Tata Sons to invest upto Rs 10k crore in Group cos:

Among the first decisions taken by N Chandrasekaran as chairman of Tata Sons was to tighten the holding company’s control over the $103-billion conglomerate, recently shaken by a power struggle between Cyrus Mistry and Ratan Tata
The Tata Sons board approved a resolution to invest up to Rs 10,000 crore in various Tata group companies at the first board meeting chaired by Chandrasekaran on February 21.

“Resolved that approval of the board of directors be and is here by granted to the company to invest amounts not exceeding Rs 10,000 crore for subscribing to issues of securities and or purchasing securities in various companies of which Tata Sons is the promoter and or a shareholder,”according to the resolution, a copy of which has been filed with the ministry of corporate affairs.

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http://tech.economictimes.indiatimes.com/news/corporate/tata-sons-to-invest-upto-rs-10k-crore-in-group-cos/57884681

Three in final race for 35% stake in ICICI Lombard:

Bulgebracket private equity funds Warburg Pincus, Carlyle and Temasek have been shortlisted for a 35% stake in ICICI Lombard General Insurance Co Ltd, the country’s largest private sector general insurer, in a deal that could fetch up to $1 billion, said people familiar with the development. The selection took place late last week after bids were received from four potential investors.

Others in the race included Blackstone, KKR, Advent and General Atlantic. The three will now conduct a final round of due diligence before submitting binding offers by April end, the people mentioned above said.

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http://economictimes.indiatimes.com/industry/banking/finance/three-in-final-race-for-35-stake-in-icici-lombard/articleshow/57863533.cms

Idea Cellular, Vodafone to merge, create Rs 80,000 crore telecom giant:

The merger will create India’s largest telecom player both in revenues and subscribers, taking on the likes Bharti Airtel and Reliance Jio.

Idea Cellular on Monday announced that its board has approved the merger of Vodafone India and its wholly-owned subsidiary Vodafone Mobile Services Limited with itself in the process creating the country’s largest telecom entity.

Vodafone will hold 45 percent in the combined entity. Idea promoters will hold a 26 percent in the combined entity. AB Group will have the right to buy 9.5 percent stake in the entity at Rs 130 per share.

Under the terms of agreement, the merger should be completed within 24 months.

“Upon the amalgamation of becoming effective, the entire business of VIL and VMSL ( excluding VIL’s investment in Indus Towers) will vest in the company,” Idea Cellular said in a statement.

“Vodafone will own 45.1 percent of the combined company after transferring 4.9 percent  to Idea’s promoters or its affiliates for Rs 38.74 lakh crore in cash concurrent… Idea promoters will hold 26.1 percent  of the company and the balance will be held by public,” according to the filing.

According to a report by broking firm CLSA in January, the merged entity will have revenues of over Rs 80,000 crore, giving it a 43 percent market share by revenues and a 40 percent market share by active subscriber base. The behemoth will account for over 25 percent of allocated spectrum and will have to sell about 1 percent to comply with spectrum cap norms.

It will be an all-share merger of Vodafone India (excluding Vodafone’s 42 percent stake in Indus Towers) and Idea. The merger will be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India.

The merger will further intensify competition in the country’s highly-contested telecom space where players are gunning for both revenue and subscriber additions.

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http://www.moneycontrol.com/news/business/reliance-jio-effect-vodafone-announces-merger-with-idea-2242887.html

Bharti Airtel to sell non-controlling stake in Infratel:

The company has decided to sell or transfer 400 million shares to its wholly-owned subsidiary Nettle Infrastructure Investments Limited or to any potential investor.

Telecom operator Bharti Airtel has shelved plans to sell controlling stake in its mobile tower arm Bharti Infratel but has decided to monetise 21.63 per cent equity in the company.

“….the Board has at its meeting held on March 14, 2017 …decided not to monetise a controlling stake in Infratel for now,” Bharti Airtel said in a regulatory statement.

The company has decided to sell or transfer 400 million shares to its wholly-owned subsidiary Nettle Infrastructure Investments Limited or to any potential investor.

“Instead, the Board has decided that the company undertake a sale/transfer of upto 400 million Infratel equity shares owned by company which is over and above a controlling stake in Infratel, in such tranche(s), at such time(s) and for such consideration as may be deemed fit to its wholly-owned subsidiary Nettle Infrastructure Investments Limited and/or to any other potential investor(s),” the statement added.

