Reliance set to take over JCT’s polyester div
Mumbai: In a move that will enhance its capacity, Reliance Industries, is all set to take over the polyester division of JCT valued at Rs. 492 crore. The business, together with its outstanding loans is expected to be transferred to Terene Fibres, a Reliance associate company.

As a result of this, the Thapar family will retain the cotton division of JCT and will infuse Rs 80 crore into it as fresh equity.

It is understood that most of the FIs with exposure to the Thapar group company have given an in-principle approval to the deal.

A part of the loan outstanding to the institutions is to be repaid by way of shares allotted in Terene Fibres, which the institutions hope will appreciate with time.

Reliance Industries has already acquired Orissa Synthetics, Raymond Synthetics, India Polyfibres and Hyderabad Polyester.
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Nandas get out of retail, put Nanz on the block
New Delhi: At a time when other business groups are getting into the retail sector, the Delhi-based Nanda family of Escorts, are understood to be planning an exit from the retail scene. They are said to have put their chain of retail stores, Nanz, on the block. The chain was a three-way joint venture between the Nanda-family, Nanz of Germany and Marsh of US. All the three partners have decided to offload their stake in the company.

According to industry sources, talks are going on with a few Indian companies and the deal should be concluded this month itself.

As part of its restructuring process to concentrate on its core businesses, the Nanda family has, in the last year-and-a-half, offloaded substantial chunks of its equity in three joint ventures to its overseas partner.

It all started last year when Escorts sold one-third of its shares in construction equipment company Escorts JCB to JCB of the United Kingdom for Rs 49 crore. Next came the turn of Hughes Escorts Communication, a 51:49 joint venture between Hughes Communications of the United States and Escorts. In December last year, Escorts offloaded 23 per cent to Hughes for Rs 75 crore.
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Zee planning to rope in Sterling for DTH project
New Delhi: In a bid to get the first mover advantage, Zee Telefilms has roped in Sivasankaran’s Sterling Infotech as an equity party in a proposed low-cost DTH venture. It is understood that, at present this just a distribution deal.

Sterling in turn has inked an agreement with Sun TV channels to be on the direct-to-home TV service platform.

The alliance could also be a result of the fact that Zee, as a broadcaster, cannot hold more than 20 per cent in the proposed DTH service. It is expected that the Sterling group, which is also active in the field of convergence, will provide the set-top boxes and smart cards necessary for a subscriber to access a KU-band DTH television service.

Sterling is already understood to possess a versatile set top box with features like interactivity, DVD and CD player all in one. The higher end of the box will also be able to provide Internet service on the proposed DTH platform.

The simple version of the DTH set-top box will be available to the household at less than Rs 500 per box. Meanwhile, main competitor of Zee, Rupert Murdoch-controlled Star TV too is finalising its DTH plans.
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NIIT inks deal with banks to build a $100 million war chest
Mumbai: India’s leading software development and training major NIIT has tied up with five banks, including foreign ones, to raise $100 million to part-fund its acquisitions in the overseas market.

Without any overseas listing for ADRs’ or GDRs’, the company hopes that to use as a currency for buyouts, the hard currency from banks is expected to boost its acquisition plans. The company is in the process of identifying software firms in the US and European markets for possible acquisitions. The banks are expected to release the funds as and when NIIT finalises its proposed acquisitions.

The software industry is viewing this as a positive development. Earlier, the leading banks were reluctant to finance the expansion/acquisition plans of infotech firms in India because these companies were not able to pledge any physical assets. Now, they are ready to lend against pledge of the promoters’ shares.
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Mehta-family plan joint ventures for Saurashtra Cement, Gujarat Sidhee
Mumbai: The Mehta-family, which controls two loss-making cement companies — Saurashtra Cement and Gujarat Sidhee Cement — are planning to convert these companies into joint ventures by offering "substantial equity" to an international cement major.

It is understood that a recast plan is being drawn up to fund a Rs 270 crore cement capacity expansion, under which the Mehta family will bring down their stake in the two companies. It is also expected that the overseas partner will pick up stakes equal to that of the promoters in both companies through a preferential allotment of shares.

While industry sources see this move as an exit strategy for the family, Mr. Jay Mehta, group vice-chairman clarified that the family intends staying on and does not envisage its stake going below the potential strategic partner.

International majors like Lafarge and Cemex are understood to have shown interest in joining the companies as strategic partners, although the talks are at a preliminary stage.
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Haldia Petro may be split into two cos
New Delhi: In its bid to tide over the funds crisis, Haldia Petrochemicals, which inaugurated its cracker unit after much delay, is said to be contemplating breaking the company into two. The new units would be Haldia Petrochemicals, the crackers and utilities unit manufacturing ethylene and propylene and Haldia Polymers for manufacturing polymers, polyethelene and polypropelene.

The proposal also envisages offering a majority equity stake to state-owned Indian Oil Corporation in the proposed cracker and utility company Haldia Petrochemicals.

The company is desparately looking for funds to meet its huge interest obligation, with a total debt of about Rs 4,000 crore. IOC has been in talks with HPL for equity investment in the company, but its terms for such investments are not known.
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Financial institutions force Mittals to shelve LNG terminal project
Mumbai: The Mittal-family controlled Ispat Industries has decided to shelve its plans to build a LNG terminal at Kakinada in Andhra Pradesh.

The Rs. 2,100 crore LNG project, promoted by group company Ispat Energy, was to set up a 2.5-million tonne terminal in the oil-rich Kakinada basin in the state’s East Godavari district.
However, with the financial institutions putting stringent conditions and stating that the group should, instead, concentrate on its ongoing steel project at Dolvi, the company was forced to shelve the LNG project. Shelving of the LNG terminal is one of the conditions the institutions had suggested for extending assistance to the steel project.

IEL has signed a gas sale agreement with Enron Energy Marketing Company for supply of gas to the power project. Ispat Industries holds 51 per cent equity in IEL while the rest is held by Enron India Regional Development.
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