The 140-year-old construction firm, the Shapoorji Pallonji Group has been bitten by the private equity bug. It is raising around $400 mn from private equity investors to fund its real estate ventures. Three government-owned PE funds, Government of Singapore Investment Corporation (GIC), Dubai Capital and Abu Dhabi Investment Authority (ADIA), will pick up 30-40% equity in each project. The group is rolling out at least half-a-dozen projects in various cities with a total project cost of $1-1.2 bn.
Shapoorji Pallonji has a land bank of 2000 acres of prime land in cities like Mumbai, Pune, Chennai, Kolkata, Gurgaon, Nagpur and Mysore. It is currently developing around 550 acres (around 50 mn sq. ft.) of residential and commercial space. The projects include IT parks hotels, shopping malls and residential properties. All these projects are FDI (foreign direct investment)-compliant projects, and are located at prime areas, which will attract substantial premium. Each project is being developed by a different special purpose vehicle (SPV), and equity by SP group is expected to be rooted through one company.
Read The Economic Times article for more.
Friday, March 9, 2007
Morgan Stanley, Citigroup, Actis buy 6% in NSE
Global banks Morgan Stanley and Citigroup and private equity firm Actis today collectively bought a 6% stake in the National Stock Exchange (NSE) for an undisclosed sum. The stake sale takes the combined foreign direct investment in the NSE to 26%, the maximum limit for foreign ownership in domestic stock exchanges. Morgan Stanley will buy 3% in the NSE, while Citigroup and Actis will acquire 2% and 1%, respectively.
Domestic financial institutions IDBI (2%), State Bank of India (1.5%), SBI Capital Markets (0.50%), Corporation Bank (0.265%), Union Bank of India (0.125%), Bank of Baroda (0.89%), Canara Bank (0.385%) and Oriental Bank of Commerce (0.335%) are selling their stakes to the three new investors.
Early this year, the parent company of the New York Stock Exchange (NYSE) and three global financial institutions, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund, bought 20% in NSE, valuing the exchange at $2.3 bn. NYSE had paid $115 mn for its 5% stake. Recently, Germany’s Deutsche Boerse and Singapore Exchange (SGX) bought 5% stake each in the Bombay Stock Exchange (BSE) for just over $ 42 mn. Yesterday, it was reported that the Calcutta Stock Exchange also plans to sell a 51% stake and has invited bids from investors and strategic partners, in keeping with Indian regulations that require broker-owned exchanges to reduce the stake held by members to 49%, in a bid to make exchanges professionally run. PricewaterhouseCoopers is the advisor to the proposed sale.
Read the Business Standard article.
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NYSE, Goldman Sachs, General Atlantic, SAIF to buy 26% in NSE
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Domestic financial institutions IDBI (2%), State Bank of India (1.5%), SBI Capital Markets (0.50%), Corporation Bank (0.265%), Union Bank of India (0.125%), Bank of Baroda (0.89%), Canara Bank (0.385%) and Oriental Bank of Commerce (0.335%) are selling their stakes to the three new investors.
Early this year, the parent company of the New York Stock Exchange (NYSE) and three global financial institutions, General Atlantic, Goldman Sachs and Softbank Asian Infrastructure Fund, bought 20% in NSE, valuing the exchange at $2.3 bn. NYSE had paid $115 mn for its 5% stake. Recently, Germany’s Deutsche Boerse and Singapore Exchange (SGX) bought 5% stake each in the Bombay Stock Exchange (BSE) for just over $ 42 mn. Yesterday, it was reported that the Calcutta Stock Exchange also plans to sell a 51% stake and has invited bids from investors and strategic partners, in keeping with Indian regulations that require broker-owned exchanges to reduce the stake held by members to 49%, in a bid to make exchanges professionally run. PricewaterhouseCoopers is the advisor to the proposed sale.
Read the Business Standard article.
Related Posts:
NYSE, Goldman Sachs, General Atlantic, SAIF to buy 26% in NSE
Deutsche Borse buys 5% stake in BSE for Rs. 189 crores
Singapore Stock Exchange takes 5% stake in BSE for $42.7 mn
Goldman Sachs to buy stake in Hyderabad-based Pennar Cements
Global investment bank Goldman Sachs may buy a strategic stake in the Hyderabad-based Pennar Cements. Pennar Cements has a cement capacity of 4.4 mn tonnes and has been valued at Rs. 2000 crores. Goldman Sachs is reportedly eyeing a stake in Pennar Cements due to the potential of the sector which is poised for explosive growth in the next 3-5 years. Established in 1994, Pennar Cements has two plants with a capacity of 1.7 mn tonnes each. The company also has a 1 mn tonne plant at Nalgonda to primarily cater to demand in the south and south-eastern parts of the country.
Read the Hindustan Times article.
Read the Hindustan Times article.
M&M wins Punjab Tractors bid; to pay Rs. 951 crores for 43.5% stake
Mahindra & Mahindra (M&M), the country’s largest tractor company, has turned out to be the winner in the Punjab Tractors stake sale. M&M will shell out Rs. 360 per share for a 43.5% stake, valuing Punjab Tractors at around Rs. 2200 crores. M&M will end up paying a total consideration of a little over Rs. 951 crores in an all-cash deal to buy out private equity firm Actis and the Burman family of Dabur from Punjab Tractors. Actis will gross Rs. 634 crores from the sale of its 29% in Punjab Tractors, while the Burman family will get around Rs. 317 crores for its 14.5% stake.
