Thomas Cook to acquire Sterling Holiday Resorts in INR 870 Cr deal

BSE, Times of India

Majority PE-owned, publicly listed travel services firm Thomas Cook India is acquiring fellow listed timeshare properties pioneer Sterling Holiday Resorts India for an estimated total deal value of INR 870 crore. Through a four staged deal, involving both cash and stock swaps, Sterling will become a 100% unit of Thomas Cook India. Antique Broking was the transaction advisor to the deal and ICICI Securities was the merchant banker to Thomas Cook India.

In the first stage, Thomas Cook India will invest INR 187 crore through a preferential allotment for an around 23% stake in Sterling Holiday. It will then acquire another 23% from key Sterling shareholders including Bay Capital, stock brokers Rakesh Jhunjhunwala and Radhakrishna Damani, for INR 176 crore. The mandatory open offer for another 26% stake triggered by these deals will cost INR 230 crore at INR 98 per share. Further, the two companies will be merged at a swap ratio of 120:100, which means Thomas Cook India will allot 120 shares for every 100 shares of Sterling Holiday held.

Sterling has 19 resorts spread across 16 destinations in the country. The company has 15 additional sites on which it plans to develop properties. Sterling MD Ramesh Ramanathan will continue to lead the company post transaction as well.

From the Venture Intelligence M&A Deal database: In Feb-13, Thomas Cook had acquired fellow PE-backed, privately held HR Services firm Ikya Human Capital for $27-M.

From the Venture Intelligence PE Deal database: In 2012, Fairbridge Capital had acquired an 87.1% stake in Thomas Cook India for $180-M and subsequently brought it down to 75%.

http://timesofindia.indiatimes.com//articleshow/30079275.cms

http://bit.ly/1joLLjW

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Liquidity Events (Private Equity)

JK Group acquires defense tech firm Delopt

Business Standard

Diversified business group JK Organisation has acquired majority stake in Bangalore-based Deepti Electronics & Electro-Optics Pvt Ltd (DELOPT) through its group company Global Strategic Technologies Ltd (GST). Bangalore-based DELOPT manufactures defence electronics, avionics and electro-optics.

From the Venture Intelligence PE Deal database: In Jul-07, Axis Holdings had invested INR 6.;38 Cr in Delopt. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)

http://bit.ly/1gkibai

Angel Investments

Telemedicine portal eVaidya.com raises Rs.3.5 Cr more

Yourstory

Telemedicine portal evaidya.com, a product of Hyderabad-based healthcare startup e Health Access Pvt Ltd, has raised additional funding of Rs 3.5 crore from existing investors and two new investors. The company would be utilizing a major chunk of this for technology development and growth.

http://yourstory.com/2014/02/evaidya-healthcare/

Incubation / Acceleration

Microsoft Ventures announces 2014 Summer Batch

Nextbigwhat.com

Microsoft Ventures India has announced the final list of technology startups in its 2014 summer batch at the Microsoft Ventures Accelerator Program in India. The 16 startups in the new batch are: Appointy, App Virality, Bookpad, Boutline, Imly, InstaSafe, IntouchApp, Metaome, Sliderule, Voonik, MyBusTickets.in, Praxify, Thinxtream, Touchfone, ZingHR and Zoom. Six of these companies, namely MyBusTickets.in, Praxify, Thinxstream, Touchfone, ZingHR and Zoom, will constitute the newly launched Accelerator Plus Program, which is geared towards more mature companies.

http://bit.ly/1bUv7nr

Other Private Equity/Strategic Investments

Wipro invests $19-M in two start-ups

Deccan Herald

Software services firm Wipro has invested $19 million in two technology start-ups. More details on the name or business of these companies were not immediately known.

http://bit.ly/1gwvch1

American Express Ventures invests INR 31-Cr in retail software maker Capillary

Economic Times

American Express Ventures has made a strategic investment of about INR 31 crore in Bangalore-based software maker Capillary Technologies. Capillary, which builds technology that helps retailers understand customer purchase behaviour, will use the funds to expand services in markets such as the United States and Australia. Capillary has now raised a total funding of Rs 124 crore from investors, including Sequoia Capital, Norwest Venture Partners and Qualcomm Ventures.

http://economictimes.indiatimes.com//articleshow/30232776.cms

http://capillarytech.com/

Mergers & Acquisitions

DLF sells Amanresorts to its founder for $358-M

Times of India

Real estate major DLF has completed the sale of its entire stake in Amanresorts — excluding the Aman New Delhi Property, which was earlier known as Lodhi Hotel — to its original founder promoter Adrian Zecha for an enterprise value of $358 million (Rs 2,200 crore). DLF, via its 100% subsidiary DLF Global Hospitality (DGHL) completed the sale of its entire equity stake in Silverlink Resorts (SRL), the owner of Amanresorts, to Aman Resorts Group (ARGL) — a joint venture between Peak Hotels & Resorts Group (PHRL) and Adrian Zecha.

The proceeds of the deal will be used to repay a part of the debt of the company. With the divestment of its stake in Amanresorts, DLF has almost completed its restructuring programme to exit non-core businesses like hotels to focus on its main business of real estate development.

