In other news, the National Company Law Appellate Tribunal (NCLAT) dismissed a plea challenging ArcelorMittal’s eligibility to buy Essar Steel India Ltd, clearing the way for the world’s largest steelmaker to establish a meaningful presence in India after months of legal battles
Mumbai: Mint brings you your dose of the top deals news, reported from newsrooms across the country.
SoftBank looks to deploy $2-4 billion in India over the next two years
SoftBank Vision Fund, a subsidiary of Japan’s SoftBank Group, may deploy another $2-4 billion in India over the next two years; The Economic Times reported citing Rajeev Misra, director and executive vice president at SoftBank Group Corp who heads the SoftBank Vision Fund (SVF). The fund looks to focus on the financial services space in the country, as it reorients its earlier strategy of investing into internet and tech-based businesses. The technology fund, which has investments in 80 companies worldwide, plans to bring 20 firms in its portfolio to India by way of joint partnerships with local businesses. The news also comes at a time when SoftBank is in the midst of raising another vision fund of the same $100-billion size as the previous one. “We should be able to pump $2-4 billion in India, which would be through new investments. We will also make follow-on investments aside of fresh ones when our portfolio firms require capital," Misra told ET.
NCLAT clears way for Arcelor Mittal to acquire Essar Steel
The National Company Law Appellate Tribunal (NCLAT) on Thursday dismissed a plea challenging ArcelorMittal’s eligibility to buy Essar Steel India Ltd, clearing the way for the world’s largest steelmaker to establish a meaningful presence in India after months of legal battles, Mint reported citing the judgement. The bankruptcy appellate tribunal also ruled that operational creditors of Essar Steel were to be treated on a par with financial creditors at the time of settling claims. The ruling is likely to have a far-reaching impact and could significantly improve recoveries for operational creditors, who were so far considered to be a notch below financial creditors. According to the judgement, the lenders and operational creditors would get 60.7% of their outstanding claims and proportionately share the ₹42,000 crore that ArcelorMittal has offered to pay for the debt-laden firm, which in rupee terms entails a payment of ₹30,030 crore to financial creditors and ₹11,969 crore to operational creditors.
IIFL Finance raises ₹3,000 crore in long-term funding from banks
IIFL Finance, a non-banking financial company (NBFC) owned by financial services conglomerate IIFL Holdings Ltd, secured long term funds worth nearly ₹3,000 crore from the government and private banks, at a time when several such firms are struggling to raise capital due to the ongoing liquidity crisis in the system, The Economic Times reported citing banking sources. The Mumbai-based NBFC, which has ₹5,055 crore exposure to real estate developers as of March 2019, is also close to securing another $100 million long-term loan from a multi-lateral financial institution.
L&T Finance unit to raise $550 million in IFC-led investment round
A unit of L&T Finance Holdings Ltd will raise $550 million worth offshore funds in an investment round led by World Bank Group arm, International Finance Corporation (IFC), Mint reported citing a Reuters report. While IFC would bring in $125 million, other investors such as BNP Paribas, Citibank, and DBS Bank Ltd will bring the remaining, of the $275 million due in the first tranche of investment. The non-banking financial companies (NBFC) will use the funds to expand its farm equipment finance book by giving loans to farmers to buy equipment and modernise farming. In May, Mint reported that Cholamandalam Investment and Finance Company Ltd would raise $222 million in debt funds in an IFC-led investment round.
Energean to buy EDF arm for up to $850 million
Energean Oil and Gas Plc. agreed to buy the oil and gas business of Electricite de France SA’s Italian unit for as much as $850 million, a deal that will substantially broaden the Greek energy company’s geographic footprint, Mint reported citing a Bloomberg report. Energean will pay $750 million upfront for operational assets in Egypt, Italy, Algeria, the North Sea and Croatia, according to a statement on the Tel Aviv Stock Exchange, one of two bourses where its stock trades. It’s Energean’s first major acquisition since listing in London last year, and will significantly expand its production and revenue streams. The Greek company is also acquiring assets under development in Egypt, Italy and Norway. It may pay an additional $100 million following first gas from the Cassiopea development off Italy.
