Private equity firm Blackstone is in talks with the Life Insurance Corporation (LIC), to buy out its stake in Stock Holding Corporation of India Ltd (SHCIL). The move comes at a time when two public sector institutions - IDBI and IFCI - are fighting for control of SHCIL. LIC, which holds 14% stake in the target company, is looking to sell the stake through bidding process. A spokesperson for Blackstone, however, refused to comment on the matter. But two officials, familiar with the situation, confirmed to ET that the PE group and the insurer are indeed in talks, and LIC is willing to sell its stake in SHCIL. It will also appoint SBI Capital Markets for the valuation exercise. The insurer may also offer the right of first refusal to the two existing shareholders, IFCI and IDBI. The other major stakeholder in SHCIL is SUUTI, which holds 17% stake. (The Economic Times)
DVB Bank eyes 29% stake in Global Offshore: Germany's DVB Bank, which invests primarily in airlines and shipping companies, is in advanced talks with Mauritius-based private equity fund India Star to purchase 29% stake in Global offshore (formerly Garware Offshore) for around Rs 100 crore ($18.34 million). The German bank is perceived to be tightening its grip in the parent company after purchasing 31% stake in Global Offshore's Dutch subsidiary Global Offshore Services BV in 2012 for Rs 77 crore. DVB, owned by Germany's fourth largest bank by assets DZ Bank, will have to pay a significant premium to purchase the stake and will have to make an open offer as per SEBI takeover guidelines. (The Economic Times)
UK-based 3i to exit India, pulling out of all portfolio companies: The world's largest India-dedicated infrastructure fund, UK-based 3i, is pulling out of India and exiting all its portfolio companies as the country has failed to meet investors' expectations due to slowing growth and a volatile policy environment worsened by a depreciating currency. However, other global funds dedicated to Indian infrastructure are unlikely to join the 'Quit India movement' for now. The $1.2 billion 3i India Fund had invested around $875 million in seven firms but hasn't been able to exit a single one in six years. Adani Power is its only holding that got listed on the Indian bourses (in 2009), but the value of 3i's stake in the firm purchased for $227 million in 2007 has dropped by around $85 million. (The Economic Times)
Shriram City Union Finance to raise Rs 325Cr via QIP/PE route: Shriram City Union Finance Ltd may raise around Rs 325 crore ($59.62 million) capital either through an institutional placement of shares or from private equity investors this fiscal. The company required Rs 750 crore ($137.59 million). The Chennai-based company will opt either for a qualified institutional placement or a stake sale to a private equity player for raising the capital. The company already has a shareholder approval to raise Rs 1,000 crore ($183.45 million) through various routes. (The Economic Times)
Canara Bank to raise up to $1B this month from overseas market: State-owned Canara Bank is looking to raise up to $1 billion (Rs 5,487 crore) through bonds this month from the overseas market. The funds raised will be utilised for the growth of overseas business of the bank. Currently, the bank has five overseas branches in London, Leicester, Shanghai, Manama and Hong Kong. As part of its global expansion plan, the Bangalore-based bank intends to open branches at 9 overseas destinations. The firm is also planning to open offices in Sao Paulo (Brazil), Dar-es-Salaam ( Tanzania), Tokyo (Japan), Abuja (Nigeria), Jeddah (Saudi Arabia), Qatar Financial Centre (Qatar), Frankfurt (Germany) and New York (the USA) by March 2015. (The Economic Times)
Stanchart in talks to buy Morgan Stanley India wealth unit: Standard Chartered Plc, the UK bank that earns most of its profits in Asia, is in final talks to buy Morgan Stanley’s Indian wealth management unit. Standard Chartered will initially pay $8 million (Rs 43.6 crore) for the unit, which has about $800 million of assets under management. The bank will follow up the payment with an undisclosed sum later. Morgan Stanley is selling the business as part of a review of its operations. (Live Mint)
Piramal says looking to exit Vodafone investment next year: Piramal Enterprises is looking to exit next year its investment in Vodafone Group Plc's local mobile phone unit. Piramal owns 11% stake in Vodafone India Ltd. The company has bought the stake in two stages for a total of about Rs 59 billion. Vodafone has the first right to buy the stake from Piramal if a planned listing of the phone unit does not happen within 18 months. ()
Essar oil hopes to refinance about $1.8B of debt in 3-6 months: Essar Oil Ltd hopes to refinance about $1.8 billion (Rs 9,811 crore) worth of debt in 3-6 months. The company has RBI approval for refinancing up to $2.27 billion of rupee debt to dollars and so far, it has refinanced $481 million. The privately run refiner posted a net profit of Rs 2 billion in the quarter ended March 31, from a loss of Rs 5.15 billion in the same period a year ago. (Reuters)
Courtesy: VCCEdge