Sabre Cap, Temasek eye DBS Chola

Rana Talwar’s Sabre Capital, backed by private equity giant Temasek, is in talks with Cholamandalam DBS Finance (CDFL) to take over the latter’s mutual fund company — DBS Cholamandalam Asset Management. The deal, advised by Kotak Mahindra, is likely to be around Rs 400 crore, said sources. A few other strategic investors are also believed to be in the fray.

The fund’s assets under management (AUM) had dropped from over Rs 5,000 crore in July 2007 to around Rs 3,829 crore in September. Sources said both partners — DBS and the Murugappa group — were not happy with their MF business, which has slipped in rankings over the past few months.

Sabre, along with Temasek, currently owns Lotus India Asset Management. Temasek-owned Alexandra Fund holds 42.8% in Lotus while Sabre holds 32.2%. The balance is held by employees and domestic shareholders.

Sources said if Sabre and Temasek succeed in the acquisition, they will merge the AMC with Lotus. As per the figures available for September 2007, Lotus has built up an AUM of Rs 6,385 crore. DBS Chola, meanwhile, has an AUM of only Rs 3,829 crore.

Read more in The Economic Times article.

Murugappa co buys out US firm for $11 million

Murugappa group company Laserwords, which provides IT solutions for the printing and publishing industry, has acquired US-based Four Lakes Colorgraphics for about $11 million. The two decade old Four Lakes is a full service pre-media company with two facilities in Wisconsin and New York City.

“The acquisition (of Four Lake Colorgraphics) is a process of consolidation. Though there is a small opportunity for offshoring, I believe most of the works will still be carried out from there,” Mr A Vellayan, vice chairman & director-strategy, Murugappa Group told ET. There was no official confirmation of the deal size.He also pointed out that the deal was rather small in size.

It is believed that Four Lake’s project management, design and editorial development skills will combine will with Laserword’s technical strength to provide on-shore, off-shore and hybrid delivery models. Laserwords will have over 1000 employees post acquisition.

Started in 1983 as a software company, it continues to leverage that capability to provide technology-driven solutions for print and media production. It is now one of the oldest and the most successful independent typesetting companies in India, and offers its clients cutting edge production techniques.

Carborundum Universal to acquire 84% stake in Russian firm

Carborundum Universal, flagship company of Murugappa group has announced thatit will acquire 84.14% stake in Russia’s Volzhsky Abrasives Works (VAW) for an undisclosed amount.

The company has entered into a binding Memorandum of Understanding for purchase of the stake in VAW, a leading producer of Silicon Carbide (SiC) with 65,000 tons per annum installed capacity.

The deal would be formally concluded as soon as the necessary clearances including an approval by Russian Federal Anti-monopoly Service are obtained and this is expected in July 2007, as communicated bythe company to the Bombay Stock Exchange (BSE).
Pursuant to this acquisition Carborundum Universal would bring to VAW its brands, market access, application engineering expertise and global management practices.

Read more in The Livemint article.

Murugappa Group to invest Rs 1,000 cr in 2007-08

Murugappa Group of companies, with interest in sugar, abrasives, ceramics, fertilisers and sanitary-wares, on Tuesday announced it would be investing Rs 1,000 crore in its business arms during the current fiscal.These investments would include an exclusive sugar factory for exports in a special economic zone to be set up by the group at Kakinada in Andhra Pradesh.

The group also reported a profit of Rs 649 crore for the last fiscal, which was 10 per cent higher than the previous year.Sales rose by 15 per cent to reach Rs 8,446 crore. Barring sugar all other commodities reported higher sales, Vellayan said.
Due to fluctuations in the international prices, sugar sales came down by 22 per cent and profits dropped by 45 per cent, he added.

Carborundram Universal, the blue chipped company of the group, reported Rs 146 crore as profit, he said adding Godavari Fertilisers and Coromandel fertilisers reported a profit of Rs 202 crore.

The group had picked 49 per cent stake in Sanhe Yanjiiao Industrial Diamond Company in China during the last fiscal. The new tubes factory in Sushou, China, would commence production very soon, Vellayan said.Another unit at Jingri in China, which was set to produce bonded abrasives, was expected to be operational in the third quarter of next fiscal, he said.