DGHL had purchased 100% equity in Amanresorts in 2007 from founder chairman Adrian Zecha for $400 million, including the iconic Lodhi Hotel. Amanresorts had acquired Lodhi Hotel for Rs 73 crore in 2002-03 in the government's disinvestment programme and rechristened it as Aman Hotel.

http://bit.ly/1efVuAE

MakeMyTrip acquires Netherlands-based EasyToBook.com group for $5-M

Medianama

Nasdaq-listed online travel agent MakeMyTrip has acquired the entire equity interest in a group of companies comprising the Netherlands-based EasyToBook.com (ETB) group. It has purchased shares from the existing shareholders of EasyToBook and further invested into the company for a total cost of $5 million. This acquisition is expected to strengthen MakeMyTrips existing travel technology stack and improve its hotel offerings for customers traveling overseas, particularly to Europe.

Amsterdam-based EasyToBook offers online hotel reservations for customers in Europe, North America, Dubai, Singapore and other key global travel destinations. It offers a mixture of luxury, budget, boutique and economical hotels worldwide and claims to offers hotel reservations for more than 120,000 hotels worldwide. Besides hotel rooms, it also offers other types of accommodation like B&B’s, hostels, holiday houses, short stay apartments and others. Online travel company Travix International (a BCD group company) had earlier acquired EasyToBook.com in August 2011.

http://bit.ly/1bDaJUM

http://www.easytobook.com/

Cargill acquires Leonardo olive oil biz from Dalmia Continental

Business Line

US food major Cargill has acquired Dalmia Continental’s olive oil business under ‘Leonardo’ brand, for a consideration less than Rs. 100 crore.

http://bit.ly/1o8KvC3

CTIL to acquire Tangent Solutions, Eiko Cybertech; raise $50-M through GDR issue

Publicly listed IT Services firm CTIL is to acquire 100% stake in Hyderabad-based software product development and service oriented technology Company Tangent Solutions (India) Pvt. Ltd. Tangent Solutions have diversified interests in product development, professional services and techno-functional consulting and a pioneer in providing solutions in Supply Chain Finance (SCF), e-lnvoicing and Invoice processing for industry verticals like Banks, SMEs and large Manufacturing sectors. CTIL will also acquire 100% stake in Eiko Cybertech Pvt Ltd, an IT solutions provider, catering for the services for large number of Government and Private Sector.

CTIL also plans to raising funds through GDR’s of up to $50 million.

http://bit.ly/1fRjUTU

http://bit.ly/1f8g8nE

Gaana.com acquires indie music streaming portal Musicfellas.com

IndiaDigitalReview.com

Gaana.com, a music streaming service from the house of Times Internet, has acquired the independent music portal Musicfellas.com. With this acquisition, Gaana.com will have access to Musicfellas's music by 700 independent artists and would add to its existing mainstream music catalogue. Musicfellas will be shut as an independent site and its catalogue will move to Gaana.com. The founders of Musicfellas, Mayank Jain, Gaurav Shahlot and Shubhranshu Jain along with their entire team will join Gaana. Mayank Jain, CEO, Musicfellas.com, will take the role of a developer evangelist at Gaana, helping developers build similar music apps for the website.

Musicfellas was previously funded by TLabs, a technology accelerator and seed investment organisation run by Times Internet, when it launched in mid-2012.

http://bit.ly/M3Eec6

http://musicfellas.com/

Aster DM Health enters Philippines, Jordan via buyouts

Times of India

Aster DM Healthcare has acquired a chain of clinics in Philippines and a pharmacy network in Jordan as part of its strategy to build a transnational Asian network. Aster acquired Clinica Manila, which operates a network of 10 clinics in Philippines, and Orange Pharmacy, a chain of 13 centres in Jordan.

http://bit.ly/1joP6PM

Royal Orchid sells H’bad hotel to SAMHI for Rs 179-Cr

Economic Times

Publicly listed Royal Orchid Hotels has sold its Hyderabad five-star property Regenta One to Gurgaon-based hotel development and investment group SAMHI for Rs179 crore. The 159-room hotel is the second property that the chain has sold to SAMHI since 2012. The transaction is part of a debt restructuring plan and it will help reduce Royal Orchid Hotels' debt burden from Rs 175 crore to Rs 35 crore. The hotel chain, promoted by Chander K Baljee, had in 2012 sold its Ahmedabad property to SAMHI for Rs 67 crore as part of the debt reduction plan. Royal Orchid Hotels owns and operates 21 hotels across India and Africa in the upscale and mid-scale segments.

