The Sun Also Sets : PE deals falling through

The chill is moving deeper down the spine. This HT article points out that southbound market is taking a lot of valuations and some of the deals with it. Down.

With 14 PE deals falling through in last 3 months & big 3 in last last month, Feb. PE deals are 55% lower then Jan'08.

The 3 big ones to go down are ICICI Venture-Jaypee Infratech deal, Rs 1200-crore Blackstone-Eenadu group deal and Rs 250-crore Future capital-DishTV deal. The Jaypee deal is shaved from 3200 to 1000 Cr.

PE funds closed over 27 deals in Feb. valued around $1.48 billion, according to a Grant Thornton study. India Inc recorded deals worth $5.06 billion in 116 M&A and PE deals in Jan.

Compared to Feb'07, there was a 50 % rise in PE deals this Feb.

Temasek Holdings buys 10% in Tata Sky for Rs. 250 crores; values the DTH provider at Rs. 2500 crores

Singapore-based private fund Temasek Holdings has invested Rs. 250 crores in Tata Sky, the DTH service joint venture between the Tata Group and Star TV, for a 10% stake, belonging to Tata Group holding company Tata Sons. Following this restructuring, Tata Sons' stake has been reduced to 70%, while Star continues to maintain its 20% holding. This is Temasek's second investment in the Tata Group of companies. It had earlier acquired about 10% stake in CDMA service provider Tata Teleservices.

In a related development, Sky TV’s competitor, Dish TV is reportedly in talks with Warburg Pincus for diluting a stake to the latter.

Read the article in The Economic Times.

Zee Telefilms to raise up to Rs 900 crores via equity sale

Zee Telefilms is hitting the capital markets again. The company intends to raise around $200 mn (Rs. 900 crores) by diluting equity capital in two of its subsidiaries, 10% of Dish TV and 15% of Wire & Wireless India (WWIL), to part-finance expansion plans as a part of an ongoing restructuring programme. Zee plans to raise the money to acquire new customers and buy last-mile connectivity. The two companies are scheduled to be listed in February. Dish TV and WWIL are expected to raise Rs. 400 crores and Rs. 500 crores, respectively. The fund generation suggests a valuation of Rs. 4, 000 crores and Rs. 3, 000 crores for Dish TV and WWIL, respectively. The Bombay High Court has approved the de-merger of cable undertaking of Zee Telefilms into WWIL and the regional and news broadcasting undertaking into Zee News Ltd. ZTL would start trading from December 18 as the de-merged entity, to be renamed Zee Entertainment Enterprises.

For more details, read the article from The Economic Times.