Volume 99, August 29th, 2011 For the period August 22, 2011 to August 28, 2011

Highlights
TOD's Hong Kong Ltd Restructuring Indian Joint Venture(3) Nilon's To Acquire Regional Food Processors To Expand Product Portfolio(3) Wadias To Sell BCL Springs To Japans NHK Spring For Rs 200 cr(4) GVK Acquires Additional 14% In BIAL(5) Tata Chemicals Raising Stake in Canadas EPM Mining(5) Blackstone Buys More Stake In Monnet Ispat For Rs 75 cr(6) Spicejet To Raise Funds From TPG For Aircraft Acquisition(7) Carlyle Group To Invest $26 mn In Jerry Raos Value & Budget Housing(8) Axis PE To Exit Vishwa Infra & Corrtech International(8) Multiples Invests In Oilfield Equipment MakerSara Sae(9) Impresario Raises Rs 48 cr From Mirah Hospitality, Beacon India (9) IIT-Bombay Education Start-up InOpen Raises $0.5 mn(10) Nexus Venture Partners Leads $12 mn Series B Round In Druva(11)

Content
Mergers & Acquisitions News Mergers & Acquisitions Deals Private Equity News Private Equity Deals Venture Capital News Venture Capital Deals

Pages
3-5 6-7 7-9 9-10 10-10 10-11

Mergers & Acquisitions News

Sanofi May Acquire Majority Stake In Universal Medicare
Sanofi Aventis may acquire a majority stake or key brands of nutraceuticals maker - Universal Medicare. The deal if goes through will value the Seacod oil maker at Rs 450 cr (4.5 times the revenue). Mumbai based Universal Medicare makes a number of OTC products to treat osteoporosis and arthritis. Its product portfolio includes brands like SeaCod, Aminofit, Estovon and Multivite Gold among others.

TOD's Hong Kong Ltd Restructuring Indian Joint Venture

The Italian luxury shoe and clothing brand has changed its joint venture partner in India with the exit of Bhukhanvala Holdings as a joint venture partner. TODs in India will now have a new joint venture partner, Ekta K. Securities & Investment Private Limited. Tod's had entered in India through a 51:49 joint venture with Bhukhanvala Holding Pvt. Ltd in year 2007. Bhukhanvala subscribed to 49% stake for Rs. 5.5 cr and exit has been valued at nearly $3.85 million (Rs. 17.3 crore). Ekta K. Securities a Mumbai based Company is the new joint venture partner by way of transfer of share. Additionally TOD's has paid some consideration to Bhukhanwala for the exit. Bhukhanvala group has presence in multiple businesses in tech, real estate & financial sector. TODS S.P.A. creates, produces, and distributes shoes, leather goods and accessories, and apparel products. It provides shoes and leather goods under the Tod's, Hogan, and Roger Vivier brand names; shoe collections for women, men, and children under the Hogan brand; and casual wear, including seasonal men's, women's, and junior's collections under the Fay brand.

Takeda May Acquire Lupin's Domestic Formulations Business

Japan's largest pharma company-Takeda may acquire the pharma businesses of either Lupin or Cipla. The deal with Lupin seems more likely as the promoters of the company have shown interest in selling the domestic formulations business in the recent past. Takeda is Japan's largest company by sales and is searching for overseas acquisitions as it faces pricing pressures from its core domestic market and specific threats to future sales with the expiry of patents on leading products including Actos for diabetes and Prevacid for ulcers. It has more than Y860 Bn in cash and is open to raising debt to fund overseas acquisitions. Takeda is acquiring Swiss drugmaker Nycomed at a valuation of about $14bn.

Nilon's To Acquire Regional Food Processors To Expand Product Portfolio

Pune based processed food maker - Nilon's Enterprises is planning to expand it's product portfolio through acquisitions. The company is in talks with banks like SBI, HDFC and Axis for a fund of about Rs 400 cr to fund the acquisitions. Nilon's is also merging its group firm Deepak

Foods with another group firm - Sanghavi Foods Pvt Ltd. The product portfolio of company includes pickles, papads, tooty-fruity, sauces, vermicelli, macaroni, tomato ketchup and jams.