SAMHI has partnerships with Chicago-based Equity International (EI), Marriott International and GTI Capital Group. In 2012, the company had rebranded the Ahmedabad hotel as Four Points by Sheraton and also acquired 60% ownership interest in 15 Formule 1 Hotels in India.

http://bit.ly/1ge5OOj

Japan's Outsourcing Inc buys 51% stake in HR BPO Alp Consulting for $5-M

Economic Times

Japanese staffing firm Outsourcing Inc has bought a 51% stake in Bangalore-based hiring firm Alp Consulting for $5 million (about INR 31.2 crore). With 17 Japanese companies and 19 overseas firms under its umbrella, Outsourcing Inc offers contracting service and staffing service to multinationals such as Suzuki, Toyota and Sony. Set up in 1996, Alp provides staffing and HR outsourcing services across six cities-Mumbai, Hyderabad, Delhi, Chennai, Noida and Pune. Alp has more than 5000 employees deployed at various client sites and reported a revenue of Rs. 858 million in FY 2011.

http://economictimes.indiatimes.com//articleshow/30249298.cms

Carlyle-backed network security firm Cyberoam acquired by US-based Sophos

Press Release, Mint

US-based IT security firm Sophos has acquired the majority stake held by Carlyle Group in Ahmedabad-based Cyberoam Technologies, a provider of network security products. Founded in 1999, Cyberoam offers Unified Threat Management (UTM) and network security including iView reporting engine, application control, user-based network policies, next-generation firewall capabilities and advanced threat protection. It has more than 65,000 customers and over 550 employees, besides a network of 5,500 partners, with particular strength in India, the Middle East, and Africa. Carlyle’s stake in the company was held by its affiliate First Carlyle Ventures Mauritius, which acquired a majority stake in Elitecore Technologies Pvt. Ltd in 2007. The network security business of Elitecore was demerged to form Cyberoam in 2012.

Signal Hill was the financial adviser and J. Sagar Associates the legal adviser to Cyberoam.

http://bit.ly/1jpH5dE

http://bit.ly/LPxSwf

Germany’s TUV Rhineland buys vocational education firm NIFE

Times of India

TUV Rheinland (TUVR), a Cologne, Germany-headquartered provider of technical, safety, and certification services, has acquired Kochi-based fire and safety courses provider NIFE India to form a new company, TUV Rheinland - NIFE Academy Pvt Ltd. TUVR will hold a controlling stake in the new joint venture. NIFE's management team, staff and students will be transferred to the new company.  iCounsel acted as the exclusive counsel for NIFE while DLA Piper, Germany dvised TÜV Rheinland, also with assistance from J Sagar Associates. SBI Capital Markets Limited acted as the lead investment banker on the transaction.

http://bit.ly/1eTYRDH

http://www.nifeindia.com

Muthoot Leisure acquires Xandari Resort in Costa Rica

Business Line

Muthoot Leisure and Hospitality Services, the hospitality division of the Muthoot Group, has acquired Costa Rica—based Xandari Resort & Spa. Muthoot has also extended its collaboration with Raxa Collective to manage the property.

The company plans to spend Rs 200 crore in the next two years for its expansion plans. The group also plans to scale up its overseas operations by adding more properties in Central America, Africa and Sri Lanka.

http://bit.ly/1iOrOjG

US-based CEB acquires HR software firm Talent Neuron for $15-M

Press Release, Techcrunch

Corporate Executive Board, the U.S.-based member advisory company acquired Bangalore-based Talent Neuron, a provider of market intelligence technology tools based on large-scale data analytics for around $10-15 Mn. Talent Neuron was incubated by Zinnov, a management consulting firm based in Bangalore,

The Talent Neuron tools, now available as CEB TalentNeuron, provide a clear and normalized view into talent market dynamics across 600 cities, 7,500 companies and 90 roles globally. The SaaS-based analytics platform informs a wide range of workforce-planning processes and has been configured to support Chief HR Officers and their teams as well as functional leaders, such as CIOs and CFOs, who increasingly need direct support in making decisions around specialized talent within their own functions.

http://bit.ly/1j2Wq0o

http://tcrn.ch/1cuQXLk

http://www.talentneuron.com

Medica Synergie unit invests Rs.30-Cr in Jamshedpur’s Kantilal Gandhi Memorial Hospital

Business Line

Kolkata-based Medica Superspeciality Hospital, a 100% subsidiary of Medica Synergie, has invested INR 30 crore in Jamshedpur-based Kantilal Gandhi Memorial Hospital (KGMH) to transform the latter into a super speciality hospital. Supported by Tata Steel, the KGMH was being managed by a trust, which decided to go for a tie-up with Medica to upgrade the facilities.

From the Venture Intelligence PE Deal database: In Dec-13, a PE investor group led by Quadria Capital, had invested INR 400-Cr in Medica Synergie including to buy out previous PE investor ICICI Venture.

http://bit.ly/1iPd6c1

Debt Financing

SVB lends to Anunta, Freecharge.in. K12 Techno, Nationwide, Robosoft, Vizury and Yatra

SVB India Finance has provided venture debt to Anunta, Freecharge.in. K12 Technoservices, Nationwide, RobosOft, Vizury and Yatra. SVB India Finance provides specialty debt products to early & growth-stage, VC-backed companies in India.

http://www.svb.com/india/

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Knowledge Partner

Trilegal is one of India's leading law firms with offices in four of India’s major cities - Mumbai, New Delhi, Bangalore and Hyderabad.  The firm has the experience and expertise in acting on complex, high-value, cross-border as well as domestic transactions, leading to its key practices winning top industry awards and accolades. The firm’s key practice areas include private equity and venture capital; corporate - mergers and acquisitions, strategic alliances and joint ventures, projects, energy and infrastructure, banking and finance, restructuring, capital markets, telecoms, media and technology, dispute resolution, competition law, labour and employment, real estate and taxation. Trilegal is recognised as having a market leading practice with a client base that includes leading international and Indian companies as well as smaller growing businesses. The firm’s client roster comprises many of the world's leading funds, corporations, banks and financial institutions.

