Monday, April 2, 2007

Moser Baer Photo Voltaic picks up 40% stake in Slovenia solar company Solarvalue for $10 mn; Warburg Pincus ups stake in Moser Baer

Moser Baer India, through group company Moser Baer Photo Voltaic has acquired 40% stake in Slovenia-based Solarvalue Proizvodnja. Moser Baer would acquire the stake from Germany-based Solarvalue AG, which currently holds 100% stake in the Slovenian company. Solarvalue Proizvodnja is involved in solar silicon production. The total value of investment stands at $10 mn, of which $6 mn is the initial commitment and the balance investment, is based on certain milestones.

Moser Baer Photo Voltaic is in the process of setting up a photo voltaic cell and module manufacturing project with an 80 MW capacity in India’s first renewable energy SEZ at Greater Noida. It has already concluded trials for 40 MW capacity and hopes to commission another 40 MW by the second half of next fiscal. Solarvalue plans to set up a capacity of over 4000 tonnes of solar grade silicon by end of 2008. With the acquisition Moser Baer Photo Voltaic now has a supply agreement for 40% of the output of the solar grid poly-silicon project.

Read more in The Economic Times article.

In a related development, affiliates of private equity investor Warburg Pincus have hiked their stake in Moser Baer to 33.75% through conversion of 47,500 Global Depository Receipts (GDRs). Woodgreen Investment, Bloom Investments, Ealing Investments, Randall Investments and Elm International – all affiliates of Warburg Pincus – have acquired an additional 4.26% stake in Moser Baer. Each GDR represented 100 underlying equity shares, leading to 4.75 mn equity shares. From around 329 mn shares representing 29.49% stake earlier, Warburg Pincus affiliates now holds approximately 376 mn shares.

More in The Economic Times article.

Tata Power to acquire 30% stake in Indonesian coal firm Bumi resources for $1.3 bn

Tata Power will pay $1.3 bn to buy stakes in Indonesian PT Bumi Resources Tbk's two coal mines. Tata Power will acquire 30% stakes in Bumi's PT Kaltim Prima Coal and PT Arutmin Indonesia, two of Indonesia's largest coal mines, and a related trading company. The two coal mines produced 53.5 mn tonnes of coal per year in 2006.

Tata Power will also buy 10 mn tonnes of coal from Kaltim Prima Coal for two proposed power projects with a capacity to generate a total of 7000 MW. The plants will be built on the west coast of India over the next five years.

Tata Power generates 2300 MW of power in the country and has been eyeing coal reserves in Australia, Indonesia and South Africa to tie up supplies for its proposed 15,000 MW-capacity expansion plan. Tata Power needs about 21 mn tonnes of imported coal. The company expects that 50% of the demand will be addressed through this deal.

Tata Power has three months to complete the transaction.

Read more in The Economic Times article.
Related Post:
REL, Tata Power looking at Indonesian coal company Bumi
Tata Power to bid $1.6 bn for Indonesian coal mine Bumi Resources

Chennai-based Xtenza Solutions to form JV in Malaysia with Petrogold

Chennai-based software company Xtenza Solutions has formed a IT JV with Malaysian trading company Petrogold to tap the growing IT market in Malaysia. Petrogold would hold 51% stake in the joint venture.

Xtenza is a subsidiary of US-based Softnet Solutions, which picked up 50% stake in the company from its promoters who now hold the remaining stake. Softnet is headed by an Indian settled in the US and with about 70 employees, has revenues of about $10 mn. It offers solutions that make an organization’s supply chain more efficient by automating some of its transactions with suppliers, logistics providers, dealers and finance agents. Its major domestic customers include Hindustan Zinc, Sterlite, Eicher and L&T.

The joint venture would be based in Kuala Lumpur and would also target Singapore, Brunei, China and Indonesia, with initial thrust coming from Malaysian companies. The company is set to go on-stream by third week of April.

Read The Economic Times article for more details.

JP Morgan PE fund to invest Rs. 250 crores in railway engineering firm

New York-based private equity firm JP Morgan One Equity is acquiring 26% stake in Hyderabad-based Patil Infrastructure Holding for around Rs. 250 crores, valuing the firm at around Rs. 1000 crores. The announcement is expected in a couple of weeks.

Patil Infrastructure focuses on railway track engineering. The group has its activities spread in manufacturing of concrete sleepers, rail fittings for normal lines, elevated and underground track for metro rail, switches and crossings, ballast-less track suitable for high-speed lines, bridges, tunnels and aprons.

Read more in The Economic Times article.

Hong Kong-based Kerry Logistics buys 51% stake in Chennai company RFF

Hong Kong-based logistics firm Kerry Logistics Network has picked up a 51% equity stake in Chennai-based logistics company Reliable Freight Forwarders for an undisclosed sum. The Indian promoters will hold 49% in the company now renamed as Kerry Reliable Logistics.

Though the deal has been announced recently, Kerry Reliable Logistics has been in operation in India since October 2006. The focus of Kerry Reliable Logistics in India will be mainly on establishing bonded warehouses and distribution centres. The company plans to establish 2-5 warehouses and distribution centres and the entire exercise will be backed by the Hong Kong company’s IT systems and solution infrastructure. The company will largely look at opportunities in providing four main services – products, sourcing, distribution and project logistics. It hopes to clock revenues to the tune of Rs. 100 crores in 2007-08.

Kerry Logistics Network is part of the Hong Kong-based KUOK Group with diversified interests in logistics, property, hotels & resorts. The 10-year old Reliable Freight Forwarders is part of the Indev Group engaged in providing CFS, transportation, warehousing and container repair services.

Read the article in The Economic Times.