Sherwin-Williams Company, the largest paint retailer in the United States, has announced that it had bought the Mumbai-based Nitco Paints for an undisclosed sum.
This deal marks the entry of the $8 billion paint manufacturer into the Indian market. “We are excited at the dynamic, growing Indian market,” said Christopher M Connor, chairman and chief executive officer of Sherwin-Williams.
Last month, the company acquired the Philadelphia-based M A B Paints, adding 132 outlets and contractors to its network of more than 3,000 US stores.
Nitco is a privately owned manufacturer with sales of about Rs 80 crore and specialises in exterior paints and coatings. Sanjiv Batra, director, Nitco Paints, said the focus would be to scale up the brand presence in the rest of the country.
Read more in The Business Standard article.
Thursday, April 5, 2007
Aptech to buy content development co in US
IT and multimedia training firm Aptech Ltd is planning to acquire an existing content development firm, either domestic or one based in the United States, at a cost of "$4-5 million" to strengthen its presence in this arena. Aptech is one of the new entrants in the content development space.
"We have appointed a merchant banker and the process is expected to be over by June," Aptech CEO & MD Pramod Khera told TOI. However, he did not comment on whether Aptech has already zeroed in on any firm and the likely size of the entity.
Khera said the proposed acquisition would help Aptech lower operating costs as it would have access to the target firm's facilities and mayalso use latter's human resources.
He did not elaborate on the number of Aptech employees engaged in content development for US clients. Aptech would spend over Rs 20 crore to set up 50 aviation training centres nationwide by 2009. It now has seven.
"The eastern region offers good potential in aviation sector and we plan to open eight-nine centres there, including one in Kolkata in two-three months." Aptech will lessen its focus on training the government sector, as it is a capital-intensive and low-return business. "We want to exit this space by 2008," he said.
"We have appointed a merchant banker and the process is expected to be over by June," Aptech CEO & MD Pramod Khera told TOI. However, he did not comment on whether Aptech has already zeroed in on any firm and the likely size of the entity.
Khera said the proposed acquisition would help Aptech lower operating costs as it would have access to the target firm's facilities and mayalso use latter's human resources.
He did not elaborate on the number of Aptech employees engaged in content development for US clients. Aptech would spend over Rs 20 crore to set up 50 aviation training centres nationwide by 2009. It now has seven.
"The eastern region offers good potential in aviation sector and we plan to open eight-nine centres there, including one in Kolkata in two-three months." Aptech will lessen its focus on training the government sector, as it is a capital-intensive and low-return business. "We want to exit this space by 2008," he said.
Re hits 8-yr high vs dollar
The rupee touched a near eight-year high on Wednesday, breaching the Rs 43 to a dollar mark to touch Rs 42.84. However, in the open market, because of the purchases from refiners and importers, rupee recovered to close at Rs 43.04 a dollar as against the previous close of Rs 43.06 on Tuesday. But RBI pegged its reference rate at Rs 42.90 on Wednesday.
Since July 19, 2006, rupee has appreciated by 8.75% and in 2006-07 it appreciated by around 4%. This will simply reduce the profitability of exporting companies by that many percentage points. The appreciation in the Rupee will affect profitability of exporters, IT companies, and business process outsourcing firms.
At the same time it will help companies that are importing, since they can source products from abroad by paying less. Oil refining companies, which import crude petroleum products from abroad, are the biggest beneficiaries.
Read more in The Times of India article.
Since July 19, 2006, rupee has appreciated by 8.75% and in 2006-07 it appreciated by around 4%. This will simply reduce the profitability of exporting companies by that many percentage points. The appreciation in the Rupee will affect profitability of exporters, IT companies, and business process outsourcing firms.
At the same time it will help companies that are importing, since they can source products from abroad by paying less. Oil refining companies, which import crude petroleum products from abroad, are the biggest beneficiaries.
Read more in The Times of India article.
Wednesday, April 4, 2007
Financial Technology sells 1% in Dubai bourse for $12.5 mn
The Dubai Multi Commodities Centre (DMCC) has bought an additional 1 per cent stake in the Dubai Gold and Commodities Exchange (DGCX) from its partner, the Financial Technologies Group, for $12.5 million.
The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.
The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.
Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.
DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.
Read more in The Business Standard article.
The deal values DGCX, which started operations one and a half years ago, at a whopping $1.25 billion.
The FT Group will now be left with a 49 per cent stake in DGCX. When contacted, FT Group executives declined comment on whether the price paid for the 1 per cent stake reflected change of control and therefore included a control premium.
Market sources say the high valuation for a start-up like DGCX compares well with the valuations of the National Stock Exchange and the Bombay Stock Exchange at $2.3 billion and $910 million, respectively.
DGCX is an electronic futures and options exchange which utilises trading, clearing and settlement technology developed by the FT Group.
Read more in The Business Standard article.
Global acquires Chennai hospital for Rs 257 crore
The Hyderabad-based Global Hospitals, part of Ravindranath GE Medical Associates, has acquired Sri Kanchi Kamakoti Sankara Hospital (formerly Tamilnad Hospital) in an all-cash deal, for Rs 257 crore to be paid in tranches.
