Deals buzz: LIC raises stake in Bata India to 7.05%5 min read . Updated: 12 Dec 2016, 10:28 AM IST
In other news, ICICI Home Finance sale shelved as demonetisation dims real estate outlook and Former Snapdeal product chief Anand Chandrasekaran invests in Wooplr
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
ICICI Home Finance sale shelved as demonetisation dims real estate outlook
ICICI Bank Ltd’s proposed sale of its home financing unit has been put on hold for the second time this year after talks with private equity fund TPG broke down amid disagreements over valuation and changed market conditions following the government’s demonetization move, according to two people familiar with the development.
TPG entered the fray for the third time in October this year to buy ICICI Home Finance Co. Ltd after parent ICICI Bank’s talks with private equity funds India Value Fund Advisors (IVFA) and Baring Private Equity Asia went sour, the people said, requesting anonymity.
In April, Mint had reported that ICICI Bank had put the plan to sell the subsidiary on the back-burner after a disagreement on the price with potential private equity buyers. Read more.
TVS Infrastructure in talks to buy 86% stake in MJ Logistics
Eredene Capital Plc is in talks with TVS Infrastructure Ltd to sell its entire stake in MJ Logistics Services Pvt. Ltd for approximately Rs80 crore, two people with direct knowledge of the matter said. Eredene is exiting its holding at a loss, the second person said, also declining to be named.
London-based Eredene had invested around £11 million (Rs93.34 crore) in MJ Logistics, a provider of logistics, warehousing and distribution services in north India, for a 90% stake in 2008.
The fair value of the fund’s investment has since declined to £9.2 million (Rs78 crore), a value erosion of about 16%, Eredene had disclosed in its annual report in March. As on March 2016, it held a 86% stake in MJ Logistics. Read more.
Bank of Baroda in talks to buy Central Bank’s housing finance arm
Bank of Baroda is holding discussion to acquire a controlling equity stake in Cent Bank Home Finance (CBHFL), the housing finance subsidiary of Central Bank of India, as it looks to strengthen its position in the home loan segment.
At present, Central Bank owns 64% stake in CBHFL, while HUDCO, UTI and National Housing Bank are the other promoters.
The Press Trust of India reported citing sources that Bank of Baroda has appointed SBI Capital Markets, while Central Bank has engaged a couple of merchant bankers, including IDBI Capital as advisors. Read more.
Paras Healthcare looks to raise Rs350-400 crore from PE funds
Healthcare group Paras Healthcare, which runs Paras Hospitals in north India, has initiated discussion with private equity (PE) funds to raise about Rs350-400 crore to finance expansion, two people aware of the matter said.
The owners will sell about 25-30% stake in the company, the first of the two persons said. The names of the PE funds could not be ascertained. The hospital chain has hired Avendus Capital to advise on the stake sale.
Paras joins several other leading hospital chains in the country which are looking for fund-raising or outright sale.
Others up for sale or stake sale include IDFC Alternatives Ltd-backed Sahyadri Hospitals Ltd; Multiples Alternate Asset Management Pvt. Ltd-owned Vikram Hospital (Bengaluru) Pvt. Ltd; Ascent Capital Pvt. Ltd and OrbiMed Advisors LLC-backed Kerala Institute of Medical Sciences; Mumbai-based maternity clinic chain Surya Mother & Child Care Super Speciality Hospital and Hyderabad-based Sunshine Hospital. Read more.
Former Snapdeal product chief Anand Chandrasekaran invests in Wooplr
Wooplr Technologies Pvt. Ltd, an online marketplace for women’s clothes, has raised an undisclosed amount of funds from Anand Chandrasekaran, a former chief product officer of Snapdeal.
Wooplr will use the funds for product development and marketing, a top executive of the company said.
“Anand is a visionary who knows how to build products. Given his participation, we will be able to learn from his experience and tap into his wide network to grow," Arjun Zacharia, co-founder and chief executive officer of Wooplr, said in a telephone interview.
Chandrasekaran has invested $25,000-30,000 as part of a larger funding round, in which Wooplr raised less than $1 million from Astarc Ventures in October. Read more.
IOC eyes 26% stake in GSPC’s Mundra LNG terminal
State-run oil giant Indian Oil Corp. Ltd is holding discussion to acquire a 26% equity stake in debt-laden Gujarat State Petroleum Corp. Ltd’s (GPSC) almost-completed Rs4,500 crore Mundra LNG import terminal in Gujarat.
The 5 million tonnes a year import terminal, the third facility in Gujarat for import of natural gas in its liquid form in ships, is nearing completion and GSPC is keen to exit the project completely. “They offered us all of their 50 per cent stake but we are keen to take 26 per cent for now," the Press Trust of India reported citing an Indian Oil Corp official.
With a view to expand its gas business, IOC is keen to buy a stake in Mundra terminal but does not want GSPC to exit the project completely. Read more.
LIC raises stake in Bata India to 7.05%
State-owned Life Insurance Corporation (LIC) has hiked its stake in footwear major Bata India by 2.03%, taking its total shareholding in the company to 7.05%. LIC bought 26.11 lakh equity shares, amounting to 2.03% stake, from open market during 20 January to 8 December 2016, according to a stock market disclosure. LIC held 5.02% stake in Bata India earlier.
For the second quarter ended September, Bata India reported 36.35% fall in net profit at Rs34.59 crore as against a net profit of Rs54.35 crore in the year-ago period. Read more.
IL&FS exploring sale of controlling stake in capital markets subsidiary
Infrastructure Leasing and Financial Services (IL&FS) is in exploratory talks to divest a controlling stake in its capital markets arm, The Economic Times reported citing sources directly close to the matter.
The sale is not certain. However, IL&FS is seeking to raise as much as Rs600 crore for its 80% stake in IL&FS Securities Services, which offers derivatives clearing and settlement services to as many as 1,000 stockbrokers. Among those approached are said to be US based funds services and investment management giant State Street Corporation and the growth capital arm of private equity fund Carlyle, the paper said. Read more.