Providence Equity Partners, a US-based private equity firm, will be opening offices in Hong Kong and India. The Hong Kong office will be led by Andrew Rickards, CEO of investment bank Rothschild & Sons in Asia, as its managing director and will lead the firm's Asian investments. He will be joined by Thura Ko, an assistant director at Rothschild Asia. The New Delhi office will be headed by Biswajit Subramanian, a managing director of Providence Equity in London who joined the firm in 2000. Subramanian led Providence Equity's acquisition of a 15% stake in Indian wireless operator Idea Cellular Limited in October 2006. Providence invests mainly in the media, telecom and technology sectors, and is based in Providence, Rhode Island.
Read the press release here.
Monday, January 22, 2007
UTI mandates banks for $250 mn
UTI Bank has mandated Citigroup and Deutsche Bank as lead managers for raising $250 mn via three-year floating rate notes, a source close to the deal said on Monday. Investor presentations will take place in Singapore on Tuesday. Timing of the issue launch and bond pricing will be decided subject to market conditions (Source – The Economic Times).
Rajesh Exports in acquisition talks with US jewellery retail chain
Jewellery manufacturer Rajesh Exports is in advanced talks to acquire a string of jewellery retail stores abroad for $100-200 mn. The company is working on a complex deal where it is going to acquire a mid-size jewellery chain in the US apart from snapping standalone local jewelers in about 15 countries across North America, Europe, Asia and Australia.
The US jewellery chain, with which Rajesh Exports is in talks, has about 80-100 stores spread across the country and the deal is expected to be valued at around $50-100 mn. This would include its in-house jewellery brands. Rajesh Exports is looking to acquire a majority stake in this chain. This deal is expected to be closed within the next 4-6 weeks. The acquisition of the US-based chain by Rajesh Exports is part of a game plan of becoming a large global retailer of jewellery. Other countries where negotiations are currently on include the UK, Canada, France, Germany, Switzerland, Thailand, Malaysia, Australia, Singapore, the UAE, Kuwait, Oman and New Zealand. The company would acquire a handful of jewellery retail outlets in each of these countries spread across 35 cities totaling about 50-60 stores. This strategy is similar to the company’s ongoing retail expansion in India where one of its retail brands, Shubh, is modeled on similar lines by bringing local jewelers in different cities under its umbrella. All the international retail outlets would be under its wholly-owned retailing subsidiary, 24K Retail. The acquisition will be financed through a mix of debt and equity. The company has already announced that it is planning to raise about $150 mn from overseas investors, which will part-fund the acquisitions.
Read The Economic Times article.
The US jewellery chain, with which Rajesh Exports is in talks, has about 80-100 stores spread across the country and the deal is expected to be valued at around $50-100 mn. This would include its in-house jewellery brands. Rajesh Exports is looking to acquire a majority stake in this chain. This deal is expected to be closed within the next 4-6 weeks. The acquisition of the US-based chain by Rajesh Exports is part of a game plan of becoming a large global retailer of jewellery. Other countries where negotiations are currently on include the UK, Canada, France, Germany, Switzerland, Thailand, Malaysia, Australia, Singapore, the UAE, Kuwait, Oman and New Zealand. The company would acquire a handful of jewellery retail outlets in each of these countries spread across 35 cities totaling about 50-60 stores. This strategy is similar to the company’s ongoing retail expansion in India where one of its retail brands, Shubh, is modeled on similar lines by bringing local jewelers in different cities under its umbrella. All the international retail outlets would be under its wholly-owned retailing subsidiary, 24K Retail. The acquisition will be financed through a mix of debt and equity. The company has already announced that it is planning to raise about $150 mn from overseas investors, which will part-fund the acquisitions.
Read The Economic Times article.
3i, Cisco, Oman Investment Fund invest $152 mn in Nimbus for 28% stake
Nimbus Communications, a media company with interests in general entertainment and sports, received private equity funding of $152 mn (Rs. 552 crores) for a 28.5% stake in the company. Private equity firm 3i, technology MNC Cisco and Oman Investment Fund (OIF) were the investors. Deutsche Bank and Americorp Ventures already hold stakes in Nimbus. The deal is being billed as the largest-ever private equity investments in the Indian media and entertainment sector. The advisors in this private equity transaction were Euromax Capital and Enam Consultants.
The private equity investment in Nimbus would be through compulsory convertible debentures with a likely conversion scheduled prior to the company's listing. This would be the final round of private equity investment before the company gets listed, which could be done within three years. The shareholding of the promoters would come down to between 40% and 44%, currently standing at 54%.
Nimbus has earlier said that it is interested in expanding its sports facilities and also the technology platform for future launches. Film distribution is another growth area. The money will be utilized to expand the company's international sports business and diversify into football and golf. A part of the funds will also be utilized to finance Indian language films, international film production and distribution, developing digital content for wireless and IPTV platforms and to expand the company's broadcasting operations.
3i is one of the largest UK-based private equity funds, managing close to $10 bn globally. This is the second round of investment for 3i in Nimbus. In 2005, the fund had invested $45 mn for a 33% stake in the company. In the current tranche, it has put in $30 mn for 6.5%. Early this month, 3i invested $22 mn in Indian digital cinema chain UFO Moviez (See Related Post). OIF, promoted by Sultan of Oman, has invested $75 mn for an 18% stake while Cisco got 4% for $20 mn. Cisco's investment is based on its strengths in IP television, a platform that Nimbus plans to foray into, while OIF will help Nimbus boost its presence in the Middle East. Nimbus' current revenues stand at $310 mn, up from $70 mn when 3i first picked a stake in it. Over the last five years, the company has received close to $200 mn (Rs. 900 crores) in foreign investments.
