Great Offshore is set to acquire Cayman Islands-based SeaDragon Offshore for $1.4 billion. The acquisition will help the company to make ultra deep water discoveries.
Great Offshore faced tough competition from other firms such as Mercator and Essar to buy SeaDragon. The market turmoil has delayed the deal further. SeaDragon would give Great Offshore access to rigs that could be deployed for ultra deep water discoveries.
SeaDragon makes two such rigs and it would take two years to complete them. Globally, there is a greater demand for rigs because of an increase in exploration activities. ONGC too plans to foray into ultra deep water discovery and is actively looking for a buyout.
Showing posts with label Essar. Show all posts
Showing posts with label Essar. Show all posts
Monday, May 12, 2008
Tuesday, June 5, 2007
Tatas, Ruias set sights on Stelco
Tata Steel, India’s largest private sector steel maker, and Essar Global, the holding company of the Essar group, have shown preliminary interest in Canadian steel maker Stelco, put up for sale by key shareholders last week. People in the know said the Tata group is attracted to the mines and the specialised steel-making capabilities of Stelco while Essar is more keen on the Ontario-based firm’s iron ore assets.
Sources close to Tata Steel admitted that Stelco “is an option as we have interest in the high-volume, high-margin markets of North America and want to get a footprint there”. “It is too early as Stelco has just announced its intentions,” he added.
A Tata Steel spokesperson refused to comment specifically on Stelco, but noted that “the company is in an expansion mode and is looking at various possibilities”.
Read more in The Economic Times article.
Sources close to Tata Steel admitted that Stelco “is an option as we have interest in the high-volume, high-margin markets of North America and want to get a footprint there”. “It is too early as Stelco has just announced its intentions,” he added.
A Tata Steel spokesperson refused to comment specifically on Stelco, but noted that “the company is in an expansion mode and is looking at various possibilities”.
Read more in The Economic Times article.
Tuesday, May 29, 2007
Essar to monetise 33% Hutch stake
Essar group plans to monetise its 33 per cent stake in Hutchison-Essar, its joint venture with UK’s Vodafone, to raise around $4.5 billion (Rs 18,000 crore) for overseas acquisitions. This will be the largest fund-raising through share monetisation by an Indian company.
The group recently bought two steel plants in Canada and the US for $3.2 billion and committed $4 billion in Egypt to set up a refinery and steel plants. It is hunting for more global assets.
Sources close to the development said the group has appointed banks to advise it on assigning its one-third stake in India’s fourth-largest mobile service provider.
The attempt also reflects the buoyancy in the domestic telecom industry. “It shows that the Essar group is certain about the rising valuation of its holding in Hutchison-Essar before it exercises its put option,” the banker added.
On the basis of the acquisition cost paid by Vodafone, which recently acquired Hong Kong-based Hutchison’s 52 per cent stake, Essar’s holding in Hutchison-Essar is valued at $5.46 billion.
Read more in The Business Standard article.
The group recently bought two steel plants in Canada and the US for $3.2 billion and committed $4 billion in Egypt to set up a refinery and steel plants. It is hunting for more global assets.
Sources close to the development said the group has appointed banks to advise it on assigning its one-third stake in India’s fourth-largest mobile service provider.
The attempt also reflects the buoyancy in the domestic telecom industry. “It shows that the Essar group is certain about the rising valuation of its holding in Hutchison-Essar before it exercises its put option,” the banker added.
On the basis of the acquisition cost paid by Vodafone, which recently acquired Hong Kong-based Hutchison’s 52 per cent stake, Essar’s holding in Hutchison-Essar is valued at $5.46 billion.
Read more in The Business Standard article.
Thursday, May 17, 2007
Tata Power signs $1 bn deal with Korean firm
Tata Power Company, which is developing India’s first 4,000 mw ultra mega power project (UMPP) in Mundra, today signed contracts reportedly worth $1 billion with Korea’s Doosan Heavy Industries & Construction Company for supply of super-critical boilers and development of ancillary civic structures.
The order, which includes five units of 800 mw each, comes about three weeks after the company formally took over the reins of the project in Gujarat, which is based on imported coal.
While the company has 64-69 months under the contract to commission the first unit, it expects to advance the schedules “ahead of the bid stipulation”. This means that the first unit would be commissioned within the 11th Plan period itself (2007-2012).
Tata Power bagged the Rs 16,000 crore Mundra project against competition from the likes of Sterlite, Adani, Essar, Reliance Energy and L&T by committing to supply power at the the lowest rate of Rs 2.26 a unit (a levelised rate for 25 years).
Read more in The Business Standard article.
The order, which includes five units of 800 mw each, comes about three weeks after the company formally took over the reins of the project in Gujarat, which is based on imported coal.
