Mumbai: Deals Buzz brings to you the top deals news reported from newsrooms across India.
Brookfield to acquire Reliance’s gas pipeline
Canadian asset manager Brookfield Asset Management is set to buy the loss-making East West Pipeline Ltd (EWPL), earlier known as Reliance Gas Transportation Infrastructure Ltd, for an enterprise valuation of ₹ 14,000 crore ($2 billion), The Economic Times reported. The Competition Commission of India (CCI) approved the transaction last week. Mint had in June that Brookfield is looking to focus on the renewable energy space in India. (read more)
The pipeline housed under EWPL is being transferred to an entity called Pipeline Infrastructure Pvt. Ltd (PIPL), a wholly owned subsidiary of Reliance Industries Holding Pvt. Ltd (RIHPL), a holding arm of Mukesh Ambani and family, the promoters of Reliance Industries Ltd (RIL). (read more)
Deals Buzz: Brookfield to acquire Ambani gas pipeline
BigBasket, Grofers revive merger talks
Grocery startups BigBasket and Grofers have revived talks for a merger as their investors Alibaba Group Holding Ltd and SoftBank Group Corp. look to join hands, ahead of a costly market share battle with Amazon and Walmart Inc.-owned Flipkart to dominate India’s online grocery market, Mintreported, citing three people familiar with the matter.
If the deal goes through, BigBasket will acquire Grofers and the merged entity could raise $250 million from China’s Alibaba Group Holding Ltd. Mint had in May reported that BigBasket was in talks with investors to raise between $300 million and $500 million from Alibaba and new investors. (read more)
Flipkart eyes stake in Hotstar to enter Amazon Prime Video, Netflix arena
Flipkart has held talks to buy a stake in Hotstar, Star India’s video streaming service, as part of India’s largest online retailer’s strategy to bet big on video content and attract more Internet consumers and shoppers, Mint reported, citing three people aware of the discussions.
The talks with Hotstar come at a time when demand for video streaming services such as Netflix and Amazon Prime Video offering is at an all-time high, and streaming companies are investing hundreds of millions of dollars, betting that the content business will be the biggest future growth driver in the global consumer Internet economy. (read more)
AMP Capital in final talks to buy GVK airport stake
GVK Power and Infrastructure, which runs the Mumbai airport, and GMR Infrastructure, which runs the Delhi airport, are set to offload significant stakes in the entities—a combined $1 billion, The Economic Times reported. Australian infrastructure investor AMP Capital is said to be in advanced talks with GVK to pick up a strategic stake in the airport holding company at a valuation of about ₹ 3,000-3,500 crore.
Mint had on 27 August reported on that the GVK group is in talks with four potential bidders, including Singapore’s Changi Airport and the Abu Dhabi Investment Authority. Both groups are laden with debt and have been on a quest to raise funds to meet repayment obligations. GVK Power’s total debt stood at Rupees 12,855 crore in FY18, while GMR’s net debt is about Rupees 4,600 crore. (read more)
ISL: Sachin Tendulkar to sell stake and exit Kerela Blasters
Sachin Tendulkar is selling his stake in Indian Super League football franchise Kerala Blasters. The holding is to be acquired by the Lulu Group controlled by Dubai-based businessman Yusuff Ali, The Economic Times reported. With a valuation of about ₹ 350 crore, this is an estimated return of nearly five times for the cricketer on his four-year-old investment., who in turn will sell the shares to the Lulu Group. read more
JC Flowers may buy out Ambit Holdings from JV
J.C. Flowers and Co. is looking to buy out partner Ambit Holdings Pvt. Ltd in their asset reconstruction joint venture, in the latest instance of a foreign private equity firm betting big on the distressed assets opportunity in India, Mint reported. In early 2016, the New York-based PE firm had tied up with Ashok Wadhwa-led Ambit Holdings to acquire stressed assets in India through an asset reconstruction company (ARC) called Ambit Flowers Asset Reconstruction. J.C. Flowers and Ambit hold 47.5% each in the ARC while entrepreneur Jerry Rao holds 5%. read more