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Reliance to issue RPL GDR against existing shares

Mumbai: Reliance Petroleum Ltd (RPL) is sponsoring its international Global Depository Receipts (GDR) offering in tranches against the equity shares held by its existing strategic and financial shareholders.
All shareholders wanting to participate in the GDR offering will be required to transfer their shares, in demat form to the designated escrow account between May 19 and June 2 and submit the necessary documentation to the escrow agent, Karvy Consultants Ltd (KCL).
RPL shareholders will have two options on pricing - to indicate a minimum price at which they would be willing to offer their equity shares as part of the GDR programme or to opt for the cut-off pricing, as determined by the lead managers, a press release from the company said.
The lead managers will determine the size, timing and pricing of the GDR offering. Shareholders desirous of participating in the offering will be required to keep the tendered shares in the escrow account up to March 31, 2002 or till the completion of all tranches of the proposed offering, whichever is earlier.
The proceeds of the offering, after meeting necessary expenses will be paid on proportionate basis to shareholders of RPL, who have tendered equity shares and whose tender has been successful for the purpose of the offering.
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AMD in expansion mode
Mumbai: Advanced Micro Devices (AMD) is in the process of rolling out an aggressive marketing and price strategy targeted at the Indian PC market. It has already launched a series of Duron and Athlon processors in India, targeted at the price-sensitive home PC and small-office, home office segments, industry sources said.
It is also all set to launch a new chipset technology next month, which would support the server market. India is expected to be part of the launch.
Globally AMD is the second largest player in the PC market while Intel is the first. In year 2000 the company shipped around 7.5 million processors.
With a market share of 20 percent of the PC market globally, AMD has set itself a target of taking 30 per cent of the market share in 2001. India-operations would be in-line with the worldwide thrust, sources in the industry said.
In year 2000, AMD recorded worldwide sales of $4.6 billion with profits of about $1 billion.
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Warburg Pincus to pick up 9.8 percent stake in Gujarat Ambuja
Mumbai: In order to mop up a Rs 360 crore amount the Gujarat Ambuja (GACL)
is offering a 9.8 per cent stake to Warburg Pincus a leading private equity investor. GACL said the move was intended to augment cash flow and ensure better gearing.
The company's board of directors on Friday approved a plan under which Gujarat Ambuja Cements would issue 80 lakh equity shares to Warburg Pincus at Rs 225 per share, which is at a 16 per cent premium over Friday's closing of Rs 193.65 per share.
Besides this, GACL would also issue 80 lakh warrants to Warburg Pincus, which would entitle it to subscribe to an equal number of shares at the same price anytime before September 30, 2002.
This alliance will result in an equity dilution of GACL of 10.8 per cent. Promoters holding, which is currently at 29.9 per cent, will decline to 27 per cent.
On May 14, 2001 Warburg Piuncus had already acquired around 2 per cent stake in GACL from the secondary market.
Hence, post-warrant conversion, Warburg Pincus, which has invested $600 million in India, would hold around 12 per cent in GACL.
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Daewoo India launches three cars; all in the mid-size segment
Pune: Daewoo Motors India on Friday launched three cars for the Indian market in the mid-size segment.

