Top Stories
Tech Mahindra acquires Hutchison Global Services
Tech Mahindra Limited, a leading provider of solutions and services to the telecommunications industry, today announced the acquisition of 100% stake in Hutchison Global Services Private Limited for US $ 87.1 m, payable upfront.
Hutchison Global Services (HGS) provides customer lifecycle operations to clients in UK, Ireland and Australia and has an associate base of over 11,500 employees. HGS operates out of Mumbai and Pune and is among the largest captives in the Telecom Domain.
This acquisition builds on the significant relationship between Tech Mahindra and the Hutchison group across multiple countries. The acquisition will provide significant enhancement of Tech Mahindra’s expertise in the customer management space and will thus be a key component of its strategic plans going forward. In addition, the acquisition will enable Tech Mahindra to leverage the acquired capabilities and scale for expanding the scope of their existing services to other parts of the Hutchison group, and also to other customers and verticals.
As part of the deal, the clients of Hutchison Global Services have committed to procure services worth US$ 845 million over a 5 year period, and have agreed to Hutchison Global Services being their exclusive provider of certain agreed services in India.
Diageo plans to acquire 27% stake in United Spirits: report
The UK-based Diageo plc is expected to acquire to 27% stake in liquor baron Vijay Mallya’s United Spirits (USL) for a total amount of Rs. 30bn, according to reports.
Reports stated that the stake sale is expected to be finalised in London early next week with an official announcement likely at the end of the month.
The funds raised will be used to pay off debts which have his personal guarantee, especially the ones extended to Kingfisher Airlines, says report.
Mitsui, Sanyo buy 49% in Mahindra Ugine's steel biz
Mitsui and Sanyo Special Steel has acquired 49% in Mahindra Ugine Steel Company's (MUSCO) wholly-owned steel business for Rs 2.18bn, according to reports.Reports stated that Sanyo invested Rs 1.29bn for its 29% stake, while Mitsui paid approximately Rs 890mn for its 20% stake in Navyug Steel.
MUSCO will hold the balance 51% in the JV, says report.There are reports that the new joint venture company will be called Mahindra Sanyo Special Steel.
In Focus Stories
Jindal Steel and Power acquires CIC’s Energy assets
Jindal BVI Limited (JBVI), a subsidiary of steel major Jindal Steel and Power Limited (JSPL) has acquired Canadian listed coal Company CIC Energy Corp. (CIC) for about US$115 million (over Rs 600 crore) by way of a merger of JBVI and CIC.
The Minister of Minerals, Energy and Water Resources of Botswana where CIC has its coal mines, has already approved the change of control from CIC to JBVI and all other approvals for the merger have already been granted and the merger certificate will be issued in the next few days marking the completion of the acquisition.
The deal will provide JSPL access to CIC’s high quality thermal coal in Greater Mmamabula coalfield in SE Botswana which is estimated to be in excess of 6 billion tonnes (approx) (including Measured and Indicated resource of 2.4bn Tonnes).
The deal will provide JSPL the opportunity to tap the highly lucrative and power deficient South African Development Community (SADC) countries and given the huge resource, will also provide an opportunity to set up a Coal to Hydrocarbons project.
Speaking on the occasions, JSPL’s Director and Group CFO, Mr. Sushil Maroo said, “This is another step in the direction of backward integration as the coal assets will give the company self-sufficiency when it comes to dependency on natural resources. This will enable JSPL in becoming a more self-reliant and fuel secure enterprise.”
Pursuant to the merger of JBVI and CIC, JBVI, being the surviving company, will make cash payment of C$ 2 per share to the current CIC shareholders aggregating to C$ 116 Mn approx. JBVI has already transferred the consideration amount to the depository for onward payment to CIC shareholders.
Domestic News
Piramal Healthcare in talks to acquire Ind-Swift facilities: reports
Mumbai-based Piramal Healthcare is in talks with the Chandigarh-headquartered Ind-Swift Laboratories to acquire its contract research and manufacturing business, according to reports.