http://www.trilegal.com/

Jones LaSalle raises INR 161 Cr fund for residential projects

Times of India

Global real estate services firm Jones Lang LaSalle has raised Rs 161 crore through its first fund focused on residential sector in India. The six-year, close-ended private equity fund is called the Residential Opportunities Fund I, which will be operated by Jones Lang LaSalle’s investment management business, Segregated Funds Group, and will invest Rs 25-30 crore in small residential projects in prominent locations across seven cities in India including Delhi-National Capital Region, Mumbai Metropolitan Region, Bangalore, Chennai, Kolkata, Hyderabad and Pune and target 25-30% returns. The fund’s focused investment approach is based on seeking value-added returns from inherently lower risk strategies. A significant portion of the capital has been raised from a combination of high net worth individuals, institutional investors and family offices.

http://bit.ly/1lzlGNp

Piramal, Canada's CPPIB form $500-M realty fund

Financial Chronicle

Piramal Enterprises and Canada Pension Plan Investment Board (CPPIB) have jointly set up a $500-million fund to provide rupee debt financing to residential projects in Indian cities. Piramal and CPPIB will initially focus on providing project-level debt to local developers across Mumbai, Delhi region, Bangalore, Pune and Chennai markets.

http://bit.ly/1hccaRQ
 

Chicago-based hedge fund Capri Capital to launch $400-M realty PE fund for India

Economic Times

US-based hedge fund Capri Capital Partners plans to launch its first India-dedicated real estate private equity fund to raise about $400 million. It is looking to raise the fund through its India arm, Capri Global Capital, to focus on investing in affordable housing projects across India.

Capri Capital, which advises pension funds and institutional investors globally, has $3.7 billion assets under management.

http://economictimes.indiatimes.com//articleshow/29967719.cms

http://www.capricapital.com

Elevar Equity to raise third fund, targets $75-M: report

Business Standard

Impact investor Elevar Equity is looking to raise its third fund with a target corpus of $75 million by end-2014. It has received commitments from two large global investors.

Elevar, founded by Chris Brookfield, Maya Chorengel, Sandeep Farias and Johanna Posada, is one of the most active global investors in innovative companies delivering market-based solutions to foster economic development for poor communities. Elevar Equity-II, which is currently being invested from, follows the Unitus Equity Fund. Through both the funds, the Elevar team has led Series A investments in leading microfinance institutions such as SKS Microfinance, Ujjivan, Grama Vidiyal, Madura Microfinance and Swadhaar. Elevar has also made two non-financial services investments - Moksha-Yug Access (focused on rural supply chains) and Comat Technologies (delivering government service to rural communities).

http://bit.ly/Me3mNa

Omidyar Network India chief Jayant Sinha quits firm

Startupcentral

Jayant Sinha has stepped down as managing director and head of India investments at Omidyar Network, the impact investment firm backed by eBay founder Pierre Omidyar. Sinha, earlier with McKinsey & Co and Courage Capital Management, is also BJP leader Yashwant Sinha’s eldest son.

http://bit.ly/1hhFFS7

http://www.linkedin.com/pub/jayant-sinha/3/8b/113

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Private Equity/Strategic Investments

KKR may acquire Punj Lloyd’s 17% Medanta Medicity for INR 654-Cr

Times of India

Publicly listed Punj Lloyd is in talks to sell its 17% stake in Gurgaon-based multi speciality Medanta Medicity Hospitals to the US-based private equity firm Kohlberg Kravis Roberts (KKR) for about Rs 654 crore to cut its debt. In December 2013, Carlyle Group bought 26% stake in Medanta Medicity from US PE firm Aventus Capital for Rs 960 crore, valuing the company at Rs 3,550 crore.

http://bit.ly/1h2dQNv

IDFC in talks to acquire Madhucon’s 74% stake in Agra–Jaipur Expressways project

Mint

Madhucon Projects Ltd, a Hyderabad-based road developer, plans to sell at least 74% stake in Madhucon Agra–Jaipur Expressways Ltd to IDFC Alternatives Ltd. Srei Infrastructure Finance Ltd, which holds a minority stake in the road project, may also exit it as part of the transaction.

Madhucon Agra-Jaipur Expressways is a build-operate-transfer (BOT) project along National Highway (NH) 11 and connects NH 8 with NH 2, which are part of the Golden Quadrilateral. The expressway connects Bharatpur with Mahua in Rajasthan.

http://bit.ly/M3CKOS

Aditya Birla PE to buy 8% in Thyrocare from CX Partners for Rs.130-Cr

Times of India

Aditya Birla Private Equity is close to acquiring an 8% stake in Thyrocare Technologies, majority-owned by medical entrepreneur A Velumani. The Birla PE firm will mop up the shares through a secondary deal with peer CX Partners, which is cutting its stake in the Mumbai-based Thyrocare valued at about Rs 1,600 crore. This pegs the deal size at Rs 125-130 crore. CX Partners had earlier sold a 2% stake to an affiliate of ICICI Bank at a valuation topping Rs 1,300 crore last year, and will retain a 20% equity interest post the Birla entry.

