Market Analysis: Review on Monday, Nov 22
Centrum
in
talks
to
buy
out
Future
from
two
JVs
Centrum
Capital,
a
financial
services
company,
is
in
talks
with
Kishore
Biyani's
Future
Capital
Holdings
(FCH)
to
buy
out
the
latter's
stake
in
their
foreign
exchange
and
wealth
management
joint
ventures
(JVs).
Future
Capital
owns
50
percent
stake
each
in
FCH
Centrum
Direct
and
FCH
Centrum
Wealth
Managers,
which
it
had
bought
in
Mar
2008
for
Rs
100
crore.
Centrum Group is also planning to raise Rs 500 crore in the next two to three months to expand its retail financial services and non-banking financial service businesses.
The
Mumbai-based
group
aims
to
raise
this
amount
through
qualified
institutional
placement
or
a
private
investment
in
public
equity
method
in
Centrum
Capital
or
a
private
equity
deal
in
Centrum
Financial
Services.
Centrum's
retail
financial
services
business
includes
foreign
exchange,
wealth
management
&
retail
broking,
non-banking
finance
and
international
business.
The
group's
plan
is
to
increase
its
distribution
presence
from
45
cities
at
present
to
100
cities
in
the
next
three
years.
Emami eyes one more buy in Africa
Emami, maker of the Fair & Handsome and Boroplus cream brands, is in talks to acquire a personal care company in Africa. The deal size and name of the firm could not be ascertained. If it fructifies, this will be the second acquisition for Emami in Africa in the current financial year.
In Jun 2010, Emami acquired the manufacturing facility of a personal care company in Egypt for Rs 25 crore. The current acquisition, in contrast, will be a brand acquisition.
The board has approved the investment plans of Rs 5000 crore in India and abroad in personal care and healthcare. The board approved to raise Rs 2000 crore long term debts for funding the acquisition.
The Company is in talks with two-three companies in the domestic market place for possible acquisition. Internationaly it is looking African and European markets for acquisition.
(An article by DAS CAPITAL MANAGEMENT & ADVISORS Pvt Ltd)