Trinity Capital makes another pre-IPO investment in Fortis Healthcare for Rs. 87 crores

UK-based private equity fund Trinity Capital has increased its stake in Ranbaxy group-promoted Fortis Healthcare Limited to 4% from 1%, through an additional investment of Rs. 87 crores in 6 mn equity shares of Fortis Healthcare. Earlier, in January 2007, Trinity had made an initial investment of Rs. 28 crores for 2 mn equity shares of Fortis Healthcare. The private placements have been in the run up to the initial public offer, to be announced by Fortis Healthcare, during the first quarter of the financial year 2007-08.

Fortis Healthcare currently has a network of 11 hospitals, primarily in North India, and 16 satellite and heart command centers (including one heart command center in Afghanistan). The hospitals include multi specialty hospitals as well as super-specialty centers, providing tertiary and quaternary healthcare to patients in areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care.

The book running lead managers to the issue are JM Morgan Stanley, Citigroup Global Markets and Kotak Mahindra Capital.

Read the article in Business Standard.

Textile firm RSWM picks up 48.17% in Cheslind Textiles for around Rs. 28 crores

Rajasthan Spinning and Weaving Mills (RSWM), an LNJ Bhilwara Group textile company, has acquired a 48.17% equity stake in Bangalore-based Cheslind Textiles from its promoters for Rs. 27.8 crores. Cheslind is a 100% export-oriented unit manufacturing cotton yarn with a turnover of about Rs. 120 crores. Post-acquisition, RSWM would become one of the top yarn manufacturers in terms of the number of spindles. ICICI Securities was the advisor for this transaction.

RSWM is also making an open offer for acquiring another 20% of Cheslind at a price of Rs. 25 per share, at a 16% premium to Cheslind’s closing market price on the bourses. A successful open offer would take the cumulative acquisition cost for 68.17% equity stake in Cheslind Textiles at Rs. 39.3 crores. The acquisition will be financed through internal accruals.

The acquisition brings in a basket of products including super fine count cotton yarns and would also provide RSWM with an established foothold in the international market. The deal would bring an additional 64,500 spindles under RSWM taking its total spindlage to about 360,000 spindles, pegging it amongst the top yarn manufacturers in the country.

Read the article in The Economic Times.
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Textile firm RSWM planning acquisitions in India, Europe

Torrent Pharma bids $5-6 bn for Merck's generics business; Ranbaxy pulls out

Two surprising developments have taken place with the Merck deal. Ahmedabad-based Torrent Pharmaceuticals has reportedly emerged as one of the aggressive bidders for German pharma major Merck’s generics business. Torrent has valued Merck Generics at a whopping $5-6 bn. Torrent has made the bid with the help of private equity funds. With this, Torrent joins the league of global pharma giants like Teva, Mylan Laboratories, Novartis and Actavis who are in vying for Merck's generics business. At the home turf, it is pitted against pharma companies Cipla and Ranbaxy.

Also, it has been learnt that Ranbaxy is pulling out of Merck bid on account of concerns of over-valuation. Ranbaxy was being advised by Goldman Sachs and Citigroup on the deal.

Opto Circuits to buy European medical equipment firm for around €16 mn

Bangalore-based Opto Circuits India Limited is planning to acquire a medical devices company in Western Europe. The name of the company has not been disclosed. The deal, estimated to be around €16 mn, is likely to be an all-cash deal and would most likely be concluded early in the next financial year.

The European company manufactures a wide range of balloon catheters assemblies and related products for coronary and other applications. Opto Circuits has a presence in the non-invasive medical devices segment.

In January 2006, Opto Circuits acquired Germany’s EuroCor GmbH for Rs. 60 crores. EuroCor designs and manufactures stents.

Read more in the DNA Money article.

Andhra state government housing firm Deccan Infra to list; to raise Rs. 2000 crores

Andhra Pradesh Housing Board (APHB) subsidiary, Deccan Infrastructure & Land Holdings Limited (DILH) will raise up to Rs. 2000 crores through an initial public offering, most likely to come out in June – July. The company will divest 15-20% equity. The Government of Andhra Pradesh holds 49% equity and the APHB 51% in DILH. Deccan Infra is into the development of integrated townships and urban infrastructure either on its own or through JVs with other public bodies and private-sector companies. The managers to the issue are JM Morgan Stanley, DSP Merrill Lynch and SBI Capital Markets.

Based on the track record of its parent and armed with a land bank of about 8000 acres, Deccan is valued at over Rs. 12,000 crores on the lower side. Property consultants Trammell Crow Meghraj and Cushman Wakefield are carrying out a valuation exercise on the land bank.

Read the article in DNA Money.