HDFC makes a formal offer to buy out Chubb in non-life insurance JV

HDFC has formally offered to buy out its foreign partner Chubb from their non-life insurance JV HDFC Chubb General Insurance. HDFC holds 74% equity stake in the company, while Chubb has the remaining 26%. As of yet, no sale agreement has been reached due to price considerations. The transaction would also require regulatory clearance.

HDFC may rope in another partner by selling the stake it buys from Chubb at a premium. Though it has not found yet one, it is learnt that Ergo, the direct insurance arm of reinsurance giant Munich Re, has shown interest in tying up with HDFC.

Chubb and HDFC have been disagreeing on business strategy: HDFC wanted to adopt a more aggressive stance, keeping with its market leadership position in other group business, whereas, Chubb takes a very long-term view worldwide, waiting as long as six years in some markets before moving into a growth mode.

Read more in The Economic Times article.

Fujitsu in talks to buy out Intelenet Global Services, eyes acquisitions in the IT space

Fujitsu, Japan’s largest IT services company is in advanced stages of talks to buy out Intelenet Global Services, a Mumbai-based BPO. Intelenet is a joint venture between Barclays Bank of UK and HDFC. HDFC and Barclays each hold 50% in the venture. Fujitsu is reported to be in talks to buy out Barclays’ stake and subsequently may also acquire HDFC’s stake.

Currently, Fujitsu has a presence in India through two companies, Rapidigm, a 100% subsidiary, and Zensar Technologies, a joint venture company with the RPG group. Fujitsu acquired Rapidigm, a US-based BPO firm with operations in India, in February 2006.

Fujitsu does not have management control in Zensar and is thus also looking at acquisitions in IT services. Fujitsu is under pressure to build its presence in the fast growing Indian market.

For more, read The Economic Times article.

BE Billimoria & Co. receives funding from Indivision

Indivision, the private equity fund promoted by Future Capital, has acquired a 26% stake in Mumbai-based contract construction company BE Billimoria & Co. for an estimated Rs. 75 crores. This is the $425 mn-fund’s first investment in the real estate sector and Future Capital has announced plans to enter the hospitality sector. The management of BE Billimoria estimates turnover for this year to be around Rs. 200 crores and is looking at trebling this figure in the next five years through a pan-India presence. The company is also considering a possible IPO in a year.

Currently, the promoters, Kaiyoze Billimoria and Digant Kapadia, each hold 16.5% stake in the company, while the rest is held by Merrill Lynch Capital Markets (4%), Indivision (26%) and other equity investors.

BE Billimoria has worked on residential and commercial projects with different partners. Some of the major projects that that the company has completed are IDBI Towers, Imax Theatre, Hotel Leela, Hotel Hyatt Regency and Reserve Bank of India among others, in the commercial space and Cadbury House, Hinduja Plaza and Palm Beach are some of the company’s projects in the residential space. The company has partnered with HDFC, Sun Group, IDFC and other real estate funds for various projects. This is the first time they have received private equity funding. The real estate sector, valued at $12 bn, is growing at 35-40% per annum. The sector has seen some large equity deals in the last few months with nearly $350 mn in investments flowing into the sector.

Read the article from The Economic Times.

BE Billimoria & Co. receives funding from Indivision

Indivision, the private equity fund promoted by Future Capital, has acquired a 26% stake in Mumbai-based contract construction company BE Billimoria & Co. for an estimated Rs. 75 crores. This is the $425 mn-fund’s first investment in the real estate sector and Future Capital has announced plans to enter the hospitality sector. The management of BE Billimoria estimates turnover for this year to be around Rs. 200 crores and is looking at trebling this figure in the next five years through a pan-India presence. The company is also considering a possible IPO in a year.

Currently, the promoters, Kaiyoze Billimoria and Digant Kapadia, each hold 16.5% stake in the company, while the rest is held by Merrill Lynch Capital Markets (4%), Indivision (26%) and other equity investors.

BE Billimoria has worked on residential and commercial projects with different partners. Some of the major projects that that the company has completed are IDBI Towers, Imax Theatre, Hotel Leela, Hotel Hyatt Regency and Reserve Bank of India among others, in the commercial space and Cadbury House, Hinduja Plaza and Palm Beach are some of the company’s projects in the residential space. The company has partnered with HDFC, Sun Group, IDFC and other real estate funds for various projects. This is the first time they have received private equity funding. The real estate sector, valued at $12 bn, is growing at 35-40% per annum. The sector has seen some large equity deals in the last few months with nearly $350 mn in investments flowing into the sector.

Read the article from The Economic Times.

Trikona Capital to invest $18 mn in Fortis Healthcare

Trikona Capital is investing to the tune of $18 mn in Fortis Healthcare, a company promoted by the founders of Ranbaxy Laboratories. Earlier, George Soros’ Soros Private Equity Partners and Blue Ridge Capital were believed to have invested $50 mn in Fortis to buy a 10% stake in the company. Fortis has filed for an IPO and intends to raise Rs. 730 crores from the issue.

Fortis needs the funds to further its expansion plans as well as to write-off the debt it had incurred while acquiring Escorts Heart Institute and Research Centre. Fortis Healthcare has chalked out some meg-expansion plans, partly through acquisitions, which will require investments of Rs. 2250 crores by 2010.

Trikona Capital is a real estate-focused private equity firm; it is planning to invest around $1 bn in the Indian market in the next one year. So far, it has made investments of up to $150 million in India. Apart from Fortis, Trikona’s investments include a minority stake in IL&FS Transportation and Networks for $10 million, $20 million in an integrated township project in Thane, $22 million in a residential project in Mumbai and around $55 million in an IT park in Greater Noida. The fund also has partnerships with HDFC and IL&FS to make investments in India.

Read The Economic Times article.