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Weekly newsletter

  1. 1. Top Headlines Nokia offers $369M to unfreeze India assets. IIP slumps 1.8%, shrinks for first time in four months. Blackstone sitting on $8.5B paper profit on Hilton deal. IFC to lend up to $21M to Visakha Water Reclamation Infra. Actis raises over $1.15B for new energy fund. Torrent acquiring Elder Pharma’s domestic formulation business for $322M. GMR to sell 40% in Istanbul airport for $303M. Bangalore-based Big Data startup Spire Technologies raises $8M in Series A funding. Japan's CAC Corp to buy 51% stake in IT services firm Accel Frontline Inside The Story Nokia offers $369M to unfreeze India assets. Nokia has offered to pay 270 million euros to Indian authorities to unfreeze assets in a tax dispute, according to sources familiar with the matter.Nokia's offer would come on top of an earlier payment of around 85 million euros. The Finnish company has been in disagreement with Indian authorities over an income tax bill of Rs 20.8 billion, one of several tax disagreements involving foreign companies in India.Nokia has been trying to unfreeze its Indian assets, including a Chennai factory, ahead of the sale of its mobile phone business to Microsoft. 1
  2. 2. IIP slumps 1.8%, shrinks for first time in four months India's industrial production contracted for the first time in four months in October in a sign that economic recovery remains fragile, government data showed on Thursday.Industrial output slumped 1.8 per cent in October after growing 2 per cent in September. Analysts polled by Reuters had predicted industrial output would contract by 1.2 per cent for the month.The manufacturing sector, which constitutes about 76 per cent of industrial production, contracted 2 per cent from a year earlier, the statistics ministry said.Capital goods production, a barometer for investments in the economy, grew 2.3 per cent in October from a year earlier.Industrial activity was hit as the infrastructure output, which includes coal, electricity, cement, crude oil and steel factories contracted. Blackstone sitting on $8.5B paper profit on Hilton deal. The initial public offering (IPO) of Hilton Worldwide Holdings Inc. will set the stage for one of the biggest exits in the private equity industry and windfall for its owner The Blackstone Group. The alternative asset management major, which will hold 76 per cent in Hilton post issue, will be sitting on a paper profit of $8.5 billion.Hilton, the world's biggest hotel operator, raised $2.35 billion in the largest IPO for a hotel company. Hilton was acquired in an all-cash buyout by Blackstone Group in a $26 billion (including debt) deal in 2007. The deal was done through Blackstone's real estate and corporate private equity funds. IFC to lend up to $21M to Visakha Water Reclamation Infra. International Financial Corporation (IFC), a division of the World Bank, has proposed to lend up to $21 million to Visakha Water Reclamation Infrastructure Pvt Ltd, which is a special purpose company set up to develop a 63 million litres per day (MLD) tertiary treatment plant in Visakhapatnam, Andhra Pradesh.Visakha Water will use the 2
  3. 3. fund for supplying treated municipal waste for industrial re-use applications in Vishakhapatnam. Also, “The project will use the sites of city’s existing Laxmi Talkies sewage treatment plant and Appu Ghar sewage treatment plant,” the statement said. Actis raises over $1.15B for new energy fund. Emerging markets private equity major Actis has raised over $1 billion for its third energy fund, with the pool being oversubscribed. The firm said in a statement that Actis Energy 3 "was heavily oversubscribed, raising a total of $1.15 billion, exceeding its original target of $750 million by 50 per cent."The fund also has discretionary co-investment capital worth $262 million. Actis Energy 3’s investor base includes public pension funds, sovereign wealth funds and families from the US, Europe and Asia.Actis Energy 3 will invest in electricity generation and distribution businesses in Latin America, Africa and Asia. The Actis energy team of 19 dedicated investment professionals has already started building the fund’s portfolio. Torrent acquiring Elder Pharma’s domestic formulation business for $322M. Mumbai-based Elder Pharmaceuticals Ltd is selling its domestic formulation business in India and Nepal to Ahmedabad-based drug maker Torrent Pharmaceuticals Ltd for Rs 2,004 crore, the companies said in a filing.According to Elder, the company has over 30 brands across women’s healthcare, pain management, wound care and nutraceuticals which would be transferred to Torrent as part of this transaction.Torrent will fund for this acquisition through a mix of internal accruals and bank debt, according to the release. 3
  4. 4. GMR to sell 40% in Istanbul airport for $303M Indian infrastructure developer GMR Infrastructure Ltd is close to offloading its 40 per cent equity stake in Istanbul's Sabiha Gokcen International Airport for about €220 million or around Rs 1,900 crore to Turkey-based TAV Airports Holding Co, Mint reported citing two persons privy to the development."Right of First Refusal (ROFR) process in respect of the sale of stake is in progress and hence the deal is not concluded," GMR clarified in a filing with the exchange.Apart from GMR, Turkish conglomerate Limak Holding holds 40% equity stake in Sabiha Gokcen, while remaining 20% is held by Malaysia Airports. The consortium had won the mandate to build the airport in 2007 and operate it for 22 years for a licensing fee of €2.17 billion. Bangalore-based Big Data startup Spire Technologies raises $8M in Series A funding. Bangalore-based Spire Technologies and Solutions Pvt Ltd, a Big Data startup that offers a contextual search engine to enterprises to manage their talent requirements, has secured $8 million in Series A funding from an unnamed investor. The capital will be used to ramp up its R&D team and boost sales & marketing activities.The development was first reported by TechCrunch. Spire has already raised $1 million in a seed round from several angel investors.The firm was founded by Saurabh Jain in 2008. Jain holds an advanced master’s degree in Global Enterprise Management from GDW Consortium – a joint initiative of IIM Bangalore, SDA Bocconi School of Management (Milan), University of Hong Kong, and UCLA Anderson School of Management (Los Angeles). In the past, he had worked with Yahoo, SAP, Oracle, Worldspan and Galileo in various roles. 4
  5. 5. Japan's CAC Corp to buy 51% stake in IT services firm Accel Frontline Japan's CAC Corporation is picking up at least 51 per cent stake in Chennai-based IT services company Accel Frontline Ltd. The deal involves CAC Corporation picking part of the stake held by promoters of Accel Frontline and besides fresh infusion of capital. This will be followed by an open offer for another 26 per cent in the company.According to estimates, including the open offer, the deal would cost CAC Corporation around Rs 90-95 crore. After the deal, CAC will be a strategic partner in BSE-listed Accel Frontline with the promoters continuing to hold some stake.CAC will buy 25.2 per cent of post issued share capital of the company from promoter entities - Accel Limited, Accel Systems Groups Inc and NR Panicker. This promoter group holds 65.65 per cent in Accel Frontline, nearly a third of which is pledged. This stake buy will cost CAC around Rs 34 crore. It will pick up another 18.48 per cent through preferential issue of fresh shares costing Rs 25 crore. These would give CAC 43.7 per cent stake in Accel Frontline. 5