PVP Group has acquired a 51% stake in Software Solution Integrated (SSI) from the promoters, led by Kalpathi Suresh, for Rs. 613.14 crores. The stake sale would be followed by a mandatory public offer which is said to cost the PVP Group an additional Rs. 239.20 crores for 120 acres of prime land bank in Chennai and Ooty.
SSI was started more than 13 years ago as a software training company, which ventured further into software development and later into real estate. The SSI shareholders now have an option to exit when the acquirers make public offer to them at Rs. 208 a share.
For more details, read The Times of India article.
Tuesday, February 27, 2007
BPO firm HOV Services acquires US-based firm Lason for $148 mn
Pune-based HOV Services has acquired US-based Lason for $148 mn (about Rs. 660 crores). The acquisition was completed through HOV’s US wholly-owned subsidiary HOV Services LLC and was funded by HOV Capital, Merrill Lynch and Apollo Management; the three of them have invested $63 mn, rest of the acquisition has been funded by debt.
HOV had recently acquired Tracmail and SAM Holdings for $3.74 mn. The Lason acquisition will help HOV gain entry in new business verticals like transaction processing, healthcare and media. Lason has an Indian subsidiary based in Chennai, with a headcount of 8000. It also has presence in China (1200 people), Mexico (250 employees) and North America.
Read more in the Business Standard article.
HOV had recently acquired Tracmail and SAM Holdings for $3.74 mn. The Lason acquisition will help HOV gain entry in new business verticals like transaction processing, healthcare and media. Lason has an Indian subsidiary based in Chennai, with a headcount of 8000. It also has presence in China (1200 people), Mexico (250 employees) and North America.
Read more in the Business Standard article.
Holcim to buy additional stake in ACC and Gujarat Ambuja
Swiss cement company Holcim is planning to increase its control in ACC and Gujarat Ambuja Cements for around Rs. 2700 crores. Holcim is in talks to buy Gujarat Ambuja Cements’ 33% stake in Ambuja Cement India Limited (ACIL). ACIL, in turn, holds 35% in ACC and 9.93% in Gujarat Ambuja Cements. At present, Holcim owns 67% in ACIL. The acquisition will make ACIL a wholly-owned Holcim subsidiary.
The proposed move by Gujarat Ambuja is in line with its two-year-old agreement with Holcim under which it had reserved the put (or sell) option and Holcim had the call (buy) option for one-third of ACIL. In 2005, Holcim had bought a 67% stake in ACIL, 40% from the government of Singapore and American International Group and 27% through subscription of preferential shares, for $800 mn (Rs. 3502 crores).
Read the Business Standard article.
The proposed move by Gujarat Ambuja is in line with its two-year-old agreement with Holcim under which it had reserved the put (or sell) option and Holcim had the call (buy) option for one-third of ACIL. In 2005, Holcim had bought a 67% stake in ACIL, 40% from the government of Singapore and American International Group and 27% through subscription of preferential shares, for $800 mn (Rs. 3502 crores).
Read the Business Standard article.
Autoline Industries acquires 51% stake in Belgian company Stokota
Pune-based Autoline Industries has acquired a 51% stake in Stokota, a Belgian special purpose vehicles maker, for Rs. 66.8 crores. Autoline is already contract manufacturing Stokota’s tippers, dumpers and tankers in India. It will fund the deal through a mix of internal accruals, debt and equity.
Autoline will provide 80% of the components to Stokota’s European operations based in Poland and will continue to assemble vehicles for the Indian, Middle Eastern and North African markets. Stokota also has a manufacturing facility in China, which caters to Australia, US and South-East Asia.
Stokota’s current customer base includes Volvo, Scania, MAN, Iveco, Renault, DAF, FAW and Deng Fong. It is the largest manufacturer of aluminium tankers in Europe. Post-merger, Stokota’s operations are expected to contribute Rs. 250 crores to Autoline’s consolidated revenue and Rs. 11 crores to its profit. Autoline, which recently listed on the bourses, expects to end the year with revenues of Rs. 210 crores and a profit after tax of Rs. 16 crores. Autoline has a tool design and manufacturing facility in Pune and is focused on sheet metal assemblies for automobile industry.
Read The Economic Times article.
Autoline will provide 80% of the components to Stokota’s European operations based in Poland and will continue to assemble vehicles for the Indian, Middle Eastern and North African markets. Stokota also has a manufacturing facility in China, which caters to Australia, US and South-East Asia.
