Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
Bharti Infratel, Indus Towers merger faces govt clearance delays
The proposed merger between Bharti Infratel Ltd and Indus Towers Ltd cannot be completed by 24 October as the company is still awaiting a key government approval, Mint reported citing Bharti Infratel chairman Akhil Gupta. A new committee is expected to meet on Thursday to evaluate “all possible options" for future strategy. “The delay in getting this approval is because of the procedure involved," Gupta said in a post-earnings call on Tuesday. Gupta’s statement comes a day after Bharti Infratel informed the stock exchanges that its board had noted that all the requisite government approvals had not been received till date, and conditions precedent and processes were not completed. The board’s decision is expected on 24 October. In April 2018, the two tower companies had agreed to merge their businesses to create the world’s largest tower company, barring state-owned China Tower. The proposed combined entity will own more than 163,000 towers. Its nearest rival in India will be ATC with 78,000 towers. Once the merger is completed, the two companies have envisaged that Airtel will hold between 33.8% and 37.2% in the combined entity. Vodafone Group Plc will own between 26.7% and 29.4%. Airtel and Vodafone will have equal rights in the merged entity.
IHH Healthcare to exit two hospital JVs in India
Caught in the legal crosshairs that has put its Fortis acquisition in a limbo even after a year of its announcement, Malaysia’s IHH Healthcare is planning to reduce its India footprint by selling two major assets back to their original founder-promoters, The Economic Times reported citing multiple people aware of the development. It has initiated discussions to cash out of its 62.2% stake in Hyderabad-based Continental Hospitals and 74% in Global Hospitals back to the promoter family. Hyderabad based Continental Hospital has a capacity of 750 beds while Global Hospitals has a capacity of over 2,000 beds under hospitals in Hyderabad, Chennai, Bengaluru and Mumbai. IHH is believed to be open to divesting its stakes at almost half the value at which it originally bought them. Continental’s founder Gurunath Reddy and family has been trying to rope in a strategic partner who can help in buying back shares from the Malaysian group. Dr Ravindranath of Global Hospitals has been in talks with various private equity investors for backing his buyback transactions. Alleged mismanagement and differences between promoters and IHH are the major reasons behind IHH’s move to exit. The performances of these chains have also come down in the recent past.
Grasim to form JV with German firm to make core insulators
Aditya Birla group-owned Grasim is forming a joint venture in India with Germany-based Maschinenfabrik Reinhausen for manufacturing and selling composite hollow core insulators (CHCI), used primarily by the power transmission and distribution industry, The Economic Times reported. The JV, announced by Grasim on Tuesday, will see Maschinenfabrik Reinhausen holding 49% stake and Grasim the rest. It will be called Aditya Birla Power Composites. Grasim said the new company will spend ₹100 crore in setting up a facility in Halol, in Gujarat, over the next 3-5 years. The group, through its unit Aditya Birla Insulators, is a global player in the production of porcelain insulators. Now with the JV taking shape, its production of CHCI will find a larger scale.
SHL buys aspiring minds in all-cash deal
US-based talent evaluation leader SHL has acquired Aspiring Minds, a Gurugram and San Jose-based AI-powered test and assessment venture, in a largely all-cash deal, The Economic Times reported. The terms of the buyout, which is expected to close in November, were not disclosed. Sources, however, indicated that the deal size was $80-$100 million (about ₹567-709 crore). Investment bank DC Advisory acted as the financial advisor for the deal. Aspiring Minds, founded in 2008 by brothers Himanshu and Varun Aggarwal, undertakes cognitive ability, personality, technology and job simulation tests for its clients. It also provides pre-employment testing, qualified talent sourcing and campus hiring, among others, for its clientele, spread across industries, and includes IT, banking and financial services, manufacturing, healthcare and life sciences, retail and education.