Global investment bank Morgan Stanley is close to picking up 15-20% stake in IHHR Hospitality for $35-40 mn. IHHR owns the Ananda and Ista brands of spas and hotels. It is currently in the process of expanding its footprint in Delhi, Hyderabad, Pune and Ahmedabad with plans to have nine properties under the Ista brand over the next three years. Morgan Stanley will have a position on the board of the company,
The company first set up its flagship property Ananda in the Himalayas in 1998. The second spa resort, Shanti Ananda Maurice, was opened in Mauritius late last year. IHHR forayed into the business hotel segment in April 2006 by opening Ista Bangalore.
Read more in The Economic Times article.
Monday, April 9, 2007
Malaysia's Astro to invest $166 mn in Sun TV for 20% stake
The Economic Times reports that Malaysian direct-to-home (DTH) service provider Astro will invest $166 mn (€124.1 mn) for a 20% stake in Sun Direct TV, promoted by the Sun TV Network, one of India's largest television station operators. The new venture aims to provide direct-to-home satellite TV services in India. It expects the new company to incur losses for the first five years, but aims to capitalize on India's satellite TV market which is expected to add another 150 mn households in the next decade.
Macquarie Bank planning a $1 bn India infrastructure fund
Australia-based Macquarie Bank is setting up a $1 bn India-centric infrastructure fund. Macquarie is one of the largest managers of infrastructure funds in the world, and manages infrastructure assets worth $22 bn worldwide. It is likely to set up the fund through its infrastructure subsidiary, Macquarie Infrastructure Group (MIG). Though the bank is yet to make a formal announcement regarding the fund, it has reportedly already started evaluating deals and projects.
Macquarie is the second global financial services provider looking at an India-dedicated infrastructure fund. The first has been announced by Citigroup which is rolling out a dedicated infrastructure fund in partnership with IDFC and the backing of the Ministry of Finance.
Macquarie Bank started its Indian operations in 2005 and is currently focusing on its securities and research business. The proposed fund would mark its foray in asset management in India. While Macquarie’s infrastructure funds are listed on the Australian Stock Exchange, its proposed India-based entity may not list on the Indian bourses. The company recently started its infrastructure funds in Singapore and Korea both of which are listed on the local bourses.
Read more in The Economic Times article.
Related Post:
Citigroup, Blackstone, IDFC, IIFC tie-up for $5bn India Infrastructure Financing Initiative fund
Macquarie is the second global financial services provider looking at an India-dedicated infrastructure fund. The first has been announced by Citigroup which is rolling out a dedicated infrastructure fund in partnership with IDFC and the backing of the Ministry of Finance.
Macquarie Bank started its Indian operations in 2005 and is currently focusing on its securities and research business. The proposed fund would mark its foray in asset management in India. While Macquarie’s infrastructure funds are listed on the Australian Stock Exchange, its proposed India-based entity may not list on the Indian bourses. The company recently started its infrastructure funds in Singapore and Korea both of which are listed on the local bourses.
Read more in The Economic Times article.
Related Post:
Citigroup, Blackstone, IDFC, IIFC tie-up for $5bn India Infrastructure Financing Initiative fund
JP Morgan to form asset reconstruction business with Yes Bank, Bank of Baroda, Bank of India and Union Bank
JP Morgan is setting up an asset reconstruction company in India along with public sector banks Bank of India, Bank of Baroda, Union Bank of India and private sector bank Yes Bank. The group has applied to the Reserve Bank of India (RBI) for its approval. JP Morgan will act as the knowledge partner in the joint venture, which will have an initial capital of Rs. 100 crores. If and when the RBI's approval is received, the four India banks will form a company in which JP Morgan will pick up a 27% equity stake. For this, it will have to get the permission of the Foreign Investment Promotion Board, since the investment will be treated as foreign direct investment. At present, the cap on FDI in asset reconstruction companies is at 49%.
Union Bank was earlier supposed to partner Standard Chartered Bank in the latter’s ARC set-up. However, due to delays, Union Bank has now switched over to the JP Morgan side of the business.
Read more in the Business Standard article.
Related Post:
JP Morgan to set up asset reconstruction business in India
Union Bank was earlier supposed to partner Standard Chartered Bank in the latter’s ARC set-up. However, due to delays, Union Bank has now switched over to the JP Morgan side of the business.
Read more in the Business Standard article.
Related Post:
JP Morgan to set up asset reconstruction business in India
Credit Suisse poaches Ritchie Capital senior management for heading Asian private equity ops
Business Standard reports that Credit Suisse has hired Harjit Bhatia from Ritchie Capital to head Credit Suisse Private Equity Asia and has roped in a team of six professionals for the same. The team comprises Hemang Raja, Rakesh Mital, Soma Ghosal Dhar, Isiah Zhang and Imelda Tham. Heath Zarin, who started Credit Suisse’s Asian private equity investment activities, will also be joining the team. Harjit Bhatia, Rakesh Mital, Isiah Zhang and Imelda Tham will be based in Hong Kong, and Hemang Raja and Soma Ghosal will be based in Mumbai.
Harjit Bhatia is joining as managing partner and head of Credit Suisse Private Equity Asia. He was till recently chairman and CEO, Asia Pacific of Ritchie Capital Management in Hong Kong. Hemang Raja and Rakesh Mital are joining as managing directors. Prior to joining Credit Suisse Hemang Raja was the head of India operations for Ritchie Capital. While Rakesh Mital worked closely with Bhatia at Ritchie Capital. Also joining the team are Soma Ghosal Dhar, previously a director at Ritchie Capital in India; Isiah Zhang worked at McKinsey in China prior to joining Ritchie Capital; and Imelda Tham, who worked at the Carlyle Group in Washington DC in real estate acquisitions before Ritchie Capital.