Wadias To Sell BCL Springs To Japans NHK Spring For Rs 200 cr

Wadia Group firm Bombay Burmah Trading Corporation Ltd (BBTCL) is in the final stage of talks to sell its precision springs business (housed under a division called BCL Springs) to its overseas technology partner NHK Spring Co. Ltd of Japan for approximately Rs 200 crore. The auto component unit was set up as a separate company in 1985, in technical collaboration with NHK Spring Co. Ltd of Japan, to manufacture cold coiled precision springs. It commenced commercial production in 1987 and over time, expanded its installed capacity from 1,000 mt to 10,000 mt and from one manufacturing facility to two manufacturing units in order to cater to the growing demands of the Indian automotive components market. In 1992, it was merged into BBTCL. The company currently deals in 1,400 types of spring and its clientele includes Maruti Udyog (Zen, Wagon R, Swift, Esteem and Alto), Suzuki Powertrain (new model diesel engines), TATA Motors (Indigo, Indica, Marina) and Hindustan Motors (Isuzu), among others. As part of its restructuring exercise to liquidate non-core operations, BBTCL sold its Sunmica unit to Japans AICA Kogyo Ltd for Rs 100.30 crore. BBTCL is part of the Nusli Wadia Group, which has diversified business interests across airlines, plantations, foods, textiles, chemicals, laminates, electronics and light engineering, health care and real estate.

Warren Buffett To Invest $5B In Bank Of America

Warren Buffett will invest $5 billion in Bank of America Corp, stepping in to shore up the largest US bank in the same way he helped prop up Goldman Sachs and General Electric during the financial crisis. Trade was so heavy that Bank of America shares made up nearly 13% of the composite volume for the entire stock market. The stock's rise makes the warrants for Bank of America shares that Buffett gets in the deal instantly profitable. Even though the bank has said it did not need to raise capital, investors widely believed it needed more money and to show it could raise funds easily. Bank of America has been plagued by fears that bad mortgage loans and legal liabilities from loans packaged into bonds by its Countrywide unit could drag it into tens of billions of dollars in fresh losses that would stretch its capital. The deal proved again that Buffett has become something of a lender of last resort to the financial system, as he did with Goldman and GE. Buffett's role in aiding the economy and the financial system has become symbolically important, given the lack of policy options left for the U.S. government and the Federal Reserve to stimulate demand.

DE Shaw-backed SIS Forms JV With Terminix

Delhi-based security services firm Security and Intelligence Services (SIS) has formed a joint venture with US-based pest control services provider Terminix to serve residential and commercial customers, according to a company statement. Under this deal, Terminix will

provide its technical expertise and industry knowledge while SIS will leverage its deep understanding of the Indian marketplace, along with its extensive infrastructure and customer base. Terminix, a leading pest control services provider and a division of The ServiceMaster Company (headquartered in Memphis, Tennessee), caters to more than three million customers across 14 countries. Incorporated in 1974, New Delhi-based SIS Group is one of Indias top security and business support services group, with more than 100 offices, 3000 corporate customers and an associate base of 52,000 people. Three years ago, US-based hedge fund DE Shaw had bought 14% stake in SIS for around Rs 300 crore ($75 million), valuing the company at about Rs 2,150 crore ($525 million). In 2008, SIS also made one of the biggest overseas acquisitions in security services field when it snapped the Australian guarding and patrol business units of US conglomerate United Technologies Corp in a multi-million dollar transaction.

