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Weekly finance and Corporate Deals

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Weekly newsletter

  1. 1. Top Headlines Lodha snaps Canadian embassy building in London for $530M. IL&FS Transportation Networks signs JV agreement with 3 Chinese firms. SEBI relaxes rules for infra debt funds. Tech Mahindra to merge Mahindra Engineering with itself. Quadria Capital may buy ICICI Venture’s majority stake in Medica Synergie. Bafna Pharmaceuticals looking to raise capital; Mylan said to be among suitors. Bharti Airtel plans to raise $1B via Euro bonds. Danone, Fonterra & Nestle vie for Hyderabad-based Creamline Dairy stake. Dabur India to buy Northern Aromatics' Uttarakhand unit for $2.4M Inside The Story Lodha snaps Canadian embassy building in London for $530M. Mumbai-based private property developer Lodha Group has acquired the Canadian embassy building in London's Mayfair district for $530 million (Rs 3,300 crore) in its biggest move overseas. Lodha Group, which claims to be India’s largest real estate developer, has exchanged contracts to acquire the landmark MacDonald House in central London from.Located on Grosvenor Square, this prominent building bears the address of 1 Grosvenor Square and is touted as one of the most prestigious addresses in the world, located close to Buckingham Palace.In February this year, the Canadian government first announced 1
  2. 2. the sale of the building to reposition Canada House on Trafalgar Square in the heart of London to consolidate the Canadian High Commission’s diplomatic activity in the UK in one central London location.The property is believed to have a total saleable area of 1.6 lakh square feet and with this project, Lodha will be able to connect with global investors. IL&FS Transportation Networks signs JV agreement with 3 Chinese firms IL&FS Transportation Networks Ltd (ITNL), through its Singaporebased subsidiary ITNL International Pte Ltd (IIPL), has signed an agreement with three Chinese firms to set up a joint venture (JV) firm to expand its services to overseas projects in Southeast Asia, Africa, South America and China, as per a stock market disclosure.The JV will be formed under Chinese laws and named as Chongqing Heng Yi Project Maintenance and Technology Consultancy Ltd.IIPL, which has signed the agreement with three firms—Chongqing Expressway Group Company Ltd (engaged in operation and construction of toll roads), Jiangsu Transportation Institute (an engineering technology research centre) and China Railway 13th Bureau Group Co Ltd—will hold 28 per cent stake in the JV. SEBI relaxes rules for infra debt funds The Securities and Exchange Board of India (SEBI) relaxed fundraising rules on Friday for infrastructure debt mutual funds in its continued bid to channel long-term capital to finance the country's highways, toll roads and bridges.The SEBI said on Friday it would allow foreign feeder funds that get at least 20 per cent of their managed assets from longterm investors such as sovereign wealth funds and pension funds to qualify as "strategic investors".That distinction is important given SEBI requires these infrastructure debt funds (IDFs), which operate as mutual funds, to get a minimum commitment of Rs 250 million from strategic investors before launching. 2
  3. 3. Tech Mahindra to merge Mahindra Engineering with itself Mahindra Group is merging its engineering services unit Mahindra Engineering Services Ltd with its flagship IT services company Tech Mahindra Ltd, as per a stock market disclosure.According to the scheme of amalgamation, Mahindra Engineering shareholders will get five shares of Tech Mahindra for every 12 shares of Mahindra Engineering. All assets and liabilities of Mahindra Engineering will be transferred and vested in Tech Mahindra, the company said in the release.Mumbaibased Mahindra Engineering Services is engaged in providing engineering services to automotive, aerospace and the manufacturing industry. Quadria Capital may buy ICICI Venture’s majority stake in Medica Synergie. Asian healthcare sector-focused private equity firm Quadria Capital is close to acquiring ICICI Venture’s majority stake in Kolkata-based Medica Synergie Pvt Ltd for Rs 160 crore, according to media reports.If the deal goes through, this investment would be made from Quadria’s second fund which recently made first close at $107 million and targeting a final close at $300 million.Earlier this year, Quadria Capital founded by Amit Varma, Abrar Mir and William Costello acquired Milestone Religare Investment Advisors Pvt Ltd which is an equal joint venture between Milestone Capital and Religare. Bafna Pharmaceuticals looking to raise capital; Mylan said to be among suitors Chennai-based small size drugmaker Bafna Pharmaceuticals Ltd is looking at various options to raise capital, as per a stock market disclosure on Tuesday.It was responding to a story in The Economic Times, which said that US-based Mylan and two other Indian companies are looking to acquire Bafna.Bafna said the media reports are speculative but said it is in negotiations for a deal which is at a primitive 3
  4. 4. stage right now.Bafna’s net sales rose to Rs 175 crore last year compared with Rs 128 crore in FY12. Its net profit increased from Rs 1.8 crore to Rs 3.96 crore in the same period.Earlier, Bafna, which manufactures drugs for iron deficiency under the Raricap brand, announced that it will diversify into pain killer and anti-infective segment by launching new products. Bharti Airtel plans to raise $1B via Euro bonds. Bharti Airtel is looking to raise up to $1 billion (Rs 6,225 crore) by selling bonds mainly to European investors as India's largest telco seeks to boost its coffers in preparation for upcoming spectrum auctions and for potential acquisitions. The proposed bond issue - Bharti Airtel's third in 2013 - is part of the company's strategy to ready a war chest of $3-4 billion to outbid rivals in the crucial spectrum auctions likely in January, and buy out smaller operators once the consolidation drive in India's telecom industry begins. JPMorgan, Barclays, UBS Investment Bank, Standard Chartered and BNP Paribas - as joint book runners and lead managers for the bond issue. Investor meetings would begin in Europe on November 27. Danone, Fonterra & Nestle vie for Hyderabad-based Creamline Dairy stake. Three of the world's biggest dairy firms - Danone, Fonterra and Nestle are in contention to acquire a stake in Hyderabad-based Creamline Dairy Products after the promoters and private investor Godrej Agrovet initiated the sale. The divestment could value Creamline, he fourthlargest private supplier of milk in South India with a 15% market share, at about Rs 1,000 crore, said two people with direct knowledge of the negotiations. Godrej Agrovet bought a 26% stake in the 27-year-old company in December 2005 and is looking to sell it. Almost 60% of the company is held by four families and another 14% by their associates. 4
  5. 5. The company has hired HDFC Bank to manage the deal. Though the promoters want to sell substantial minority stake of up to 49% they are not completely averse to the idea of selling a majority stake of 51% if the valuation is attractive, a source said. Dabur India to buy Northern Aromatics' Uttarakhand unit for $2.4M Fast moving consumer goods maker Dabur India Ltd has struck a deal to buy the business undertaking of Delhi-based Northern Aromatics Ltd's (NAL) located at Pantnagar in Uttarakhand for Rs 15 crore ($2.40 million) on a slump-sale basis, as per a stock market disclosure. The agreement has been executed on November 18, 2013.NAL is an existing vendor of Dabur. The facility will be used to manufacture food products, ayurvedic medicines and cosmetics.This unit deals in tooth powder/ayurvedic extracts & intermediate confectionery and perfumery compounds/synthetic essential oil. It manufactures glucose, shampoos and shilajit for Dabur. NAL, which has its corporate office at Ghaziabad in Delhi-NCR, was incorporated in 1979. It has manufacturing operations at three locations: Sahibabad, UP; Baddi in HP and Pantnagar in Uttarakhand. 5

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