Abu Dhabi Investment Authority to invest $250 million in Hines India Real Estate:
Abu Dhabi Investment Authority is investing $250 million (INR 1,500 crore) in Hines India Real Estate, the Indian arm of American property development and management firm Hines, amid a rise in overseas interest in the sector. The sovereign wealth fund has formed a strategic alliance with Hines to invest across the residential segment in metros across India. This is the first direct real estate venture with a developer in India for the fund. The sovereign wealth fund owned by the emirate of Abu Dhabi recently invested $300 million (INR 1,800 crore) in the offshore fund of Kotak Realty Funds run by Kotak Mahindra Bank. (Economic Times)
IDFC may buy Orient Green unit:
IDFC Alternatives is discussing a large stake buy, possibly a controlling interest, in select wind power assets owned by Orient Green Power Company, a listed firm of the southern conglomerate Shriram Group. The transaction could be valued up to INR 300 crore ($49 million), said banking sources directly familiar with the matter. The deal may involve IDFC buying into fully owned subsidiaries of Orient Green Power, and not into the listed parent. IDFC owns privately held Green Infra, which operates 377MW wind power assets, mostly built through acquisitions. Investment bank MAPE is said to be advising on the deal. (Times of India)
Ronnie backs lingerie site Zivame:
UTV founder and entrepreneur Ronnie Screwvala is leading a $6 million (INR 36 crore), investment into Zivame, a lingerie e-commerce startup which rides on the increasing women traffic in India's internet story. Screwvala's investment company Unilazer Ventures is pumping in most of the cash, while existing investors too are participating in this round. The company now raised $9 million after netting $3 million from IDG and Kalaari Capital in January this year. (Times of India)
Lakshmi Mittal is in talks to buy stake in Delhi Daredevils:
ArcelorMittal chairman Lakshmi Mittal and his family members are in talks with the GMR group to buy a significant stake in its Indian Premier League team Delhi Daredevils. GMR is seeking a valuation of between $150 and $200 million, said people familiar with the negotiations, though the eventual outcome depends on the outcome of the negotiations. Kiran Kumar Grandhi, the son of GMR chairman GM Rao, was recently in London to meet with the Mittals and their son-in-law Amit Bhatia, who manages their investments in sports. GMR is willing to sell up to 49% stake in the team. (Economic Times)
Motilal Oswal plans second realty fund:
Motilal Oswal Real Estate is planning to raise INR 300 crore ($49 million) from Indian investors, via a real estate fund with a greenshoe option of INR 200 crore ($33 million). The proposed India Realty Excellence Fund II LLP, with a total tenure of four years, including two extensions, would be the second fund of Motilal Oswal Private Equity's real estate arm. Motilal Oswal Financial Services, has committed 20% of the proposed fund as seed capital. The fund would capitalise on opportunities by focusing on mezzanine transactions which will have the characteristics of structured debt with an upside kicker. (Economic Times)
Santos pulls out of Indian oil and gas blocks:
Close on the heels of mining giant BHP Billiton deciding to quit India, Australia’s Santos wants to exit its two oil and gas exploration block in Bay of Bengal due to delays in getting approvals to start work. Santos, Australia’s third, largest oil and gas producer, was in February 2007 awarded two blocks south, east of Kolkata, has written to the government saying it has not been able to carry out exploration in the area because of defence restrictions and maritime boundary dispute with Bangladesh. It offered to surrender the blocks NEC-DWN-2004/1 and NEC-DWN-2004/2 on which it has already spent $ 60 million. (Business Line)
Larsen Seeks Sovereign Funds for Infrastructure Stake:
Larsen & Toubro Ltd., engineering company, is in talks with investors to raise capital for a unit that builds roads, ports and other infrastructure to conserve cash. The company is considering raising money from investors including sovereign and infrastructure funds by March for unit L&T Infrastructure Development Projects Ltd., said CFO R. Shankar Raman. Larsen said last month it’s considering the sale of some of L&T IDPL’s assets, including an initial public offering and listing in Singapore of some road projects. Private equity fund Old Lane LP owns 2% in L&T IDPL. Larsen is trying to cut its stake in the unit to 80% from 98%, Raman had said in May. (Bloomberg)
Crompton Greaves may sell or shut Canada plant:
A year after restructuring its Belgian plant, Crompton Greaves is considering either selling or shutting its Canadian power transformer plant, to cut losses in its foreign business. The transformer factory in Canada contributes about three per cent to the company’s total sales. The Canadian facility is running at low utilisations, with a likely revenue of $55 million, against break-even at $70 million, as there are manufacturing design issues. The Canada plant was acquired by the Pauwels group of Belgium in 1994. In 2005, Crompton Greaves acquired Pauwels, bringing the plant into its fold. (Business Standard)
Reliance Communications mulling $1bn debt issue:
The Anil Ambani-led telecommunications firm Reliance Communications is considering a bond issue to the tune of $1 billion (INR 6,084 crore). The firm is said to have appointed bankers to finalize the issue and has short-listed European and Singapore markets as potential markets. The issue, which is targeting fund-raising at the cost of debt of around 8 to 9 percent, would, however, depend on market conditions. (Money Control)
