Deals Buzz: NCLT approves Vodafone-Idea merger
Deals buzz brings to you the top deals news from newsrooms across the country
NCLT approves Vodafone-Idea merger
The National Company Law Tribunal gave its nod to the merger of Vodafone and Idea, which will create India’s largest telecom company, displacing Bharti Airtel from the top spot, The Economic Times reported. The new entity will have 440 million subscribers, a 34.7% revenue market share (RMS), revenue of more than Rs 60,000 crore and combined debt of over Rs 1.15 lakh crore. Mint reported on July 11 that telecom minister Manoj Sinha said the merger is approved with only formalities remaining. Vodafone’s CEO Vittorio Colao is hoping the merger will be completed by October and the approval from NCLT keeps that roadmap possible. The final approval came nearly two months after the June 30 deadline the two companies had set. With the merger, India will now have only 3 major telecom players- Vodafone Idea, Bharti Airtel and incumbent Reliance Jio. Read more here.
True North raises $600 million for buyout fund
True North Capital, one of the earliest home-grown private equity funds, has raised $600 million for its latest fund Fund-VI, The Economic Times reported. True North (formerly India Value Fund Advisors), which had launched its latest buyout fund in December 2017, will complete the fund raise in 10 months, in one of the fastest fund-raising activities in India. Private equity activity in 2017 hit a record high, having witnessed $25 billion of investments across 639 deals. The year witnessed a nearly 50% increase in deal value over 2016, which saw $16.5 billion. On August 24, Mint reported that Fincare Small Finance Bank raised Rs 95 crores, in a round that included True North, one of its original investors. Read more here.
Income Tax Dept asks Walmart to pay Flipkart deal tax by Sep 7
An estimate pegs retailer Walmart’s tax dues to the centre at $2 billion dollars for its $16 billion acquisition of 77% of Flipkart, India’s largest online retailer, Business Standard reported. The withholding tax rate in the case of long-term capital gains tax is 10 to 20 per cent, depending on the nature of investment. “We take seriously our legal obligations, including the payment of taxes to governments where we operate. We will continue to work with Indian tax authorities to respond to their inquiries,” the Walmart spokesperson said. Mint first reported on May 9 that Walmart acquired Flipkart, throwing open a challenge to its global rival Amazon in India. Read more here.
Avendus Capital arm to launch environment and social focussed fund
Avendus Capital Public Markets Alternate Strategies, the alternative asset management arm of Avendus Capital, Thursday said it will launch an ESG (environment, social and governance) fund, Mint reported. ESG investing constitutes investments that while seeking positive returns, also consider and evaluate the long-term impact that business practices have on society, the environment and the performance of the business itself. The fund is likely to be launched by end of November and Avendus is targeting to build assets under management (AUM) of up to $1 billion over the next three years. Read more here.
JSW Energy offers Rs6200 crore for Prayagraj, throws challenge to Tata
JSW Energy has submitted a revised bid of ₹6,200 crore for the debt-laden Prayagraj Power Generation Co. Ltd, outbidding Resurgent Power Ventures Pte Ltd by ₹200 crore, Mint reported. Established in September 2016, Resurgent is owned 26% by Tata Power and 10% by ICICI Venture. The remaining stake is held by the pension funds. Resurgent has been scouting and bidding for multiple power projects across the country. Mint reported on 7 June that Resurgent had placed an initial bid to buy a controlling stake in Jhabua Power Ltd, a unit of Avantha Power and Infrastructure. The firm had also bid for Jaiprakash Power Ventures Ltd.
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