A major “personnel crisis” is being witnessed in one of India’s leading boutique investment banks. Avendus Advisors is seeing key senior management people exiting the company to start on their own.
Shyam Shenthar, partner at Avendus, has left the company to start his own investment advisory that aims to target a largely untapped market for mergers and acquisitions and private equity in mid-cap companies. He was supervising the Capital Markets and Broking activities of Avendus. He is being joined by Deepesh Garg, Assistant Vice-President in the Consumer Products and Services Team, and Shiraz Bugwadia, Assistant Vice-President in charge of Pharmaceuticals and Healthcare from Avendus, and TR Srinivas of Taib Securities. The yet-to-be-named start-up will operate from Mumbai and Bangalore.
Avendus has been one of India’s ten top investment advisory companies and has completed deals worth well over $ 532 mn (Rs. 2300 crores) in the last two years. The company has declared 34 deals in the same period.
The development follows a shake-up in the company that resulted in restive executives looking for fresh opportunities. The new company plans to focus on the booming mergers and acquisitions space in India and intends to work with private equity players and the capital markets. The company would also look at wealth management services and financial services space.
Read the article in the Hindustan Times.
Monday, January 8, 2007
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.
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.
Clearwater Partners invest Rs. 90 crores in Kinetic Engineering
Private equity firm Clearwater Partners will invest around Rs. 90 crores in Kinetic Engineering Limited (KEL). Clearwater will get non-convertible debentures worth Rs. 75 crores, and warrants at market price, to be converted to equity, which would constitute around 10% of KEL’s stake.
The group is consolidating its two-wheeler manufacturing under Kinetic Motor Company (KMCL), while the flagship KEL will become the group’s auto component manufacturer. Earlier, KMCL had brought in a Taiwanese company SYM as equity partner, with a 11.1% stake. SYM had purchased the shares at around Rs. 14 crores, and is keen to hike its stake in the company and that its officials had met the Kinetic officials.
Read the complete article in The Economic Times.
The group is consolidating its two-wheeler manufacturing under Kinetic Motor Company (KMCL), while the flagship KEL will become the group’s auto component manufacturer. Earlier, KMCL had brought in a Taiwanese company SYM as equity partner, with a 11.1% stake. SYM had purchased the shares at around Rs. 14 crores, and is keen to hike its stake in the company and that its officials had met the Kinetic officials.
Read the complete article in The Economic Times.
VSNL may bid $90 mn for US-based Data Return
The Tata Group is making news all around. This time, another group company VSNL, an international long distance telecom major, is reportedly planning a bid for US-based Data Return, which is into managed hosting services and IT operations. The deal size is estimated to be around $90-100 mn. Data Return is a privately-held entity, of which 80% is owned by an investment firm Saratoga Partners and the rest being held by the management. It primarily caters to the North American market and has a headcount of around 250.
Data Return registered revenues of $51.1 mn for the 2005 fiscal and had a net loss of $8.5 mn, with valuation of the company pegged at $85-95 mn. The auction process for the proposed sale has evinced interest from two other bidders.
Data Return registered revenues of $51.1 mn for the 2005 fiscal and had a net loss of $8.5 mn, with valuation of the company pegged at $85-95 mn. The auction process for the proposed sale has evinced interest from two other bidders.
Daewoo creditors call off deal with Videocon
The creditors of Daewoo Electronics, led by Woori Bank and Korea Asset Management Corp. (Kamco), rejected the Videocon offer to buy Daewoo Electronics. The deal was scrapped mainly due to differences in pricing.
In October 2006, the Videocon-led consortium agreed to buy 97.6% of Daewoo for 700 bn won ($749 mn; €573 mn), but later demanded a 13% cut on the agreed price. Daewoo Electronics, South Korea's third-largest electronics goods maker by sales has been under a creditor-led debt-rescheduling program since 2000 after collapsing under huge debts, amounting to around $80 bn.
Read The Economic Times and Business Standard articles.
Related Posts:
Videocon’s Daewoo acquisition in jeopardy
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
In October 2006, the Videocon-led consortium agreed to buy 97.6% of Daewoo for 700 bn won ($749 mn; €573 mn), but later demanded a 13% cut on the agreed price. Daewoo Electronics, South Korea's third-largest electronics goods maker by sales has been under a creditor-led debt-rescheduling program since 2000 after collapsing under huge debts, amounting to around $80 bn.
Read The Economic Times and Business Standard articles.
