Ahmedabad-based Pradip Overseas Limited, a manufacturer of household linens, is forming a JV with a US-based textile company for branding and marketing its home linen in the overseas markets. The size of the JV is around Rs. 200 crores and will be finalized by Pradip next month by signing a Memorandum of Understanding with the US company. The name of the American company has not been disclosed.
Pradip Overseas is also planning a domestic JV with at least two Mumbai-based companies. The companies would look after the branding and marketing activities of Pradip in the domestic market. The domestic JVs will also be worth Rs. 200 crores.
Pradip Overseas is planning to raise funds for its Green Field Textile Park in Ahmedabad in the debt-equity ratio of 60:40. Of the equity, 20% would be raised from the capital markets for which it plans to come out with a public issue of Rs. 200 crores in the next six months. As of December 2006, the turnover of the company was Rs. 280 crores.
Read the Business Standard article.
Wednesday, February 14, 2007
US-based boutique hotel brokerage Molinaro Koger plans $300 mn India-dedicated hotel fund
The Economic Times reports that Molinaro Koger, a US-based hospitality advisory and brokerage firm, is raising a $250-$300 mn fund for investing in hotel assets in India. Molinaro Koger has facilitated around $3 bn of hotel transactions and funding globally in 2006. it will launching the fund towards the end of 2007. The fund would largely target greenfield hospitality projects, especially those in the under-served markets such as religious tourist hotspots and beaches. The fund will be managed by Molinaro Koger’s Capital Markets Group. Molinaro Koger opened its India office in January this year in Mumbai and is in the process of ramping up the India team that would include hospitality advisors, analysts and brokers. Abhijit Das will be the Managing Director of Molinaro Koger India.
Lanco Infrastructure and Jindal Steel & Power buy Globeleq Singapore
Lanco Infrastructure and Jindal Steel & Power Limited (JSPL) have acquired Globeleq’s Indian assets by acquiring Globeleq Singapore. Lanco and JSPL will now implement the Rs. 16,000 crore-Ultra Mega Power Project (UMPP) in Sasan. Lanco and JSPL have purchased 60% and 40% shareholding, respectively, in the Singapore-based subsidiary of the investment arm of Department for International Development, the development agency of the British government. The consideration for the buyout has not been disclosed; Lanco management says that it is nominal.
Lanco has roped in Jindal Steel to address the concerns of the government over the successful completion of the project in the light of Globeleq’s exit from the consortium. Around two months ago, the Lanco-Globeleq consortium had emerged as the winning bidder of the Sasan project. Lanco had 30% stake, while Globeleq had 70% stake in the consortium. With the acquisition of Globeleq’s stake, Lanco will have 72% interest, direct and indirect, over the Sasan project while JSPL will have 28% stake. JSPL reserves the right to scale up its holding to 49% in the project in five years. The shareholders will chip in Rs. 3200 crores as equity contribution towards the project while the remaining Rs. 16,000 crores will be generated through debts. Lanco may also look at other assets of Globeleq which have been put up for sale.
Read the Business Standard article.
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Lanco has roped in Jindal Steel to address the concerns of the government over the successful completion of the project in the light of Globeleq’s exit from the consortium. Around two months ago, the Lanco-Globeleq consortium had emerged as the winning bidder of the Sasan project. Lanco had 30% stake, while Globeleq had 70% stake in the consortium. With the acquisition of Globeleq’s stake, Lanco will have 72% interest, direct and indirect, over the Sasan project while JSPL will have 28% stake. JSPL reserves the right to scale up its holding to 49% in the project in five years. The shareholders will chip in Rs. 3200 crores as equity contribution towards the project while the remaining Rs. 16,000 crores will be generated through debts. Lanco may also look at other assets of Globeleq which have been put up for sale.
Read the Business Standard article.
Related Posts:
Reliance Energy to bid for Globeleq's global assets
Tata Power, Kalpataru, Lanco to join Reliance Energy in bidding for Globeleq’s assets
Citigroup Property Investors to invest $120 mn in Nitesh Estates’ luxury hotels business
New York-based Citigroup Property Investors (CPI) will invest around $120 mn in Bangalore-based Nitesh Estates' luxury hotels. CPI would partner with Nitesh Estates on the latter’s forthcoming hotel properties. CPI reportedly also has committed itself to 30% in the group's recently announced $100 mn 5-star hotel property on Bangalore's Residency Road. Nitesh Estates is planning to build four more hotels in Goa, Chennai, Hyderabad and Kochi. The company is believed to have acquired land in Goa and is in the process of acquiring land in other locations. CPI has already invested close to $250 mn in India and plans to invest a further $500 mn. Of this, around 40% is expected to be invested in hotels and service apartments. Nitesh Estates had earlier received a PE funding of $100 mn from New York-based Siachen Capital for an undisclosed stake and was also known to have divested a 25% stake for $55-60 mn to New York-based hedge fund Och-Ziff Capital Management Group.
