India Foils approve stake sale to Sterlite
Calcutta: Khaitan group company India Foils has secured shareholders’ approval to sell 55 per cent of its equity to Sterlite Industries. The company’s chairman, B.M. Khaitan, told the shareholders at an extraordinary general meeting that it would be advantageous for the company to be with Sterlite than with Hindalco. An earlier proposal for the company to merge with Hindalco did not work.

With the sale of the holding to Sterlite Industries, Mr Khaitan’s holding in India Foils will decline to 27 per cent from the present 60 per cent. The control and management of the company will undergo a change. The company will issue a mix of equity and warrants for Rs 50 crore in favour of Sterlite or its nominees. The funds will be used to meet its long term working capital resources.
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Nokia to make more investments in India
Mumbai: Finnish mobile phone equipment company Nokia is considering expanding its activities in India. The company foresees dynamic growth for the mobile phone sector in the country, and plans to make investments on this basis. It has identified India as one of the most important business hubs for its field engineering group, besides the US and Europe. The hub will cater to the requirements of the company’s customers in the entire Asia-Pacific region.

Nokia managing director Simon Beresford-Wylie says India will be an important investment target for Nokia. The company has a global customer base of around 300 million.
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Financial closure for BSES' power project
Mumbai: The Rs 718-crore, 230-mega watt Samalkot power project in Andhra Pradesh, promoted by BSES, has attained financial closure. BSES has a 70 per cent holding in the company, BSES Andhra Power, with the balance held by SEW Constructions and Prasad & Company, two AP-based civil engineering firms. The project has a debt-equity ratio of 70:30. The debt component comprises Rs 503 crore and the equity is Rs 215 crore. BSES says the entire debt and equity funding for the project has been tied up.

The State Bank of India is the lead arranger for the debt. A consortium of banks comprising Corporation Bank, Dena Bank, Canara Bank, Syndicate Bank, Andhra Bank, Vysya Bank, and State Bank of India has committed funds for the project.
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IDBI for stake in Global Tele arm
Mumbai: The Internet service subsidiary of Global Telesystems, Global Electronic Commerce Services, will have a new ally – the Industrial Development Bank of India. IDBI is understood to be picking up a strategic stake in the company.

Global Electronic Commerce Services has been in the market to raise funds for a number of its projects in e-commerce, Internet and messaging, and managed network services. The company has been in operation for nearly three years and has a customer base of 6,500. It operates a digital data network.

If the deal is concluded, it will be the second of its kind. Earlier, ICICI Bank and Satyam Infoway had come together to set up an online distribution of retail banking products.
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