The valuation of Unitech Wireless is Rs 11,620 Cr, higher than Swan Telecom's $2 billion valuation.
Unitech Ltd, one of India's largest real estate companies, has sold a 60% stake for Rs 6,210 crore in its telecom arm to Norway's Telenor. Unitech Wireless has licences to operate in all 22 telecom circles and has also received spectrum for six circles. The valuation of Unitech Wireless is higher than Swan Telecom, which last month sold a 45% stake at a valuation of $2 billion (Rs 9,000 crore). But Swan, which is promoted by Mumbai-based real estate and hospitality business group Dynamix Balwas (DB) Group, has licences only in 13 circles. Valuation of Unitech Wireless is Rs 11,620 crore.
Unitech has sold out a majority stake in its telecom arm, making Unitech Wireless one of the few telecom companies controlled by foriegn telcos. While Vodafone acquired Hutch in 2006, Aircel is controlled by Malaysian telco Maxis. The FDI limit in telcos is 74%.
There were several other in the race for a stake in Unitech Wireless, including Europe's Telecom Italia. Unitech has hired about 250 people for its telecom venture and plans to roll out services by April next year. The company plans to invest $3 billion in its telecom venture for next three years. It recently raised Rs 1,200 crore for its telecom venture from a syndicate of public sector banks led by Punjab National Bank and Canara Bank.
Telenor is majority owned by the government of Norway, which holds a 54% stake. Interestingly, earlier this month Government Pension Fund of Norway has decided to pump in close to $2 billion over the next two months in Indian equity and bond market. Telenor also operates in Pakistan and Bangladesh.
Unitech was advised by UBS (financial advisor) and Amarchand & Mangaldas & Suresh A. Shroff & Co (legal advisor) on the deal.
Showing posts with label Stake sale. Show all posts
Showing posts with label Stake sale. Show all posts
Wednesday, October 29, 2008
Thursday, September 25, 2008
NMDC eyes over 47% divestment
State-owned mining major National Mineral Development Corporation (NMDC) has asked the government to offload over 47 per cent of its stake in the company. The government holds 98.38 per cent in the navratna PSU with the balance being held by banks, financial institutions and public.
"We have recommended that government maintains its ownership of the company by retaining 51 per cent equity but divest the remaining," a company official said. "This will help the company's exposure in the market, improve its tradeability and mop up revenues for future expansions.
" Recently the company's stock was upgraded to the A category from the B category of stocks listed on the Bombay Stock Exchange. In February, the stock was moved from the lowest category of stocks-Z to the B category after the procedures for dematerialisation of 50 per cent of its publicly-held shares were completed.
It was also influenced by the market capitalisation of the company which had peaked at over Rs 200,000 crore in November 2007. NMDC had also split its shares and announced a bonus issue late last year.
The shift happened despite the company" miniscule free float. "The shift is a result of internal arrangement by the Securities and Exchange Board of India (SEBI), said Kumar Raghavan, company secretary and executive director, NMDC. "For private companies 10 per cent of the shares have to be public even at the time of listing but since NMDC is a public sector undertaking, there is no binding of this sort.
" With a market cap of over Rs 110,000 crore, the mining heavyweight is one of the biggest listed PSUs in the country. It produces 30 million tonnes of iron ore and has reserves of over 200 mt.
The company is investing Rs 19,000 crore over the next five years
"We have recommended that government maintains its ownership of the company by retaining 51 per cent equity but divest the remaining," a company official said. "This will help the company's exposure in the market, improve its tradeability and mop up revenues for future expansions.
" Recently the company's stock was upgraded to the A category from the B category of stocks listed on the Bombay Stock Exchange. In February, the stock was moved from the lowest category of stocks-Z to the B category after the procedures for dematerialisation of 50 per cent of its publicly-held shares were completed.
It was also influenced by the market capitalisation of the company which had peaked at over Rs 200,000 crore in November 2007. NMDC had also split its shares and announced a bonus issue late last year.
The shift happened despite the company" miniscule free float. "The shift is a result of internal arrangement by the Securities and Exchange Board of India (SEBI), said Kumar Raghavan, company secretary and executive director, NMDC. "For private companies 10 per cent of the shares have to be public even at the time of listing but since NMDC is a public sector undertaking, there is no binding of this sort.
" With a market cap of over Rs 110,000 crore, the mining heavyweight is one of the biggest listed PSUs in the country. It produces 30 million tonnes of iron ore and has reserves of over 200 mt.