Read the Business Standard article.
Read the Business Standard article.
Iceland-based generics pharmaco Actavis acquires Sanmar Group's API division
Iceland-headquartered generics pharma company Actavis has acquired the API (active pharmaceutical ingredient) manufacturing division of Sanmar Specialty Chemicals Limited (SSCL), a subsidiary of the Chennai-based Sanmar Group, for an undisclosed sum. The division will give Actavis a wholly-owned, FDA-approved facility as well as the ability to develop and manufacture its own APIs. Prior to the SSCL acquisition, Actavis has concluded two more acquisitions in India: Chennai-based Grandix Pharmaceuticals in December 2006 and Bangalore-based CRO (Contract Research Organisation) Lotus Laboratories in February 2005.
The SSCL division is located near Chennai and supplies APIs to international pharmaceutical companies, mostly in Europe and the US. The division currently manufactures 15 products and employs approximately 70 people. Actavis has also entered into a service agreement with SSCL to provide Actavis with API research and development services at SSCL’s research facilities. Actavis already has a wholly-owned, fully-operational API development centre set up in Bangalore. Actavis now has over 620 people employed in India, with operations in Chennai, Bangalore and Hyderabad. Actavis now has a total of 30 API projects under development in India.
Read The Economic Times and Business Standard articles.
The SSCL division is located near Chennai and supplies APIs to international pharmaceutical companies, mostly in Europe and the US. The division currently manufactures 15 products and employs approximately 70 people. Actavis has also entered into a service agreement with SSCL to provide Actavis with API research and development services at SSCL’s research facilities. Actavis already has a wholly-owned, fully-operational API development centre set up in Bangalore. Actavis now has over 620 people employed in India, with operations in Chennai, Bangalore and Hyderabad. Actavis now has a total of 30 API projects under development in India.
Read The Economic Times and Business Standard articles.
Tuesday, February 13, 2007
Tata Group not to exercise government call option; will hike VSNL stake via market purchase
The Tata Group will increase its stake in group company Videsh Sanchar Nigam Limited (VSNL) through market acquisitions instead of buying the government’s 26.12% residual stake in VSNL through the exercise of a call option.
The Tata Group has a combined effective shareholding of over 50% in VSNL. The government divested VSNL in 2001, with Tatas acquiring the majority stake in the company. However, the government was holding on to 26.12% stake in the company that gave it a controlling power and two nominees on its board.
Panatone Finvest (a Tata Group entity) holds 40.7% in VSNL, while Tata Sons has 8.51%, Tata Power holds 0.09% and Government of India holds 26.12%. Institutional investors and individuals hold the remaining stake in the company. The government was earlier ready to dispose of the residual stake, but had asked for a golden share in the company. A golden share means that the government would sell its 26.12 per cent stake in the company and in return ask for a single share with controlling stake. This was not acceptable to the Tatas.
Read the Business Standard article.
The Tata Group has a combined effective shareholding of over 50% in VSNL. The government divested VSNL in 2001, with Tatas acquiring the majority stake in the company. However, the government was holding on to 26.12% stake in the company that gave it a controlling power and two nominees on its board.
Panatone Finvest (a Tata Group entity) holds 40.7% in VSNL, while Tata Sons has 8.51%, Tata Power holds 0.09% and Government of India holds 26.12%. Institutional investors and individuals hold the remaining stake in the company. The government was earlier ready to dispose of the residual stake, but had asked for a golden share in the company. A golden share means that the government would sell its 26.12 per cent stake in the company and in return ask for a single share with controlling stake. This was not acceptable to the Tatas.
Read the Business Standard article.
Indian raises $500 mn loan from Germany-based KfW Bank
State-owned carrier Indian has raised a loan of $500 mn (Rs. 2250 crores) from Germany-based KfW IPEX-Bank to finance the acquisition of 43 Airbus aircrafts. The airline has commissioned the bank to finance the first batch of 10 aircrafts. Repayment tenure of the loan is 12 years. Indian had placed an order for the purchase of 43 Airbus aircraft last year, the first of which was delivered in October 2006. The public sector airline will use these aircraft to extend its network beyond south-east Asia and the Gulf region.
The KfW bank has also signed for a 50:50 joint underwriting agreement with the Germany-based HSH Nordbank. Subsequent syndication in the international bank market is envisaged by the underwriters. The KfW bank specialises in financing of complex transport and infrastructure investments.
Read more in the article in The Economic Times.
The KfW bank has also signed for a 50:50 joint underwriting agreement with the Germany-based HSH Nordbank. Subsequent syndication in the international bank market is envisaged by the underwriters. The KfW bank specialises in financing of complex transport and infrastructure investments.
Read more in the article in The Economic Times.
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