Ajay Relan-led CX Partners had purchased a 30% stake in Thyrocare for Rs 188 crore in 2010, valuing the company at Rs 600 crore then. Norwest Venture Partners and Brand Capital, a part of Bennett, Coleman & Co Ltd are the other financial investors in the company.

http://bit.ly/1gkpYF2

S’pore wine investor, PremjiInvest, L Capital vie for Sula stake

Times of India

Singapore-based global wine investor Ravi Viswanathan, backed by financing support from Reliance Capital, has emerged as a strong contender to buy a 33% stake in Nashik Vintners, the parent of India's leading wine maker Sula. The consortium is competing with L Capital and PremjiInvest as Sula has received at least three term-sheets. Thai Beverage, better known as ThaiBev, is also in the fray for the stake purchase. The offers value Sula up to $120 million.

Existing financial investors plan to sell between 30% and 33% stake with Sula also raising some fresh capital. Currently, financial investors together hold a little over 50% stake in the company. Sula's founder Rajeev Samant and one of the large existing investors are not offloading shares. Investment bank Avendus Capital is advising on the deal.

http://timesofindia.indiatimes.com/articleshow/30186059.cms

Central Bank of India looking to sell 8.34% stake in IL&FS

Times of India

State-owned Central Bank of India, or CBI, has begun the process of selling the 8.34% stake it holds in Infrastructure Leasing and Financial Services Ltd (IL&FS). The bank has appointed Axis Capital to scout for a buyer. Probable buyers could be existing investors in IL&FS such as Japan's Orix and Abu Dhabi Investment Authority. The sale could fetch CBI around $500 million.

Life Insurance Corporation of India (LIC) and Orix are the biggest shareholders in IL&FS, with 25.64% and 23.31%, respectively. The rest is owned by HDFC, Abu Dhabi Investment Authority, CBI, State Bank of India and IL&FS Employees Trust. In fiscal 2012, ILFS sold a 2% stake to LIC at Rs 1,100 a share, valuing the company at $5 billion, in order to infuse capital and reward senior employees who own shares in the lender through IL&FS Employees Trust.

http://timesofindia.indiatimes.com/articleshow/30035839.cms

Cloud telephony vendor Knowlarity to raise $15-M

Times of India

Knowlarity Communications, the Gurgaon-based cloud telephony venture, has entered into discussions with three venture capital firms,as it looks to raise about $15 million to fund its overseas expansion and acquisitions. The company, which is backed by Sequoia Capital, is looking at a pre-money valuation, ranging between $25 million and $35 million. Investment bank Signal Hill has been appointed to run the mandate. Sequoia Capital which had invested INR 34 crore in January 2012 is also expected to participate in the Series B round.

Knowlarity Communications provides business telephony services to companies, particularly in the small and medium enterprise segment, which replaces the conventional business communication equipment, with cloud hosted voice applications.

http://bit.ly/1eLFNro

Everstone, Advent, TPG eye stake in call center software firm Servion Global

Economic Times

TPG Capital, Advent International and Everstone Capital are in talks with promoters of Chennai-based publicly listed enterprise customer interaction management (CIM) provider Servion Global Solutions to purchase a significant minority stake in the company. Servion, founded by its managing director and CEO K Balakrishnan in 1995, which helps companies to effectively manage interaction with its customers using an enterprise software application, is now valued at $125 million (Rs 750 crore). Sansar Capital, which invested $6.7 million, has now exited the company. The promoters of the company are looking at options, including a complete sale and have appointed investment bank Avendus Capital to manage stake sale.

Servion provides consultancy in CIM to enterprises in banking and finance, telecommunications, business process outsourcing, transportation, retail and hospitality sectors. It manages more than 10 billion voice, fax, web and email interactions for its 600 customers in 1,000 sites.

http://economictimes.indiatimes.com/articleshow/30242158.cms

Everstone looking to attract other PE investors to Canada’s Faces Cosmetics

Mint

India-focused investor Everstone Capital, which acquired Canada-based Faces Cosmetics in 2007, is in talks with private equity (PE) firms and strategic investors to raise fresh capital for the colour cosmetics company. Everstone is open to both pure-play financial investors as well as strategic investors. The PE firm is not looking to exit and will do a primary-only deal. Everstone is not mandating any investment bank or advisory firm for the transaction and is talking to global investors. The fund is looking to raise about Rs. 35-40 crore through a small amount of equity dilution to begin with. The amount raised will be used for marketing and branding purposes.

In 2007, Everstone invested an undisclosed amount for a majority stake in Faces Cosmetics, which sells makeup, skincare products and personal care accessories. It has more than 30 stores in India.

http://bit.ly/1gwuyQG

Portea Medical to raise up to $40-M

Business Line

Home healthcare service provider Portea Medical, the fifth start-up of serial entrepreneur K Ganesh and his wife Meena, plans to raise $30-40 million (INR 185-250 crore) next fiscal for further expansion.

