Cummins buys out Tata Group’s stake in Tata Holset

The $11.4 bn-Cummins, Inc. will acquire the stake held by the Tata Group companies in Tata Holset, its over 12-year old 50:50 JV for an undisclosed sum. It has been rechristened as Cummins Turbo Technologies. The company manufactures turbo chargers for medium and heavy-duty diesel engines for power generation, off-highway and on-highway vehicles. The Tata stake in the JV was held by Tata Motors, Tata Industries and Tata International.

Cummins recently announced a unified branding strategy to align its family of businesses under the Cummins brand. Following this new initiative, Tata Holset will be renamed and re-branded as Cummins Turbo Technologies.

Cummins, Inc. has another equal joint venture with the Tata Group called Tata Cummins, based in Jamshedpur. It manufactures the Cummins B series of engines and will not be affected by equity changes in Tata Holset / Cummins Turbo Technologies.

Read more in The Economic Times article.

Spanish firm Gestamp to acquire 37.5% stake in TACO

Spain-based Gestamp Servicios SL will acquire 37.5 % stake in Automotive Stampings & Assemblies Limited, a Tata Group company for a consideration of around Rs. 36.31 crores. Gestamp would acquire up to 37.5% of the paid-up equity share capital of the company from one of the promoters, Tata AutoComp Systems Limited (TACO), and partly through an open offer to the shareholders at a price of Rs 94.96 per share.

Post acquisition, Gestamp along with TACO and Tata Industries Limited would become the promoters of the company. Yes Bank is acting as the financial advisor to Gestamp Servicios. After completion of the sale of shares as above, the company would become a joint venture of TACO and Gestamp. Gestamp and TACO would eventually have a 50:50 equity stake in the company.

Read The Economic Times article.

Avesthagen sells 20% stake for €25 mn

Bangalore-based integrated life sciences company Avestha Gengraine Technologies Limited (Avesthagen) has closed Series C of private equity fundraising of around €25 mn by divesting 20% equity to external investors. The investment values the company at € 115 mn (Rs. 667 crores). The investors in the company are Fidelity International (10%), the Limagrain Group of France (5%), Daninvest of the Danone Group (4.57%), and Bennett, Coleman & Company Limited (2.4%). The total foreign investment in the company is now over 31%. The existing investors of Avesthagen include ICICI Ventures, Cipla, Godrej Industries, Tata Industries and bioMerieux. The company has also commenced preparations for its initial public offering scheduled to hit the market by mid-2008.

The company commenced its operations as an agri-biotech company in 2001 and then moved on to become a healthcare technology company, pursing its vision of convergence of food, pharmaceuticals, and population genetics, leading to preventive personalized medicine. The other activity of the company has been agri-biotech product development of scientifically validated bioactive nutraceuticals, derived from Indian medicinal plants, as well as the development of bio-similar drugs. The company has four strategic business units: bio-pharmaceuticals, food for medicine (bio-nutritionals), seed for food (agri-biotech) and science and innovation. The company registered Rs. 1.1 crore in profit and Rs. 18 crore revenue in 2005-06.

The funds will be used for Avesthagen’s infrastructure expansion plans, including setting up of manufacturing units and research and development laboratories, and acquisition of technology companies to scale up production and marketing.

Read the article in Business Standard.