Deals Buzz: Jet Airways loyalty arm sale to be managed by Moelis
In other news, Tiger Global Management will step up investments in India from its mega $3 billion fund, and SBI General Insurance’s proposed 4% stake sale has drawn interest from KKR, Temasek Holdings and Canada Pension Plan Investment Board
Mint brings to you all the top deals reported from newsrooms across the country
Jet Airways loyalty arm sale to be managed by Moelis
Jet Airways has finalised boutique investment bank Moelis & Co. to manage a stake sale in Jet Privilege, the loyalty rewards programme that the carrier co-owns with Etihad Airways, The Economic Times reported. The report added that private equity giants TPG and Blackstone were vying for the sale. Mint first reported on 20 August that TPG has entered the race to buy the stake, competing with Blackstone. Mint also first reported on 3 August that the airline is looking to sell a stake to raise cash amid financial troubles.
The ET report said that this will be the first airline-related deal in India headed by Moelis. In August, the bank managed Montreal-based loyalty analytics company Aimia’s $2.1billion sale of its Aeroplan loyalty business.
Tiger Global to step up investment using $3 billion fund
Tiger Global Management, one of the earliest big backers of India’s Internet story, is returning with renewed faith to the domestic startup ecosystem three years after it stopped making fresh investments in the country. The New York-based hedge fund will step up investments in India from its mega $3 billion fund called Tiger Global Private Investment Partners XI, The Economic Times reported. The new fund comes shortly after Tiger Global’s Lee Fixel helped script one of the biggest M&A deals in India’s corporate history as US retail giant Walmart acquired 77% of India’s largest online retailer, Flipkart, for $16 billion.
KKR, Temasek, CPPIB may bid for SBI General Insurance stake
SBI General Insurance Co’s proposed 4% stake sale has drawn interest from at least three global private equity investors, including KKR, Singapore’s Temasek Holdings Pvt. Ltd and Canada Pension Plan Investment Board (CPPIB), Mint reported. Insurance companies that had divested stakes before planned public offerings like SBI Life include ICICI Prudential, HDFC Life and ICICI Lombard General, which had sold a minor stake to discover value before the listing on the exchanges. SBI General Insurance, which began its operations in 2010, is a 74:26 joint venture between the SBI and Insurance Australia Group (IAG), which paid ₹ 542 crore for a 26% stake in the joint venture.
TPG Growth appoints Shailesh Rao as India head
TPG Growth has appointed its senior adviser Shailesh Rao as India head, Mint reported, citing two people close to the development. Rao had been brought in for managing the technology portfolio of the PE firm in India, Asia and the US. TPG Growth is the mid-market and growth equity investment platform of US-based private equity firm TPG.
Glenmark to pare debt, boost cashflow via new licensing agreements
Glenmark Pharma has announced a slew of licensing agreements and steps to improve cash flow and pare debt, Business Standard reported. The company has a net debt of close to Rs 36 billion on its books, with debt-to-equity ratio of about 1. This is much higher compared to peers. Sun Pharma, Lupin, Cipla, Dr Reddy’s and Cadila Healthcare’s debt-to-equity ratio ranges between 0.27 and 0.62. The company has also announced various restructuring moves and a partnership in the domestic arena. It is collaborating with private equity firm True North to create a separate entity and transfer its orthopaedic and pain management business for India and Nepal at a valuation of Rs 6.35 billion. Mint had reported in July that private equity funds Carlyle Group, Advent International and Fosun Group are in talks to buy Glenmark’s API business.
Razorpay enters enterprise lending to become a complete financial services company
Payments solutions venture Razorpay is stepping into the enterprise lending space, as the Bengaluru-based startup looks to expand its 2.0 strategy launched late last year and evolve into a fullstack financial services company, The Economic Times reported. Additionally, Razorpay, which counts MasterCard, Tiger Global and Matrix Partners India among its investors, has launched a vendor payments service that will allow its about 100,000 clients to manage account payables, critical for small and medium enterprises to manage their liabilities.