Essar settles FRN issue
Mumbai: Essar Steel has said that nearly 65 per cent of the holders of its $250 million floating rate notes have opted for the exit route by agreeing to forego 31 per cent of their principal investment. The company said in a statement that 65 per cent of the FRN holders, whose holding accounts for $162.5 million of the principal issue size, have accepted a settlement of $112 million. Under this repurchase option, the company offered to redeem the FRNs through a fixed price tender offer at a price of $690 per $1,000 note.

The rest have accepted the roll-over option, which comprises extension of the loan at 350 basis points (one basis point is a hundredth of a percentage point) over the London Inter Bank Offered Rate for a period of 10 years, a rupee loan at 14 per cent for 12 years and an unsecured five-year loan at an unspecified rate of interest.

The company said with this amicable settlement, the issue of default, which arose in July 1999, has been fully resolved.
Back to News Review index page  

Chhabria prevents Mallya at BDA meet
Mumbai: Vijay Mallya’s Herbertsons group suffered an initial setback in the Mallya-Chhabria corporate war when Kishore Chhabria, chairman of BDA, prevented Mr Mallya, chairman of Herbertsons and a majority stakeholder in BDA, and others from attending the annual general meeting of the company. Mr Mallya and other nominees then conducted the annual general meeting in another area of the venue.

The security guards appointed by Mr Chhabria prevented Mr Mallya and his nominees from attending the meeting.

After the meeting, BDA was served with a notice stating that an order has been passed by Tiz Hazari court in Delhi ordering status quo on the board of the company.
Back to News Review index page  

Svedala to buy Mukand stake in JV
New Delhi: Svedala, the Swedish equipment maker, is buying a joint venture company promoted by the Mukand group, Mukand McNally Wellman, which is making bulk material handling equipment and systems used in metallurgical plants and ports. Svedala will buy Mukand's 60 per cent holding in the joint venture for about Rs 4 crore.

Svedala, which has a presence in India as an equipment supplier in the infrastructure sector, is planning to restructure its operations and offer services along with equipment. The company wants to make its Indian operations its second largest market in the world after the US.
Back to News Review index page  

Sekhsaria, Kapur on ACC board
Mumbai: The board of directors of Associated Cement Companies at its meeting on 27 December coopted Narottam Sekhsaria, managing director, and A.L. Kapur, whole-time director, Gujarat Ambuja Cements, as directors of the company. The meeting was presided over by chairman Pallonji S. Mistry. The co-option follows Gujarat Ambuja Cements' acquisition of a 7.2 per cent holding in ACC's equity at a cost of Rs 455 crore. The Tatas also hold 7.2 per cent equity in ACC.

Mr Sekhsaria later met the senior officers of ACC and advised them that manufacturing costs would have to come down in order to make the company’s products more competitive. He also said there will not be any change in the company’s management.
Back to News Review index page  

Enron withdraws bid for telecom
New Delhi: Enron has withdrawn its application made to the Foreign Investment Promotion Board to enhance existing clearances to include investment opportunities in the telecom sector. The company is likely to modify its application.

Enron India had proposed that it would explore investment opportunities in various areas, including construction and maintenance of telecom networks, provision of Internet and information technology related services, and data centres.
Back to News Review index page  

Nocil plans restructuring
Mumbai: Mafatlal group company National Organic Chemical Industries Ltd will be split into three. As per a scheme approved by the company’s board, the assets and liabilities of the petrochemicals and polymer divisions of the company will be demerged and vested as a going concern in Nocil Petrochemicals Ltd. The assets and liabilities of the rubber chemicals division will be demerged and vested as a going concern in Polyolefins Rubber Chemicals Ltd. The plastics products division, along with subsidiary companies and certain investments will remain with the parent company, whose paid-up equity will be reduced correspondingly. The company has filed an application with the Bombay High Court seeking directives to hold shareholder and creditor meetings. After the restructuring, the paid-up value of each Nocil share will be split in the ratio of 70:16:14 towards the three entities.

Nocil Petrochemicals will rope in Shell/Montell in an expansion and modernisation project. The multinational is expected to subscribe to 49 per cent holding in the enhanced equity capital of the company. After Shell/Montell subscribes to the equity, the Arvind Mafatlal group’s holding in the company will be acquired by Omkar Singh Kanwar.
Back to News Review index page  

Bajaj Auto plans 12 new models
Mumbai: Bajaj Auto is planning to launch 12 to 14 models of motorcycles and scooters in January 2000. The models will be on display at the Auto Expo in New Delhi. The company is investing nearly Rs 1,000 crore to modernise its three auto plants. The investment will be made in four to five years’ time.
Back to News Review index page  

Govt allows automatic route for acquisitions
New Delhi: The government has decided to allow software companies to finance their overseas acquisitions using the entire proceeds from American depository receipts or global depository receipts without prior permission from the government. The companies will need to provide the government with details of the acquisitions within 30 days of the deal being concluded. At present, only 50 per cent of the proceeds from ADRs and GDRs are available for such acquisitions.

The government, will however, allow only companies that have already floated a GDR or ADR the use of this automatic route as it feels in their cases, the necessary track record has been examined by the government. It has also set a value of $100 million for an acquisition in a year.
Back to News Review index page  

Microsoft plans MSN India portal
New Delhi: Microsoft is launching an Indian website, msn.co.in, in February 2000 to attract Indian web surfers. Microsoft India said the details of the site are still being worked out. The portal will be launched in various Indian languages.

The company also intends to introduce it Message Centre and MSN Messenger Service 2.0 in India.
Back to News Review index page  

Probe against Tractebel
Brussels: Investments of millions of dollars made by Belgian energy company Tractebel in oil and gas-rich Kazakhstan are facing a money-laundering probe. The company, a subsidiary of France’s Suez Lyonnaise de Eaux, confirmed that an inquiry is on. There were reports that Belgian authorities are looking into an alleged payment of $50 million made to three Kazakh businessmen as fee to secure a gas pipeline concession. Tractebel said it is cooperating with the investigations.
Back to News Review index page  

Blackstone to invest in Sirius
New York: New York’s leading investment bank Blackstone Group is investing $200 million in Sirius Satellite Radio, a digital satellite radio operator. The investment will give Sirius capital to build its commercial-free satellite radio system in the US.
Back to News Review index page