Deals Buzz: Brookfield, R-Com set to sign Rs11,000 crore tower deal this week6 min read . Updated: 21 Dec 2016, 11:48 AM IST
In other news, Dilip Shanghvi's Sun Oil buys out Niko Resources stake in Hazira field and Zoomcar raises funds from Chinese VC firm Cyber Carrier
Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.
Jindal Steel may sell stake in Oman unit to cut debt
Jindal Steel and Power Ltd (JSPL) is likely to sell a significant equity stake in its Oman unit, Jindal Shadeed Iron and Steel Llc, to meet debt repayment obligations, two people aware of the development told Mint.
“JSPL’s lenders have recently concluded a valuation exercise of the Oman operations and a sell side mandate is expected soon," one of the two people quoted above said, requesting anonymity. “The company is keen to divest a large minority stake for now but will eventually sell out completely if there is a good offer, and there have been some informal talks with a sovereign fund."
The valuation was done by an independent adviser hired by JSPL’s foreign lenders in June to restructure part of the company’s loans, the second person said, also requesting anonymity.
Naveen Jindal-controlled JSPL acquired Shadeed Iron and Steel Co LLC from Al Ghaith Holdings PJSC of Abu Dhabi in 2010 through its subsidiary Jindal Steel & Power (Mauritius) Ltd for $464 million.
The company raised $400 million in debt financing from a consortium of international banks and paid the rest from internal accruals. Read more
Byju’s raises funds from World Bank arm IFC
Education technology start-up Byju’s, owned by Think and Learn Pvt. Ltd, has raised an undisclosed amount from World Bank arm International Finance Corp. (IFC), the company said in a statement on Tuesday.
The latest round came close on the heels of Byju’s raising $50 million from the Chan Zuckerberg Initiative, a personal fund set up by Facebook Inc. founder Mark Zuckerberg and his wife Priscilla Chan, and existing investors Sequoia Capital, Belgian investment firm Sofina SA, Lightspeed Venture Partners and Times Internet Ltd.
In the education sector, IFC has also invested in Bridge International Academics, a chain of low-cost nursery and primary schools, and Coursera, which provides online courses. Read more.
Reliance Home Finance to raise Rs3,500 crore via NCD route
Reliance Home Finance Ltd, a unit of Anil Ambani-controlled Reliance Capital Ltd, on Tuesday said it will raise up to Rs3,500 crore by selling non-convertible debentures (NCDs).
The secured NCDs and unsecured NCDs will be issued at a face value of Rs1,000 each. The base issue size is Rs1,000 crore with an option to retain oversubscription up to Rs3,500 crore. The unsecured NCDs will be in the nature of subordinated debt and will be eligible for inclusion as upper tier II Capital, it said.
The issue, the first such from Reliance Home Finance, will open on 22 December and close on 6 January. Proceeds will be utilized for lending, financing, repayment of loans and general corporate purposes. Read more.
Dilip Shanghvi’s Sun Oil buys out Niko Resources stake in Hazira field
Billionaire Dilip Shanghvi’s Sun Oil and Natural Gas has bought a 33.3% stake in the Hazira oil and gas field from Canada’s Niko Resources Ltd and is in talks to buy the rest from Gujarat State Petroleum Corp. Ltd (GSPC), two officials aware of the development said.
The deal value, however, could not be ascertained. Niko has operated the field for 22 years.
Sun Oil and Natural Gas is a unit of Shanghvi’s Sun Petrochemicals Pvt. Ltd while GSPC is 87% owned by the Gujarat government. The Hazira field is part of 16 hydrocarbon assets in Gujarat’s Cambay basin where GSPC holds stakes. Read more.
Zoomcar raises funds from Chinese VC firm Cyber Carrier
Self-drive car rental start-up Zoomcar has raised an undisclosed amount from Chinese venture capital firm Cyber Carrier CL as an extension of its Series B round, the company said in a statement on Tuesday.
The company had raised $24 million in August in a Series B funding round led by Ford Smart Mobility LLC, a unit of Ford Motor Co.
Zoomcar was founded in 2012 by Moran and David Back, who quit the company in May last year and returned to the US, citing personal reasons.
The company has so far raised at least $45 million from Sequoia Capital, Empire Angels, Nokia Growth partners, T.V. Mohandas Pai (chairman of Manipal Global Education) and Abhay Jain (adviser at Manipal Group), among others. Read more.
Japanese electronic brand Akai re-enters Indian market
Japanese consumer brand Akai has re-entered the Indian market with the partnership with local Indian electronics distributor Hometech Digital, which is part of the Paras Group, to begin sales, The Times of India reported.
The company, which enjoyed sizeable operations here in the late nineties through its range of televisions and home theatres, will be retailed by the Paras Group that has brought the license rights for the Indian market.
The group has a turnover of around Rs600 crore and has key distributor for companies like Sony, LG, Nikon and Daikin.
“We intend to sell TVs, home theatre, washing machines, air purifiers and ACs under the Akai brand. We believe that Akai has a good brand recall here," said Anurag Sharma, director of the group. Read more.
Carlyle, Warburg, Credit Saison emerge as final bidders for GE stake in SBI card
Warburg Pincus, Carlyle Group and Japan’s financial services group Credit Saison have emerged as the final bidders for GE Capital Corp.’s stake in a credit card joint venture with State Bank of India (SBI), The Economic Times reported.
The business, which is majority owned by GE, is being valued at about $800 million. “The final bids have been submitted and a decision will be taken soon. The announcement of stake sale is likely to be made in January," the paper said, citing sources.
The business is divided into two parts—one that deals with marketing and distribution, SBI Cards and Payments, and the back office and technology arm GE Capital Business Processes Management Services. While GE holds 40% stake in the first entity, it holds 60% in the latter.
In March, Mint had reported that as many as eight investors, including global private equity funds KKR and Co., Bain Capital and General Atlantic Llc, have been shortlisted for the purchase of GE’s stake in the credit card JV.
Parent GE has been in the process of selling the businesses of GE Capital across geographies. Read more.
Brookfield set to seal Rs11,000 crore R-Com tower deal this week
The Brookfield Group is all set to sign a definitive pact with Reliance Communications Ltd (R-Com) on Wednesday to acquire a controlling equity stake in the tower unit of the latter for about Rs11,000 crore, The Economic Times reported.
The deal values the tower assets at more than Rs21,500 crore. As per the understanding, the assets of R-Com’s tower unit, Reliance Infratel, will be transferred to a special purpose vehicle.
The Canadian fund manager, the second biggest alternate asset manager in the world, has agreed to acquire a 51% equity stake in the SPV, while R-Com will have a 49% equity and remain its chief tenant.
The companies signed a non-binding pact on the transaction on 14 October. R-Com has agreed to sell a 51% stake in its mobile phone tower assets to Canada’s Brookfield Infrastructure Group for Rs11,000 crore in cash to reduce debt. Read more.
Airtel to acquire Orascom’s stake in MENA undersea cable firm
Bharti Airtel on Tuesday said its subsidiary Network i2i has entered into a definitive agreement with Egyptian firm Orascom to acquire the latter’s entire equity stake in Middle East North Africa Submarine Cable Systems for an undisclosed amount.
The agreement has been signed with Orascom Telecom Media and Technology Holding SAE. “With the explosion of data usage in emerging markets, including India and Africa, this (MENA) asset will provide us a scalable and diverse high capacity highway to serve our customers. In particular, it will provide impetus to India’s emergence as a major regional internet hub serving customers across Saarc region, with seamless global connectivity," Ajay Chitkara, director and chief executive officer, global voice & data business, Bharti Airtel, said in a statement. Read more.