The company is investing Rs 19,000 crore over the next five years
Tuesday, September 23, 2008
Sahara India to sell stake in film, TV unit
Mumbai: Sahara India Financial Corp. Ltd, the country’s largest residuary non-banking finance company (RNBC), will sell its equity stake in Sahara One Media and Entertainment Ltd and use the proceeds to meet investment norms laid down by India’s banking regulator, the Reserve Bank of India, or RBI.
RBI recently directed Sahara not to accept deposits that mature beyond 30 June 2011.
An RNBC is required to invest all its deposits in government bonds, deposits of other commercial banks and corporate bonds with ratings of double A+ (AA+), indicating high safety.
Sahara India is one of the promoters of Sahara One Media and currently holds 16.32% stake in the company. Sahara One Media, which is into the business of television and film production, has a market value of Rs450.30 crore, based on its share price of Rs209 at close of trading on the Bombay Stock Exchange on Monday. This means that Sahara India’s stake is worth Rs73.49 crore.
Shares of the production house hit their lifetime high of Rs820 each on BSE on 10 January. At that price, its stake in the firm would have fetched Sahara India Rs288.33 crore.
Also Read Mint’s earlier coverage of the issue
In a June communication to RBI, days before the regulator banned it from accepting fresh deposits (this ban was subsequently lifted and the RNBC was given a three-year sunset window), Sahara India agreed to sell its equity holding in Sahara One to “bridge the gap in directed investments” in accordance with the norms of the central bank.
In that communication, a copy of which has been reviewed by Mint, Sahara India said it would bridge the gap “through internal accruals and/or by way of sale/mortgage/lien on its fixed assets”.
It assured the central bank that it would reduce the gap of Rs714.81 crore in directed investments to zero by December. “We are committed to make good the gap for the purpose of security for depositors by March 2009,” the firm said.
Abhijet Sarckar, head of corporate communications, Sahara India group, said in an email that, “Sahara India Financial Corp. Ltd proposes to transfer 3,075,000 shares of Sahara One to Sahara India Commercial Corp. Ltd through the BSE (Bombay Stock Exchange) on 26 September and as required under the regulations, information in this regard has been submitted Friday evening to BSE.”
BSE was yet to announce this information on its site till Monday evening.
Sarckar also said that there is no gap in Sahara India’s directed investment. “We would like to draw your attention to the fact sheet published by us wherein it was clearly stated that the value of directed investments held by the company fully covers its liability towards depositors.”
RBI recently directed Sahara not to accept deposits that mature beyond 30 June 2011.
An RNBC is required to invest all its deposits in government bonds, deposits of other commercial banks and corporate bonds with ratings of double A+ (AA+), indicating high safety.
Sahara India is one of the promoters of Sahara One Media and currently holds 16.32% stake in the company. Sahara One Media, which is into the business of television and film production, has a market value of Rs450.30 crore, based on its share price of Rs209 at close of trading on the Bombay Stock Exchange on Monday. This means that Sahara India’s stake is worth Rs73.49 crore.
Shares of the production house hit their lifetime high of Rs820 each on BSE on 10 January. At that price, its stake in the firm would have fetched Sahara India Rs288.33 crore.
Also Read Mint’s earlier coverage of the issue
In a June communication to RBI, days before the regulator banned it from accepting fresh deposits (this ban was subsequently lifted and the RNBC was given a three-year sunset window), Sahara India agreed to sell its equity holding in Sahara One to “bridge the gap in directed investments” in accordance with the norms of the central bank.
In that communication, a copy of which has been reviewed by Mint, Sahara India said it would bridge the gap “through internal accruals and/or by way of sale/mortgage/lien on its fixed assets”.
It assured the central bank that it would reduce the gap of Rs714.81 crore in directed investments to zero by December. “We are committed to make good the gap for the purpose of security for depositors by March 2009,” the firm said.
Abhijet Sarckar, head of corporate communications, Sahara India group, said in an email that, “Sahara India Financial Corp. Ltd proposes to transfer 3,075,000 shares of Sahara One to Sahara India Commercial Corp. Ltd through the BSE (Bombay Stock Exchange) on 26 September and as required under the regulations, information in this regard has been submitted Friday evening to BSE.”
BSE was yet to announce this information on its site till Monday evening.
Sarckar also said that there is no gap in Sahara India’s directed investment. “We would like to draw your attention to the fact sheet published by us wherein it was clearly stated that the value of directed investments held by the company fully covers its liability towards depositors.”
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