News Roundup: VLCC Founders In Talks With Buyout Funds

By TEAM VCC

  • 19 Oct 2011


VLCC Founders In Talks With Buyout Funds - The founders of privately-held slimming centers and wellness chain, VLCC Healthcare, are in talks with buyout firms including Apax Partners, Bain Capital and TPG Capital to sell a controlling stake in the company. The founders, Vandana Luthra and Mukesh Luthra, collectively own 80% stake in the firm while the remaining stake is held by an investment arm of Everstone Capital. The founders are seeking $400 million for their stake in the firm and Morgan Stanley is advising VLCC Healthcare on the sale process. (Economic Times)

Glitz Cinemas Put On The Block - Glitz Cinemas is on the block. The multiplex chain, owned by Capital 18 which is the private equity arm of Network18 Group, has a strong presence in smaller towns. The promoters of Glitz Cinemas are asking for around Rs 3 crore per screen or around Rs 80-90 crore. Glitz Cinemas commenced commercial operations in July 2008 and has strong presence in Dehradun, Ranchi, Bilaspur, Raipur, Ajmer, Kurushetra and Delhi offering over 4,000 seats per show and reaching to 2 million-plus captive customers. (Financial Express)

Glencore In Talks To Buy 24% In Croniment - Metals and energy giant Glencore International is in talks to buy 24% stake in Indian ferro chrome maker Cronimet Alloys. A deal, which could be for Rs 50-75 crore, would mark Switzerland-based Glencore's entry into India. Cronimet said at a recent annual general meeting that it has mandated Euromax Capital to scout for investors. It had also said that Glencore had shown "interest" in picking up a stake. (Economic Times)

RIL Bidding For El Paso's Shale Assets - India’s Reliance Industries Limited, Norway’s Statoil ASA and Occidental Petroleum Corp. seek to expand their stakes in US shale fields. They are among the bidders for El Paso Corp.’s oil and natural gas unit. Kinder Morgan Inc. plans to sell El Paso’s exploration to pay off debt from this week’s $21.1 billion takeover of the rival pipeline company. 

IRB Infra Promoters Sell 10% Stake - Two of the promoters of road developer IRB Infrastructure have sold around 10% stake through secondary market transactions in the past one week to raise around Rs 457 crore to revoke pledge on the shares held by them. Analysts also see the series of block deals as an attempt to restructure the shareholding pattern of the Virendra Mhaiskar-controlled IRB Infrastructure to reduce the cross holding in the company by his father Dattatray Pandurang Mhaiskar and Ideal Toll and Infrastructure Private, which is promoted by his brother Jayant Mhaiskar.

NSDC Takes 27% In Laurus Edutech - National Skill Development Corporation (NSDC) has picked up a 27 per cent stake in a special purpose vehicle (SPV) floated by Chennai-based Laurus Eductech. The government-promoted NSDC will infuse Rs 4.5 crore as an equity portion in the SPV. The new SPV was floated with an objective to train over 1.1 million students over the next 10 years by setting up over 540 centres. (Business Standard)

Kingfisher Up On M&A Buzz - Kingfisher Airlines stock saw an unexpected upward movement today following a strong buzz in the market that the Government might finally give in to the domestic airline industry's demand to open up the sector to foreign airlines. The airline's stock rose nearly 7 per cent to close at Rs 23.30 on indications that the Government might allow foreign airlines to own up to 25 per cent stake in private airlines in the country which would rescue the beleaguered industry. (Business Line)