Bangalore-based silk fabric manufacturer Himatsingka Seide has concluded its 70% stake acquisition in Italian bed linen brand Giuseppe Bellora SpA. The valuation of the acquisition is €20 mn (Rs. 116 crores). The equity value of the transaction is €13 mn (Rs. 75.4 crores) while Bellora has a debt of €7 mn (Rs. 40.6 crores).
Established in 1883, Bellora has presence across leading European department stores along with brand stores. Himatsingka Seide plans to capture the value market taken by the retailers by opening Bellora stores in the US and European markets. Currently Bellora is retailed through 17 owned stores and 350 retail points.
In June 2006, Bellora closed down its own manufacturing facility for restructuring initiative. Henceforth the sourcing for the brand will be undertaken from Himatsingka's production facility at Hasan, Karnataka, which has a manufacturing capacity of 200 mn metres.
Continuing its acquisition strategy, Himatsingka is in talks with other bed linen brands in the US and UK, which are expected to be completed in a couple of months. During the quarter ended December 2006, Himatsingka Seide registered total income of Rs. 53 crores with a net profit of Rs. 15 crores.
Read the article in Business Standard.
Related Post: Himatsingka to acquire majority stake in Italian textile brand Bellora
Monday, March 5, 2007
Zicom eyes overseas acquisitions, venture capital funding
Zicom Electronic Security Systems Limited, a Rs. 100 crore, Mumbai-headquartered listed electronic security equipment maker, may conclude two overseas acquisitions, one in China and the other in a nearby country, by May-June 2007.
The acquisitions will be in the range of Rs. 30-35 crores each and will be funded through the company's internal accruals and proceeds of the $11 mn FCCB issue which it had floated in September 2005.
Zicom presently enjoys around an 18% market share in the domestic electronic security equipments segment. Zicom may acquire a 49% stake in a firefighting equipment manufacturing company in a nearby country. The acquired company enjoys an order-book position of Rs. 75 crores and its products will be introduced into the Indian market under the brand name of that company so that the high brand value of Zicom in the Indian electronic security space does not get diluted. In China, Zicom is looking at a JV or a complete buy-out of a firm manufacturing electronic security equipment.
Presently, Zicom sources its components from various players before assembling them into a product. Earlier, this business was mainly restricted to corporates but now it has expanded to cover many other segments as well such as railways, buses, airports and ports which would need highly sophisticated electronic security equipment to meet emerging threats.
The company is also scouting for venture capital funding to fund its retail foray. The company has already opened 11 shops showcasing its products and plans to open 20 more within the next two months.
Read The Economic Times article.
The acquisitions will be in the range of Rs. 30-35 crores each and will be funded through the company's internal accruals and proceeds of the $11 mn FCCB issue which it had floated in September 2005.
Zicom presently enjoys around an 18% market share in the domestic electronic security equipments segment. Zicom may acquire a 49% stake in a firefighting equipment manufacturing company in a nearby country. The acquired company enjoys an order-book position of Rs. 75 crores and its products will be introduced into the Indian market under the brand name of that company so that the high brand value of Zicom in the Indian electronic security space does not get diluted. In China, Zicom is looking at a JV or a complete buy-out of a firm manufacturing electronic security equipment.
Presently, Zicom sources its components from various players before assembling them into a product. Earlier, this business was mainly restricted to corporates but now it has expanded to cover many other segments as well such as railways, buses, airports and ports which would need highly sophisticated electronic security equipment to meet emerging threats.
The company is also scouting for venture capital funding to fund its retail foray. The company has already opened 11 shops showcasing its products and plans to open 20 more within the next two months.
Read The Economic Times article.
Tata Steel to buy Australian coal mining company
Post its mega-purchase of Corus, Tata Steel may now buy into a coal mine in Australia, as part of a larger strategic plan to scout for global opportunities to secure cheaper raw materials. It is looking at buying possibilities elsewhere across the world too. Tata Steel already has minority stake in a coal mine in Queensland, Australia.
Read more in The Economic Times article.
Read more in The Economic Times article.
ICICI Bank to transfer stake in insurance and AMC businesses to new company ICICI Holdings
ICICI Bank will transfer its holdings in its insurance and asset management businesses to a new holding company called ICICI Holdings. The bank would transfer to ICICI Holdings its 74% equity holdings in ICICI Prudential Life Insurance Company and ICICI Lombard General Insurance Company and 51% in Prudential ICICI Asset Management Company and Prudential ICICI Trust to the new entity.
The book value of ICICI Bank's investment in ICICI Prudential Life is Rs. 1300 crores, ICICI Lombard General Insurance Rs. 600 crores and in ICICI Prudential Asset Management Company and the trustee company is about Rs 50 crores.
The decision to move these assets to the new company was prompted by the Reserve Bank of India (RBI) regulation that banks can invest a maximum of 20% of their net worth in subsidiary companies.
