Aditya Birla Nuvo, a AV Birla group company, is in the midst of a business restructuring exercise by shedding low margins businesses and investing INR 8000 crore in high growth areas like financial services, fashion retailing and urea. As part of the exercise, the company has decided to exit its business process outsourcing business as it lacks scale. The company would invest the money from the sale in the financial services, retailing and urea business. Early this week, Aditya Birla Nuvo announced that it will sell its carbon black business to a group company for around INR 1,450 crore. ()
Petronet forays into shipping: Petronet LNG, a private company promoted by state-run oil firms for importing liquid gas in ships, is diversifying into shipping by taking a 26% stake in a proposed venture with vessel owners and operators for transporting gas to its new terminal at Kochi in Kerala. This would be the first time an Indian gas company would be taking a meaningful equity in a shipping venture. State-run gas utility GAIL, which is one of the promoters of Petronet, is also considering foraying into shipping for wheeling gas it has tied up from various suppliers, including the US. Petronet would take 26% in the company, or consortium formed with the chosen shipping liner and operator, who would own the remaining 74% equity. This consortium would own the vessel and Petronet, with 26% stake, and would have the veto power and can play an active role in running the firm. (The Times Of India)
Ennore port to look at alternative source to fund its projects: The Ennore port proposes to explore alternative source of funds for its various projects as its recent public issue of tax-free bonds failed to attract subscribers. The company could raise only INR 95 crore ($17.49 million) from the INR 1,000-crore ($184.14 million) bond issue. The company would raise funds through alternative sources in the next six months. (Business Line)
Delhi Press in talks to buy ‘Man’s World’ magazine: The Delhi Press Group, publisher of magazines such as The Caravan and Woman’s Era in English and the Hindi-language Sarita, Grihshobha and Champak, is in talks to buy 13-year-old men’s luxury magazine Man’s World as it seeks to expand its portfolio of titles. The company is also negotiating the purchase of rights to print the American music and pop culture fortnightly Rolling Stone in India; the local edition of the magazine is also published by the owner of Man’s World, Radhakrishnan Nair. (Live Mint)
Eveready mulls JV for its Hyderabad, Noida properties: Eveready Industries India is mulling to form a joint venture with an interested party to develop its Hyderabad and Noida properties, which the company has put on the block for quite sometime now. If the company forms a JV to develop the properties, it may engage its sister company McNally Bharat Engineering Company for construction. However, Khaitan ruled out any possibility of any deal on this over the next few months. Incidentally, earlier in 2005, following the same model Eveready had tied up with Khivraj Tech Park Pvt. Ltd, to up a modern technology park, named Olympia at Guindy, Chennai. ()
Manulife, HDFC Life in the fray for HSBC India insurance arm: Canada’s Manulife Financial Corp and the Indian affiliate of Standard Life are among the suitors to place first-round bids for HSBC’s Indian life insurance business, a stake valued around $200 million (INR 1,086 crore). HSBC, Europe’s biggest bank, is selling its 26% stake in a life insurance joint venture with two Indian state-run banks. HSBC’s two Indian partners in the venture, Canara Bank and Oriental Bank of Commerce, could also pare their stakes. That could push the deal value to $800 million (INR 4,344 crore), including a bank distribution agreement. ()
MMTC stake sale offer likely to hit markets in April: The Department of Disinvestment (DoD) is planning to launch this month or early May the 9.33% stake sale in MMTC, which could fetch around INR 300 crore ($55.24 million) to the exchequer. The disinvestment department is waiting for the equity markets to stabilise before doing the stake sale of MMT. Avendus, IDBI Capital Market Services and IDFC are shortlisted for stake sale. The stake sale would enable the company meet minimum 10 percent public holding norm stipulated by market regulator Sebi. (Firstpost)
JSPL to raise INR 3500 cr via bond issue: Jindal Steel and Power (JSPL) is likely to raise up to INR 3,500 crore ($644.50 million) via bond issue in domestic market. The proceeds of the issue would be used for expanding capacities in steel and power businesses. JSPL is keen to expand reach in domestic market and hence has lined up huge investment for its Orissa plant, of which it intends to increase capacity from 6 mtpa (million tonnes per annum) to 20 mtpa. Earlier this month, the Naveen Jindal-led firm raised INR 300 crore ($55.24 million)by issuing 3,000 unsecured, redeemable non-convertible debentures (NCDs) to HDFC Bank. (Moneycontrol.com)
Courtesy: VCCEdge