Reports stated that the deal, under negotiation, is valued at Rs. 10-12bn.
The deal is expected to lift Piramal’s contract research and manufacturing services (CRAMS) and active pharmaceutical ingredient (API) manufacturing business, report says.
Aditya Birla PE, Baring PE in race to buy 20% in Anu Solar Power: reports
Baring Private Equity Partners and Aditya Birla Private Equity are in race to acquire 20% stake in Anu Solar Power, according to reports.
Reports stated that the transaction could be valued at Rs5bn.
The deal to invest Rs. 1bn is expected to close by the end of September, says report.
Advisory firm Ernst & Young is the lead arranger.
Deutsche Post DHL to reduce its stake in Blue Dart Express
Deutsche Post DHL, the world's leading postal and logistics group, today announced its intention to reduce its stake held through its subsidiary, DHL Express Singapore Pte Ltd., in Blue Dart Express Ltd. in order to enable Blue Dart Express Ltd. to comply with the minimum public shareholding requirements set out in Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”). In terms of the SCRR, listed companies are required to increase their public shareholding to at least 25 per cent latest by 03 June 2013.
Deutsche Post DHL will follow through with its intention subject to market conditions and/or the applicable regulatory framework. The future collaboration between Blue Dart Express Ltd. and Deutsche Post DHL will not be affected by this transaction at all and Deutsche Post DHL remains fully committed to the Indian market.
Venugopal Dhoot to bid for Deccan Chargers
Hero MotoCorp plans to acquire stake in three global technology partners: reports
Etihad Airways increases stake in Virgin Australia
Ind Swift Labs spurts on Piramal stake buy buzz
Exide Industries plans to buy out ING's 26% stake in insurance JV: reports
Global News
Chalco drops plan to acquire SouthGobi
Aluminum Corporation of China Ltd also known as Chalco, has ended its bid to acquire Mongolia-focused coal producer SouthGobi Resources Ltd, according to reports.
Reports stated that this acquisition would have significantly enlarged China's role in its landlocked neighbor's critical resources sector.
The Chinese metals major was to have taken over Turquoise Hill's majority stake in SouthGobi for $920 mn, says report.
Red Hat acquires BPM Technology from Polymita
Red Hat, Inc, the world’s leading provider of open source solutions, today announced it has acquired business process management (BPM) technology developed by Polymita Technologies S.L. The deal accelerates Red Hat’s entry into the BPM software segment and augments its JBoss Enterprise Middleware integration software offerings.
“The ability to change rapidly is an absolute necessity for businesses in today’s enterprise environment. Organizations that do not empower their business users to quickly and effectively modify automated business processes forfeit the ability to remain agile, competitive and relevant,” said Craig Muzilla, vice president and general manager of middleware at Red Hat. “Polymita’s technology enhances Red Hat’s JBoss Enterprise Middleware portfolio and specifically complements JBoss Enterprise BRMS and jBPM.”
Consolidated Media receives binding bid from News Corp
Consolidated Media Holdings Limited (CMH) announced that the conditions of the Indicative Proposal announced on 20 June 2012 have been satisfied and it has received a binding proposal from News.CMH has entered into a Scheme Implementation Deed (the SID) with News Limited and News Pay TV Financing Pty Limited (News), 100 per cent owned subsidiaries of News Corporation under which, subject to the satisfaction of a number of conditions, News (or another entity within the News group) will acquire CMH for $3.45 cash per share (the Scheme Consideration) by way of a scheme of arrangement (the Scheme).
CMH announced a fully franked dividend of 6 cents per share at its full year results on 21 August 2012 (the Dividend). CMH shareholders on the register on Friday 28 September 2012 (the Dividend Record Date) will receive the fully franked final dividend of 6 cents per share. The Dividend will be paid on Friday 5 October 2012.
AIG selling $2 billion in AIA Group's stock: reports
Shareholders vote on Glencore/Xstrata deal: reports