Abu Dhabi Investment Authority is investing $250 million (INR 1,500 crore) in Hines India Real Estate, the Indian arm of American property development and management firm Hines, amid a rise in overseas interest in the sector. The sovereign wealth fund has formed a strategic alliance with Hines to invest across the residential segment in metros across India. This is the first direct real estate venture with a developer in India for the fund. The sovereign wealth fund owned by the emirate of Abu Dhabi recently invested $300 million (INR 1,800 crore) in the offshore fund of Kotak Realty Funds run by Kotak Mahindra Bank. (Economic Times)
IDFC may buy Orient Green unit:
IDFC Alternatives is discussing a large stake buy, possibly a controlling interest, in select wind power assets owned by Orient Green Power Company, a listed firm of the southern conglomerate Shriram Group. The transaction could be valued up to INR 300 crore ($49 million), said banking sources directly familiar with the matter. The deal may involve IDFC buying into fully owned subsidiaries of Orient Green Power, and not into the listed parent. IDFC owns privately held Green Infra, which operates 377MW wind power assets, mostly built through acquisitions. Investment bank MAPE is said to be advising on the deal. (Times of India)
Ronnie backs lingerie site Zivame:
UTV founder and entrepreneur Ronnie Screwvala is leading a $6 million (INR 36 crore), investment into Zivame, a lingerie e-commerce startup which rides on the increasing women traffic in India's internet story. Screwvala's investment company Unilazer Ventures is pumping in most of the cash, while existing investors too are participating in this round. The company now raised $9 million after netting $3 million from IDG and Kalaari Capital in January this year. (Times of India)
Lakshmi Mittal is in talks to buy stake in Delhi Daredevils:
ArcelorMittal chairman Lakshmi Mittal and his family members are in talks with the GMR group to buy a significant stake in its Indian Premier League team Delhi Daredevils. GMR is seeking a valuation of between $150 and $200 million, said people familiar with the negotiations, though the eventual outcome depends on the outcome of the negotiations. Kiran Kumar Grandhi, the son of GMR chairman GM Rao, was recently in London to meet with the Mittals and their son-in-law Amit Bhatia, who manages their investments in sports. GMR is willing to sell up to 49% stake in the team. (Economic Times)
Motilal Oswal plans second realty fund:
Motilal Oswal Real Estate is planning to raise INR 300 crore ($49 million) from Indian investors, via a real estate fund with a greenshoe option of INR 200 crore ($33 million). The proposed India Realty Excellence Fund II LLP, with a total tenure of four years, including two extensions, would be the second fund of Motilal Oswal Private Equity's real estate arm. Motilal Oswal Financial Services, has committed 20% of the proposed fund as seed capital. The fund would capitalise on opportunities by focusing on mezzanine transactions which will have the characteristics of structured debt with an upside kicker. (Economic Times)
Santos pulls out of Indian oil and gas blocks:
Close on the heels of mining giant BHP Billiton deciding to quit India, Australia’s Santos wants to exit its two oil and gas exploration block in Bay of Bengal due to delays in getting approvals to start work. Santos, Australia’s third, largest oil and gas producer, was in February 2007 awarded two blocks south, east of Kolkata, has written to the government saying it has not been able to carry out exploration in the area because of defence restrictions and maritime boundary dispute with Bangladesh. It offered to surrender the blocks NEC-DWN-2004/1 and NEC-DWN-2004/2 on which it has already spent $ 60 million. (Business Line)
Larsen Seeks Sovereign Funds for Infrastructure Stake:
Larsen & Toubro Ltd., engineering company, is in talks with investors to raise capital for a unit that builds roads, ports and other infrastructure to conserve cash. The company is considering raising money from investors including sovereign and infrastructure funds by March for unit L&T Infrastructure Development Projects Ltd., said CFO R. Shankar Raman. Larsen said last month it’s considering the sale of some of L&T IDPL’s assets, including an initial public offering and listing in Singapore of some road projects. Private equity fund Old Lane LP owns 2% in L&T IDPL. Larsen is trying to cut its stake in the unit to 80% from 98%, Raman had said in May. (Bloomberg)
Crompton Greaves may sell or shut Canada plant:
A year after restructuring its Belgian plant, Crompton Greaves is considering either selling or shutting its Canadian power transformer plant, to cut losses in its foreign business. The transformer factory in Canada contributes about three per cent to the company’s total sales. The Canadian facility is running at low utilisations, with a likely revenue of $55 million, against break-even at $70 million, as there are manufacturing design issues. The Canada plant was acquired by the Pauwels group of Belgium in 1994. In 2005, Crompton Greaves acquired Pauwels, bringing the plant into its fold. (Business Standard)
Reliance Communications mulling $1bn debt issue:
The Anil Ambani-led telecommunications firm Reliance Communications is considering a bond issue to the tune of $1 billion (INR 6,084 crore). The firm is said to have appointed bankers to finalize the issue and has short-listed European and Singapore markets as potential markets. The issue, which is targeting fund-raising at the cost of debt of around 8 to 9 percent, would, however, depend on market conditions. (Money Control)