Author Archives: aurumequitypartners

Cox & Kings selling camping unit under Holidaybreak to French firm Homair for $149M

The Aurum Perspective – Is it a good idea to have leverage-buyouts in order to fulfil your  growth aspirations?

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Two years ago CVCI invested $137.75 million in Cox & Kings’ unit Prometheon, part of which was used to repay debt taken to acquire Holidaybreak.

Mumbai-based Cox and Kings Ltd has struck a deal to sell the camping division of UK-based education and activity travel arm Holidaybreak Ltd to French firm Homair Vacances for £89.20 million (Rs 882.8 crore or $149 million), as per a stock market disclosure.

The completion of the deal is subject to regulatory approvals and is expected in three months.

Homair Vacances will pay £85.5 million ($143.19 million) in cash on completion and £3.7 million ($6.19 million) is deferred relating to a tax refund.

The camping division provides outdoor family holidays on over 170 third-party owned campsites across 12 European countries.

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Speciality Restaurants to acquire majority stake in bakery chain Love Sugar Dough

The Aurum Perspective – Restaurant chains in India would need to  acquire restaurant formats, outside their core, in order to build scale.

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Fine dining restaurant chain Speciality Restaurants, which is backed by multi-stage PE investor SAIF Partners, is acquiring majority stake in Mumbai-based bakery chain Love Sugar Dough, as per a stock market disclosure.

VCCircle had first reported in June 2013 that the company is in talks with firms to acquire a bakery chain.

It is picking 51 per cent stake for Rs 75 lakh.

Love Sugar Dough is a Mumbai-based company set up in 2011 by Nauzad Munshi and Tarannum Merchant. It has eight bakery stores spread across Mumbai, Pune and Surat and wish to scale up and expand the stores in other cities.

“We were looking at entering quick service restaurants as well as bakery chains. Though Love Sugar Dough is a small chain; it is an initiative in that direction. We wanted to invest in a company that had the potential of scaling up; as this is a new startup we felt it had potential and so the investment,” Rajesh Mohta, executive director finance, Speciality Restaurants Ltd, told VCCircle.

Read the full article  here.

Everstone Capital Invests In Dominos’ Indonesian Franchise

The Aurum Perspective – Jubilation and domino effect causing Everstone to take large bites in the restaurant retail business in the Asian region.

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India and South East Asia focused PE investor @Everstone has acquired a controlling 51% stake in Indonesian franchise of Dominos Pizza, PT Dom Pizza Indonesia for $20 Mn. The fund will be used to expand its existing operations of 60 branded pizza outlets in six Indonesian cities, including Jakarta and Bali.

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The PE firm would make the investment through its specialized arm F&B Asia Ventures which maintains a portfolio of food & beverage brands across India and South Asia.

Mitra Adiperkasa, the largest retailer in Indonesia with over 1800 stores in 59 cities, owns departmental stores, food and beverage chains and has a unique franchise portfolio of various global lifestyle brands like Zara, Marks & Spencer among others. It will continue to own the residual 49% in the JV.

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Snapdeal raises USD 100 million at a valuation of $1B

The Aurum Perspective – Given the large amount of capital raised by Snapdeal and Flipkart, and being the icons of the e-commerce industry in india: should any of them not finally succeed, it could have a major impact on the future of e-commerce in India.

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Online marketplace Snapdeal has raised USD 100 million in a fresh round of funding at a valuation of USD 1 billion. The investment was led by BlackRock, Premji invest, Myriad, Temasek and Tybourne.

It aims to utilize the raised funds to accelerate market network, scale up its infrastructure and to extend its national and international brand building.

Till date, including this round, the company has secured a total funding of USD 435.70 million. Earlier, it has raised a funding amount of USD 133.70 million in series F round by Saama Capital, eBay, Kalaari Capital and others.

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Snapdeal was co-founded in 2010 by CEO Kunal Bahl. The company is headquartered in New Delhi with 1300 People in its team. It offers best priced deals on branded products like computer peripherals, cosmetics, perfumes, watches, mobile phones, electronics, apparels, bags, footwear, sunglasses, kitchenware etc.

“Our mobile and internet commerce marketplace is now connecting millions of buyers to a very large base of sellers that offer products and services of national and international brands. ” said Kunal in a statement.

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Jaypee Group selling two hydro-power assets to UAE utility Taqa, IDFC Alternatives’ consortium for $1.6B

The Aurum Perspective – The answer to deleverage India’s infrastructure sector, specifically energy, lies with investments from global utility companies and mega institutional investors.

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The equity value of the transaction is around $616 million with the rest being debt.

Jaiprakash Power Ventures Ltd (JPVL), a subsidiary of Indian infrastructure conglomerate Jaypee Group, is hiving off two hydro-power plants as a part of its group asset-disposal plan to a consortium of investors, including Abu Dhabi National Energy which operates under the banner of Taqa, Canadian institutional investor Indo-Infra Inc and IDFC Alternatives.

The two plants are Baspa Stage II and Karcham Wangtoo in the northern Himachal Pradesh.

“The board of directors in its meeting held on March 1, 2013, accepted the recommendations for the divestment of 300 MW hydro-electric plant and 1,091 MW Karcham Wangtoo hydroelectric plant. The divestment is proposed to be by way of hiving off the two plants to two separate wholly owned subsidiaries through a scheme of arrangement to be sanctioned by the high court with eventual transfer of ownership of the said subsidiaries to the purchasers viz consortium led by Taqa India Power Ventures Pvt Ltd, Indo-Infra Inc and India Infrastructure Fund-II,” the company said.

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Motilal Oswal hits first close of second domestic realty fund at $36M

The Aurum Perspective – Mezzanine capital from domestic realty funds towards India’s real estate sector keeps investor interest alive.

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It targets to raise Rs 500 crore, including a green-shoe option to invest through mezzanine debt deals.

Motilal Oswal Real Estate (MORE), the real estate arm of Motilal Oswal Private Equity, has made the first close of its second real estate dedicated private equity fund at Rs 225 crore ($36 million), the company announced. The fund is looking to raise Rs 500 crore, including a green-shoe option of Rs 200 crore.

VCCircle was the first to report in December that the fund is planning to mark its first close at around Rs 200 crore.

The fund called the India Realty Excellence Fund II LLP was launched in November 2013 and it aims to capitalise on the opportunities by focusing on mezzanine debt transactions, which provide regular income through fixed coupon and a subsequent project link upside. It is targeting an IRR of 25 per cent.

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Michael Dell, eBay founder invest in Indian debt financing company

The Aurum Perspective – Is overseas debt for socially relevant businesses reflective of the lack of performance of social capital venture funds in India?

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Dell Inc. CEO Michael Dell and eBay founder Pierre Omidyar have invested Rs 28 crore in the Mumbai-based debt financing firm IntelleGrow.dell396

Omidyar Network, a philanthropic investment firm founded by Omidyar and his wife Pam, has invested Rs 25 crore in IntelleGrow, while Michael, who took the US-based computer maker Dell private last year, has invested Rs 3 crore through the Michael and Susan Dell Foundation.

IntelleGrow provides customised debt finance to small and emerging businesses in India, focusing on sectors like clean energy, agricultural supply chain, education, financial inclusion, affordable healthcare and water and sanitation.

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