The Madras High Court on Monday permitted Sri Kanchi Kamakoti to encash the earnest money deposit of Global Hospitals and complete the sale of the property. The Chennai-based Sankara Hospital, abutting the Old Mahabalipuram road, is spread over 46 acres and has 450 beds.
In July 2006, a division bench of the Madras High Court had permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to sell the Sankara Hospital. The trust, in its application to sell the hospital, said it could not run it and had become heavily indebted.
Subsequently, corporates and healthcare majors, including the Murugappa group, Satya Sai Hospitals of Chennai, Bangalore-based Shriram Properties, Kolkata-based Advanced Medical and Research Institute and Global Hospitals bid for the property. Global emerged winner by quoting Rs 257 crore and assuring that it would run the existing hospital, retain the employees and provide 50 free beds.
Read more in The Business Standard article.
The Madras High Court on Monday permitted Sri Kanchi Kamakoti to encash the earnest money deposit of Global Hospitals and complete the sale of the property. The Chennai-based Sankara Hospital, abutting the Old Mahabalipuram road, is spread over 46 acres and has 450 beds.
In July 2006, a division bench of the Madras High Court had permitted the Sri Kanchi Kamakoti Peetam Charitable Trust to sell the Sankara Hospital. The trust, in its application to sell the hospital, said it could not run it and had become heavily indebted.
Subsequently, corporates and healthcare majors, including the Murugappa group, Satya Sai Hospitals of Chennai, Bangalore-based Shriram Properties, Kolkata-based Advanced Medical and Research Institute and Global Hospitals bid for the property. Global emerged winner by quoting Rs 257 crore and assuring that it would run the existing hospital, retain the employees and provide 50 free beds.
Read more in The Business Standard article.
Indian Hotels to acquire US hotel for Rs 264 c
After buying the Ritz Carlton in Boston, Indian Hotels Company (IHCL), owners of the Taj group of hotels, have done it again.
The country's largest hotel chain is now acquiring Hotel Campton Place in San Francisco. The acquisition cost, pegged at $60 million (Rs 264 crore), will be completed in partnership with a clutch of financial investors, IHCL said on Tuesday.
Hotel Campton Place is a 110-room luxury boutique hotel situated at Union Square in the heart of San Francisco. The acquisition is routed through IHCL's wholly-owned subsidiary in US.
The sale-purchase agreement was signed on Monday and the transaction is scheduled to close on April 30. The Campton Place is the Taj group's first acquisition on the West Coast of US.
Two other properties that it owns are located on the East Coast of US. Last year, it purchased Ritz-Carlton Boston (renamed as Taj Boston) for $170 million.
In 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue. The lease price was $5 million a year.
The country's largest hotel chain is now acquiring Hotel Campton Place in San Francisco. The acquisition cost, pegged at $60 million (Rs 264 crore), will be completed in partnership with a clutch of financial investors, IHCL said on Tuesday.
Hotel Campton Place is a 110-room luxury boutique hotel situated at Union Square in the heart of San Francisco. The acquisition is routed through IHCL's wholly-owned subsidiary in US.
The sale-purchase agreement was signed on Monday and the transaction is scheduled to close on April 30. The Campton Place is the Taj group's first acquisition on the West Coast of US.
Two other properties that it owns are located on the East Coast of US. Last year, it purchased Ritz-Carlton Boston (renamed as Taj Boston) for $170 million.
In 2005, Taj Hotels entered into a 30-year management contract agreement to operate and manage the Pierre on New York's Fifth Avenue. The lease price was $5 million a year.
Tuesday, April 3, 2007
Uttam Galva raises $20mn, to list in Singapore
Uttam Galva Steels, a producer of galvanized and cold-rolled steel, raised $20 million via global depositary receipts (GDRs) to fund expansion plans. The issue was priced at about 92 cents (Rs 40) per GDR, which represents one local share.
The GDRs will trade on the Singapore Exchange Securities Trading. Uttam is spending Rs 700 crore this year on increasing production of galvanized steel to 8,00,000 tonne.
The company recently entered into a joint venture with Liberty Commodities, a UK-based trading company, to construct two new steel re-roller mills in Ghana with an investment of $60 million (around Rs 270 crore). The JV company will invest $20 million in a 70,000 tonne per annum hot-dip galvanising line and $40 million in a 2,00,000-2,50,000 tonne per annum cold rolling mill.
The GDRs will trade on the Singapore Exchange Securities Trading. Uttam is spending Rs 700 crore this year on increasing production of galvanized steel to 8,00,000 tonne.
The company recently entered into a joint venture with Liberty Commodities, a UK-based trading company, to construct two new steel re-roller mills in Ghana with an investment of $60 million (around Rs 270 crore). The JV company will invest $20 million in a 70,000 tonne per annum hot-dip galvanising line and $40 million in a 2,00,000-2,50,000 tonne per annum cold rolling mill.
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