Tata Chemicals Raising Stake in Canadas EPM Mining

Tata Chemicals is raising its holding in EPM Mining Ventures Inc. (Canadas TSX Venture Exchange-listed exploration-stage potash development company) from 15.9% to 30.6%, for an estimated $41 million. According to the latest deal, a subsidiary of Tata Chemicals will subscribe to eight million fresh shares and eight million share warrants, convertible into as many shares of EPM, for a little over $16 million. The warrants are convertible into shares within 12 months of the share issue at a price of C$2 per share, which should entail a further $16 million in investment. Simultaneously, Tata Chemicals has also struck a deal with the founding shareholders of EPM, Lance DAmbrosio and Jeff Gentry, to acquire around 4.37 million shares at the same price of C$2 per unit. Post-acquisition of shares, subscription to fresh shares and conversion of warrants into equity, Tata Chemicals will own around 30.6%. EPM holds the lease to mine potash across 95,172 acres of land, as granted by the US government in April this year. It holds 40% stake in Emerald Peak Mineral that controls 6,409 acres of land, leased from the State of Utah in the USA. EPMs primary focus is its project on the Sevier Dry Lake in Utah, for producing sulphate of potash and other beneficial minerals. EPM intends to use the proceeds of the offering for further evaluation of its properties and for general working capital purposes. EPM shares were last traded at C$1.7 per unit at the TSX. This means Tata Chemicals is acquiring shares at 17% premium to the current market price. In May this year, the chemicals firm of the Tata Group had acquired 15.9% stake in EPM, pursuant to the amalgamation of Yukon Inc. with EPM. Tata Chemicals, through a subsidiary, had held 16.7 million shares of Yukon which were acquired for around $11.2 million and post-amalgamation, received as many shares of EPM.

Mergers & Acquisitions Deals

GVK Acquires Additional 14% In BIAL
GVK Infrastructure has acquired an additional 14% stake in Bangalore International Airport Ltd for Rs 614 Cr from Siemens Project Ventures. GVK is now the single largest shareholder in BIAL with more than 43%. The company is also planning to acquire 26% from Siemens in the next two years. Though GVK excercized it's first right of refusal to acquire the stake, it had to pay a premium of 8.6% over the price of Rs 105 per share paid for L&T's stake as the Tata Group and Singapore's Changi International Airport offered Rs.144 per share, almost double than GVK's initial offer of Rs 60 per share. GVK offered Rs.60 per share stating that the 2009 valuations were no longer valid due to change in business conditions.

Sequoia Ups Stake In Ess Dee Aluminium

Sequoia Capital India has picked up an additional 1.46% stake in packaging firm Ess Dee Aluminium Ltd from the open market. The venture and growth capital investor has now increased its stake to over 6.3% in the Mumbai-based Ess Dee, which makes packaging materials used by pharmaceutical companies. The latest round of share purchase was done for Rs 11.27 crore. Sequoia had initially picked up 1.87% stake in Ess Dee in January this year, at a share price of Rs 448 per unit. Since then, it has increased its stake to 4.88% as of June, 2011, and is currently the largest institutional shareholder. With the recent dip in the share price of Ess Dee, Sequoia now seems to be averaging its investment. Ess Dee is headed by firstgeneration entrepreneur Sudip Dutta who holds 59-60% stake in the firm. Current investors in the company include ICICI Prudential Life Insurance, Orange Mauritius Investments and Blackstones India Fund, among others.

Blackstone Buys More Stake In Monnet Ispat For Rs 75 cr

Private equity giant Blackstone Group has picked up another 2.43% stake in Monnet Ispat Ltd, one of Indias largest manufacturers of integrated coal-based sponge iron. The latest round of stake buy came recently when the PE major picked up the shares both on the BSE and the NSE for an aggregate sum of Rs 75 crore. With the recent deals, Blackstones stake in the company will go up to more than 6.2% for a total investment of over Rs 200 crore. Blackstone had also invested Rs 275 crore (approximately $60 million) in a subsidiary of Monnet Ispat in the power generation space last year. Blackstone started buying into Monnet Ispat, which was evolving from sponge iron player to an integrated steel firm during last month. CX Partners, a PE firm started by Citigroup Venture Capital International (CVCI) veteran Ajay Relan, had also bought into the Jajodias-run firm from open market last year. In March, 2011, Monnet had acquired the Indonesian coal company PT Sarwa Sembada Karya Bumi for Rs 108 crore. The deal gives

Monnet access to the thermal coal mine, spread over 25,000 hectare, of which only 1,500 hectare have been explored. The company has also stated recently that it is conducting due diligence on two African coal assets, where it expects to spend $50-$60 million and close a deal in the next six months.

