Property fund IL&FS Milestone Realty Advisors is in talks with global funds Blackstone, Morgan Stanley and GIC to sell its entire stake in a Mumbai commercial project for about INR 1,000 crore ($184.36 million). IL&FS Milestone has been in talks with prospective investors for the last few months and is expected to close this transaction soon. IL&FS Milestone, a joint venture between and IL&FS Investment Managers and Milestone Capital Advisors, had in June 2010 paid the HCC Group INR 575 crore for a 74% stake in 247 Park, an office property. (The Economic Times)
PEs to fire $300m bids for 70% in Alliance Tire: Buyout firms Kohlberg Kravis Roberts (KKR), Blackstone, TPG Capital and Advent International are set to fire bids valued at more than $300 million to acquire majority shares in Alliance Tire Group, a Mumbai- based offroad tire maker. Standard Chartered Private Equity too is in the fray even though the buyout funds are front-runners in a deal which could peg Alliance Tire's equity value at over $400 million. Warburg Pincus and Ashok Mahansaria family jointly acquired Israel's Alliance for $150 million six years ago. Warburg owns a 70% stake leaving the rest with Mahansaria family. Credit Suisse is managing a sale process for Warburg Pincus. (The Times Of India)
After Reliance deal, Leelaventure to sell stake in a few hotels: Hotel Leelaventure Ltd, after selling one of its non-core assets, an IT park in Chennai to Reliance Industries for INR 170 crore ($31.34 million), is now keen on mopping up another INR 2,500 crore ($461 million) to ease its debt burden. The money raised from selling the IT park would be used to service the company’s Funded Interest Term Loan (FITL). The company is looking to sell 74% stake in any two of our hotels to mop up around INR 2,000 crore by the end of next year. (Business Line)
IIFCL plans $500-m fund to support credit guarantees: State-owned infrastructure lender IIFCL plans to set up a $500-million fund to support credit guarantees provided by it for project bonds of infrastructure providers. Of the $500 million (INR 2,750 crore) fund size, about INR 1,000 crore may be contributed by IIFCL and the rest could come from domestic and foreign investors. While IIFCL provided partial credit guarantee to the bond-offering of GMR Jadcherla, Asian Development Bank extended backstop guarantee by sharing risks with IIFCL. (Business Line)
CavinKare in talks with PE firms Everstone Capital, Chrys-Capital to sell 10-12% stake: Chennai-based consumer goods firm CavinKare is in talks with private equity firms Everstone Capital and Chrys-Capital to raise up to INR 350 crore ($64.52 million) by selling a minority stake in the company. The Chennai-based maker of Chik and Nyle shampoos has mandated JM Financial to negotiate the potential deal to sell 10-12% stake in the company. CavinKare plans to raise money because it want to retire debts which is about INR 325-350 crore. (The Economic Times)
Xander plans to sell 66% stake in Boutique Hotel for INR 300 crore: American institutional investment firm Xander Group is selling for INR 250-300 crore its 66% shareholding in Boutique Hotels India, which co-owns the Devigarh Palace in Udaipur and Ratn and Rasa properties in Jaipur. The firm, set up by the Rothschild family and the owner of Getty Images, had invested nearly INR 90 crore since 2006 to upgrade the Devigarh Palace hotel and to build two properties in Jaipur that opened in 2010. The co-owners, the Delhi-based mother-son duo of Lekha and Anupam Poddar, would also have to sell their 34% shareholding if Xander exists. (The Economic Times)
Dr Lal PathLabs scouts for acquisitions: Diagnostic chain Dr Lal PathLabs is eyeing acquisition targets, particularly in the western and southern parts of the country, where it currently has a thin presence. The company is in talks with various diagnostic chains in Chennai, Hyderabad, Bangalore and Kolkata for a possible buyout. The firm has also earmarked a budget of around INR 250 crore for inorganic activities. The company is also planning organic growth in tier II cities of northern and eastern India. (Business Standard)
Zylog Systems plans to raise $25 mn: IT products, services and solutions provider Zylog Systems Ltd is planning to raise $25-30 million (INR 135-162 crore) by diluting its shares to meet various fund requirements. Besides, it would raise INR 220 crore from banks for working capital requirements. The company would be finalising the equity dilution in the parent company in the next four to five weeks and talks are on with big foreign institutional investors (FIIs), who are keen on the secondary market. The company is also looking at bringing in a strategic financial investor to its wireless broadband (Wi-Fi business) subsidiary Zylog Systems India. (Business Standard)
Lanco looks to Malaysian partner to raise money: Power generator Lanco Infratech is known to have reached out to its Malaysian partner, Genting, to buy stake in three of its power plants. Lanco is looking for a stake buyer for the Amarkantak, Baband and Anpara plants. The move comes after Lanco was unable to sell stake of its power business to private equity players. Ever since, the firm has been looking to sell power projects to buyers to raise equity. The company had been looking for investors for its highways business as well and engaged in multiple rounds of talks with private equity as well as other investors over the last six months. (Business Standard)
Biyani front-runner to acquire Spykar: Future Group founder Kishore Biyani has emerged as the surprise frontrunner to snap up homegrown denim brand Spykar, after Avigo Capital, which has majority stake, put it on the block last year. Biyani's publicly traded investment company Future Ventures is in fairly advanced talks to buyout Spykar Lifestyle in an all-cash or part cash and stock deal. The discussions with Spykar are part of his plans to grow his fashion business into a $1-billion unit within two years. Biyani is also in contention to clinch deals with a French kidswear brand and two other niche Indian players in women's wear and footwear segments. Avigo and its co-investor Metmin Holdings together hold 60% stake in Spykar, while the rest is held by the original promoter group, which would also exit. (The Times Of India)
Binani Industries in talks to sell up to 40% in cement arm to raise capital: Binani Industries is in talks with potential financial investors such as JP Morgan and state-owned funds in the Middle East to sell up to 40% stake in its subsidiary Binani Cement as it seeks to raise capital to cut debt and expand cement capacities. Ernst & Young (E&Y), Braj Binani group's banker for the transaction, has held preliminary talks with the prospective investors. Binani Industries has taken an in-principal approval from the board to divest its holding up to 40% to financial investors on a structured basis to facilitate its liquidity position and to consolidate its growth plans. The potential investors may include Abu Dhabi Investment Authority and Qatar Investment Authority. (The Economic Times)
Courtesy: VCCEdge