Stokota’s current customer base includes Volvo, Scania, MAN, Iveco, Renault, DAF, FAW and Deng Fong. It is the largest manufacturer of aluminium tankers in Europe. Post-merger, Stokota’s operations are expected to contribute Rs. 250 crores to Autoline’s consolidated revenue and Rs. 11 crores to its profit. Autoline, which recently listed on the bourses, expects to end the year with revenues of Rs. 210 crores and a profit after tax of Rs. 16 crores. Autoline has a tool design and manufacturing facility in Pune and is focused on sheet metal assemblies for automobile industry.
Read The Economic Times article.
Austrian company RHI picks up 51% stake in Clasil Refractories
The €1.3 bn-Austrian refractories company RHI has picked up a 51% stake in Clasil Refractories for an undisclosed price. RHI was, until now, the largest importer of refractories in India and supplier to steelmakers without any local production capacities. It imported material worth €40 mn annually. The stake acquisition now brings a local production centre under its fund. The consideration would be used for expansions currently under way, at the RHI-Clasil plant at Venkatapura in Andhra Pradesh. The plant capacity will reach about 40,000 tonnes with sales revenue of €15 mn per year.
Read The Economic Times article for more details.
Read The Economic Times article for more details.
SIDBI issues bonds, raises Rs. 500 crores
SME micro-finance agency State Industrial Development Bank of India (SIDBI) has raised Rs. 500 crores by selling 10-year bonds to a state-run insurance firm.
The coupon on the bonds is 9.6%, payable annually. SIDBI plans to sell another Rs. 500 crores worth of bonds to other investors through a private placement, on the same terms as its deal with the insurance company. The issue is rated AAA by CARE, signifying the highest safety. Bank of America was the sole arranger for this issue.
Article in The Economic Times.
The coupon on the bonds is 9.6%, payable annually. SIDBI plans to sell another Rs. 500 crores worth of bonds to other investors through a private placement, on the same terms as its deal with the insurance company. The issue is rated AAA by CARE, signifying the highest safety. Bank of America was the sole arranger for this issue.
Article in The Economic Times.
Mahindra and Mahindra, Renault and Nissan form Rs. 4000 crore-joint venture in Tamil Nadu
Auto and auto components major Mahindra and Mahindra (M&M) has formed a tripartite joint venture with global auto giants, France’s Renault and Nissan from Japan, to set up a Rs. 4000 crore-greenfield automobile plant at Oragadam, near Chennai in Tamil Nadu. The facility will have a capacity to manufacture 400,000 units by 2009 and would be used by all the three auto majors for production of vehicles from their respective stables. M&M will hold 50% stake in the new venture, while the rest will be jointly head by Renault and Nissan of Japan. The Tamil Nadu government would provide land and incentives for the project. M&M President, automotive sector, Pawan Goenka was named the chairman of the JV company.
The Tamil Nadu government has already had some land and would acquire more to meet the needs of the facility, which would come up on a 925-acre plot. The new facility would see to it that those displaced due to acquisition of land for the project would be relocated at a place convenient to them. The new company would also start vocational schools in the area to train students and absorb them in the facility.
The project would consist of integrated automobile manufacturing facilities which would include engine plant, transmission plant, press shop, body shop, paint shop and assembly line, an official press release here said, adding this would be India's biggest vehicle manufacturing centre at a single location. It would involve manufacture of 50,000 tractors per annum and there would be a Mahindra Research Valley in the Mahindra World City near Chennai.
The project would result in gross value addition of about Rs. 18,000 crores per annum to Tamil Nadu's GDP and the additional investment in the State by vendors and supporting service providers was expected to be about Rs. 10,000 crores. The new facility would provide direct employment to 5000 people and indirect employment to many more.
M&M and Renault already have an existing JV which is manufacturing the Logan brand of cars.
Read the articles in The Economic Times and Business Standard.
The Tamil Nadu government has already had some land and would acquire more to meet the needs of the facility, which would come up on a 925-acre plot. The new facility would see to it that those displaced due to acquisition of land for the project would be relocated at a place convenient to them. The new company would also start vocational schools in the area to train students and absorb them in the facility.
The project would consist of integrated automobile manufacturing facilities which would include engine plant, transmission plant, press shop, body shop, paint shop and assembly line, an official press release here said, adding this would be India's biggest vehicle manufacturing centre at a single location. It would involve manufacture of 50,000 tractors per annum and there would be a Mahindra Research Valley in the Mahindra World City near Chennai.
The project would result in gross value addition of about Rs. 18,000 crores per annum to Tamil Nadu's GDP and the additional investment in the State by vendors and supporting service providers was expected to be about Rs. 10,000 crores. The new facility would provide direct employment to 5000 people and indirect employment to many more.
M&M and Renault already have an existing JV which is manufacturing the Logan brand of cars.
Read the articles in The Economic Times and Business Standard.
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