Related Posts:
Videocon’s Daewoo acquisition in jeopardy
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
Videocon may agree to a less than 10% cut in bid price for Daewoo Electronics; budges from earlier demand of a 15% cut
Controversy seems to be seeping into the deal involving the Videocon-Ripplewood combine and Daewoo Electronics. After proving to be the final bidder for Daewoo for $730-750 mn, Videocon had demanded a cut of 15% in the bid price. However, the 40 banks controlling Daewoo Electronics, which has been under a creditor-led debt-restructuring programme since 2000, after its insolvent parent Daewoo Group was put under the workout programme post its collapse under a $80 bn debt, have vetoed the issue.
Videocon is worried about losing out on a global deal, which would bring with it tremendous capabilities in terms of scale and distribution. Also, Daewoo’s creditors are understood to be under pressure from locals for selling the plant to a foreign hand; the Koreans have opposed Videocon’s bid following concerns of technology leaks and opposition over the migration of technology to Korea’s potential rival, India. Accordingly, Videocon has decided to settle for a less than 10% cut in the offer price. Videocon is now willing to settle for the ‘best possible business terms’ for both parties, rather than lose out on the deal. If both parties come to a consensus, the final deal is likely to be signed after another month’s delay. The deal was earlier supposed to be signed sometime in December last year.
Daewoo is estimated to have global sales of about $2.5bn, whereas Videocon Industries’ consumer electronics business is currently generating revenues of about $1.5 bn. The Videocon-led consortium emerged as the preferred bidder to buy a controlling 97.6% stake in Daewoo Electronics.
Read The Economic Times and Business Standard articles – 1 2 3 .
Videocon is worried about losing out on a global deal, which would bring with it tremendous capabilities in terms of scale and distribution. Also, Daewoo’s creditors are understood to be under pressure from locals for selling the plant to a foreign hand; the Koreans have opposed Videocon’s bid following concerns of technology leaks and opposition over the migration of technology to Korea’s potential rival, India. Accordingly, Videocon has decided to settle for a less than 10% cut in the offer price. Videocon is now willing to settle for the ‘best possible business terms’ for both parties, rather than lose out on the deal. If both parties come to a consensus, the final deal is likely to be signed after another month’s delay. The deal was earlier supposed to be signed sometime in December last year.
Daewoo is estimated to have global sales of about $2.5bn, whereas Videocon Industries’ consumer electronics business is currently generating revenues of about $1.5 bn. The Videocon-led consortium emerged as the preferred bidder to buy a controlling 97.6% stake in Daewoo Electronics.
Read The Economic Times and Business Standard articles – 1 2 3 .
Ruchi Soya bids Rs. 200 crores for Marico brand Sweekar
Ruchi Soya has bid Rs. 200 crores for Marico’s Rs. 100 crore-brand Sweekar. About a week ago, Adani Wilmar has made an offer of about Rs 150 crore for the same brand.
Ruchi is very keen on closing the deal, especially since Sweekar was a well-known brand and fitted in with its larger strategy of transitioning from a trading to a branded business.
The Rs. 5000 crore-Ruchi Soya is a flagship company of the Ruchi Group of Industries and manufactures edible oils, vanaspati, bakery fats and soya foods. Some of its better-known brands include Soyumm (soyabean oil), Ruchi Gold (palmolien oil), Sunrich (sunflower oil), Mandap (mustard oil) and Nutrela (soya chunks and granules).
Marico is focusing on high-value products like Saffola to cash in on the growing health consciousness in the Indian market. That’s why it has chosen to divest Sweekar, but retain Saffola in its portfolio. The cooking oil market is estimated to be around 12 mt a year with annual growth rates pegged at around 15-18%. This includes both branded and unbranded cooking oils. Marico launched Sweekar sunflower refined oil in 1988 and it was one of leading brands in the category.
Other leading players in the edible oil market include Adani Wilmar, Agrotech, Cargill, Marico, ITC and Godrej.
Read The Economic Times article.
Ruchi is very keen on closing the deal, especially since Sweekar was a well-known brand and fitted in with its larger strategy of transitioning from a trading to a branded business.
The Rs. 5000 crore-Ruchi Soya is a flagship company of the Ruchi Group of Industries and manufactures edible oils, vanaspati, bakery fats and soya foods. Some of its better-known brands include Soyumm (soyabean oil), Ruchi Gold (palmolien oil), Sunrich (sunflower oil), Mandap (mustard oil) and Nutrela (soya chunks and granules).
Marico is focusing on high-value products like Saffola to cash in on the growing health consciousness in the Indian market. That’s why it has chosen to divest Sweekar, but retain Saffola in its portfolio. The cooking oil market is estimated to be around 12 mt a year with annual growth rates pegged at around 15-18%. This includes both branded and unbranded cooking oils. Marico launched Sweekar sunflower refined oil in 1988 and it was one of leading brands in the category.
Other leading players in the edible oil market include Adani Wilmar, Agrotech, Cargill, Marico, ITC and Godrej.
Read The Economic Times article.
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