While the company has 64-69 months under the contract to commission the first unit, it expects to advance the schedules “ahead of the bid stipulation”. This means that the first unit would be commissioned within the 11th Plan period itself (2007-2012).
Tata Power bagged the Rs 16,000 crore Mundra project against competition from the likes of Sterlite, Adani, Essar, Reliance Energy and L&T by committing to supply power at the the lowest rate of Rs 2.26 a unit (a levelised rate for 25 years).
Read more in The Business Standard article.
Saturday, May 5, 2007
Deal clinched: Vodafone gets all-clear call from FM
Vodafone cleared its last hurdle in acquiring a controlling stake in Hutch Essar with finance minister P Chidambaram giving his go-ahead on Friday. His approval comes within a week of the Foreign Investment Promotion Board giving its nod for the acquisition.
The FM’s approval should pave the way for Vodafone to secure management control of HEL and for the company to be renamed Vodafone Essar. Sources said as a first step, Vodafone will now be able to constitute a new 12-member board to oversee the operations of the company. Essar vice-chairman Ravi Ruia will be the chairman of Vodafone Essar and Vodafone chairman Arun Sarin will be the vice-chairman. Max India chairman Analjit Singh and HEL MD Asim Ghosh will also be on the board.
The approval comes as a welcome reprieve to Mr Singh and Mr Ghosh, whose 12.26% shareholding in HEL has been under scrutiny since the deal was announced in February.
The Vodafone-HEL regulatory saga, which saw the proposal being deferred thrice by FIPB, began in February soon after Vodafone announced it had agreed to acquire companies that controlled 67% in HEL from Hutchison Telecom for $11.1 billion. This had given rise to a controversy about whether the 15% held by Mr Singh, Mr Ghosh and IDFC should be counted as FDI.
Read more in The Economic times article.
The FM’s approval should pave the way for Vodafone to secure management control of HEL and for the company to be renamed Vodafone Essar. Sources said as a first step, Vodafone will now be able to constitute a new 12-member board to oversee the operations of the company. Essar vice-chairman Ravi Ruia will be the chairman of Vodafone Essar and Vodafone chairman Arun Sarin will be the vice-chairman. Max India chairman Analjit Singh and HEL MD Asim Ghosh will also be on the board.
The approval comes as a welcome reprieve to Mr Singh and Mr Ghosh, whose 12.26% shareholding in HEL has been under scrutiny since the deal was announced in February.
The Vodafone-HEL regulatory saga, which saw the proposal being deferred thrice by FIPB, began in February soon after Vodafone announced it had agreed to acquire companies that controlled 67% in HEL from Hutchison Telecom for $11.1 billion. This had given rise to a controversy about whether the 15% held by Mr Singh, Mr Ghosh and IDFC should be counted as FDI.
Read more in The Economic times article.
Wednesday, April 11, 2007
Ghosh, Singh can modify deal with Vodafone
Hutchison Telecom International (HTIL) and Vodafone have worked out a revised deal with Max India chairman Analjit Singh and Hutchison Essar (HEL) CEO Asim Ghosh on the valuation of their holdings in HEL.
As per the deal, which has been communicated to the government, the shares of Mr Singh and Mr Ghosh have been valued at a minimum of $226.25 million and $164.51 million, respectively, subject to HEL’s equity valuation being $25 billion or less.
In case the valuation of Hutchison Essar crosses $25 billion at the time the options on these shares are exercised, the value of these shares will be calculated on the basis of a pre-agreed formula devised by Goldman Sachs.
Mr Singh’s investment company is called ND Callus while Mr Ghosh’s investment company is known as Centrino.
It is also understood that Mr Singh and Mr Ghosh may work out a modified agreement with Vodafone. The put option for Mr Singh and Mr Ghosh may become exercisable after five years instead of 10 years envisaged in the original agreement with HTIL. However this could not be confirmed, and sources close to one of them denied this.
Read more in The Economic Times article.
As per the deal, which has been communicated to the government, the shares of Mr Singh and Mr Ghosh have been valued at a minimum of $226.25 million and $164.51 million, respectively, subject to HEL’s equity valuation being $25 billion or less.
In case the valuation of Hutchison Essar crosses $25 billion at the time the options on these shares are exercised, the value of these shares will be calculated on the basis of a pre-agreed formula devised by Goldman Sachs.
Mr Singh’s investment company is called ND Callus while Mr Ghosh’s investment company is known as Centrino.
It is also understood that Mr Singh and Mr Ghosh may work out a modified agreement with Vodafone. The put option for Mr Singh and Mr Ghosh may become exercisable after five years instead of 10 years envisaged in the original agreement with HTIL. However this could not be confirmed, and sources close to one of them denied this.
Read more in The Economic Times article.
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