Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

Ashoka Buildcon to provide exit to Macquarie-SBI funds

Roads developer Ashoka Buildcon Ltd will initiate talks with potential investors to provide exits to two private equity funds—the joint ventures of Macquarie and State Bank of India—that own about 34% in the company’s portfolio of build, operate and transfer (BOT) road assets, a top executive of the company told Mint.

The PE funds plan to exit the investment within a year, said Satish Parakh, managing director at Ashoka Buildcon.

The Macquarie-SBI Infrastructure Fund (MSIF) and SBI-Macquarie Infrastructure Trust (SMIT) have since 2012 invested Rs800 crore in Ashoka Concessions Ltd, roads subsidiary of Ashoka Buildcon that houses eight BOT assets under the annuity and toll-based models. Read more

RCom signs binding agreement with Brookfield for sale of tower business

Reliance Communications Ltd (RCom) on Wednesday said it has signed a binding agreement with Brookfield Infrastructure Partners to sell its tower business for an upfront payment of Rs11,000 crore in cash on completion of the transaction, RCom said in a statement.

Brookfield Infrastructure is expected to give class B non-voting shares to RCom in the newly acquired business.

RCom claims the deal to be the largest investment by a foreign investor in the Indian infrastructure business as RCom’s telecom towers will be demerged into a separate company that will be wholly owned and managed by Brookfield Infrastructure. Read more

PE firm Advent International buys stake in ASK Group for $130 million

US-based private equity firm Advent International said on Wednesday it has acquired a minority stake in financial services firm ASK Group but did not give details of the deal.

Founders of ASK Group, an investment and wealth management company, will retain a controlling stake and continue to lead the business.

While Advent International did not mention the quantum of stake and deal amount, an official involved in the transaction on conditions of anonymity said that Advent has acquired a 40% stake in ASK group for around $130 million. Read more

M&A activity at a record high of $69.75 billion

Indian merger and acquisition (M&A) activity rose to $69.75 billion across 1,195 announced transactions in 2016, a record level fuelled by a wave of consolidation and rising confidence in the country’s economic growth prospects.

M&A activity in 2016 beat the previous record of $66.96 billion seen in 2007, according to data compiled by Thomson Reuters. Activity in 2016 was almost double that of 2015, when 1,306 M&A deals worth $36.68 billion were recorded, the data showed.

The year witnessed major transactions such as the $12.9 billion sale of Essar Oil Ltd, a $4.8 billion merger of RCom and Aircel Ltd, and a $3.2 billion acquisition of Max Financial Services Ltd’s life insurance business by HDFC Standard Life Insurance. Read more

Jet Airways looks to raise $100 million to refinance debt

Jet Airways is looking to raise $100 million (approximately Rs680 crore) in US dollar-denominated debt by March 2017 to refinance rupee-based loans, The Economic Times reported citing sources.

The move is to almost halve its borrowing rate, the paper said, quoting a person familiar with the airline’s plans.

The airline has for several years looked at raising overseas loans, but all of its recent overseas debt deals have been done with the support of Abu Dhabi-based Etihad Airways, which holds 24% equity stake in the company. Read more

Raheja Corp to raise Rs500 crore through CMBS

K Raheja Corp, one of the largest owners of office properties, is looking to raise Rs500 crore through commercial mortgage-backed securities (CMBS) for its infotech park—K Raheja IT Park—Raheja Mindspace in Hyderabad, according to a report by the Business Standard.

The property has area of over 100 acres and is 99% leased out.

The IT park is issuing non-convertible debentures (NCDs) where the issuance would be secured by the mortgage of commercial properties and charge on the lease rents produced by the property, the paper said.

The aim is to do more such DCM transactions in order to bring down cost of funds in the process, Sunil Hingorani, director-finance, K Raheja Corp said. Read more

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