Asian sovereign funds line up to back Prudential's AIA deal

Sovereign wealth funds from China and Singapore have been lined up to help fund Prudential's $35.50-billion purchase of AIA

Sovereign wealth funds from China and Singapore have shown interest in financing British insurer Prudential's $35.50-billion purchase of US insurance firm American International Group (AIG)'s Asian arm AIA, reports PTI.

"Sovereign wealth funds from China and Singapore have been lined up to help fund Prudential's $35.50-billion purchase of AIA," the Financial Times reported.

Attributing the developments to people close to the situation, the report said that Prudential and its advisers were in talks with sovereign funds from China and Singapore over the provision of billions of dollars to support a planned $20-billion share offer for AIA.

Prudential is considering a rights issue of $20 billion, giving existing shareholders the right to buy. However, if Prudential’s shareholders refuse to take up the offer, the sovereign wealth funds would invest in the shares offered, it added.

Further, the report noted that the initial response from Chinese and Singaporean sovereign wealth funds had been positive, although they had not made a final decision.

Earlier on Monday, Prudential said that it would pay $35.5 billion for the AIA buyout. Under the acquisition, the UK company would pay AIG $25 billion in cash, $5.5 billion in stock, $3 billion in mandatory convertible notes and $2 billion in preferred stock.
 

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Hindustan Dorr-Oliver buys UK-based DavyMarkham for £9.50 million

Hindustan Dorr-Oliver has bought UK-based DavyMarkham for £9.50 million to gain an entry into the heavy engineering space

Engineering solutions company Hindustan Dorr-Oliver Ltd (HDO) on Tuesday said that it has acquired UK-based heavy engineering company DavyMarkham for £9.50 million (about Rs65 crore), reports PTI.

The acquisition provides HDO, part of Hyderabad-based IVRCL Infrastructure and Projects Ltd, an entry into the heavy engineering space, it said in a filing to the National Stock Exchange.

DavyMarkham is a 180-year-old manufacturing company based in Sheffield, UK. It is engaged in designing, manufacturing and assembling large equipment used in the mining, quarrying, power generation, oil, gas and nuclear sectors.

DavyMarkham's managing director Kevin Parkin and financial director Duncan Hay will continue their current roles along with the management team, the Indian company said.

"DavyMarkham was on the verge of closure four years ago, but with the financial support of our buyout partner, Endless, we have been able to turn around the business and make it an attractive acquisition prospect," Mr Parkin said.

"HDO paid £9.50 million towards 100% (buyout), which include £8.50 million towards equity value and £1 million towards the shareholder loan," the Indian entity said.

DavyMarkham has around £13 million order book in mining and power, mainly from North America and European customers. HDO is looking at marketing the products in the Indian market, it further said.
 

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Fame India appoints Kishore Biyani as director

Fame India's board of directors also approved to take note of the public announcements made by INOX Leisure and Reliance MediaWorks

Multiplex operator Fame India Ltd on Tuesday said that it has appointed Future Group chairman Kishore Biyani as an independent director on the board of the company, reports PTI.

The board of directors at their meeting held on 28th February also approved to take note of the public announcements made by INOX Leisure and Reliance MediaWorks, Fame India said in a filing to the Bombay Stock Exchange (BSE).

Last month, multiplex operator INOX Leisure had announced acquisition of a 43.28% stake in Fame India, besides making an open offer for an additional 20% stake.

Following INOX's announcement, Anil Dhirubhai Ambani Group’s (ADAG) three companies— Reliance MediaWorks, Reliance Capital Partners and Reliance Capital also jumped into the race.
Countering the bid by rival INOX Leisure, the three ADAG companies announced an open offer for a 52.48% stake in Fame at Rs83 per share.

The board has also approved the appointment of Pavan Jain and Deepak Asher as directors of the company. Further, it would also take note of the resignation of Balkrishna Shroff from directorship.

Post the above appointments and resignation, the strength of the board of directors of the company is nine, out of which five are independent directors.
 

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