment of $2.4 mn from Dutch financial company Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO). FMO has an 18.6% holding of the total paid-up equity in the BW with this investment. FMO is the third foreign institutional investor to invest in Bellwether.
Hyderabad-based Bellwether is India’s first microfinance venture capital fund. It was invested in 2005 and has invested till date Rs. 19 crores. So far, it has made 10 investments aggregating Rs. 27.5 crores in a wide variety of MFIs. Over 80% of its funds committed till now have been in the traditional microfinance markets of the four southern states. It is managed by its fund management company, Caspian Advisors Private Limited. Caspian is composed of a team of microfinance experts.
As of now, the Hivos-Triodos Fund of the Netherlands and the Gray Ghost Microfinance Fund of USA are the major investors in Bellwether. The two investors have also subscribed to additional shares amounting to $1.2 mn each.
Read the article in Business Standard.
Hyderabad-based Bellwether is India’s first microfinance venture capital fund. It was invested in 2005 and has invested till date Rs. 19 crores. So far, it has made 10 investments aggregating Rs. 27.5 crores in a wide variety of MFIs. Over 80% of its funds committed till now have been in the traditional microfinance markets of the four southern states. It is managed by its fund management company, Caspian Advisors Private Limited. Caspian is composed of a team of microfinance experts.
As of now, the Hivos-Triodos Fund of the Netherlands and the Gray Ghost Microfinance Fund of USA are the major investors in Bellwether. The two investors have also subscribed to additional shares amounting to $1.2 mn each.
Read the article in Business Standard.
The Times Group buys stake in Hyderabad-based IT company
Bennett, Coleman & Company Limited (BCCL), the parent company of The Times of India and The Economic Times, has acquired a stake in Hyderabad-based IT products company SatNav Technologies. SatNav is a pioneer in products in navigation, telematics and business infrastructure management. It was founded under the Satyam entrepreneur incubation program focusing on services and products. In 2004, SatNav took over the products developed by Satyam Navigation and is today an independent venture run by ex-Satyam employees. The company is expanding its customer base across the globe; it already has partners in eight countries, The company’s client list includes ICICI Bank, Genpact, Satyam, ISB, UBS and HSBC.
Read the article in The Economic Times.
Read the article in The Economic Times.
RPO company gets Rs. 150 crores from angel investors
Elixir Web Solutions, a recruitment process outsourcing (RPO) company, has received angel funding of Rs. 150 crores. It will invest over the next two years to set up a knowledge centre in Dehra Dun and for the acquisition of a mid-sized company in the US. The Rs. 20-crore company is growing at 250% year-on-year basis and is expecting to capture 10% of the Rs. 6000 crore-RPO market this year.
The company has invested Rs. 4 crores in Pune for setting up of our deliver centre. Over the next two years, the company will invest Rs. 60 crores in the Dehra Dun Software Technology Park of India (STPI) for setting up of a 2000-seater knowledge centre and the back office operations. It is also planning a delivery centre in Goa STPI.
The company is currently present in the US, UK, Canada and Australia through channel partners. It is now looking at establishing a greater global presence in the US through an acquisition of a mid-sized web solutions company with revenues of Rs. 30 crores and would announce the acquisition by August. By 2008, the company plans to set up its own delivery centre in Eastern Europe in Romania. The expansion includes ramping up of its headcount of 450 people to 600 people by the end of the fiscal. As for Pune, it will grow from 60 people to 120 people. Elixir caters to 14 verticals, which include IT/ ITeS, life sciences, media, research and analytic, aviation, FMCG, and logistics.
Read the article in Business Standard.
The company has invested Rs. 4 crores in Pune for setting up of our deliver centre. Over the next two years, the company will invest Rs. 60 crores in the Dehra Dun Software Technology Park of India (STPI) for setting up of a 2000-seater knowledge centre and the back office operations. It is also planning a delivery centre in Goa STPI.
The company is currently present in the US, UK, Canada and Australia through channel partners. It is now looking at establishing a greater global presence in the US through an acquisition of a mid-sized web solutions company with revenues of Rs. 30 crores and would announce the acquisition by August. By 2008, the company plans to set up its own delivery centre in Eastern Europe in Romania. The expansion includes ramping up of its headcount of 450 people to 600 people by the end of the fiscal. As for Pune, it will grow from 60 people to 120 people. Elixir caters to 14 verticals, which include IT/ ITeS, life sciences, media, research and analytic, aviation, FMCG, and logistics.
Read the article in Business Standard.
Alembic buys non-oncology division of Dabur Pharma
Alembic has acquired the domestic non-oncology formulation business of Dabur Pharma for a consideration of Rs. 159 crores. The acquisition will be funded through a combination of internal accruals and debt. The company may also exercise the option of diluting a small portion of its equity. The consideration of Rs. 159 crores is for the acquisition plus the actual net working capital.
Read the Indiainfoline.com article.
Read the Indiainfoline.com article.
M&M to start new round of talks to buy Tractorul
Mahindra & Mahindra Limited (M&M) will begin a fresh round of negotiations with the government of Romania to acquire state-owned tractor-maker Tractorul Brasov SA after talks broke down between the two parties some days ago (See Related Post).
The bid had collapsed after the Romanian government rejected its debt guarantees. The Romania government has approached M&M again with a fresh proposal regarding the debt issue. A team of M&M officials is likely to fly down to Romania in the next few weeks. M&M has urged the Romanian government to write off Tractorul’s past liability of €180 mn.
Read the article in DNA Money.
The bid had collapsed after the Romanian government rejected its debt guarantees. The Romania government has approached M&M again with a fresh proposal regarding the debt issue. A team of M&M officials is likely to fly down to Romania in the next few weeks. M&M has urged the Romanian government to write off Tractorul’s past liability of €180 mn.
Read the article in DNA Money.
Actis hikes open offer for Phoenix Lamps to Rs. 190
Business Standard reports that PE fund Actis has decided to increase the open offer price for Phoenix Lamps by 25% to Rs. 190 a share, following a directive by the Securities and Exchange Board of India (SEBI). The revised open will open on February 5 and close on February 24.
The mandatory 20% open offer was triggered after Actis bought the entire 37% stake in Phoenix Lamps from its promoters, the Gupta family, last year. The open offer was priced at Rs. 152 a share and was supposed to open on August 31 and close on September 19. Yes Bank was the adviser to Actis for the offer. Actis had agreed to pay Rs. 190 a share to the Guptas, 25% higher than the price of the open offer on account of non-compete fees. However, market regulator SEBI did not agree to this argument. Actis will now make the open offer at Rs. 190 to buy the shares of the remaining shareholders.
Related Post:
SEBI asks Actis to pay Phoenix Lamps’ minority shareholders same price as paid to promoters
The mandatory 20% open offer was triggered after Actis bought the entire 37% stake in Phoenix Lamps from its promoters, the Gupta family, last year. The open offer was priced at Rs. 152 a share and was supposed to open on August 31 and close on September 19. Yes Bank was the adviser to Actis for the offer. Actis had agreed to pay Rs. 190 a share to the Guptas, 25% higher than the price of the open offer on account of non-compete fees. However, market regulator SEBI did not agree to this argument. Actis will now make the open offer at Rs. 190 to buy the shares of the remaining shareholders.
Related Post:
SEBI asks Actis to pay Phoenix Lamps’ minority shareholders same price as paid to promoters
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