Shares of Apollo Tyres will be in focus after US based tyre maker Cooper Tire & Rubber Company on Monday, 30 December 2013, announced that it has terminated the merger agreement with Apollo Tyres. Commenting on the development, Cooper Chairman, Chief Executive Officer and President, Roy Armes, said: "It is time to move our business forward. While the strategic rationale for a business combination with Apollo is compelling, it is clear that the merger agreement both companies signed on June 12 will not be consummated by Apollo and we have been notified that financing for the transaction is no longer available. The right thing for Cooper now is to focus on continuing to build our business. Our business model is strong, and despite the challenges this year, we are coming off record operating profit through the first half of the year and expect to continue to be profitable for the second half, ending the year with a strong balance sheet. We look forward to continuing to execute on our strategy in 2014, and we have a very strong base from which to do thisbrands that are respected for quality, a loyal customer base, a flexible global network of manufacturing facilities, a skilled workforce, and top technical capabilities".
"While Cooper believes Apollo has breached the merger agreement, and we will continue to pursue the legal steps necessary to protect the interests of our company and our stockholders, our focus will be squarely on our business and moving it forward," Armes said.
"Addressing the situation at Cooper Chengshan Tire (CCT) in Rongcheng, China is our top priority in the near term. The issues at CCT were driven by the merger agreement, and with the agreement now terminated, Cooper is working independently to restore normal operations at CCT, including obtaining the information needed for Cooper to resume regular financial reporting as soon as possible. Once the situation at CCT is resolved and regular financial reporting has resumed, Cooper will be in a position to address additional options for the deployment of capital targeted at returning value for our stockholders," he added.
Trent will be watched on reports the Foreign Investment Promotion Board (FIPB) on Monday, 30 December 2013, approved UK-based Tesco Plc's proposal to enter the Indian multi-brand retail segment in joint venture with Tata Group company with an initial investment of $110 million. After the approval, Tesco will pick up a 50% stake in Trent Hypermarket, a wholly-owned subsidiary of Trent, a Tata group company.
Canara Bank has hiked its base rate from 9.95% to 10.20% and its benchmark prime lending rate (PLR) from 14.20% to 14.45%. The changes are effective from 1 January 2014.
GMR Infrastructure (GMR) after market hours on Monday, 30 December 2013 said it has signed a definitive agreement with Malaysian Airports Holding Berhard (MAHB) to divest its 40% equity stake in Istanbul Sabiha Gokcen International Airport (ISGIA)and its operating company LGM Tourism (LGM) for an amount of euro 225 million (i.e. approximately Rs 1910 crore), subject to certain adjustments. Definitive agreements have been signed subsequent to the exercise of Right of First Refusal (ROFR) by MAHB under the existing shareholders agreement of ISGIA, on 23 December 2013, GMR said.
GMR said that the transaction is subject to customary closing conditions including the approval of the relevant government authorities and the project lenders to ISGIA.
Commenting on the transaction, G M Rao, Chairman, GMR Group said, This transaction is yet another evidence of GMR Group's ability to implement appropriate strategy to face the challenges of changing times. We at GMR Group continue to focus on creating liquidity and enhance value by effective portfolio management under our ALAR (Asset Light Asset Right) strategy. The efforts of the Group taken in recent times shall strengthen our balance sheet.
ISGIA is one of the world's fastest-growing airports. It currently hosts more than 58 different carriers covering over 125 destinations. The consortium of Limak Holidng, GMR Group and MAHB was selected as the preferred bidder for upgrading and maintaining the airport in July 2007. The airport's new terminal was commissioned in October 2009, 12 months ahead of schedule. LGM undertakes the operation of non-zero services at the airport such as hotel, food & beverages, and lounge. GMR's equity investment at ISGIA is around euro 71.6 million.
Jain Irrigation has bagged one of the country's largest irrigation projects worth Rs 386 crore in Karnataka. The project mooted by Krishna Bhagya Jal Nigam, a division of Water Resources Department of Karnataka, intends to irrigate 30,381 acres owned by over 7,000 farmers in 35 villages.
SKS Microfinance announced the fourth microfinance securitization of Rs 55 crore during the current financial year. The first three substantial securitizations were: Rs 321 crore (announced by the company on 30 September 2013), Rs 80.81 crore (on 11 December 2013) and Rs 215 crore (on 19 December 2013).
SKS Microfinance said it has downloaded the receivables from micro loans extended to more than 72,000 rural women entrepreneurs to a Special Purpose Vehicle, and Pass Through Certificates (PTCs) have been purchased by a private sector bank. The entire pool qualifies for weaker section treatment as per the RBI's priority sector lending guidelines.
The pool is rated A1 + (SO) by a leading rating agency signifying 'a very strong degree of safety regarding timely servicing of financial obligation'. Such instruments carry the lowest credit risk, the company said in a statement.
The pool is structured with geographical diversity as it comprises receivables from 13 non-Andhra Pradesh states, and has been subjected to a seasoning of three months, the company said.
Readymade Steel India after market hours on Monday, 30 December 2013 said that its subsidiary, KH Foges Pte, Singapore has successfully completed the acquisition of the entire share capital of PSL Engineering Pte (PSLE) and Rotary Piling Pte (RPL), wholly owned subsidiaries of PSL Holdings, Singapore (a listed company on the Singapore Stock Exchange).
The acquisition cost is about Rs 85 crore as per the share purchase agreement, Readymade Steel India said in a statement.
PSLE was incorporated in Singapore in 1984. PSLE is one of the leading foundation engineering company in Singapore specializing in micro-pile, soil nail, soil and rock anchors etc.
RPL was incorporated in Singapore in 1974 having its specialisation in bore piling, civil, mechanical construction and other ground engineering works.
KH Foges Pte (subsidiary of Readymade Steel Singapore Pte) is second largest specialist contractor in foundation engineering works in Singapore. KH Foges is currently present in Singapore, Malaysia and Myanmar.
Onelife Capital Advisors (OCAL) on Monday, 30 December 2013 said that its Board was informed that KPT Infotech has issued three post dated cheques amounting to Rs 7.70 crore which was given by OCAL for brand building out of IPO proceeds.
OCAL said that Fincare Financial and Consultancy Services and Precise Consulting & Engineering was informed that discussions is going on in addition to legal notice for refund of advances paid to them. OCAL's Board is hopeful for amicable settlement with both the parties, it added.
Consolidated Construction Consortium on Monday, 30 December 2013 said that the company has decided and has applied for Corporate Debt Restructuring (CDR) Scheme. The necessary application for the same is being filed with CDR cell for its approval, it added.
A2Z Maintenance & Engineering Services at the fag end of trading hours on Monday, 30 December 2013 said that its Board at a meeting held on Monday, 30 December 2013, has accepted the Letter of Approval (LOA) dated 28 December 2013, issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the Corporate Debt Restructuring (CDR) proposal submitted by the company. The CDR EG approved the CDR proposal at its meeting held on 24 December 2013.
A2Z Maintenance & Engineering Services said that the letter of approval is 'Provisional' subject to confirmation of minutes of the ensuing CDR EG Meeting. Further any modification may be taken place at the time of confirmation of minutes, it added.
IG Petrochemicals on Monday, 30 December 2013 said that the company's Phthalic Anhydride Plant (PA-1) at Taloja which was closed for change of catalyst has restarted production and has stabilized operations.
Dhunseri Petrochem & Tea on Monday, 30 December 2013 said that CRISIL Equities has assigned a CRISIL IER fundamental grade of 3/5 (pronounced three on five) and a valuation grade of 5/5 (pronounced five on five) to the company.
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