Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country
Shriram Capital may merge two listed arms with self
Financier Shriram Capital Ltd plans to merge two of its listed units with itself to help investors Piramal Enterprises Ltd and TPG Capital to easily sell their stakes in Shriram Group companies, Mint reported citing three people familiar with the plan. The plan entails merging Shriram Transport Finance Co. Ltd and Shriram City Union Finance Ltd with parent Shriram Capital to create a simpler shareholding structure. Kotak Mahindra Capital Co. Ltd has been hired to advise on the planned merger and shortlist buyers for Piramal and TPG’s stakes. TPG Capital holds a 9.4% stake in Shriram Capital, while South Africa-based Sanlam Group owns 26% and Shriram Ownership Trust and Shriwell Trust hold 30.7% and 13.4%. The value of the stake in Shriram being planned to be sold by Piramal is quoted at ₹4,500-5,000 crore for the prospective buyers, which in turn will value Shriram Capital at around ₹25,000 crore. If the deal goes through, the proceeds from the stake sale will be used by Piramal to infuse capital into its lending businesses, repay debts of Piramal Group’s promoter entities and provide capital for organic growth.
Karvy Fintech to buy back shares of ₹92 crore from General Atlantic
Private equity firm General Atlantic will sell some of the shares that it holds in Karvy Fintech in the company’s upcoming share buyback, Mint reported citing two people aware of the development. Karvy Fintech offers end-to-end services to investors and distributors of mutual funds. It also provides corporate registry services, back-office operations and data processing services, besides being a central record-keeping agency under the National Pension System. In November 2018, General Atlantic had invested a little over ₹1,000 crore to acquire a majority stake in Karvy from existing investors and for fresh capital infusion. It currently holds a 83.25% stake in the company. The total buyback size is expected to be around ₹111 crore, which would mean that GA will sell shares worth around ₹92 crore in the buyback, he added. A Karvy exchange filing said the company’s board has approved the buyback of shares at ₹74.25 per equity share for an aggregate consideration not exceeding Rs.111.28 crore.
Louis Vuitton owner offers $14.5 billion for jeweller Tiffany
LVMH has offered $14.5 billion for jeweller Tiffany & Co. in a bid that could result in Chairman Bernard Arnault’s biggest ever takeover and expand the Louis Vuitton owner’s reach into the US, Bloomberg reported. Tiffany said it received an unsolicited $120-a-share proposal from the luxury giant. The jeweller advised shareholders to take no action, saying its board is reviewing the offer. The price would be 22% more than the Oct. 25 close. Tiffany shares surged to $128.30 early Monday. A deal for the jeweller would expand the French company’s access to US luxury shoppers, giving it an iconic, 182-year-old brand known for its robin’s egg blue boxes and its role as a favorite haunt of Holly Golightly in Truman Capote’s “Breakfast at Tiffany’s." Adding the brand to a stable that includes the Bulgari jewel and watch label, Christian Dior fashions, Hublot watches and Dom Perignon Champagne could help LVMH compete against Cartier owner Richemont SA.