The bank has applied for approvals from the RBI and the Insurance Regulatory and Development Authority (IRDA) for transferring its stake in the insurance and mutual fund ventures.
ICICI Holdings may consider a public listing of its equity shares at an appropriate time to meet a part of the further capital requirements of ICICI Life and ICICI General. ICICI Bank intends to retain majority ownership in ICICI Holdings.
Read the Business Standard and The Economic Times articles.
The book value of ICICI Bank's investment in ICICI Prudential Life is Rs. 1300 crores, ICICI Lombard General Insurance Rs. 600 crores and in ICICI Prudential Asset Management Company and the trustee company is about Rs 50 crores.
The decision to move these assets to the new company was prompted by the Reserve Bank of India (RBI) regulation that banks can invest a maximum of 20% of their net worth in subsidiary companies.
The bank has applied for approvals from the RBI and the Insurance Regulatory and Development Authority (IRDA) for transferring its stake in the insurance and mutual fund ventures.
ICICI Holdings may consider a public listing of its equity shares at an appropriate time to meet a part of the further capital requirements of ICICI Life and ICICI General. ICICI Bank intends to retain majority ownership in ICICI Holdings.
Read the Business Standard and The Economic Times articles.
Friday, March 2, 2007
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.
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.
RPG Group to buy out Fujitsu's stake in Zensar Technologies
The Economic Times reportsthat the RPG Group has entered into an agreement with Fujitsu of Japan to buy out the latter's stake in Zensar Technologies Limited. Zensar is a 50:50 IT joint venture between Fujitsu and the RPG Group. The 6.9 mn shares held by Fujitsu will be bought by Jubilee Investment and Industries Limited, an RPG Group company.
Related Posts:
Zensar Technologies buys US-based IT firm ThoughtDigital for $24.9 mn
Fujitsu in talks to buy out Intelenet Global Services, eyes acquisitions in the IT space
Related Posts:
Zensar Technologies buys US-based IT firm ThoughtDigital for $24.9 mn
Fujitsu in talks to buy out Intelenet Global Services, eyes acquisitions in the IT space
Wednesday, February 28, 2007
Union Budget 2007-08 Presented: Proposals for Capital Markets and Private Equity
The Finance Minister of India Mr. P Chidambaram has presented the Union Budget for the year 2007-08 today in the Parliament. Some of the proposals suggested for the capital markets are:
PAN to be made sole identification number for all participants in securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account
Idea of Self Regulating Organizations (SRO) to be taken forward for different market participants under regulations to be made by SEBI
Mutual funds to be permitted to launch and operate dedicated infrastructure funds
Individuals to be permitted to invest in overseas securities through Indian mutual funds
Short-selling settled by delivery, and securities lending and borrowing to facilitate delivery, by institutions to be allowed
Enabling mechanism to be put in place to permit Indian companies to unlock a part of their holdings in group companies for meeting their financing requirements by issue of exchangeable bonds
Rate of dividend distribution tax to be raised from 12.5% to 15% on dividends distributed by companies and to 25% on dividends paid by money market mutual funds and liquid mutual funds to all investors
In case of venture capital funds, pass-through status will be granted to those VCFs only in respect of investments in venture capital undertakings in biotechnology; information technology relating to hardware and software development; nanotechnology; seed research and development; research and development of new chemical entities in the pharmaceutical sector; dairy industry; poultry industry; and production of bio-fuels. In order to promote business tourism, this benefit also will be granted to those VCFs that invest in hotel-cum-convention centres of a certain description and size
PAN to be made sole identification number for all participants in securities market with an alpha-numeric prefix or suffix to distinguish a particular kind of account
Idea of Self Regulating Organizations (SRO) to be taken forward for different market participants under regulations to be made by SEBI
Mutual funds to be permitted to launch and operate dedicated infrastructure funds
Individuals to be permitted to invest in overseas securities through Indian mutual funds
Short-selling settled by delivery, and securities lending and borrowing to facilitate delivery, by institutions to be allowed
Enabling mechanism to be put in place to permit Indian companies to unlock a part of their holdings in group companies for meeting their financing requirements by issue of exchangeable bonds
Rate of dividend distribution tax to be raised from 12.5% to 15% on dividends distributed by companies and to 25% on dividends paid by money market mutual funds and liquid mutual funds to all investors
In case of venture capital funds, pass-through status will be granted to those VCFs only in respect of investments in venture capital undertakings in biotechnology; information technology relating to hardware and software development; nanotechnology; seed research and development; research and development of new chemical entities in the pharmaceutical sector; dairy industry; poultry industry; and production of bio-fuels. In order to promote business tourism, this benefit also will be granted to those VCFs that invest in hotel-cum-convention centres of a certain description and size
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