|
Reliance Petroleum converts foreign
bonds into GDRs
Mumbai: Reliance Petroleum has become the first Indian company to have
its global depository receipts listed without an initial public offer. The company has
gone in for a "forced conversion" of its outstanding $100 million foreign
currency convertible bonds into GDRs.
The converted
GDRs have been listed on the Luxembourg Stock Exchange and will be made available for
trading in a few days. The conversion has taken the company's market capitalisation to
over $5 billion (Rs 20,000 crore). It is learnt that each of the $5,000 face value foreign
currency convertible bonds has been converted into 1,000 GDRs at $5 each. Each GDR
represents 15 shares at a conversion price of Rs 15 per share.
This will mean that foreign investors will have a windfall
as the company's scrip is ruling at Rs 52 on the domestic bourses. The company has
confirmed that all bondholders have opted for conversion of their bonds into equity.
Back
to News Review index page
HCL Tech sets up global
board
New Delhi: HCL Technologies has decided to set up a global advisory board
with Shiv Nadar as chairman. The board will monitor implementation of corporate governance
norms. It will follow best international practices, create global management teams and
help the company in strategic planning for growth.
The present board comprises Mr Nadar as chairman,
president and chief executive officer, Vineet Nayyar as vice-chairman, and three
independent directors. The proposed global advisory board will include five members in
addition to the existing directors.
The company has formed three corporate governance
committees chaired by its non-executive external directors. The three committees are the
audit and finance committee chaired by Richard R. Burt, the compensation committee headed
by Ms Robin Abrams, and the related party transaction committee headed by T.S.R.
Subramaniam.
The company will follow the US Generally Accepted
Accounting Practices.
Back
to News Review index page
Aptech to acquire US
companies
Mumbai: Aptech is planning the acquisition of three US software companies
with an investment of $25 million. It has retained Warburg Dillon Read for assisting it in
finalising the acquisitions. The acquisition will be funded through a combination of
internal accruals and borrowings.
The computer training and software company has targeted a
revenue of Rs 220 crore from software by end-2000, and sees acquisition as the best route
to attain this.
Back
to News Review index page
BSES to take 12% stake in
Petronet
Mumbai: BSES has been offered a 12 per cent stake in Petronet LNG, the
joint sector natural gas distribution company, and it is accepting the offer. Once
Petronet finalises the equity holding pattern, the National Thermal Power
Corporation, the Gas Authority of India Ltd, and Bharat Petroleum Corporation are expected
to own 50 per cent of the company, while the balance will be distributed among private
sector refineries and other strategic partners.
For BSES, this investment will signal a foray into a new
business -- liquefied natural gas. The company is planning to run at least three of its
power stations on gas.
Back
to News Review index page
Gujarat Alkalies
to sell power plant
Baroda: Gujarat Alkalies and Chemicals has decided to sell its 90 MW
power project at Dahej. The sale is expected help the company reduce its interest burden.
The company is offering the project to Gujarat Industries
Power Company. The Gujarat government has also involved another public sector unit, the
Gujarat State Petroleum Company, in the matter. Both companies, in which the state
government has a majority stake, have been assured that the deal will not hurt their
business interests.
Back
to News Review index page
Infosys 15th
largest IT scrip on Nasdaq
Mumbai: Infosys Technologies has become the 15th largest
infotech company quoted on the Nasdaq, with a market capitalisation of over $11.5 billion.
In the past few weeks, the price of Infosys's ADR has been
rising, closed at $174 on 8 October. The company is now ahead of much better known players
like Realnetworking, Adobe Systems, Novell, Lycos, Intuit and PeopleSoft in terms of
market capitalisation.
Back
to News Review index page
Satyam Infoway
equity placement
Mumbai: Satyam Infoway has placed 481,000 equity shares with Sterling
Commerce, the US internet technology firm, for $5 million. The funds are being used for
general corporate purposes, primarily for repayment of debts.
