Malaysian government investment arm acquires 9% in IDFC for Rs. 848 crores

Khazanah Nasional Berhad has acquired 8.97% stake in Infrastructure Development Finance Company (IDFC), a specialized financial intermediary for infrastructure, for Rs. 848.16 crores. Khazanah Nasional is the investment holding arm of the Malaysian Government entrusted to manage the commercial assets held by the Government and to undertake strategic investments. Khazanah was incorporated in 1993 as a public limited company and commenced operations a year later.

Khazanah Nasional Berhad, through Sipadan Investments, acquired around 100.9 mn shares at a price of Rs. 84 each from UBS Securities Asia who sold the shares on behalf of Mauritius based Swiss Finance Corporation. As per the latest shareholding data available on the stock exchanges, Swiss Finance Corporation previously held 101.3 crore shares representing 9% stake in IDFC. Other foreign investors, who hold significant stakes in IDFC, are Indivest Private (3.79%), Nikko Cordial Corporation (2.49%), Morgan Stanley (3.62%), Goldman Sachs (3.73%) and Barclays Capital (4.96%).

Read the article in The Economic Times article.

Swiss Finance Corporation invests additional Rs. 9 crores in Nitco Tiles

The Economic Times reports that Mauritius-based Swiss Finance Corporation Limited has picked up 380,000 shares of Nitco Tiles for around Rs. 9 crores. Its stake in the company now stands at nearly 6%. The shares were bought in an open-market transaction. Swiss Finance earlier had 4.27% stake representing 951,000 shares in Nitco Tiles. Its total number of shares has now gone up to almost 1.33 mn in Nitco.

Amtek Auto to re-bid for UK plant

Amtek Auto may renew its bid to acquire JL French Automotive Casting’s Whitham plant in Essex in the UK. It had unsuccessfully attempted six months ago to acquire the plant. Two other die-casters, one each from China and Spain, have also shown interest in the Whitham plant.

Amtek has been expanding its presence in the UK for the last few years. In 2005, it bought Halberg Guss (Bourne), one of the largest die-casters in the UK.

The sale of the plant looks complicated as the acquirer wanted assurance from Ford Motors, JL French’s main customer, that it would continue its contract with the plant post-acquisition. Even the price of the acquisition depends on the assurance. However, with Ford itself undergoing a restructuring process, it is unlikely that the auto major would make any commitments.

The administrator of the plant, BDO Stay Hayward, would look for a quick solution as delay in selling the plant might force it to pull down shutters. The plant, which buys nearly 500 tonne aluminium alloy ingot, is losing over Rs. 50 crores a year. JL French put up its Whitham and Wales units for sale after it had filed for bankruptcy in April last year.

A clutch of foreign financial investors have invested in the Rs. 900 crore-Amtek Auto. Warburg Pincus tops the list with nearly 10% stake. The list of other foreign financial institutions includes CLSA, HSBC Global and Oppenheimer Fund. Swiss Finance Corporation is in the process of acquiring stake through subscription of preferential shares.

Read the Business Standard article.