Siddhi Vinayak Logistic, a Surat based corporate logistic service provider, plans to raise more than $100 million (INR 618 crore) by selling a minority stake to a global private equity firm. Large PE firms such as Goldman Sachs, Blackstone, KKR, JPMorgan, Macquarie, Fairbridge Capital, Gulf Co Funds and Sovereign funds of Singapore and Malaysian governments are in the fray to invest in Siddhi Vinayak Logistic Ltd (SVLL). SVLL has mandated merchant bankers The Financials Supermarket to find investors. It plans to utilise the fund raised from PE investment to expand its footprint by setting up integrated logistics park, foraying into air and rail logistics and start international operations. (The Economics Times)
JP group is in talks to sell 74% stake in cement JVs with SAIL to ACC: Jaiprakash Associates (JPA), burdened with INR 60,000 crore of consolidated debt, is in talks to sell its 74% stake in two cement joint ventures with India's largest steel maker SAIL to Holcim-owned Associated Cement Companies for INR 2,900 crore ($ 468 million), two people familiar with the development said. The stake sale is part of the group's plan to trim its debt by a fourth before the end of the current fiscal year as lenders, themselves stressed, push companies to sell assets to raise capital and repay loans. Dalmia Cement Bharat Ltd, in which American private equity fund KKR is an investor, has also shown interest in purchasing the cement units, a person with direct knowledge of the development said. The state-owned steel maker will hold on to its 26% stake and continue to supply slag, a key raw material in cement manufacture, to the buyer for 30 years under the joint venture agreement. JPA is also said to be in discussions to sell two hydropower projects in Himachal Pradesh to a consortium led by Taqa, Abu Dhabi's flagship energy and Utilities Company, for INR 12,000-13,000 crore ($1,93 billion – 2. 09 billion). (The Economics Times)
Bhushan Steel seeks 7kcr loan: Bhushan Steel is negotiating with lenders led by State Bank of India for a INR 7,000-crore ($ 1.1 billion) loan, ostensibly for capacity expansion, but some bankers say it was a kind of rollover which may be needed to avoid a potential loan restructuring. The metals company, which has already doubled its capacity in the past five years with huge debt, is seeking loans to avoid payment issues and the banks are also keen that the account does not lead to any increase in provisioning, said two bankers who did not want to be identified. An account of Bhushan’s size, with a loan of INR 28,000 crore ($ 4.2 billion), could be a drag on lenders if it is restructured, especially after the new set of rules come into force from April, they said. The company going for a capex proposal of INR 4,400 crore ($710 million) for which a few banks have already sanctioned the loan, and balance we need to tie up is going on,†said Nittin Johri, director (finance), Bhushan Steel. “This will mainly involve investments in putting up balancing facilities in our Odisha plant. (The Economics Times)
Tata Power board plans to discuss fund raising options this week: Tata Power's board will deliberate on various fund raising options, including by way of preferential issue of shares to institutional investors, on February 27. The country's largest private power is looking to expand its operations, including in foreign countries. The board meeting also comes at a time when the Central Electricity Regulatory Commission (CERC) has allowed the company compensation as well as higher tariff for electricity generated from its 4,000 MW Mundra power project in Gujarat. The plant has been seeing significant losses due to rise in cost of imported Indonesian coal, which is used to fire it. The company reported a consolidated net loss of INR 74.91 crore ($ 12 million) in the three months ended December 2013. During the same period, the company's total income from operations touched INR 8,700.02 crore ($ 1,404 million). (Business Standard)
Petronas to sell 25% stake in Canadian Progress to Indian company: Petronas has agreed to sell a 25% stake in Canadian Progress Energy Resources Corp. to an Indian company, the Malaysian state oil firm's president and chief executive Shamsul Azhar Abbas said. He did not name the company or the price at which Petronas will sell the stake. Petronas, which has been expanding abroad to shore up future earnings as output slows at home, bought Canada's Progress Energy Resources in 2012 in a deal worth around $5 billion (INR 30,906) that gave it shale gas properties in northeastern British Columbia. (Reuters)
Pfizer to buy stake in two foreign units shares rally: Shares of Pfizer Ltd. the Indian unit of the world's largest drug maker Pfizer Inc, rose by over 20% on Monday after the Indian unit announced that the company's two shareholders Pfizer Investments Netherlands and Pfizer Corporation, Panama will be selling majority stake to Pfizer East India Netherlands as part of an internal restructuring by the company. The drugmaker told the BSE that Pfizer East India will acquire 29% and 31% in the company from the Netherlands and Panama units, respectively. The Netherlands unit will sell its stake at INR 1,537 per share, whereas the Panama unit will give its stake as a gift, without any consideration. (The Economics Times)
Courtesy: VCCEdge
