DEAL STREET. Big day for M&As

On a day of major deals, two big sale and one big buy was done by India Inc. ICICI Bank sold 6 per cent in ICICI Pru for some ₹1,900 crore and Anil Ambani-run Reliance Infrastructure entered into a non-binding agreement with Canada's public sector Pension Investment Board to sell 49 per cent in the company’s integrated power generation, transmission and distribution business in Mumbai for an undisclosed consideration. Apollo Tyres, on the other hand, acquired a German tyre retail and distribution company for €45.6 million.

Private sector lender ICICI Bank’s board of directors approved sale of 6 per cent shareholding in its subsidiary ICICI Prudential Life Insurance Company to Premji Invest & its affiliates and Compassvale Investments Pvt Ltd, an wholly-owned subsidiary of the Singapore-based investment company Temasek, for ₹1,950 crore.

“The proposed transaction values the company at ₹32,500 crore, reflecting the substantial value created by the business since its inception,” ICICI Bank said in a statement. Upon completion of the transaction, ICICI Bank will hold around 68 per cent share of the company. Prudential, ICICI Bank’s joint venture partner, will maintain its current share of approximately 26 per cent.

On October 30, the bank’s board had approved sale of 9 per cent stake in ICICI Lombard General Insurance to joint venture partner Fairfax Financial Holdings for ₹1,550 crore. This transaction valued the general insurer at ₹17,225 crore.

Canada-based Public Sector Pension Investment Board has signed a non-binding term sheet with Reliance Infrastructure, an Anil Ambani Group company, for acquiring a 49 per cent equity stake in the company’s integrated power generation, transmission and distribution business, which serves the Mumbai region. The exclusivity agreement between the companies will be valid till March 31, 2016.

The specified business would be carved out of Reliance Infrastructure (RInfra) into a separate special purpose vehicle (SPV). In the SPV, RInfra will have a controlling 51 per cent stake and Public Sector Pension Investment Board (PSP Investments), one of Canada’s largest pension fund managers, will own 49 per cent.

The Mumbai power business of RInfra, known as Reliance Energy, serves a peak demand of over 1,800 MW and had clocked revenues of ₹7,700 crore in FY15. Industry sources said that enterprise value of the Reliance Energy is about ₹15,000 crore. RInfra will sell 49 per cent equity to PSP Investments for ₹3,500 crore.

RInfra debt will reduce by 70 per cent from ₹16,000 crore to ₹5,000 crore. This includes ₹8,000 crore of RInfra’s debt moving to Reliance Energy.

Apollo Tyres has acquired Reifencom GmbH, one of the largest tyre distributors in Germany, for €45.6 million (around ₹320 crore), the company said on Monday.

The Germany-based tyre distributor has both online and offline presence. The Indian tyres major said that the deal will not only strengthen its market in Germany but also in other parts of Europe.

Reifencom GmbH has an online presence in six countries — Germany, France, Italy, Austria, Switzerland and Denmark. In addition, it operates 37 stores and service centres across Germany, Apollo Tyres said.

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