Deals Buzz: With stake sales, Yes Bank is now poised for a makeover5 min read . Updated: 11 Sep 2019, 11:10 AM IST
In other news, Hedge fund Steadview Capital is in talks to lead a $50 million funding round in two-wheeler rental startup Vogo
Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.
With stake sales, Yes Bank is now poised for a makeover
Yes Bank’s shareholding structure may witness a major churn by the year-end as founder Rana Kapoor has initiated talks to sell a part of his holding to One97 Communications Ltd, the parent of Paytm and Paytm Payments Bank, Mint reported. Independently, a Reuters story on Tuesday cited Yes Bank CEO Ravneet Gill as saying that the bank is close to selling a minority stake to a global tech company as part of its capital-raising exercise. Although the bank subsequently denied these reports, Mint independently verified that such talks might have indeed progressed somewhat. The tech firm’s association is expected to help further the bank’s digital ambitions. The bank has already been talking to large private equity firms for capital infusion. On 30 August, Yes Bank’s board proposed to increase the bank’s authorized share capital from ₹800 crore to ₹1,100 crore to enable an expansion in the paid-up capital. If Rana Kapoor does manage to sell his stake to One97 Communications, or any other shareholder, it will not make any difference to the bank’s capital structure. Fresh equity issuance, on the other hand, will lead to dilution in promoter shareholding.
Steadview in talks to lead fresh funding round in 2-wheeler rental startup Vogo
Hedge fund Steadview Capital is in talks to lead a $50 million funding round in two-wheeler rental startup Vogo, Mint reported citing two people aware of the matter. Existing investors such as venture capital firms Matrix Partners, Stellaris Venture Partners and Kalaari Capital are also expected to participate in the round. Founded by Anand Ayyadurai, Sanchit Mittal and Padmanabhan Balakrishnan in 2017, Vogo provides scooters and motorcycles on rent through its mobile application wherein users can pick up and drop the vehicles at dedicated places within a city. The service is currently available in Hyderabad and Bengaluru. Vogo is also backed by ride-hailing firm Ola, one of India’s most valuable startups, due to their common investor Matrix Partners. Ola currently provides a credit line, through which Vogo uses debt to purchase scooters. This allows Vogo to seek lesser equity funding than rival Bounce, which is backed by Sequoia Capital and Accel Partners.
Saudi Aramco CEO signals local listing coming 'very soon'
Saudi Aramco, the state-owned oil firm that is seen as the kingdom's crown jewel, is ready for a local listing on the kingdom's stock exchange and that it will happen "very soon," Associated Press reported citing Amin Nasser, chief executive of the company. He, however, declined to say how much of the state-owned oil giant would be listed on the Tadawul exchange. Reports have emerged that 1% of the company could be sold locally later this year before more is sold on an international market.Saudi Crown Prince Mohammed bin Salman first announced plans for an initial public offering of the company in 2016, saying up to 5% of the company would be sold publicly. The government has since delayed the timing of the IPO , most recently to finalize a deal that saw Aramco acquire a nearly $70 billion stake in Saudi petrochemicals firm SABIC. The crown prince has valued Aramco at $2 trillion, but analysts estimate it could be worth closer to $1.5 trillion. Even at that lower end, a partial listing of Aramco would potentially be the world's biggest IPO ever.
Peter Thiel’s Mithril Capital invests in InMobi’s Glance
PayPal co-founder Peter Thiel’s Mithril Capital has invested $45 million (about ₹324 crore) in advertising tech unicorn InMobi’s content platform Glance, Mint reported. Austin, Texas-based Mithril Capital is a growth stage investment firm co-founded by Peter Thiel, the co-founder of Paypal and Palantir Technologies, and the first outside investor in Facebook. Glance is an artificial intelligence (AI)-powered platform that delivers ad-free, personalized content to the lock screens of smartphones. Bengaluru-based InMobi group also includes InMobi Marketing Cloud and TruFactor. The new funds will enable Glance to launch new platforms such as Glance TV (a short video platform), Glance Gaming, Glance Shopping and Glance Nearby, a hyperlocal experiential platform. The company will also expand to South-East Asia in the coming months.
Essel group completes 1st tranche of stake sale in ZEEL, working on further divestments
Subhash Chandra-led Essel Group announced completion of the first tranche of ZEE Entertainment's stake sale, which is 8.7%, to Invesco Oppenheimer Developing Markets Fund, PTI reported citing Essel group’s regulatory filing. Besides, Essel group is also working actively on further divestments including its non-media assets. Earlier on July 31 this year, Essel Group had announced to sell 11% promoter stake in Zee Entertainment Enterprises Ltd (ZEEL) to Invesco Oppenheimer for ₹4,224 crore. Under the deal, the Atlanta-based Invesco, which already has been an investor since 2002 with a 7.74% holding, will increase its shareholding by another 11% by paying ₹4,224 crore.
Blackstone Set to Buy Rest of Indiabulls’ Commercial Assets
Blackstone Group has signed a term sheet to acquire the remaining 50% stake in Indiabulls Real Estate’s commercial properties for over ₹4,420 crore, The Economic Times reported citing persons with direct knowledge of the development. Blackstone had concluded a similar deal for 50% of the portfolio for nearly ₹4,750 crore in March 2018, marking one of the country’s largest such transactions in real estate. Indiabulls confirmed signing the term sheet with Blackstone for the commercial portfolio, without ascribing a value to the deal. It includes rights to assets at BLU in Mumbai’s Worli area and Sectors 104 and 106 in Gurgaon, Indiabulls said. The deal is part of the Indiabulls Group’s plan to exit real estate and focus on financial services, as part of which it’s seeking to merge with Lakshmi Vilas Bank. Indiabulls Real Estate also wants to repay all its debt from the proceeds. At the end of FY19, Indiabulls Real Estate’s total net debt stood at ₹4,590 crore.
CVC Capital, Carlyle could be shortlisted for Piramal, TPG stake in Shriram Capital
CVC Capital and Carlyle could make the shortlist for the 30% Shriram Capital stake that Piramal Enterprises and private equity fund TPG are selling, The Economic Times reported citing multiple people aware of the bids. Five PE funds, including Advent, Blackstone and Brookfield, had submitted initial offers. Advent International has invested ₹1,000 crore via its affiliate Jomei Investment in Aditya Birla capital last week. Existing investors in TPG Capital and Piramal Enterprises are looking to exit the financial services firm. The transaction is likely to value the unlisted Shriram Capital at around ₹18,000-20,000 crore, pegging the combined holding of TPG and Piramal group at around ₹6,000-7,000 crore. The new investments will depend on the management width that Shriram Capital will be able to offer. Over the last six years, Piramal has not been able to take full management control despite his initial investment of ₹4,600 crore in the Chennai-based Shriram group.