The final round of bidding boiled down to a contest between M&M and Ashok Leyland. Initially, Ashok Leyland was known to have offered Rs. 320 per share of PTL while M&M was said to have made offers in the range of Rs. 330-335 per share. M&M also offered a part-cash, part-stock option but finally clinched the deal when it upped its all-cash offer to Rs 360 per share. M&M will now have to make an open offer to buy an additional 20% in Punjab Tractors, as per SEBI regulations.
Read the article in The Economic Times.
The final round of bidding boiled down to a contest between M&M and Ashok Leyland. Initially, Ashok Leyland was known to have offered Rs. 320 per share of PTL while M&M was said to have made offers in the range of Rs. 330-335 per share. M&M also offered a part-cash, part-stock option but finally clinched the deal when it upped its all-cash offer to Rs 360 per share. M&M will now have to make an open offer to buy an additional 20% in Punjab Tractors, as per SEBI regulations.
Read the article in The Economic Times.
Flemingo Duty Free Shops sells 15% stake to Citigroup Venture Capital International; awaits regulatory nod
Citigroup Venture Capital International will acquire 15% stake in Flemingo Duty Free Shops Private Limited. Flemingo runs duty-free shops at various airports and seaports. The deal is valued at more than Rs. 100 crores, as per data available from Foreign Investment Promotion Board (FIPB).
Flemingo would initially issue convertible preference shares to Citigroup for about Rs. 100 crores. These preference shares would be converted into equity at a later date for a premium. Citigroup’s shareholding in Flemingo would be up to a maximum of 15% of the paid-up equity of the company.
Flemingo has sought FIPB approval to issue 1 mn convertible preference shares for Rs. 1000 each to Citigroup. The green signal from the Board is yet to materialize since the Finance Ministry plans to go into details of the deal.
FIPB had deferred Flemingo’s proposal pending completion of investigation and due action by revenue department. Currently, Flemingo International, a company based in British Virgin Islands, holds 51.22% equity stake in Flemingo while various NRIs hold 24.87% stake. After conversion of Citigroup’s preference shares, Flemingo International, NRIs and Citigroup would respectively hold 43.54%, 21.14% and 15% in Flemingo, taking the total FDI to 79.68%.
Read more in The Economic Times article.
Flemingo would initially issue convertible preference shares to Citigroup for about Rs. 100 crores. These preference shares would be converted into equity at a later date for a premium. Citigroup’s shareholding in Flemingo would be up to a maximum of 15% of the paid-up equity of the company.
Flemingo has sought FIPB approval to issue 1 mn convertible preference shares for Rs. 1000 each to Citigroup. The green signal from the Board is yet to materialize since the Finance Ministry plans to go into details of the deal.
FIPB had deferred Flemingo’s proposal pending completion of investigation and due action by revenue department. Currently, Flemingo International, a company based in British Virgin Islands, holds 51.22% equity stake in Flemingo while various NRIs hold 24.87% stake. After conversion of Citigroup’s preference shares, Flemingo International, NRIs and Citigroup would respectively hold 43.54%, 21.14% and 15% in Flemingo, taking the total FDI to 79.68%.
Read more in The Economic Times article.
Indian management conducts buyout of Whyte & Mackay’s Indian operations
The Indian management of Scotch giant Whyte & Mackay’s Indian subsidiary Kyndal India has conducted a management buyout of the latter. The MBO was led by the Indian chief Siddharth Banerji. Mr. Banerji was part of the management buyout of Whyte & Mackay in 2001, then backed by current owner of Whyte & Mackay Mr. Vivian Immerman, who later took charge of the Scotch major. Mr. Banerji has acquired Kyndal India giving him control over the regional distribution of global spirits brands like Remy Cointreau and Absolut Vodka amongst others. The details of the transaction have not been disclosed.
Kyndal will not be involved in the domestic operations of Whyte & Mackay. The deal comes in the wake of the Vijay Mallya-led UB Group’s advanced stages of talks to acquire Glasgow-based Whyte & Mackay for about $1 bn. It is learnt that the trading company Kyndal, which is former name of Whyte & Mackay, has a gross turnover of about Rs. 80 crores.
Kyndal would now be positioned as a brand distribution and marketing company focusing on the emerging lifestyle segments of the premium spirits market. Besides Remy and Absolut, Kyndal will also handle the malt spirits portfolio of another Scotch major Morrison Bowmore, which is controlled by Japan’s Suntory. Kyndal is also expected to unveil partnerships with Dutch liqueur company Lucas Bols and a not-yet revealed French entity to bring in premium brandy. The company has bought out the regional brand rights of economy scotch brand Kilt, which is likely to be locally bottled sometime in future.
Read more in The Economic Times article.
Kyndal will not be involved in the domestic operations of Whyte & Mackay. The deal comes in the wake of the Vijay Mallya-led UB Group’s advanced stages of talks to acquire Glasgow-based Whyte & Mackay for about $1 bn. It is learnt that the trading company Kyndal, which is former name of Whyte & Mackay, has a gross turnover of about Rs. 80 crores.
Kyndal would now be positioned as a brand distribution and marketing company focusing on the emerging lifestyle segments of the premium spirits market. Besides Remy and Absolut, Kyndal will also handle the malt spirits portfolio of another Scotch major Morrison Bowmore, which is controlled by Japan’s Suntory. Kyndal is also expected to unveil partnerships with Dutch liqueur company Lucas Bols and a not-yet revealed French entity to bring in premium brandy. The company has bought out the regional brand rights of economy scotch brand Kilt, which is likely to be locally bottled sometime in future.
Read more in The Economic Times article.
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