Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
Munjal, Kothari in talks to buy 10% each in Yes Bank
Sunil Munjal, chairman of Hero Corporate Services Ltd, and Hemendra Kothari, veteran investment banker and founder of DSP Group, have held separate talks with Yes Bank Ltd to purchase stakes of 5-10% each in the cash-starved private lender, Mint reported citing three people aware of the matter. The two businessmen expressed their intention to invest following discussions over the past fortnight. If both investments proceed, the bank could receive a total of up to ₹3,500 crore. As per the discussions, the investment is likely to be done through the family offices of Munjal and Kothari. Both investors are willing to buy up to 10% (each), but the Reserve Bank of India’s approval will be crucial. Kothari’s family office has appointed Mumbai-based Arpwood Capital as the banker-cum-adviser for the deal. Besides Munjal and Kothari, US-based private equity giant Carlyle Group has also evinced interest to invest up to $400 million in Yes Bank through a fresh equity issuance.
Embassy REIT to raise debt, equity to fund acquisitions
Embassy Office Parks REIT plans to raise debt as well as equity to finance potential acquisitions as it looks to expand its 33 million sq.ft portfolio--the largest real estate investment trust in Asia by size, Mint reported. Embassy Office Parks REIT has around 43 million sq.ft of right of first offer (ROFO) opportunity to acquire from its sponsor Embassy Property Developments Pvt. Ltd. The REIT has received a ROFO invitation from Embassy Property Developments for the potential sale of about 8.7 million sq ft of completed and under-construction office space in Embassy Tech Village, Bengaluru. Embassy Property’s ROFO notice states the intention to potentially sell 6.2 million sq ft of completed office space and 2.5 million sq.ft of under-construction area in Embassy Tech Village, a large office park in Bengaluru’s Outer Ring Road. The 6.2 million sq.ft in Embassy Tech Village would be valued at around ₹6,000-6,500 crore.
Creditors approve sale of IL&FS’ education biz to Career Point
Infrastructure Leasing and Financial Services Ltd.’s (IL&FS) committee of creditors has approved the sale of its education business Schoolnet India Ltd to Career Point Publications Pvt. Ltd, Mint reported. The committee, which comprises all financial creditors of IL&FS, approved Career Point Publications’ bid with more than 78% votes through an e-voting process that concluded on 5 November. IL&FS Group holds 73.7% stake in Schoolnet India, which holds 80% stake in IL&FS Skills Development Corp. Ltd and has two units—IL&FS Cluster Development Initiative Ltd and Skill Training Assessment Management Partners Ltd. As part of the transaction, Career Point Publications will get 80% ownership in IL&FS Skills Development Corp. held by Schoolnet India. The transaction will now be subject to approval by the Mumbai bench of the National Company Law Tribunal.
JLR-owner Tata Group approaches Geely, BMW in hunt for partners
Tata Group, the owner of Jaguar Land Rover, has approached carmakers including China’s Zhejiang Geely Holding Group Co. and BMW AG as it seeks partnerships for the beleaguered British automotive business, Bloomberg reported citing people with knowledge of the matter. India’s largest conglomerate has said it’s open to finding partners for JLR to save on costs and share the burden of investing in electric vehicles. The deliberations were at an early stage and Tata could still approach other potential partners. Any tie-up with a Chinese automaker could potentially help JLR in that market, where its struggles led to a $3.9 billion writedown earlier this year. Deeper ties between the British luxury brand and BMW would build on an existing collaboration to develop engines and electric-drive technology, though the German carmaker’s former chief executive officer in August ruled out any equity investment.
Edelweiss sets up last-mile real estate financing fund with S Korea’s Meritz
Financial services-focused Edelweiss group has launched the first fund under its last-mile real estate financing platform with a target corpus of $425 million, in partnership with South Korea’s financial services conglomerate Meritz Financial Group, Mint reported. The platform will house multiple funds to buyout existing housing loans and provide financing for completion of residential projects. The funds within the platform will be managed by Edelweiss’ Alternative Asset Management business. The platform is targeting to raise an overall amount of $1 billion, primarily from similar international institutional investors, over the next 12 months. This marks the first investment in the Indian residential real estate sector for Seoul-based conglomerate Meritz Financial Group. In another development, Edelweiss said growth-focused private equity platform Sanaka Capital, along with co-investors, is looking to invest $75 million (about ₹525 crore) into Edelweiss Global Investment Advisors (EGIA), which comprises wealth and capital markets, asset management and asset reconstruction.
Airtel submits bids for RCom spectrum; Jio seeks deadline extension by 10 days
Bharti Airtel, Bharti Infratel and private equity firm Varde Partners have submitted their bids for assets of debt-laden Reliance Communications, while Reliance Jio has sought extension of the asset sale deal deadline by another 10 days, PTI reported. Airtel has placed conditional bid to buy spectrum of RCom while Bharti Infratel has submitted bids for mobile towers. Banking sources involved in the process told PTI that a total of six bids have come for assets of Anil Ambani-led RCom on Monday. RCom committee of creditors is scheduled to meet on November 13, 2019 to take call on the bids opening. The bid conditions include that the overall consideration will primarily be by way of the deferred spectrum payables to the government being passed on to the buyer on terms and schedules applicable to such deferred payments. Apart from real assets, RCom telecom assets on sale include spectrum holding of 122 MHz which the company before insolvency proceedings had estimated to be around ₹14,000 crore, towers business for ₹7,000 crore, optical fibre network ₹3,000 crore and data centres worth ₹4,000 crore. Sources estimate that RCom Group's total secured debt is around ₹33,000 crore. Lenders have submitted claim of around ₹49,000 crore in August.
Bharti Axa, Kotak Life, Jhunjhunwala’s RARE in race for IDBI Federal Life
Bharti Axa Life Insurance, Kotak Life Insurance, Rakesh Jhunjhunwala’s RARE Enterprises and Kedaara Capital have bid for a controlling stake in IDBI Federal Life Insurance, which has been put on the block again this year, The Economic Times reported citing people aware of the developments. The proposals were submitted on November 4, the deadline for bids. The offers are being vetted and negotiations will follow.The company’s valuation has plummeted by more than 50% from the last time it was put up for sale because the buyer will not be allowed to use IDBI Bank’s network of almost 2,000 branches to sell insurance policies. The three shareholders of the company – state-run IDBI Bank (48% stake), Brussels-based insurer Ageas (26%) and Federal Bank (26%) – had quoted a valuation of ₹6,000 crore to potential buyers last year before shelving the sale process as the bids did not match expectations. IDBI Bank has been exclusively distributing LIC’s policies ever since the shareholding changed and the state-run life insurer is not inclined to allow the bank to sell insurance products of a third party.
O3 Capital to raise $300 million for lending foray
Boutique investment bank O3 Capital is set to raise $300 million and use the proceeds to enter the lending business, focusing on Indian mid-market companies, The Economic Times reported. The investment bank has been in discussions with sovereign funds and family offices in the US and Europe. The fund will see participation from domestic backers and family offices. To head the lending business, Tashwinder Singh, former director of KKR India, has joined O3 Capital as MD & CEO, credit strategies. O3 Capital, which already has an NBFC licence, will run the credit business under the NBFC arm. The $300-million credit fund will lend about ₹100-200 crore each, and the fundraising is expected to be completed before March 2020. Besides the investment banking business, O3 Capital is running portfolio management services (PMS) and owns a venture capital fund — Uniqorn Ventures. O3 Capital is also an independent sponsor and has invested about $85m in firms such as Bazaar Kolkata.