Volcan Investments Ltd, the family trust of Vedanta Resources Plc. chairman Anil Agarwal, is exploring the merger of Anglo American Plc.’s South African business with Vedanta Resources in a share-swap deal, Mint reported, citing two people aware of the development. Volcan is Anglo American Plc.’s biggest shareholder, with nearly 20% stake.
The merged entity would be valued at about $7 billion, said the people.
On Monday, Vedanta Resources Plc. said Volcan has agreed to buy the rest of Vedanta in a deal that values the mining conglomerate at 2.3 billion pounds ($3.03 billion).
In another development, Kerala-based private sector lender Federal Bank is in discussions to acquire Chennai-based Madura Micro Finance Ltd for about Rs 720-750 crore, The Economic Times reported, citing two people aware of the development.
The deal is expected to be a combination of share swap and cash, according to the report.
As on 31 March 2018, Madura Micro Finance had a gross loan portfolio of Rs 1,184 crore, up from Rs 823 crore a year before, according to a recent report by MicroFinance Institutions Network.
It has around 320 branches across Tamil Nadu, Maharashtra, Karnataka, Kerala, Bihar and Odisha.
As on 31 December 2017, Tara Thiagarajan, chairman and managing director of Madura Micro Finance, held 32.39% stake in the company. Elevar Equity holds 12.11% stake, according to a recent ICRA report.
Separately, Hyderabad-based GVK Group is in early discussions with Fairfax Financial Holdings, led by Canadian billionaire Prem Watsa, to sell entire 49.47% stake in TajGVK Hotels and Resorts Ltd, The Economic Times reported, citing people aware of the development.
Listed company TajGVK is a joint venture of GVK Group and Indian Hotels Company Ltd, the Tata group's hospitality arm. TajGVK has seven hotels across Hyderabad, Chandigarh, Mumbai and Chennai.
As on 31 March 2018, the GVK Group held 49.47% stake in the company and Indian Hotels Company 25.52% stake. The rest is held by public shareholders.
GVK Group is exploring the sale of its non-core assets to strengthen its balance sheet, according to the report.
The market capitalisation of TajGVK is around Rs 1,440 crore.
For 2017-18, the company’s consolidated revenue from operations stood at Rs 288.25 crore, up from Rs 264.49 crore for the previous financial year.
In another development, Mumbai-based InCred Finance is in talks with potential investors to raise Rs 500-600 crore, Mint reported, citing two people aware of the development.
InCred Finance plans to begin wholesale lending from August, according to the report.
InCred was founded in 2016 by former Deutsche Bank senior executive Bhupinder Singh. Its backers include former Deutsche Bank co-CEO Anshu Jain; Manipal Group’s managing director and CEO Ranjan R Pai; and Gaurav Dalmia, founder and chairman of Landmark Holdings (Dalmia Group); and Paragon Partners.
It focuses on four lending verticals: affordable housing, small and medium enterprises, education, and personal finance.