Sterling Commerce is a leader in the market for
business-to-business electronic commerce software. Satyam Infoway has a five-year
agreement with Sterling Commerce signed in 1997 to market electronic commerce network
services, support services and other products developed by Sterling Commerce.
Back
to News Review index page
Hughes equity recast to be
approved
New Delhi: The department of telecommunications has approved the equity
recast of Hughes Escorts Communications. The Foreign Investments Promotion Board is
expected to follow suit.
Hughes Escorts Communications has a licence to operate
VSAT services. The company sought FIPB approval to divest two per cent of its 51 per cent
equity to IndOcean Chase Capital Advisers after DoT reminded it to reduce its stake to 49
per cent as required by the law. The company is a joint venture between Hughes Network
Systems and the Escorts group.
Back
to News Review index page
Opel Corsa in Jan 2000
New Delhi: General Motors India will launch its Opel Corsa in January
2000 as a car in the low end of the mid-size luxury car segment. The launch will coincide
with the Auto-Expo being planned. The price of the car will be comparable with that of
Maruti's Esteem and Fiat's Sienna.
The company is also examining the viability of introducing
a small car and also a car larger than the existing Opel Astra.
Back
to News Review index page
Nahata, Maloo to hike stake in
ITI
New Delhi: The Nahata and Maloo families, promoters of Himachal
Futuristic Communications, have decided to increase their stake in Investment Trust
of India from 30 per cent to 67 per cent. ITI is a hire purchase company with a 47.5 per
cent holding in Kothari Pioneer Asset Management Company, a leading Indian mutual fund.
The equity will be bought at Rs 20 a share. The two
promoters, through their company, TCK Finance, will have to spend around Rs 8 crore for
the stake. The two families have already acquired 3o per cent of Kothari Pioneer for
Rs 2 crore.
Back
to News Review index page
P&G,
Marico in tie-up for Camay, Ariel
Mumbai: Procter & Gamble Home Products, a wholly-owned subsidiary of
Procter & Gamble of the US, is giving distribution rights of its Camay brand of soaps
and Ariel brand of detergent bars to Marico Industries under a tie-up arrangement. P&G
will continue to market these products.
Under an existing arrangement, Marico is distributing
P&G's Clearasil and Old Spice brands.
Back
to News Review index page
France Telecom
ready to buy Global One
Geneva: France Telecom is ready to buy out its partners in Global One.
Deutsche Telekom, which owns 25 per cent in the company, has already made it clear that it
is willing to sell its stake "if the French offer a good price". Even Sprint
Corporation, the other partner in the venture, has engaged investment bankers to evaluate
the company and the figure has been conveyed to France Telecom.
Analysts see the purchase as a better solution for France
Telecom than setting up an alternative for its international clients.
Global One has more than 30,000 customers and an annual
revenue of $1.1 bullion. It is a loss-making company and the proposed MCI WorldCom
acquisition of Sprint Corporation has put created doubts about Sprint retaining its
shareholding in the company.
Back
to News Review index page
Ford, workers agree on
Visteon spin-off
Dearborn: United Auto Workers and Ford Motor Company have reached an
agreement on a new labour contract that averts a strike and allows the spin-off of the
company's Visteon auto components unit.
Details of the agreement have not been made public pending
a formal ratification.
Back
to News Review index page
Peugeot-Ford accord
to continue
Paris: Peugeot Citroen will continue its one-year tie-up with Ford Motor
Company for diesel engines. Peugeot says the deal with Ford "corresponds perfectly to
the group's criteria for partnerships -- to produce higher volumes, thus lowering
development and investment costs".
Back
to News Review index page
Roche selling Genentech
stake
Zurich: Roche is to sell $3.4 billion worth of shares in Genentech, one
of the biggest biotechnology companies in the world. Roche plans to offer up to 22 million
shares -- 17 per cent of Genentech's capital -- for sale. Roche is a majority owner of
Genentech, and had plans to buy out the minority stake at $82.50 per share in June 1999.
It said it is responding stock markets' demand for greater liquidity in Genentech shares.
Back
to News Review index page
|