NMDC Buys 50% in Legacy Iron Ore

NMDC is acquiring a 50% stake in Australia based Legacy Iron Ore for about $100 mn. NMDC is floating a subsidiary in Australia to handle the deal and also look at other investment options. According to Legacy, the stake sale would enable the Australian miner unlock and monetize the value inherent at Mt Bevan and gain from a large cash infusion. Mt Bevan offers low-strip ratios, coarse grind size, low silica and an average concentrate grade of 69.8% iron content.

Spicejet To Raise Funds From TPG For Aircraft Acquisition

TPG Capital may acquire a minority stake in Spicejet Ltd as the budget carrier plans to raise upto $270 mn to expand it's fleet size. The company had ordered 15 Bombardier's at a list price of $450 mn in December'2010. The company had initially tied up a loan of around $250 mn from Export Development Canada for the purchase, but there has been a delay as Spicejet was unable to get the clearance from RBI for the funding. Each of the 15 Bombardiers will have individual loans payable over 12 years.

Listed Equipment Maker ACE To Raise Up To $10 mn From PE Investors

BSE-listed material handling and construction equipment manufacturer Action Construction Equipment (ACE) is in talks to raise up to $10 million in a private placement from investors. A few mid-market private equity firms, such as Banyan Tree Capital which is a structured PE firm, have expressed interest in ACE. The company is initially looking to raise up to $5 million but may opt for a total of $10 million, depending upon the success it meets with its proposed acquisitions. The stake sale is likely to happen at a price of Rs 65-Rs 70 per share, a premium of nearly 40% to its current market price, effectively valuing the company at around Rs 700 crore. ACE shares closed at Rs 44.25 per unit. Although the firm had earlier announced its plans to float a QIP by October end, those are now shelved as it is raising capital via the PE route. The Haryana-based equipment maker has recently said that it is close to acquiring two companies one in India and another in China for a total of Rs 120 crore, in order to expand its product portfolio. ACE also plans to double its capacities during the next three years and develop the tractor market for industrial and construction haulage, according to the firms annual financial statement. ACE equipment is used across various industrial sectors, such as infrastructure, construction, roads, engineering industry, coal mines, chemical and fertilizer

plants, power stations, ports, heavy project engineering industry, railways, cement industry, oil industry and defense. The companys product profile includes hydraulic mobile pick-and-move cranes, forklift trucks, loaders, tower cranes, aerial work platforms, etc.

SREI Infra Finance To Raise $1bn Fund

SREI Infrastructure Finance plans to raise $1 billion through an infrastructure equity fund that would invest in areas such as roads, power and ports. Losses from poor infrastructure -- from clogged roads to power shortages shave off an estimated 1 to 2% points from India's gross domestic product. The government has often missed its own targets for funding and construction as anything from land acquisition hassles to stifling bureaucracy crimp growth. SREI has already deployed $200 million in domestic infrastructure projects through two similar equity funds raised from Indian investors. The company may consider exiting some investments made in certain road projects.