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http://www.moneycontrol.com/news/business/companies/bharti-airtel-to-sell-non-controlling-stake-in-infratel-2240907.html

Fairfax will need to sell 25% in ICICI Lombard for second licence:

Prem Watsa-owned Fairfax may have to reduce its stake in ICICI Lombard to get a second licence in the general insurance segment, the Insurance Regulatory and Development Authority (Irda) said.

When asked whether Fairfax will have to sell stake in ICICI Lombard to float another insurance company, TS Vijayan said chairman Irda said, “As per law they can promote only one insurance company. As a investor they can continue with less than 10% stake.”

Fairfax has applied a second licence to form a fresh joint venture in general insurance with Kamesh Goyal, a former executive at German financial services major, Allianz. As per the application, different entities of Fairfax will own close to 45% in the joint venture. Goyal will have a 15% stake and Oben Ventures will hold the rest.

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http://economictimes.indiatimes.com/markets/stocks/news/fairfax-will-need-to-sell-25-in-icici-lombard-for-second-licence/articleshow/57572138.cms

Tata Sons raises Rs 4,115 crore via NCDs since Cyrus Mistry’s removal:

Tata Sons, the holding company of the $103-billion conglomerate, raised Rs 4,115 crore by selling bonds to marquee local investors since removing Cyrus Mistry as chairman in October, regulatory filings with the ministry of corporate affairs show.

Tata Sons plans to use the funds raised for general corporate purposes, including refinancing of debt and investment in securities or providing loans to group companies, it said in a board resolution passed on September 15. The board approved raising not more than Rs 6,750 crore at “prevalent market rates in appropriate forms” in Indian or foreign currency in one or more tranches.

The funds were raised from December 14 to March 6. Tata Sons declined to comment. “We do not share information on such matters,” a Tata Sons spokesperson said in an emailed reply to ET. “From time to time, Tata Sons raises funds as part of its on-going activities.”
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http://economictimes.indiatimes.com/markets/stocks/news/tata-sons-raises-rs-4115-crore-via-ncds-since-cyrus-mistrys-removal/articleshow/57544813.cms

Reliance General signs bancassurance deal with Catholic Syrian Bank :

Non-life insurer Reliance General Insurance — part of Reliance Capital Ltd — on Wednesday said it has signed a bancassurance deal with private-owned Kerala-headquartered Catholic Syrian Bank.

In a statement, Reliance General Insurance said it would target the 1.5 million-strong customer base of Catholic Syrian Bank spread across its 430 branches in Kerala, Tamil Nadu and Maharashtra.

“We are delighted to partner with Catholic Syrian Bank. This tie-up will enable RGI (Reliance General Insurance) to leverage Catholic Syrian Bank’s unparalleled retail and SME (small, medium enterprises) customer base, robust distribution network, strong technology platform, strong brand name and offer them innovative and comprehensive range of insurance products from RGI,” Rakesh Jain, CEO, Reliance General Insurance, was quoted as saying in the statement.

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http://economictimes.indiatimes.com/industry/banking/finance/reliance-general-signs-bancassurance-deal-with-catholic-syrian-bank/articleshow/57411279.cms

Carlyle, Warburg, Advent vie for ICICI Lombard stake:

Global private equity (PE) firms including The Carlyle Group, Warburg Pincus Llc and Advent International have evinced interest in acquiring the 35% stake in ICICI Lombard General Insurance Ltd held by Canadian financial institution Fairfax Financial Holdings Ltd, said two people aware of the development. The proposed deal will value the joint venture at $3 billion (around Rs20,000 crore), the two added, asking not to be identified.

ICICI Bank Ltd holds the remaining 65% stake in the joint venture.

ICICI Lombard, India’s largest private-sector general insurer, was set up in 2001 as a 74:26 joint venture between India’s largest private-sector lender ICICI Bank and Prem Watsa-owned Fairfax. Fairfax increased its stake in 2015 after ICICI Bank agreed to sell an additional 9% stake in its general insurance company for about Rs1,550 crore, valuing it at Rs17,225 crore.

ICICI Lombard has an overall market share of 8.82%. Reuters reported on 20 January that Blackstone Group and KKR and Co. were in talks with Fairfax for the stake sale. Mint learns that both have backed out on account of the high valuation of ICICI Lombard.

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http://www.livemint.com/Companies/ZKdyBzJdMXVd7eoObotmzH/Carlyle-Warburg-Advent-vie-for-ICICI-Lombard-stake.html