These include the Big Magnus in the D segment and Nubira-II and Lanos-II in the upper mid-size segment.
Lanos-II will be launched with a 1.5 SOHC engine and priced between Rs 7-8 lakh, he said.
While the Nubira-II to be launched in two variants - the 1.6 and 2.0 DOHC engine - will be priced between Rs 9-10 lakh for the Indian market, the Big Magnus, which is designed in Italy, is equipped with a powerful 2.0 DOHC engine, will be priced between Rs 13-15 lakh. The cars will be on Indian roads before the year end, said company officials
Senior company officials said that the mid-size segment in India is expected to grow at an average of 21 per cent over the next five years and will lead the next phase of the growth in the Indian car market.
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No plans to increase stake in ACC says Gujarat Ambuja
Mumbai: Even as expectations rose that Gujarat Ambuja (GACL) would make an open offer for ACC following the preferential allotment to Warburg Pincus which brought in Rs 360 crore to its kitty, senior officials in Ambuja Cements made it clear on Friday that it is content with a 14.4 per cent stake in ACC and has no plans to hike its holding in ACC and would be happy continuing with the "strategic alliance."
The ACC stock has been on an upswing during the last three days as GACL made public its plans to rake in funds through a preferential allotment.
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Gesco appoints advisors in merger with Mahindra
Mumbai: Kotak Mahindra Capital Company has been appointed as advisor by Gesco Corporation for its proposed merger with Mahindra Realty & Infrastructure Developers.
Kotak Mahindra would prepare and later submit a draft scheme and valuation report to the company, GCL said in a notice to the Bombay Stock Exchange on Friday.
The board has also decided to appoint Amarchand & Mangaldas & Suresh A Shroff & Co as legal advisors, Kalyaniwalla & Mistry as chartered accountants and N M Raiji & Co as valuers, it said.
The Sheths promoters of Gesco, lost control of the company early this year, after Delhi-based developer Abhishek Dalmia made a hostile bid for Gesco. This was countered by Mahindras, who acquired 45 per cent stake shareholding in the company.
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Institutional lenders to Dabhol agree to a vote in writing
Mumbai
: Institutional lenders to the Dabhol Power Company on Friday agreed that the final decision on the issue of a pre-termination notice (PTN) would be taken through a vote in writing instead of a voice vote as earlier planned.
However this would delay the results until next Tuesday.
This was decided after Indian and foreign lenders on Friday attended a conference call with US energy major Enron, the promoters of Dabhol Power Company, where the issue was whether the company should issue a PTN to the Maharashtra State Electricity Board.
Enron is keen on issuing PTN to MSEB following defaults in payments for a number of months.
However, the lenders to the 2,144 MW power company are divided on the issue and unless the majority of the lenders agree, DPC cannot go ahead with issuing a PTN to MSEB.
Although Indian lenders are a majority both in terms of funded amount and number or participants, the voting rights are so framed that the rights of each investor is protected and that large lenders do not end up dominating the voting proceedings.
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VSNL privatisation cannot be hastened says Sebi
Mumbai: The Securities & Exchange Board of India says it has informed the Department of Divestment that there is no clause in its takeover regulations that can allow relaxations to the open offer procedures.
This comes in response to DoD secretary Pradeep Baijal’s request that Sebi should compress the time-period required for making an open offer in the case of the prospective buyer of the 25 per cent stake being divested by the government in Videsh Sanchar Nigam.
The sale of the 25 per cent government stake along with change in management control is expected to be concluded by August this year.
Further Sebi is said to have informed Baijal that a change, if any, to the takeover regulations would have to be made by the Sebi board and as the regulations stand there is no clause for any relaxation.
Earlier, Baijal told reporters that his department would be urging Sebi to compress the time-period for the open offer from the current three months. This is because the prospective buyer, which would have to make an open offer for another 20 per cent of VSNL's equity, would like to conclude the entire procedure at the earliest.
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HDFC may tie-up with Chubb Insurance for non-life JV
Mumbai: The Housing Development Finance Corporation and US property insurer Chubb Insurance are in talks for a joint venture in the non-life segment.
According to sources, the two companies are discussing the terms under which a partnership could be finalised.

Chubb entered India five years ago when it tied up with Kotak Mahindra Finance for a non-life joint venture. However, the partnership fell through in ’99 when KMFL changed tracks and decided that growth lay in the life insurance business.
Since then Chubb has been scouting for a non-life partner and had some time ago started negotiations with the BPL group, which got stalled when Sebi hit the latter with charges of insider trading. Industry sources say that Chubb has still not burnt its bridges with BPL and a final decision would be taken after the appellate tribunal announces its judgement with regard to BPL’s appeal against Sebi’s order.
Chubb is the holding company whose subsidiaries are engaged in two industries —- property and casualty insurance and real estate. For the year ended December ’00, the company’s revenues increased 8 per cent to $7.25 billion, while net income increased 15 per cent to $714.6 million.
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RPL; Export led growth
New Delhi:
As part of its one-year term contract with Brazil for export of one million tonne of diesel, valued at over $250 million Reliance Petroleum Ltd (RPL) exported 80,000 tonne of diesel to Brazil during May 2001.
The company despatched two cargoes this month to the Brazilian national oil company Petrobras.
RPL earned $409 million in foreign exchange from export of 1.59 million tonne of diesel during the first 10 months of 2000-01. The company exported $1,375 million (about Rs 6,410 crore) worth of petroleum products in 2000-01, mainly to destinations in the Far East, Europe and the US, including Japan, Singapore, Indonesia, Malaysia, Thailand, China, Greece and Italy. The company is now looking for newer markets in Asian and Latin American countries for exporting products, especially diesel and naptha from its refinery.
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Unused Air India routes may be transferred to other airlines
New Delhi:
Domestic Indian carriers as well as other international airlines should be allowed to operate on routes where bilateral agreements signed between India and countries including Russia, USA, Germany and UK have been lying unused for three years continuously.