Carlyle Group To Invest $26 mn In Jerry Raos Value & Budget Housing
After roping in Indias largest mortgage lender and a social venture fund as investors, entrepreneur Jaithirth (Jerry) Raos Value & Budget Housing Corporation has raised $26 million or Rs 119.3 crore from global private equity giant Carlyle Group. Existing investors in VBHC, which include HDFC and India Financial Inclusion Fund, have also committed additional capital alongside Carlyle, according to a statement. The funding will be used by VBHC to finance the building of new homes for its flagship project Vaibhava in Bangalore. The investment will come from FCG IX, a part of Carlyle Asia Growth Partners IV which is a $1.04 billion sector-agnostic growth capital fund. In June, Carlyle invested in Visen Industries Ltd, a manufacturer of waterbased polymer emulsions in India. VHBC will plan projects in the urban periphery, wellconnected to the citys central transportation system. The company is targeting to build one million homes in the next 10 years, across urban India. Its maiden project Vaibhava, coming up in Bangalores Electronic City suburb, has already sold more than 1,000 units in the last 12 months and the sale of another 900 units will start next month. The project offers studio apartments, as well as one-bedroom and two-bedroom flats within a price range of Rs 5.3-Rs 11.5 lakh. It has already started handing over the units to the buyers. VBHC also plans to target markets like Chennai and Mumbai.

Axis PE To Exit Vishwa Infra & Corrtech International

Axis PE may exit 3 portfolio companies - Vishwa Infrastructure, Corrtech International and Neesa Leisure to pay back it's investors. Axis had invested Rs 60 cr in Vishwa Infrastructure in 2008. It is in talks with Morgan Stanley Private Equity and Olympus Capital Holdings to sell it's 35.6% stake for about Rs.350 cr. It had invested Rs.67 cr in Corrtech International Private Limited. Axis had invested Rs.75 cr in Neesa Leisure in 2008. Axis is planning to part-exit Neesa's IPO.

IFC Invests $11.5 mn In Sparkle Port Services

IFC may invest $11.5 mn in Sparkle Port Services Ltd - a subsidiary of Ocean Sparkle Ltd. The funds will be used to part finance the purchase of tugboats and marine craft. Sparkle has won a 17 year contract from Petronet LNG Ltd to purchase and deploy 4 tugboats and 1 marine craft at Petronet's upcoming LNG terminal at Kochi.

Multiples Invests In Oilfield Equipment Maker-Sara Sae

Sara Sae Pvt Ltd has raised funding from Multiples Private Equity Fund to finance the buyout of 76% stake held by National Oilwell Varco. Multiples has taken a significant minority stake in the company. The investment size is expected to be about Rs 108 cr. Sara is managed by V K Dhawan, co-promoter, and his two sons Samir and Sumit. In August 2007, National Oilwell Varco, a global drilling equipment company, has acquired a 76% stake in the company.

ChrysCapital Raises Stake To 7.1% In Blackstone-backed NCC

Private equity firm ChrysCapital has bought an additional 2% stake in Blackstone-backed construction firm NCC Ltd (formerly Nagarjuna Construction Company) for around Rs 27.7 crore or $6.1 million. ChrysCapital held 5.14% in NCC as of June 30, and with the latest open market purchase, its holding has moved up to 7.1%, just short of the holding of Norwegian sovereign wealth fund that held 7.63% as of June 30. ChrysCapitals total investment in buying the stake is pegged around Rs 170 crore ($37.3 million). The private equity firm had started buying into the company when the price was around Rs 98 a share. The latest stake buy is at a price of Rs 53.42, which means ChrysCapital is averaging out its high cost of initial investment. Bulk of the shares was purchased from HSBC Global Investment Funds.

Impresario Raises Rs 48 cr From Mirah Hospitality, Beacon India

Impresario Entertainment and Hospitality Pvt Ltd, the Mumbai-headquartered company which runs a chain of fine-dining restaurants, has raised Rs 48 crore or $10.5 million from strategic investor Mirah Hospitality and Food Solutions Pvt Ltd and the existing financial investor Beacon India Private Equity. Mirah Hospitality has made an investment of Rs 40 crore ($8.75million) while Beacon India has hiked its stake by investing Rs 8 crore. Founded in 2001, by Riyaz Amlani, Impresario operates 27 restaurants across eight cities under various brands such as Smokehouse Grill, Cafe Mocha and Salt Water Cafe. The company also provides dessert and coffee solutions to the corporate segment. The Rs 300 crore Mirah Group, which is a diversified business house with interests in real estate development, hospitality, travel, wind energy,

computer education, textiles, corporate gifts and international trading, has been acquiring stakes in the restaurant space.

