India's first cinema VC fund all set for debut

Cinema Capital Venture Fund, (CCVF) reckoned to be India's first regulated entertainment venture capital fund, promises to provide the Indian investor a unique investment opportunity in the fast growing film entertainment sector.The fund will be launched shortly with a corpus of Rs 500-700 crore.

CCVF will be a close-ended fund and will look to invest in a broader spectrum of the entertainment industry and not restrict itself to financing just films.Ernst & Young, which has structured the deal is confident of the fund’s showing.

There are a couple of funds in the business such as The Indian Film Company, that raised $110 million from the Alternative Investment Market (AIM) of London Stock Exchange and Pyramid Saimira said to be raising a $150 million entertainment fund soon. Ranbaxy promoters led financial services business Religare Enterprises.

Read more in The Economic Times article.

Management issue may upset IFCI sale again

On May 29, the board of IFCI announced that it would be making a second attempt to sell 26% in the term-lending institution. However lack of clarity on management control may once again dampen interest among investors who are seeking to bid for the strategic stake in IFCI.

Less than six months ago, IFCI was forced to call off its plans to sell stake after talks with Sterlite and Morgan Stanley — the consortium selected among bidders — failed. The bone of contention then was that of management control.

Sources said investors were unhappy with the uncertainty over management control. After having acquired 26% stake, the successful buyer would have had to make an open offer for 20%, which would raise their stake to 46% — making them majority shareholder. But even at this position, they were not guaranteed full management control.

Yet another bone of contention was the bonds worth Rs 923 crore held by the government. There is uncertainty on whether or not they would be converted into shares. A conversion of government stake would widen the equity base and bring down the stake held by the strategic investor.

Read more in The Economic Times article.

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Goldman, Shriram Group call off deal

The investment arm of US investor and the Chennai-based Shriram Group have called off the much hyped stakesale in the latter believed to be due to valuation differences.Sources familiar with the development said that the deal ran into rough weather, after Goldman wanted to revisit the valuation of Shriram group company. With falling markets, it is but natural that deals get re-visited.

In March this year, Goldman Sachs, announced it was picking up a 20% stake in Chennai-based Shriram Credit for Rs 300 crore, thereby making an indirect entry into equity and commodity brokerage business in India. Shriram Credit is a non-banking finance company (NBFC) under Shriram Group, which is engaged in lending activities.

Read more in The Economic Times article.

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Goldman Sachs picks up 20% in Shriram Credit for Rs 300 cr

Emami prices Zandu open offer at Rs 7,315/share

Personal care products maker Emami Ltd has made an open offer to buy up to 20 percent equity in Zandu Pharmaceutical Works Ltd at 7,315 rupees a share.The offer offer for up to 161,280 shares comes in the wake of Emami raising its stake in Zandu to 27.51 percent last week by acquiring shares from certain promoters.

Under Indian takeover regulations, the acquirer is required to make an open offer for an additional 20 percent stake in the target firm when its stake in the latter touches 15 percent.The offer opens July 24 and closes Aug. 12.

Alstom, Bharat Forge plan $500-mn power JV

Alstom’s Switzerland-based arm Alstom Power is likely to enter into a $500-million joint venture with Bharat Forge to produce high-value, super-critical turbine/generator (TG) sets for thermal and nuclear power plants. The two are expected to sign an agreement soon to set up a manufacturing facility with an estimated capacity of 5,000 MW per annum.

The JV is looking for 1,000 acres of land for the production facility and is in talks with the state governments of Maharashtra, Gujarat and Tamil Nadu. Once the site is finalised, the proposed JV plans to roll out power equipment within three years.

While the JV company is expected to manufacture equipment for thermal power plants initially, Alstom could bring in its expertise in nuclear equipment as and when the segment opens up.

Read more in The Economic Times article.

Crompton buys Sonomatra for 1.3 mn euros

Electrical equipment maker Crompton Greaves has acquired French company Societe Nouvelle de Maintenance Transformateurs (Sonomatra) for 1.30 million euros (Rs 8.52 crore).

Sonomatra is engaged in providing services of on-site maintenance and repair of power transformers and on-load tap changers, oil changers, oil treatment and retrofilling.The acquisition will enhance the company's capabilities in the services segment of its transmission and distribution business.

The company's net was up by 63.19 per cent at Rs 313.92 crore for the year ending March 31, 2008 as compared to Rs 192.37 crore for the previous financial year.
However, the company posted a 15.09 per cent increase in its net sales of Rs 3875.7 crore for the year ending March 31, 2008 as compared to Rs 3367.6 crore it recorded in the previous financial year.