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VC Circle – Flower exporter Karuturi Global is raising Rs 290 crore from its promoter Ramakrishna Karuturi and a consortium of foreign institutional investors (FIIs). Both promoter and FIIs are together subscribing 241.5 million warrants of Rs 12 each, which would converted into one equity share. A group of four FIIs, which include hedge fund Monsoon Capital, are pumping in Rs 248.64 crore in the firm. The rest is being invested by the promoter, Ramakrishna Karuturi. The company is now seeking shareholders approval through a postal ballot.
The four FIIs investing in Karuturi will together hold a 29.82% stake in the post-issued capital. They include Emerging India Focus Fund (8.64%), India Focus Cardinal Fund (14.4%), Elara India Opportunities (3.91%) and Monsoon Capital (2.87%). The warrants can be converted within 18 months, and an amount Rs 3 per warrant would have to paid at the time of warrant allotment. The rest of the amount of Rs 9 would be paid when subscribing each equity share, which would have a lock-in of one year.
Forbes – Patrick Degorce, a founder and partner at high-profile activist hedge fund firm The Children’s Investment Fund (TCI), has left the company, a spokeswoman told Reuters on Friday.
Degorce was in the public eye in early 2007 when he wrote a high-profile letter on behalf of shareholder TCI to Dutch bank ABN Amro criticising its ‘terrible shareholder return’ and calling on it to look at a break-up, spin-off, sale or merger of units or the business as a whole.
ABN was later sold to a consortium led by Royal Bank of Scotland for about 70 billion euros ($95.73 billion).
Reuters – A consortium of private equity and hedge fund firms, including J.C. Flowers & Co, is close to a deal to buy the assets of failed mortgage lender IndyMac, a source familiar with the matter said on Sunday.
The prospective buyers also include Dune Capital Management, a private investment firm run by former Goldman Sachs executives, and hedge fund Paulson & Co, the source said.
The consortium would buy the bank and its 33 branches, IndyMac’s reverse-mortgage unit and a $176 billion loan-servicing portfolio, the source said.
The presence of private equity and hedge fund firms comes after the FDIC said last month it was expanding the pool of qualified bidders to include those institutions that do not currently have a bank charter, although they must have conditional approval for a charter from the responsible agency.
