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Six PE funds eyeing 26% stake in SBI General

Six private equity funds including PremjiInvest, Carlyle, ChrysCapital and Singapore’s sovereign fund GIC, have been shortlisted for Insurance Australia Group’s (IAG) 26% stake in SBI General Insurance that may cost about 3,000 crore to its acquirer, The Economic Times reported citing two people close to the development. The deal, at its final stages, values the general insurer at 12,000 crore and the sale process is being run by Goldman Sachs. The stake sale comes after its promoter, State Bank of India sold a 4% stake in SBI General Insurance to Axis Asset Management Co. Ltd and Premji Invest for 482 crore in September 2018. Ranked as the seventh largest among private non-life insurers, SBI owns a 70% stake in the entity that was formed in 2010 as a joint venture between the bank and IAG.

Café Coffee Day founder stalls plans to sell real estate venture

Cafe Coffee Day (CCD) founder V.G. Siddhartha has deferred plans to sell his real estate venture Tanglin Developments Ltd to New York-based private equity giant Blackstone Group Lp for an estimated 2,700-2,800 crore, Mint reported citing three people familiar with the developments. Siddhartha was in talks with Blackstone, along with Bengaluru-based developer Salarpuria Sattva Group, to sell the information technology (IT) park Global Village Tech Park, located on a 120-acre campus on Mysore Road, near Bengaluru. The property is owned by Tanglin Developments, and Siddhartha had planned to use its sale proceeds to reduce his debt. The move comes as he was able to sell the 20.32% stake worth held by him and his two CCD affiliate firms (Coffee Day Enterprises Ltd and Coffee Day Trading Ltd) in software services company Mindtree Ltd to Larsen and Toubro Ltd (L&T), for about 3,200 crore in March. That helped him pare his debt of about 2,900 crore, vastly improving his financial condition.

Debt-laden Suzlon Energy looks to sell majority stake to Brookfield

Pune-based wind energy firm, Suzlon Energy is negotiating a waiver from its lenders based on an offer from Canada’s alternative assets management firm, Brookfield buy a majority stake in the debt-laden firm; The Economic Times reported citing people in the know. The renewable energy firm has asked for a significant waiver on its loans and foreign currency convertible bond obligations as a potential stake sale to Brookfield would help the loss-making company to scale up its operations and meet the remaining financial obligations. The company defaulted in payment of principal and interest worth 412 crore to lenders towards term loans and working capital facilities as of end-March. It also defaulted in making payments to foreign currency convertible bondholders. The company has a net term debt, including FCCB, of 7,761 crore and working capital debt of 3,380 crore.

Flipkart charts plans to list in the US by 2022

Indian e-commerce firm Flipkart may use the initial public offer route (IPO) to provide a partial of full exit to its largest shareholder FIT Holdings SARL, a Luxembourg entity owned and operated by Walmart, which hold a 77% stake in the firm, The Economic Times reported citing a person aware of the matter. “Compliance and profitability will take centre-stage going forward. The top management has to start tailoring the company towards this and that’s the message coming from Walmart," the person told ET. In a separate news, ET also reported that one of its founders, Binny Bansal sold his shares worth $76 million to Walmart, bringing his stake down to 3.52% from 3.85%. The IPO will also ensure further liquidity for the Bengaluru-based firm’s existing investors Walmart, Tencent, Tiger Global, as well as employees. The company, according to an ET report on May 10, had also disbursed more than $100 million worth employee stock ownership plans (Esops) to its senior and middle-level staff a year into Walmart’s purchase of a majority stake in the Indian firm.

Oyo plans to launch global hospitality property fund

OYO Hotels & Homes is having exploratory discussions with money managers to start a global hospitality property fund to acquire hotel properties across markets and lease them to the company for an agreed-upon yield, The Economic Times reported citing people familiar with the development. While the size of the fund could not be ascertained, the Softbank-backed hotelier may raise separate capital for the fund from global investors. The development comes at a time when the Gurgaon-based firm is charting plans for its entry into the US market with an investment of in $300 million over the next few years. The company had earlier also earmarked $600 million to expand in China and $200 for India, both of which it refers to as its two home markets. Besides India and China, Oyo has its presence in the UK, Europe, Indonesia, Malaysia, Nepal, the UAE, Saudi Arabia, the Philippines and Japan.

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