The civil aviation ministry proposed this as it felt that more than half of the routes remain unused due to unavailability of aircraft with Air-India.

However government officials said that the first right of refusal will be retained with the national carriers.

As a result, while Indian Airlines and even Jet and Sahara Airlines could be permitted to fly to Europe and America, international airlines including Emirates and Singapore International Airlines (SIA) that have even offered to pay rents, could operate Air-India’s unused flying rights to Dubai and Singapore, they said.

At present, designated carriers from about 55-odd countries operate from India.

Since November 1999, fresh bilateral agreements have been signed with 21 countries including Germany, UK, Thailand, UAE and Gulf Air owning states.

Indian national carriers particularly Air India has not been able to fly on all these routes due to inadequacy of aircraft. Moreover, Air India does not have plans to purchase any new aircraft.
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Star to achieve break-even point this fiscal
New Delhi:
Star India Ltd, is expecting to break even when the financial year closes on June 30 with expected earnings of around Rs 450 crore— the highest since till Star channels started beaming into India in 1991-92. This is still lower than the projected figures of competitors like Zee and Sony.

According to Star India sources, the company has already exceeded its revenue target for this fiscal and if everything goes well, it may end up with revenue figures of over Rs. 450 crore.

Though Star Network in India is clocking impressive revenue figures, Sony Entertainment TV India has mopped up over Rs 400 crore of revenues in the financial year 1999-2000 with the target for 2000-01 being about Rs 600 crore.

Though Zee Telefilms Ltd, a listed company, has not yet declared its fourth quarter year results yet, the net profit for Q3 was up 29 per cent to Rs. 32.1 crore on a total income of Rs 113.3 crore.
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UB faces problems in marketing San Miguel
Mumbai:
United Breweries, which recently acquired a majority stake in Associated Breweries, is facing problems in marketing the San Miguel brand.

San Miguel owned by the Philippines-based San Miguel Corporation was being sold in India by Associated Breweries as the latter had an exclusive license for manufacturing and marketing the brand.

However, following a change in management control, the contract with the new owners of Associated Breweries has not been renewed.

Company dealers reported a shortage of the brand in the market for the past three months.

A senior official of the UB group said the company was in the process of working out a fresh agreement with San Miguel Corporation.

UB had acquired a 65 per cent in Associated Breweries for a consideration of Rs 60 croreand is said to be planning to acquire the remaining 35 per cent over the next two years time.

The acquisition gave UB access to brands such as London Pilsner, London Diet and Maharaja Premium. The group is also planning to launch San Miguel nationally to take on the stiff competition from Fosters.
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Sarovar Park; in expansion mode
Bangalore:
Sarovar Park Plaza Hotels (SPPH), which hopes to attain 50 per cent growth in five years is planning to increase its portfolio of hotels from 20 to 30 by the end of 2003. By the end of the current fiscal the group plans to launch four more hotels in India.

The group is also negotiating with hotels in Nepal and South Africa for expanding outside India.

The Rs 100 crore group would also be foraying into the area of institutional services. As part of the plan, the company would handle the housekeeping, catering and hotel operations of the Indian School of Business in Hyderabad.

The group had recently tied up with the Bangalore-based Harsha Hotels, which is now renamed Harsha Park Inn.

Sarovar Park would be managing three theme restaurants at Carlton Towers in Bangalore and is giving thrust to its ‘theme restaurants’ with brands like Geoffrey's (an English style pub), Rewind (a restaurant to recreate the nostalgia of Hollywood) and Oriental Blossom (a Chinese Cuisine restaurant).
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domain - B : Indian business : News Review : 19 May 2001 : companies