India March 19 Weekly Newsletter 2012 This document covers news related to India with a special focus on areas like mergers & acquisitions, private equity & venture capital. Volume 125, March 19th, 2012 For the period March 12, 2012 to March 18, 2012 March 19, 2012 [INDIA WEEKLY NEWSLETTER] Highlights Schroders May Acquire 30% Stake In Axis MF…(3) Varroc Engg Acquires Visteon Corp's Lighting Content Pages Biz For $92 mn…(4) Asia Motorworks Acquires FamilyCredit NBFC Mergers & Acquisitions News 3-4 In All Cash Deal…(5) Mergers & Acquisitions Deals 4-7 Spreadtrum Communications Invests $10 mn in Micromax Informatics…(6) Private Equity News 7-9 Commex May Sell 5% Stake In UCX To Private Equity Deals 9-12 SBI…(7) Qatar Investment Authority May Acquire Venture Capital News 12-12 Minority Stake In Violet Arch…(8) Venture Capital Deals 12-13 Reliance PE To Invest Rs100 cr In Butterfly Gandhimathi For 13.7% Stake…(8) Khazanah Nasional Sells 4.17% Stake In Yes Bank…(9) Nabard Acquires 16% Stake in UCX for Rs16 cr…(10) GIC Invests $100 mn In Vasan Healthcare for a Minority Stake…(11) Kitara Capital Buys 5.68% In Supreme Infrastructure…(12) Delhi Based SkillKindle Raises Angel Funding From i3 Consulting…(12) Confidential LKP Securities Limited 2 March 19, 2012 [INDIA WEEKLY NEWSLETTER] Mergers & Acquisitions News NMDC To Acquire Majority Stake In Brazil Based Amplus NMDC Limited is planning to acquire Amplus, a Brazilian iron ore company. NMDC is planning an investment of $150 mn for development. It will initially invest around $10-15 mn to acquire 26% holding and buy up to 50% subsequently. Amplus mine is located around 150 km close to the coast with reserves of over 1.5 bn tonne. Last August, NMDC acquired 50% stake in Australia based Legacy Iron Ore for about $100 mn. It floated a subsidiary in Australia to handle the deal and also look at other investment options. NMDC is a state- controlled mineral producer of the Government of India. It is fully owned by the Government of India and is under administrative control of the Ministry of Steel. NMDC is planning to acquire three overseas coal mines, one each in Russia, Mozambique and Australia, a rock- phosphate mine in Australia and an iron ore mine in Brazil. NMDC had developed many mines like Kiriburu, Meghataburu iron ore mines in Bihar, Khetri Copper deposit in Rajasthan, Kudremukh Iron Ore Mine in Karnataka, Phosphate deposit in Mussorie, some of which were later handed over to other companies in public sector and others became independent companies. Apart from iron ore, NMDC is developing Magnesite mine in Jammu and Arki Lime Stone Project in Himachal Pradesh. Schroders May Acquire 30% Stake In Axis MF UK based Schroders is planning to acquire 30% stake in Axis Asset Management Company. The acquisition would allow Schroders to sell its products in India and grant Axis access to the London-listed company's global network. Schroders had applied to the Securities SEBI in April 2008 to start a mutual fund business in India, but did not secure a license till last year. Schroders manages around $291 bn in assets on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world, invested in a broad range of asset classes across equities, fixed income and alternatives. It operates from 33 offices in 26 different countries across Europe, the Americas, Asia and the Middle East. Axis Mutual Fund was set up in September 2009 and sponsored by Axis Bank Limited. Assets of Axis Mutual Fund are managed by Axis Asset Management Company Limited. Kobe Steel to invest $6 mn in Man Industries for 3.25% Stake Japan based steelmaker - Kobe Steel is acquiring 3.25% stake in Man Industries for about $6 mn. According to the filings, Kobe Steel will subscribe to 1,818,181 equity shares of Rs5 each for a consideration of Rs165 per share. Man Industries was incorporated in 1988; it commenced operations with the manufacturing of aluminium extrusion products at a unit in Pithampur, MP. In 1995, it diversified into manufacturing SAW pipes. In 2005, MIL commissioned an integrated pipe manufacturing and coating unit in Anjar (Gujarat); in 2006, it de-merged its aluminium business into a separate company named Man Aluminium Ltd, which was hived off in 2008-09. It manufactures SAW Pipes and Coating Systems for high Confidential LKP Securities Limited 3 March 19, 2012 [INDIA WEEKLY NEWSLETTER] pressure Oil & Gas applications with a potential production capacity of approximately 1 mmtpa. Founded in 1905, Kobe Steel is a Japanese manufacturer with business covering iron and steel, welding, aluminium and copper, machinery, natural resources and engineering, environmental solutions, construction equipment’s and other businesses. It has entered into a partnership with SAIL to set up a steel plant in India. Trent Ltd To Raise Rs250 cr Via QIP Tata Group's Trent Limited is raising Rs250 cr through QIP. It will issue 2.74 mn shares of Rs10/- each at a price of Rs912 per share. In April 2010, Trent raised $22 mn through private placement