Read the articles in The Economic Times – 1 2.
The private equity investment in Nimbus would be through compulsory convertible debentures with a likely conversion scheduled prior to the company's listing. This would be the final round of private equity investment before the company gets listed, which could be done within three years. The shareholding of the promoters would come down to between 40% and 44%, currently standing at 54%.
Nimbus has earlier said that it is interested in expanding its sports facilities and also the technology platform for future launches. Film distribution is another growth area. The money will be utilized to expand the company's international sports business and diversify into football and golf. A part of the funds will also be utilized to finance Indian language films, international film production and distribution, developing digital content for wireless and IPTV platforms and to expand the company's broadcasting operations.
3i is one of the largest UK-based private equity funds, managing close to $10 bn globally. This is the second round of investment for 3i in Nimbus. In 2005, the fund had invested $45 mn for a 33% stake in the company. In the current tranche, it has put in $30 mn for 6.5%. Early this month, 3i invested $22 mn in Indian digital cinema chain UFO Moviez (See Related Post). OIF, promoted by Sultan of Oman, has invested $75 mn for an 18% stake while Cisco got 4% for $20 mn. Cisco's investment is based on its strengths in IP television, a platform that Nimbus plans to foray into, while OIF will help Nimbus boost its presence in the Middle East. Nimbus' current revenues stand at $310 mn, up from $70 mn when 3i first picked a stake in it. Over the last five years, the company has received close to $200 mn (Rs. 900 crores) in foreign investments.
Read the articles in The Economic Times – 1 2.
Jet Airways seeking $400 mn via private equity
Jet Airways is in talks with private equity firms to raise $400 mn (over Rs. 1760 crores) through qualified institutional placements (QIPs) for its aircraft acquisition plans. The QIPs will be used to improve the airline's balance sheet as well as raise 15% of the cost of its $2.5 bn bill for 20 wide-bodied aircrafts for international operations and 10 Boeing 737s for domestic operations. The rest of the bill will be funded by debt.
The QIP could dilute the promoters’ equity by 10%, who currently hold 80% in the airline. The airline is also considering a follow-on issue or a combination of QIP investments and equity expansion. Interestingly, the airline has dropped plans for a $500 mn FCCBs issue. The airline would extend its international operations to North America, Europe, Africa and Asia once it acquired the wide-bodied jets. Besides its $2.5 bn acquisition programme, Jet Airways also plans to buy 10 Boeing 787-8 Dreamliners. Deliveries are scheduled between July 2011 and December 2012.
Read the Business Standard article.
The QIP could dilute the promoters’ equity by 10%, who currently hold 80% in the airline. The airline is also considering a follow-on issue or a combination of QIP investments and equity expansion. Interestingly, the airline has dropped plans for a $500 mn FCCBs issue. The airline would extend its international operations to North America, Europe, Africa and Asia once it acquired the wide-bodied jets. Besides its $2.5 bn acquisition programme, Jet Airways also plans to buy 10 Boeing 787-8 Dreamliners. Deliveries are scheduled between July 2011 and December 2012.
Read the Business Standard article.
The Hinduja Group seeks management control in buying Pirelli’s stake in Telecom Italia
The Hinduja Group has made it clear that it will seek management control in Telecom Italia if it bids for Italian tyre and real estate major Pirelli’s stake in Italy’s largest telecommunications operator. Though Pirelli holds the largest block of shares in Telecom Italia, acquisition of that stake alone will not give the Hindujas majority control. However, given the widely-held structure of Telecom Italia’s shareholding, it may give them management control. Pirelli owns 80% of Telecom Italia’s holding company Olimpia, which has an 18% stake in Telecom Italia. Telecom Italia is Europe’s fifth largest telecommunications group with sales of nearly $30 bn and market capitalization of $77 bn. Back-of-the-envelope calculations put the acquisition cost for Pirelli’s stake in Olimpia at $12 bn. The race for Telecom Italia is hotting up with Sistema, the Russian billionaire industrialist Vladimir Yevtushenkov being the third to join the fray. US private equity firm Blackstone also expressed an interest in picking up a stake in Telecom Italia two months ago, and several others are expected to join the bidding bandwagon soon.
Read The Economic Times article.
Related Post: The Hinduja Group interested in majority stake in Telecom Italia
Read The Economic Times article.
Related Post: The Hinduja Group interested in majority stake in Telecom Italia
Credit Suisse to raise a $1bn fund to tap Indian realty
Credit Suisse, the Zurich-headquartered financial powerhouse, is planning a dedicated $1 bn fund for investing in the booming real estate sector in India, to be announced in the next financial year. Already, US-based investment banking giants Morgan Stanley and Goldman Sachs have invested heavily in the real estate market in India, with Morgan Stanley Real Estate Fund recently having struck the largest real estate investment deal worth Rs. 675 crores with Mumbai-based Oberoi Constructions. Goldman Sachs is also planning an investment of $1 bn. Credit Suisse’s $1-bn investment in real estate will be brought in a phased manner by 2010 and will focus on commercial space. High on its priority list are large-format retail malls, two-star and three-star business hotels, healthcare and multi-use office-cum-residential complexes. Sources said the fund will primarily pick equity in ongoing big-ticket projects or those looking for second round of funding to complete their partially operational projects. The fund is unlikely to park money in start-up projects. The fund is also keen on acquiring management stake in some projects post-completion.
Read more in The Economic Times.
Read more in The Economic Times.
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