The domestic equity broking scene has been heating up recently. With the interest that global investors are showing in the Indian markets, the broking business is getting very attractive for a lot of players.
After names like Motilal Oswal, Edelweiss, India Infoline, it is now Angel Broking which is in talks to offer 20% of its stake to PE investors like Lehman Brothers, Warbug Pincus and the Carlyle group. Angel intends to raise Rs.200 crs through this sale, valuing it at Rs.1000 crs. NM Rothschild has been given the mandate to look for a suitable partner and the deal is expected to be closed by September end as reported by the Economic Times.
The funds will be used to finance Angel’s proposed expansion of branches and to launch new products such as loan against shares and margin funding, said the paper.
Tuesday, July 24, 2007
Wednesday, June 20, 2007
Praful Patel brings in industry friendly norms for aviation sector
The aviation industry has seen a lot of action in the recent past on the M&A front. In line with the trends, Praful Patel the civil aviation minister has decided to support mergers & acquisitions (M&As) in the sector with industry-friendly norms, reported Times Now.
Simple rules for the transfer of traffic rights and the right to use airport infrastructure to facilitate M&As in the sector are among the initiatives proposed in the comprehensive civil aviation policy, which will be considered by a group of ministers (GoM) soon.
The civil aviation ministry’s stand should help M&A deals by making it clear that an airline which takes over another can use the traffic rights of the latter. Parking bays, landing slots, hangars, check-in stands, lounge areas, ticketing areas and office space would also get transferred.
In the aviation sector, management change makes it mandatory for airlines to get several clearances all over again from various authorities including the civil aviation ministry, the Director General of Civil Aviation, Airports Authority of India, the home ministry and the corporate affairs ministry, which could change if the new policy is approved by the GoM.
Simple rules for the transfer of traffic rights and the right to use airport infrastructure to facilitate M&As in the sector are among the initiatives proposed in the comprehensive civil aviation policy, which will be considered by a group of ministers (GoM) soon.
The civil aviation ministry’s stand should help M&A deals by making it clear that an airline which takes over another can use the traffic rights of the latter. Parking bays, landing slots, hangars, check-in stands, lounge areas, ticketing areas and office space would also get transferred.
In the aviation sector, management change makes it mandatory for airlines to get several clearances all over again from various authorities including the civil aviation ministry, the Director General of Civil Aviation, Airports Authority of India, the home ministry and the corporate affairs ministry, which could change if the new policy is approved by the GoM.
Max India raises Rs.1000 crs through QIP placement
Max India today announced that it has raised Rs. 1,000 crore through a QIP, which was subscribed 2.3 times by broad based investors, spread globally. CLSA acted as the sole book runner and global coordinator for the issue.
The QIP raises FII holding in the company to 39% from around 26% earlier. Max India has an investment limit of 49% for FIIs.
The company has issued shares at a price of Rs. 240/- per share. Each share of Max India has a face value of Rs. 2/- and therefore, the new shares have been issued at a premium of Rs. 238/- per share. The new shares aggregate 18.8% of the fully diluted equity base of the company. About 40 % of the allocation went to US based investors while the remainder was split evenly between Asia and Europe based investors.
Max India plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to further grow each of its existing businesses. A portion of the proceeds is also expected to be used for general corporate purposes including acquisitions and investments in new ventures. Encouraged by an almost 100% CAGR of its life insurance business since inception, the company has committed itself to growth plans for this business.
Source: Business Wire
The QIP raises FII holding in the company to 39% from around 26% earlier. Max India has an investment limit of 49% for FIIs.
The company has issued shares at a price of Rs. 240/- per share. Each share of Max India has a face value of Rs. 2/- and therefore, the new shares have been issued at a premium of Rs. 238/- per share. The new shares aggregate 18.8% of the fully diluted equity base of the company. About 40 % of the allocation went to US based investors while the remainder was split evenly between Asia and Europe based investors.
Max India plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to further grow each of its existing businesses. A portion of the proceeds is also expected to be used for general corporate purposes including acquisitions and investments in new ventures. Encouraged by an almost 100% CAGR of its life insurance business since inception, the company has committed itself to growth plans for this business.
Source: Business Wire
Tuesday, June 19, 2007
CLSA Capital Partners invests in Luminous Power Technologies
CLSA Capital Partners, a member of France's Crédit Agricole Group, announced that CLSA ARIA Investment Partners III LP and CLSA Clean Resources Asia have co-invested US$20.3 million in Luminous Power Technologies Ltd.
This is the seventh investment by Aria Investment Partners in India. Managing Director of LPT Rakesh Malhotra said, “This investment by CLSA will provide a strong impetus to our future growth in India and markets across Asia, Africa and Latin America. With this investment we will also be able to execute our strategy of offering high technology Power Electronics and Energy Storage products for the renewable energy sector.”
Luminous Power Technologies is a manufacturer of Inverters, UPS, Deep Cycle and Automotive Batteries and a range of water purification and other home appliances.CLSA Capital Partners is the alternative asset management arm of CLSA Asia-Pacific Markets, with US$1.5 billion under management.
Source: RTT News
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CLSA buys 10.92% stake in Sanghvi Movers
This is the seventh investment by Aria Investment Partners in India. Managing Director of LPT Rakesh Malhotra said, “This investment by CLSA will provide a strong impetus to our future growth in India and markets across Asia, Africa and Latin America. With this investment we will also be able to execute our strategy of offering high technology Power Electronics and Energy Storage products for the renewable energy sector.”
Luminous Power Technologies is a manufacturer of Inverters, UPS, Deep Cycle and Automotive Batteries and a range of water purification and other home appliances.CLSA Capital Partners is the alternative asset management arm of CLSA Asia-Pacific Markets, with US$1.5 billion under management.