of secured redeemable non-convertible debentures. Trent owns 'Westside' (lifestyle stores), a chain of department stores across India and is also increasing its foothold in hypermarket space through its 'Star India Bazaar' format (value store). Trent is also into books and music retailing space through its subsidiary 'Landmark Limited'. Trent has a JV with Spain's Inditex Group to develop 'Zara Stores' in India. Trent's sourcing, warehousing, clearing and forwarding need are met by its subsidiary 'Fiora Services Limited'. Mergers & Acquisitions Deals L&T Finance Acquires Indo Pacific Housing Finance L&T Finance Holdings has forayed into housing finance by acquiring Indo Pacific Housing Finance Ltd. Indo Pacific Housing Finance was formed in 2007 after Singapore based Pasha Ventures acquired AIG Home Finance India Limited in October 2010. AIG Home Finance India Limited was earlier named Weizmann Homes Ltd, promoted by Weizmann group. AIG acquired the company in June-2007 through AIG Capital India Private Limited - the holding company for AIG Home Finance India Limited) after which the name of the company was changed to AIG Home Finance India Ltd. Singapore based Pacific Century Regional Developments Ltd owns 74% stake in Pasha Ventures while Aman Mehta and Akash Mehta own 26% stake in the company. Indo Pacific Housing Finance has a loan book size of Rs193.5 cr. It has 34 branches, primarily in the southern and western regions. L&T Finance, a subsidiary of L&T, is the holding company for the financial services business of the group. It is the holding company for L&T Infrastructure Finance Company Ltd (infrastructure financing business), L&T Finance Ltd (retail and corporate finance business) and L&T Investment Management Ltd (mutual fund business). Varroc Engg Acquires Visteon Corp's Lighting Biz For $92 mn Varroc Engineering has acquired US based Visteon Corporation's lighting business for $92 mn in cash. The transaction, which is subject to regulatory reviews and other conditions, is expected to be completed in the third quarter of 2012. According to the press release, the business to be acquired consists of exterior lighting products supplied to global vehicle manufacturers, including front and rear lighting systems, auxiliary lamps and key subcomponents such as projectors and electronic modules. The business to be sold has Confidential LKP Securities Limited 4 March 19, 2012 [INDIA WEEKLY NEWSLETTER] operations in Europe, North America and Asia. Visteon operations that would transfer to Varroc include manufacturing and engineering facilities in Novy Jicin and Rychvald, Czech Republic; Monterrey, Mexico; and Pune, India. The companies intend for the sale to include Visteon's equity interest in a China-based lighting joint venture, Visteon TYC Corporation. Certain other lighting employees and assets would transfer as well. In total, about 4,200 manufacturing, engineering and administrative employees are part of the lighting business that is involved in the transaction. Varroc Group commenced operations in 1990 by supplying plastic injection moulded parts for Bajaj Auto and Videocon. The company has 20 manufacturing facilities in India and abroad under two business divisions - Varroc Engineering, which contributes 65% to the group's top line and Varroc Polymer, which contributes 35% to the group sales. Freudenberg Filtration Acquires Pyramid Filters Freudenberg Filtration Technologies India Private Limited has acquired Pune based Pyramid Filters Private Limited. With this deal, Freudenberg Filtration will be able to add new products to its portfolio. Founded in 1998, Pyramid Filters manufactures air filter elements and systems for clean room applications in the pharmaceutical, medical, food and chemical industries. Established in 2008, Freudenberg Filtration Technologies is a part of Germany based Freudenberg Group, supplies seals, vibration control technology components, filters, nonwovens, release agents and lubricants to car manufacturers around the world. FFT India provides highly efficient industrial and automotive filter products, superior system solutions and value-adding services in air and liquid filtration. It serves automotive, pharmaceuticals, hospitals, petrochemicals, energy, fertilizers, food & beverage, steel and cement industries. Asia Motorworks Acquires FamilyCredit NBFC In All Cash Deal Mumbai based Asia Motorworks Ltd has acquired FamilyCredit Ltd in an all cash deal. Kolkata based FamilyCredit was a wholly-owned subsidiary of Societe Generale Consumer Finance, a division of the Specialized Financial Services of Societe Generale Group, France. It offers auto loans, two wheeler loans and loyalty loans. As per the information available on its website, the company has over 3,00,000 customers as on March 31, 2011 with 53 outlets in 17 states and two Union Territories in India. Founded by Anirudh Bhuwalka in 2002, Asia Motorworks manufactures commercial vehicle, auto components, fully built vehicles and forged components.