Corporate News - Oct 28 2009

Business Standard

Sun TV ties up with Endemol

Sun TV Network (Sun TV), owned by Kalanithi Maran, is looking at foreign partners to produce non-fiction contents. The company on October 27 joined hands with Dutch firm Endemol to launch a television game show.

``This tie-up would be the first step towards more international joint ventures. The international partner will bring his production expertise and will work on licensing model,`` said Sun TV chief operating officer Ajay Vidyasagar. Sun has a market share of 30-32% in the weekend viewer ship category and is planning to increase it by 12-15% over the next six months by offering new contents.

Economic Times

Aditya Birla PE fund raises USD 120 million

Aditya Birla Private Equity has raised USD 120 million through its maiden fund to invest in companies engaged into infrastructure, logistics, education, healthcare and consumer businesses. A person close to the development said the collected fund was 20% more than the target as banks, insurance companies and high networth individuals showed better-than-expected response.

Aditya Birla Private Equity, which recently acquired a minority stake in the Bombay Stock Exchange, announced that it will follow a hands on approach in managing its investment, rather than being a passive investor in the companies. The fund fixed a ticket size of Rs 5 million. The PE will raise another USD 100 million by end of this year, said the person.

Dish TV hopeful of reducing losses in coming quarters

Direct-to-home (DTH) service provider Dish TV on October 27 said it will continue to reduce its losses in the coming quarters without disclosing a time frame by when it would start making net profit. The company reduced its net loss by two thirds to Rs 561.3 million during the quarter ended September, over the year ago period, due to reduction in distribution and content costs besides adding new subscribers.

Its total revenues grew 48.5 % to Rs 2.57 billion compared to Rs 1.73 billion in the same period last year as it added 4.07 lakh new subscribers in the quarter to take the gross subscriber numbers to 59.19 lakh.

Binani Cement may acquire Turkish co for Rs 10 bn

Binani Cement is in talks to acquire a cement firm in Turkey for around Rs 10 billion as part of its strategy to more than double its production capacity by two years. It is learnt that the target company has an annual production capacity of 2 million ton and the deal is likely to be sealed by March next year.

It is believed that the Binani board last week approved the foreign acquisition which would be financed equally by internal accruals and debt. Rajasthan-based Binani has been working on a plan to scale up its annual capacity from 6 million ton to 14 million tonne by 2011-12.

Birla Corp examines overseas acquisitions

The M P Birla group flagship Birla Corporation is examining overseas acquisitions. The company is examining opportunities to buy out cement manufacturing companies in the emerging markets but nothing has been finalized as yet.

Birla Corporation`s newly-appointed chairman Harsh Vardhan Lodha said, ``The company also plans to invest Rs 23.50 billion to enhance its annual cement manufacturing capacity to 11.5 million tons over the next four years.``

Wockhardt hospitals` acquisition to be over by December: Fortis

Hospital chain Fortis Healthcare on Tuesday said that the acquisition of ten hospitals from rival Wockhardt Hospitals for Rs 9.09 billion announced recently, will be completed by December and will start contributing to the financials from the next quarter.

Fortis` net profit grew 23% to Rs 130 million for the second quarter ended September over the year ago period, driven by higher revenues from its larger hospitals. The company`s revenues rose 21% to Rs 19.05 billion from Rs 15.80 billion in the corresponding quarter last fiscal.

Vishal Retail in biz rejig mode, to raise Rs 1.5 bn

Vishal Retail is in talks with two potential investors, including a retailer, in a move that may see the exit of current promoter RC Agarwal from the company and possibly mark the first distress sale in the Indian organized retail space.

Vishal Retail, which faces a debt liability of Rs 7.3 billion, is working on bringing in a strategic investor as part of pre-conditions laid down by lenders for corporate debt restructuring (CDR).

Idea Cellular to invest Rs 45 bn on expansion

Idea Cellular, the Aditya Birla Group`s telecom arm, will pump in around Rs 45 billion this fiscal for expanding operations to cover all the 22 telecom circles in the country.

``We now have presence in 20 circles. We will soon launch operations in Assam and the North-east to make our presence felt in all 22 telecom circles, `` Idea`s operations director Ambrish Jain said.