Portea, which recently closed the first round of fund-raising (nearly INR 48 crore) from venture capital firms Accel Partners and Ventureast, offers affordable hospital-like healthcare services at home on four major areas – chronic diseases, geriatric care, neo-natal and post-operative care. The firm is betting big on the increasing mobile phone penetration and internet connectivity to expand its footprint across 50 cities in two years. Currently it operates in Chennai, Delhi, Bangalore, Mumbai, Pune and Hyderabad.

http://bit.ly/1ficszI

Raj TV scouting for new investors

Business Line

Chennai-based television broadcasting company Raj Television Network Ltd is on the lookout for a strategic investor. The promoters are open to divesting a majority stake in the company. The firm operates 13 channels in Tamil, Telugu, Kannada, Malayalam and Hindi. It offers a range of entertainment and news channels. It also owns a huge library of Tamil feature films. Destimoney Securities has been given the mandate for the deal.

Raj Television, promoted by four brothers — Raajhendhran, M Rajarathinam, M Ravindran and M Raghunathan — went public in 2007, with the brothers holding a 67% stake in the company. For the quarter ended December 31, it reported a net profit of ₹5 crore on a turnover of INR 25 crore.

http://bit.ly/1lFYYD8

ATM payments outsourcing firm FSS in talks to raise Rs.350-Cr

Economic Times

Chennai-based Financial Software Services (FSS), a global payment systems company, is in talks with international private equity funds to raise about $60 million (Rs 350 crore) for growth and expansion. Existing private equity investors NEA and Jacob Ballas could also offload their stake depending on the valuation. The company, which offers electronic payment, financial transaction processing solutions and services, is being valued at about $350 million. The company is in talks with buyout funds such as Carlyle, Apax, Blackstone and TPG.

PE funds NEA and Jacob Ballas had picked up about 40% stake in the company including Carlyle Group's 34% stake for $60 million in 2009. Carlyle had invested $10 million in the company from its first growth fund in India in 2001.

http://economictimes.indiatimes.com//articleshow/30330057.cms
 

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M&A

Heinz in acquisition talks with Indian food cos

Economic Times

US food maker HJ Heinz is in talks with local food companies to acquire them.

http://bit.ly/1bL0HB5

K.Ganesh scouting for acquisitions in construction, higher education sectors

Economic Times

Internet entrepreneur Krishnan Ganesh is preparing to launch two new startups, one in the housing and construction sector and another that will offer higher education for working professionals. These proposed ventures that will use technology to deliver services.

Ganesh expects to launch one venture in the first half of 2014, followed by the second later this year or early next year. For the new ventures, Ganesh is scouting for early-stage companies at a pre-revenue stage that he can acquire. The investments will be routed through separate holding companies in which existing entrepreneurs will get an equity stake.

http://economictimes.indiatimes.com/articleshow/30304410.cms

Tilaknagar Industries in talks to buy Imperial Spirits for Rs. 400-Cr

Business Standard

Tilaknagar Industries, maker of Mansion House and Courrier Napoleon brandies, is in talks with Indian made foreign liquor (IMFL) maker Imperial Spirits to acquire the later. The deal is expected to be in the range of Rs 400 crore.

Imperial Spirits started its operations in Goa in 2003 and subsequently in the states of Karnataka and Kerala in 2004 and 2005, respectively. It has manufacturing units in Kerala, Karnataka and Goa. The group is in the process of entering Andhra Pradesh and Tamil Nadu markets. Imperial Spirits sells two popular brandy brands - Imperial XO Premium brandy and VSOP Brandy. It produces more than 500,000 cases of foreign liquor a month.

http://bit.ly/1g3fuJE

Leela to sell 2 hotels for Rs2,000-Cr

Times of India

Sovereign wealth funds of Abu Dhabi, Qatar and Malaysia are in talks to pick up 74% stake in the Leela Group's Delhi and Chennai hotels for over Rs 2,000 crore. The Leela Group will use the funds to pare liabilities after moving the corporate debt restructuring (CDR) cell. The transaction is managed by IDBI Capital and SBI.

http://timesofindia.indiatimes.com//articleshow/30359297.cms

IPOs

Oasis Tradelink files for SME IPO

Ahmedabad-based Oasis Tradelink Limited has filed a draft red herring prospectus for an initial public offering on the BSE-SME platform of 20,00,000 equity shares at Rs 30 each aggregating Rs 6 crores. The net issue will constitute 27.43% of the post issue paid up equity share capital of the company. Guiness Corporate Advisors is the lead manager to the issue. The company plans to use the funds for brand building and part finance working capital requirements apart from meeting general corporate expenses. Oasis is in the business of trading and marketing branded and packaged edible oils business.

http://bit.ly/1fXSuM8

Anisha Impex files for SME IPO

Delhi-based Anisha Impex Limited has filed a draft red herring prospectus for an initial public offering on the BSE-SME platform of 65,00,000 equity shares at Rs 10 each aggregating Rs 6.50 crores. The net issue will constitute 39.56% of the post issue paid up equity share capital of the company. Inventure Merchant Banker is the lead manager to the issue. The company plans to use the funds to meet public issue expenses and augment its long term working capital needs. The company is engaged in the business of trading of multi product fabrics like fabrics for bedding, windows dressing, decorative, pillows and accents, table linen, kitchen linen and other home furnishing fabrics.