JiGrahak To Raise $10 mn For Expansion

Helion Venture Capital's portfolio company-JiGrahak Mobility Solutions is talking to Nexus Venture Partners and a couple of other PE funds to raise upto $10 mn to finance its expansion plans. JiGrahak runs a mobile commerce service - ngpay which allows consumers to shop, buy tickets, recharge, pay bills or bank from any basic mobile handset. Users can transact with 200plus partners across 10 sectors.

Ventureast Invests In Education Startup-InOpen Technologies

Ventureast TeNet Fund II has invested $500,000 in IIT Bombay based Education Startup InOpen Technologies. The funds will be used for hiring, research and enhancing logistical capabilities. The company started in October'09 by Sridhar Iyer and Rupesh Shah designs and develops educational content and solutions for academic institutions.

IIT-Bombay Education Start-up InOpen Raises $0.5 mn

InOpen Technologies, an IIT Bombay-based start-up which develops educational content and teacher training solutions, has raised $500,000 in seed funding from Ventureast Tenet Fund II, an early-stage investor. The funds will be used for research, hiring and growing its network of camps and centres for training students and teachers. Ventureast Tenet Fund II executes early or seed-stage investments and is a part of Ventureast, a venture capital and private equity firm with over $300 million under management and offices in Chennai and Hyderabad. Ventureast has invested in 50 businesses in India and abroad, primarily in technology, healthcare and life sciences, cleantech and other emerging sectors. It has now acquired a minority stake in InOpen. InOpen designs and develops educational content and solutions for academic institutions. A total of 52 schools, such as SSRV and Indus World group of schools, have tied up with the company. It currently serves a total of 40,000 students and expects to reach the target of one million students in the next two years. InOpens flagship product is Computer Masti an e-book and a bundle of software games. It is the result of a collaboration with IIT Bombay and has witnessed over 75,000 downloads in the past two years, from 120 countries. An average of 200-300 downloads per day have been recorded by the company. InOpen was founded in

October, 2009, by Dr Sridhar Iyer, a professor at IIT Bombay, and Rupesh Shah, who was previously involved with training college individuals in open source and adult literacy. After investing an initial start-up capital of Rs 15 lakh, the promoters raised Rs 50 lakh via loans. Incubated at IIT Bombay as a content generation and resource training firm, InOpen tied up with 20 schools in the first year of operations to teach students how to leverage computer science effectively. It has now diversified into developing content for ICT implementation for government projects and setting up of camps and centres in Maharashtra where students and teachers are given training.

Nexus Venture Partners Leads $12 mn Series B Round In Druva

Druva, an enterprise backup solutions provider, has raised $12 million in series B round of funding, led by venture capital firm Nexus Venture Partners, with participation from existing investor Sequoia Capital. The monies will be used to expand its product portfolio and enhance sales and marketing operations across North America, EMEA and the Asia-Pacific. Druva had raised angel funding from Indian Angel Network (IAN) and $5 million (around Rs 22.3 crore) in the series A from Sequoia in April last year. Founded in 2007 by former Veritas employees Jaspreet Singh (now Druvas CEO), Ramani Kothandaraman (COO) and Milind Borate (CTO), Druva started as a disaster recovery management firm and focused on enterprise data backup software products, as well as security products. According to Singh, this round of funding will be utilized to pursue clients aggressively in the US and European markets. The company, reportedly growing at 35% quarter-on-quarter, also expects to make a VP-level hire for the US sales. Druva has sold its products to 800 customers till date and has grown from around 18 to 80 employees in the last one year. Around 40% of Druvas revenues come from the USA while 35% comes from Europe and the rest from the Asia-Pacific. Its biggest clients are the worlds largest oilfield services player Schlumberger and Emerson Network Power.

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