Trinity Capital buys 10.43% in Pipavav Shipyard

Trinity Capital has bought a 10.43% stake in Pipavav Shipyard Limited for Rs. 104 crores. Pipavav Shipyard has been promoted by Nikhil Gandhi-backed Sea King Infrastructure. IL&FS and EXIM Bank are the existing investors in Pipavav Shipyard; they have a majority 51% stake in the company. As part of the transaction, Trinity will build a 150 acre-township in the vicinity of the shipyard. This will provide housing, recreational facilities, schools, hospitals and commercial offices.

Pipavav Shipyard plans to build the largest integrated ship building yard in India, near the Pipavav port in Gujarat. The yard will also be the fifth largest in the world. It will have a capacity of 300,000 tonnes (dead weight tonnage). The Pipavav port was developed by the Nikhil Gandhi Group and is now handled by Maersk. The 175-acre shipyard will have the capability to build ships and vessel types ranging from aircraft carriers and luxury liners to oil tankers. It will have the capacity to build 12 large ships simultaneously. The project is likely to see investments of Rs. 8000 crores over the next 7 years. The shipyard will be strategically located between the two busy ports of Kandla and Mumbai. It will also be the only major shipyard between Dubai and Singapore.

Read the article in Business Standard.
Related Post: Trinity to raise additional funds of $ 1bn for Indian realty

Premier Tissues to acquire UK tissue converting company

Bangalore-based Premier Tissues, a manufacturer and exporter of tissue papers, is acquiring an UK-based tissue converting company in a deal worth £8-10 mn. In addition to the company’s bankers, Bank of India and the EXIM Bank have also shown interest in financing the deal. The company is also holding talks with a couple of venture capital firms to fund the deal. The acquisition is expected to be consummated by March 2007. Presently, Premier Tissues is one of the largest exporters of tissue products to UK. By February 2007, with this expansion, the company will be able to export about 700 tonnes of tissue products per month.

Read The Economic Times article.

It is to be noted that Bennett, Coleman & Co. (BCCL), the media group that owns The Times of India and The Economic Times, had recently picked up 6.42% stake in Premier Tissues. The company was set up in 1998 in technical collaboration with Premier Tissues of Malaysia. It now has a sales revenue of 35 crore, of which up to 25% comes from exports.