http://bit.ly/1j0BU0m

Hindustan Cleanenergy plans IPO; to invest Rs 5,500-Cr by 2016

Economic Times

Solar power developer Hindustan Cleanenergy plans to hit the capital markets with an IPO this year. The company is a subsidiary of Hindustan Power, which in turn is a group company of homegrown storage devices major Moser Baer. Hindustan Cleanenergy, which has a generation capacity of 350 mw now, will invest Rs 5,500 crore on various solar farms by 2016 when the generation is expected to touch 1-gw (1,000 mw).

http://economictimes.indiatimes.com/articleshow/30355418.cms

Real Estate Transactions

Vijay Mahtaney to sell Chennai Boat Club Road property

Economic Times (Print Edition)

Businessman Vijay Mahtaney is looking for a buyer for his over nine grounds of property in Chennai's Boat Club area. Mahtaney wants to re-invest the money in his other realty business concluding building hotels, IT Parks and residential projects. Real Estate consulting firm Jones Lang LaSalle has the mandate for the sale.

Ashok Leyland to sell Boat Club Road property in Chennai

Business Line

Commercial vehicle manufacturer Ashok Leyland is selling off it 1-acre property in the posh Boat Club area in Chennai. The estimated value of the prime property is Rs 9-12 crore a ground for the property of approximately 18 grounds.

http://bit.ly/1kG7lRj

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New Ventures

Tata Housing to invest Rs 300-Cr in Chennai housing project

Economic Times

Tata Housing will invest Rs 300 crore on developing a new housing project near Chennai. The project 'Santorini', spread over 18 acres, comprises 1,000 housing units. Located on Chennai-Bangalore highway at Sriperumbudur, the project will be developed by its subsidiary Tata Value Homes Ltd. Prices of the apartments are in the range of Rs 24-52 lakh, depending upon the size.

http://bit.ly/M3DiV5

Sandhar Technology forms $5-M JV with Korean firm

Economic Times

Sandhar Technology Limited is investing $5 million in an equal joint venture with Korean company Hang Sung. Han Sung has specialisation in high precision press parts, insert moulded components, terminals, parts for relay switches, switches etc. This new JV will enable Sandhar Technology manufacture high precision parts and also have backward integration of electronic relays which the company is manufacturing under a new technical alliance with Korea's relay technology leader Jinyoung Electro-Mechanics Company Ltd (JEM). The JV plant will be set up in Gurgaon with an investment of Rs 31 crore. The JV will also strengthen Sandhar's business in the consumer durables.

http://bit.ly/1bLSRu7

Expansion/Diversification

CESC to set up solar power plant in TN

Financial Chronicle

RP-Sanjiv Goenka Group promoted power firm CESC is in the process of setting up a 10.6 mw solar plant in Tamil Nadu. The self-rotating solar panel project will be commissioned in the next month itself and the company is investing nearly Rs 95 crore in the project.

http://bit.ly/1odlPrT

Ambience to invest Rs.1,800-Cr on three new NCR realty projects

Economic Times

Realty firm Ambience Group will invest about Rs 1,800 crore over the next four years to develop an integrated township and two housing projects. The firm would soon launch two housing projects in Noida and Gurgaon, comprising 1,100 housing units and a 350-acre township at Panipat. Ambience would invest Rs 800 crore on construction of 850 housing units on a 16-acre land in Gurgaon, while another Rs 300 crore would be pumped in 4-acre project in Noida having 270 dwelling units. On township, the construction cost would be about Rs 700 crore.

Ambience Group is developing a 150-acre project 'Ambience Island' in Gurgaon that comprises premium homes, 'Leela Ambience' hotel with over 400 keys and a huge shopping mall.In Delhi, it has a 'Kempinski Ambience' hotel comprising 480 keys and a shopping mall at Vasant Kunj.

http://economictimes.indiatimes.com//articleshow/30285230.cms

People

Goldman promotes Ashok Varadhan to co-head securities

Deccan Herald

Goldman Sachs Group has named Indian-American executive Ashok Varadhan as a third co-head for its securities division, the largest and most profitable of the global investment bank's four units. Varadhan would co-head the division, which comprises the fixed income, currency and commodities business as well as the equities business. Varadhan joins existing co-heads Isabelle Ealet and Pablo Salame in his new role.

Varadhan, 41, will be based in New York City. He was most recently head of macro trading in the securities division. A Duke University graduate, Varadhan joined Goldman in 1998 in swaps trading and has served in other FICC roles since then. He became a managing director in 2000 and a partner in 2002, according to the memo.

http://bit.ly/1ha9kg6

Forbes India Ex-CEO Gurmit Singh Appointed As Yahoo India MD

Medianama.com

Yahoo has appointed Gurmit Singh as the Managing Director for Yahoo India. Prior to this appointment, Singh was the CEO of Forbes India for about two and a half years. Before that, he was the head of Hindustan Times’s Mumbai edition for three years and CEO of Rajshri Media for about 10 months.

http://www.medianama.com/2014/02/223-gurmit-singh-yahoo-india-md/

Asklaila co-founder BK Birla returns to the co

NextBigWhat

Local search firm Asklaila's co-founder, BK Birla, is to return to the company. Birla was recently ousted from online grocery store ZopNow due to differences within the company. Birla used to be the CTO in 2006.