Harjit Bhatia is joining as managing partner and head of Credit Suisse Private Equity Asia. He was till recently chairman and CEO, Asia Pacific of Ritchie Capital Management in Hong Kong. Hemang Raja and Rakesh Mital are joining as managing directors. Prior to joining Credit Suisse Hemang Raja was the head of India operations for Ritchie Capital. While Rakesh Mital worked closely with Bhatia at Ritchie Capital. Also joining the team are Soma Ghosal Dhar, previously a director at Ritchie Capital in India; Isiah Zhang worked at McKinsey in China prior to joining Ritchie Capital; and Imelda Tham, who worked at the Carlyle Group in Washington DC in real estate acquisitions before Ritchie Capital.
Mid-cap PE fund Aureos Capital to acquire strategic minority stake in telecom firm Ordyn Technologies for $8-10 mn
Aureos Capital, a global mid-cap private equity fund managing small and medium enterprise (SME) assets worth over $600 mn worldwide, will make its third Indian investment by acquiring a strategic minority stake for $8-10 mn in Bangalore-based, six-year old telecom equipment company Ordyn Technologies. Aureos’ investment is part of Ordyn’s fund-raising to bolster its R&D. Aureos is leading the investment into the company with India Infoline pumping in another $3-4 mn (Rs. 20 crores).
Ordyn offers product line in the optical networking space, a niche area but big enough for nearly 3-4 large players. Tejas Networks is the only other Indian player in this market, competing with global players like Huawei, Febcom among others. Ordyn with a client list that include names like Reliance, Ericsson and Nokia raked in revenues of Rs. 55 crores in its first commercial year FY 2007 and hopes to cross Rs. 200 crores by FY 2009.
Ordyn intends to use the proceeds of this round of funding for scaling up its operations including increased R&D for designing next generation products and for expanding its international operations. The company currently spends Rs. 15-20 crores in R&D initiatives.
Read The Economic Times article.
Ordyn offers product line in the optical networking space, a niche area but big enough for nearly 3-4 large players. Tejas Networks is the only other Indian player in this market, competing with global players like Huawei, Febcom among others. Ordyn with a client list that include names like Reliance, Ericsson and Nokia raked in revenues of Rs. 55 crores in its first commercial year FY 2007 and hopes to cross Rs. 200 crores by FY 2009.
Ordyn intends to use the proceeds of this round of funding for scaling up its operations including increased R&D for designing next generation products and for expanding its international operations. The company currently spends Rs. 15-20 crores in R&D initiatives.
Read The Economic Times article.
The Tata Group restructures shareholding pattern in North Indian Plantation Operations
The shareholding pattern of Amalgamated Plantations Private Limited (APPL), the new company formed by Tata Tea after restructuring its North Indian Plantation Operations (NIPO), is close to finalization. The Tata Group will hold 33-35% in APPL through Tata Investment Corporation (15%) and Tata Tea (18-20%). IL&FS and the World Bank private equity firm IFC will hold 20% stakes each in APPL, while consultancy firm Globally Managed Services will hold 12%. The balance 13-15% will be held by employees and workers of the company.
The company has received SEBI approval for the formation of APPL. Once we get shareholders’ approval, the company will come into existence with effect from April 1, 2007. The transaction process, however, remains to be completed.
Read more in The Economic Times article.
Related Post:
Tata Tea to divest stake in tea plantations to IFC, IL&FS, workers
The company has received SEBI approval for the formation of APPL. Once we get shareholders’ approval, the company will come into existence with effect from April 1, 2007. The transaction process, however, remains to be completed.
Read more in The Economic Times article.
Related Post:
Tata Tea to divest stake in tea plantations to IFC, IL&FS, workers
US paints company Sherwin-Williams to acquire Nitco Paints
Cleveland-based, US paint major Sherwin-Williams marked its maiden entry into the fast-growing Indian paints market by agreeing to acquire Nitco Paints, an unlisted unit of Nitco Tiles, for an undisclosed amount, assumed to be on the lower side of Rs. 200 crores. Sherwin-Williams has also paid an undisclosed sum towards maintaining ties with flagship company and group concern Nitco Tiles. Nitco Tiles is expected to benefit due to the symbiotic relationship between tiles and paints and a common customer base. The Indian management would be retained for now to enable Sherwin-Williams to have a better understanding of the local market. Later, the company would explore the products and technologies to be introduced in India.
Nitco Paints makes and sells exterior specialty paints in western India through a network of about 3,000 dealers. It posted sales of Rs. 80 crores last year. The acquisition will give the US-based company an established presence in the Indian paint industry, which has historically grown by 1.5 to 2 times of the Indian GDP on a year-to-year basis.
Sherwin-Williams is present in other emerging markets such as China, Uruguay, Brazil and Argentina. The company has a distribution network in 20 other countries through wholly-owned subsidiaries, joint ventures and licenses of technology, trademarks and trade names.
Read The Economic Times and the Business Standard articles.
Related Post:
Sherwin Williams pursuing business options with Nitco Paints
Nitco Paints makes and sells exterior specialty paints in western India through a network of about 3,000 dealers. It posted sales of Rs. 80 crores last year. The acquisition will give the US-based company an established presence in the Indian paint industry, which has historically grown by 1.5 to 2 times of the Indian GDP on a year-to-year basis.
Sherwin-Williams is present in other emerging markets such as China, Uruguay, Brazil and Argentina. The company has a distribution network in 20 other countries through wholly-owned subsidiaries, joint ventures and licenses of technology, trademarks and trade names.
Read The Economic Times and the Business Standard articles.
Related Post:
Sherwin Williams pursuing business options with Nitco Paints
Subscribe to:
Posts (Atom)