Deals Buzz: Brookfield front runner to buy out Anil Ambani’s road assets

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Mumbai: Mint brings to you your daily dose of top deals reported by newsrooms across the country.

Brookfield front runner to buy out Anil Ambani’s road assets for Rs.8,000 crore

Brookfield, the world’s second biggest manager of alternative assets like real estate and private equity from Canada, has emerged as the front runner to take over the entire portfolio of 11 road projects of Anil Ambani flagship Reliance Infrastructure Ltd for an enterprise value of Rs.8,000 crore, said multiple sources aware of the ongoing negotiations, reported the Economic Times. Read more

Both sides have entered into exclusive negotiations and are hoping to sign a definitive sale agreement by next month.

Mint reported in February that Reliance Infrastructure is in negotiations with Canada-based Brookfield Asset Management Inc. and CPP Investment Board (formerly the Canada Pension Plan Investment Board) to sell its portfolio of road assets.

Québec commits C$175 million to Tata Steel Minerals Canada for iron ore project

The Québec government of Canada has announced a financial contribution of C$175 million to Tata Steel Minerals Canada Ltd (TSMC), to support a direct shipping iron ore (DSO) project in which Tata Steel Group has invested an amount in excess of C$1 billion. The project is at Schefferville in Quebec, Tata Steel said in a statement on Wednesday. The financial contribution includes equity stake of $125 million through Capital Mining Hydrocarbons Fund and a loan of $50 million from Investissement Québec, acting as an agent of the government. Read more

China’s Fosun buys KKR-backed Gland Pharma for $1.3 billion

Shanghai Fosun Pharmaceutical (Group) Co. Ltd, the Hong Kong-listed company controlled by billionaire Guo Guangchang, will acquire India’s Gland Pharma Ltd for $1.3 billion (Rs.8,700 crore), reported Mint. According to the agreement, Fosun will acquire an approximate 86% stake in Gland, including the 36% stake held by existing private equity firm KKR & Co. In 2013, KKR acquired Gland stake for $200 million from Evolvence India Life Sciences Fund. With a deal size of $1.3 billion for 86%, KKR’s 36% stake is valued at $540 million. Hyderabad-based Gland Pharma develops and manufactures generic injectables, primarily for the US market. Read more

Cognizant acquires Idea Couture

Software services major Cognizant has acquired US-based design firm Idea Couture for an undisclosed amount to boost its digital technologies offering, reported PTI. Idea Couture, which specialises in designing and prototyping products, services and business models, will become part of Cognizant Digital Works, Cognizant said in a statement. Based in Toronto, the privately-held Idea Couture has offices in the US, Europe and Latin America. It has over 170 social scientists, strategists, anthropologists, user experience experts, designers and connected product developers.

Its customers include companies like Samsung, PepsiCo, Cox, Citi Ventures, Kroger and ConAgra Foods, among others. Read more

o3 Capital is raising a $150 million fund focused on hospitality

Mid-market boutique investment banking firm o3 Capital is raising a $150 million hospitality-focused fund, as the Mumbai-based company looks to diversify into the asset management business, reported Mint.“The idea is to raise a $120-150 million fund that will be investing in hospitality businesses, largely acting as last-mile funding. We will be specifically looking at near-complete assets needing last-mile funding to become operational,” said Deepesh Garg, managing director at o3 Capital Global Advisory Pvt. Ltd, adding that the firm sees a huge opportunity in the space. With the addition of a hospitality fund, o3 is building its business along two lines—investment banking advisory services and asset management. Read more

Canada to invest in Tata Steel’s iron ore biz in Quebec

The Canadian government is investing C$125 million (Rs.680 crore) in Tata Steel’s iron ore project in the Quebec region and is also supporting a loan of C$50 million (Rs.272 crore) from one of its financing arms, reported Times of India. The equity-cum-loan assistance is aimed at stoking growth in the mining sector in the region and also for creating jobs. Tata Steel Minerals Canada is the Tata Steel arm that is developing the iron ore project in Quebec and holds a 94% stake. The remaining 6% is held by the Toronto-listed New Millennium Corporation. Read more

Green House ventures out to launch Rs.350 crore fund for start-ups

Gurgaon-based Green House Ventures (GHV) Accelerator has partnered with Makoto Takano, former president of PIMCO Japan, and World Innovation Labs (WiL), a Japan and Silicon Valley-based VC fund, to launch a Rs.350 crore fund for early stage consumer technology-focused Indian start-ups, reported the Economic Times. The fund will start investing by early next year and will put in money in the Series-A range. “We will be sector agnostic but the focus will be around consumer technology. The focus on technology is because it builds a scalable business model. We will invest anywhere between $2.5 million and $5 million (Rs.17-33 crore) in each start-up,” said Vikram Upadhyaya, chief mentor at GHV Accelerator. Read more

Kirloskar Ferrous to acquire pig iron plant of VSL Steels

Kirloskar Ferrous Industries today said it will acquire VSL Steels’s pig iron plant for Rs.155 crore in cash, reported PTI. “Board at its meeting on July 28, has granted in-principle approval for acquisition of movable and immovable assets relating to pig iron plant of VSL Steels Ltd for a cash consideration of Rs.155 crore,” Kirloskar Ferrous Industries said in a regulatory filing. The amount will be payable in instalments and will be subject to certain commercial conditions, necessary governmental or regulatory approvals and the approval of the board and shareholders of VSL Steels Ltd, it added.