From the Venture Intelligence PE Deal database: VC investors in AskLaila.com include Matrix Partners India (since Dec-06) and Lightspeed Ventures (since Sep-07).

http://www.nextbigwhat.com/bk-birla-asklaila-297

Others

India seeks to cancel Vodafone tax talks

Times of India

In a major jolt to talks with UK-based Vodafone, the government has decided to withdraw its conciliation proposal to sort out the Rs 20,000 crore tax dispute with the telecom giant and move ahead with the collection of dues. The ministry of finance has floated a Cabinet note seeking to withdraw the conciliation process with Vodafone International Holdings BV. The Cabinet had in June last year approved a finance ministry proposal to go in for conciliation with Vodafone to resolve the capital gains tax dispute related to its acquisition of Hutchison Whampoa's stake in Hutchison Essar in 2007.

Vodafone had wanted to club a Rs 3,700 crore transfer-pricing case of Vodafone India Services with the capital gains tax issue, a demand that could not be accepted by the Finance Ministry. While the basic tax demand for the 2007 acquisition is Rs 7,990 crore, the outstanding dues, including a penalty of a similar amount and accrued interest, run into Rs 20,000 crore.

http://timesofindia.indiatimes.com//articleshow/30231428.cms

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The Deal: TACO enters into JV with China’s Air International Thermal

Advisor: AZB & Partners

Client: TATA Autocomp Systems Limited

Deal Date: December 9, 2013

Deal Description: TACO indirectly, through TATA Toyo Radiator Limited, acquired 50% stake in a joint venture company (“JV Co”) . The balance 50% stake was directly acquired by Air International Thermal (China) Pty Limited in the JV Co.

Advisory Role: AZB & Partners were Legal advisors to TACO.

Advisory Team: Ashwin Ramanathan & Vijay Manjrekar

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The Deal: Balmer Lawrie acquires Vacations Exotica

Advisor: Khaitan & Co

Client: Balmer Lawrie & Co Ltd

Deal Date: 5 February 2014

Deal Description: Advised Balmer Lawrie in relation to purchase of the running travels and tour business with purchase of the brand name “Vacations Exotica” of Vacations Exotica Destinations Private Limited (India)

Advisory Role: Advised Balmer Lawrie on the transaction

Advisory Team: Arvind Jhunjhunwala

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The Deal: Thomas Cook acquires Sterling Holiday Resorts

Advisor: AZB & Partners

Client: Thomas Cook India Limited (“TCIL”), Thomas Cook Insurance Services (India) Limited (“TCISIL”)

Deal Date: February 7, 2014

Deal Value: Approximately INR 5.90 billion (Approximately USD 95 million)

Deal Description:

• TCISIL to acquire to 20,650,000 equity shares, representing 22.86% of the total equity capital, of the Sterling Holiday Resorts on a preferential allotment basis;

• TCISIL to acquire between 11,592,846 and 18,007,677 equity shares of the Target depending on the terms and conditions of the share purchase agreement, representing between 16.99% and 26.40% of the total paid up equity share capital of the Target from Bay Capital Investments Limited, India Discovery Fund Limited, Bay Capital Investment Managers Private Limited, Sidharth Shankar S and Dhanlakshmi S;

• Mandatory open offer by TCISIL (with TCIL acting as PAC) to acquire 23,486,264 equity shares of the Target constituting 26% of the voting share capital;

• Composite scheme of arrangement and amalgamation between TCISIL, TCIL and Target, pursuant to which: (a) the entire business division and undertaking of the Target engaged in time share and resort business shall be transferred by way of demerger from the Target to TCISIL, in lieu whereof equity shares of TCIL will be issued to the shareholders of the Target in accordance with the ratio as set out in the scheme, and (b) the residual Target shall be amalgamated into TCIL and in lieu equity shares of TCIL will be issued to the shareholders of the Target in accordance with the ratio as set out in the scheme.

Advisory Role: Advising on structuring and regulatory issues pertaining to the transaction, negotiation and drafting of the transaction documents and filing for regulatory approvals.

Advisory Team: Ashwin Ramanathan, Bhavi Sanghvi, Rinki Ganguli

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The Deal: WestBridge invests in DFM Foods

Advisor: AZB & Partners

Client: WestBridge Crossover Fund, LLC and Jwalamukhi Investment Holdings

Deal Date: January 30, 2014

Deal Value: Approximately INR 644 million (Approximately USD 10.20 million )

Deal Description: Advised WestBridge Crossover Fund, LLC and Jwalamukhi Investment Holdings in relation to acquisition of an aggregate 24.90% stake in DFM Foods Limited from two of the Company’s promoter shareholders.

Advisory Role: The Firm was involved in drafting and negotiating the transaction documents.

Advisory Team: Ajay Bahl, Gautam Saha and Sachin Mehta

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