Source: RTT News
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CLSA buys 10.92% stake in Sanghvi Movers
Ruias funding Algoma acquisition through senior notes & loans
Essar Global will raise $900 million through a combination of senior notes and loans to fund its acquisition of Canada’s Algoma Steel, reported Economic Times. The non-recourse fund raising exercise by Essar Global is the second-largest such transaction by an Indian steel company, after Tata Steel’s almost $7 billion loan to finance its acquisition of Corus.
The Ruias’ international holding company had acquired Algoma in April for $1.58 billion in an all-cash leveraged buyout. Essar Global’s acquisition is considered the second biggest by an Indian company in North America, after Hindalco paid $6 billion to buy Atlanta-based Novelis in February.
To finance its Algoma acquisition, Essar Global will sell $450 million of senior notes, recoursed to the Canadian company’s balance sheet. The eight-year notes, denominated in dollars, may yield 9.75% to 10%. UBS is the financial advisor to the offer.
Essar Global also plans to issue $450 million in loans, based on Algoma’s earnings. The group’s own contribution will be about $500 million. It could not be ascertained how the rest of the acquisition amount — about $100 million — will be raised.
The Ruias’ international holding company had acquired Algoma in April for $1.58 billion in an all-cash leveraged buyout. Essar Global’s acquisition is considered the second biggest by an Indian company in North America, after Hindalco paid $6 billion to buy Atlanta-based Novelis in February.
To finance its Algoma acquisition, Essar Global will sell $450 million of senior notes, recoursed to the Canadian company’s balance sheet. The eight-year notes, denominated in dollars, may yield 9.75% to 10%. UBS is the financial advisor to the offer.
Essar Global also plans to issue $450 million in loans, based on Algoma’s earnings. The group’s own contribution will be about $500 million. It could not be ascertained how the rest of the acquisition amount — about $100 million — will be raised.
India Hospitality to buy Mars Restaurants, SkyGourmet Catering for US$110 mn
India Hospitality Corp (IHC) said it wants to create a diversified hospitality company after agreeing to buy India-based Mars Restaurants Private and airline catering company SkyGourmet Catering Private for about 110 mln usd, as reported by Business Wire.
IHC said in a statement that it will pay about 91.6 mln usd in cash and the rest in shares on completion of the transaction. An additional amount may be payable if the businesses hit certain performance targets.
Upon completion of the transaction, current India Hospitality shareholders will own approximately 88.9% of IHC and insiders, including Hayground Cove Asset Management and Navis Capital Partners, will hold approximately 51.1%. Affiliates of Navis Capital Partners and Mr. Sanjay Narang, the founder of both SkyGourmet and Mars, will continue to play an active role in the management of the combined businesses going forward.
One of the major shareholders in the target companies, private equity investor Navis Capital Partners, retains an option to reinvest a substantial portion of the sale proceeds into IHC, the company said. The option allows Navis and its affiliates to subscribe for up to 75 mln usd in cash for new IHC shares, which, if exercised will lift Navis' stake in IHC to about 20.7 pct.
IHC said in a statement that it will pay about 91.6 mln usd in cash and the rest in shares on completion of the transaction. An additional amount may be payable if the businesses hit certain performance targets.
Upon completion of the transaction, current India Hospitality shareholders will own approximately 88.9% of IHC and insiders, including Hayground Cove Asset Management and Navis Capital Partners, will hold approximately 51.1%. Affiliates of Navis Capital Partners and Mr. Sanjay Narang, the founder of both SkyGourmet and Mars, will continue to play an active role in the management of the combined businesses going forward.
One of the major shareholders in the target companies, private equity investor Navis Capital Partners, retains an option to reinvest a substantial portion of the sale proceeds into IHC, the company said. The option allows Navis and its affiliates to subscribe for up to 75 mln usd in cash for new IHC shares, which, if exercised will lift Navis' stake in IHC to about 20.7 pct.
Citigroup keen to divest 80% of its BPO arm
On the heels of Blackstone's acquisition of the back-office firm Intelenet, news is ripe that Citigroup is keen on selling 80 percent of its business process outsourcing (BPO) arm in India for USD 700-USD 750 million, reported the Mint .
Citigroup is in "advanced negotiations" with leading private equity firms for an all-cash deal for Citigroup Global Services, the newspaper said, citing investment bankers close to the deal. A private equity investor was most likely to emerge as the buyer with IBM Corp. and Tata Consultancy Services Ltd. "likely to drop out of the race over terms being proposed by the seller", the bankers told Mint.
Citigroup Global Services operates primarily in financial services and employs about 8,000 people, its Web site showed.
Private firms are eager to invest in back-office firms in India because of the potential for fast growth in the sector. Carlyle, which has a 28 percent holding in Allsec Technologies Ltd., is reportedly bidding for another back-office firm, Cambridge Solutions Ltd.
Citigroup is in "advanced negotiations" with leading private equity firms for an all-cash deal for Citigroup Global Services, the newspaper said, citing investment bankers close to the deal. A private equity investor was most likely to emerge as the buyer with IBM Corp. and Tata Consultancy Services Ltd. "likely to drop out of the race over terms being proposed by the seller", the bankers told Mint.
Citigroup Global Services operates primarily in financial services and employs about 8,000 people, its Web site showed.
Private firms are eager to invest in back-office firms in India because of the potential for fast growth in the sector. Carlyle, which has a 28 percent holding in Allsec Technologies Ltd., is reportedly bidding for another back-office firm, Cambridge Solutions Ltd.
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