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News Round-up
Economy News
4 The Centre has permitted export of five lakh tonnes (lt) of sugar under
the open general licence (OGL). The modalities, including how the
quantity would be allocated among mills, will be worked out by the
Department of Food and Public Distribution "within 10 days", the Union
Agriculture Minister, Mr Sharad Pawar, said. With global prices at $710-
715 or Rs 32,000 a tonne free on- board, mills would currently realise -
depending on distance from the ports - Rs 29,500-30,500 a tonne from
exports. This is above the Rs 28,000-odd ex-factory realisation on
domestic sales, making exports more profitable. (BL)
4 The Prime Minister, Dr Manmohan Singh, on Wednesday said that the
Government was working on a policy to support public sector enterprises
(PSEs) in their overseas raw material assets acquisition efforts. (BL)
Corporate News
4 Hero Honda board will meet on Thursday to finalise the terms of the
disengagement. The meeting will be held at New Delhi in the afternoon
and a formal announcement is likely to made later in the day. The board
will mainly discuss the first phase of the deal in which the Munjal family
will buy Honda Motor’s 26% stake for around $1 billion, or a little less
than half the current value of the stake in the stock market. For Honda,
the loss of valuation will be compensated by the higher royalty and direct
access to the Indian two-wheeler market. Honda will continue
transferring technology till 2014 for which its former Indian arm is
expected to pay 4-5% of annual sales as royalty till 2012. This could then
go up to 8%, according to auto industry sources. (ET)
4 Lanco Infratech, through Australian subsidiary Lanco Resources
Australia, has concluded a binding agreement with Griffin Energy Group
and Carpenter Mine Management Holdings to purchase 100 per cent
shares of Griffin Coal Mining Company and Carpenter Mine
Management. While Lanco did not disclose the overall size of the deal,
the acquisition is valued by the Australian Financial Review newspaper at
A$825 million (almost Rs 36.95 bn). The mine, located in Western
Australia, has a current production capacity of around 4 million tonnes
per annum (mtpa), which could be raised to over 15 mtpa in the “near
term”, Lanco stated. The mine houses overall coal reserves in excess of
1.1 billion tonnes. (BS)
4 The Union ministry of environment and forests (MoEF) has extended the
time allowed to Jindal Steel and Power (JSPL) to respond to a showcause
notice on why environmental clearance for the company’s proposed
steel project at Angul should not be revoked. (ET)
4 Advance tax numbers for the third quarter of the current financial year
had been robust, with Reliance Industries, LIC, SBI and Tata Steel
paying over Rs.10 bn each, sources said. According to sources, the entire
banking sector has made robust advance tax payments. ICICI Bank paid
Rs 4.5bn as against last year’s figure of Rs 3.01bn. SBI paid Rs 18.5bn
against Rs 17.95bn during the same quarter last year. HDFC Bank paid Rs
7.5bn compared with Rs 4bn last year. (BS)
4 Steel Authority of India (SAIL)'s follow-on public offer is likely to hit
the market in mid-January, a senior Government official said. "Cabinet
approval for the FPO has already been received and we hope that it will
hit the market in mid-January next year," Joint Secretary of Ministry of
Steel , Dr Dalip Singh, told reporters on Wednesday. (ET)
4 Indian and Chinese companies have signed 48 deals worth over $16 billion
in diverse sectors, including power, on the first day of the three-day visit
of the Chinese Premier, Mr Wen Jiabao. While Shanghai Electric and
China Development Bank inked a $4.63-billion deal with Reliance Power,
Adani Power Dahej signed a $3.6- billion MoU with SEPCOIII Electric
Power Construction and Shandong Tiejun Electric Power Engineering, an
industry statement said. (BL)
` The government announced permitting 500,000 tonnes of sugar under the open
general licence (OGL) within the next 10 days. The announcement comes as sugar
production in the current year is expected to be around 25.5 mn tonne which is
expected to leave the country with a surplus availability of around eight million tones
during the year. (BSTD)
` IOC (IOCL IN) has increased petrol price in the range of INR 2.96 to INR 3.21 a litre
with effect from Thursday and HPCL (HPCL IN) is expected to follow suit. (FNLE)
` ONGC (ONGC IN) eyes USD 2.86 mn from share sale in March. (FNLE)
` Coal India (COAL IN) is in talks with Indonesia's Sinar Mas Group for acquiring coal
mines in the island-nation. (FNLE)
` Tata Motors (TTMT IN) sales rise 6% in November. Tata Motors has reportedly
decided to increase prices of passenger vehicle models, except Nano and Aria, by up
to 1.5% from January. (BSTD)
` Hero Honda (HH IN) board to talk split today. Meeting to discuss first phase of
transaction. (ECNT)
` Lanco Infratech (LANCI IN) set to acquire coal mine assets in Australia. Griffin Coal
Mining purchase seen valued at USD 821 mn. Two firms to be acquired are owned by
Collie-based Griffin, which sought bankruptcy protection this year. The W Australian
mine has a current production capacity of 4 mtpa, which could be raised to over 15
mtpa. Lanco has an installed generation capacity of 2,000 Mw, which it plans to
ramp up to 15,000 Mw by 2015. (BSTD)
` Essar Steel and Kobe Steel of Japan have signed a MoU to produce auto-grade steel
in India. (BSTD)
` L&T (LT IN) bags USD 44 mn Chennai Metro contract. (THBL)
` VA Tech (VATW IN), Nagarjuna Construction (NJCC IN) win USD 38 mn Oman order.
(THBL)
` Bhushan Steel (BHUS IN) in pact with Australian company for coal supply. (THBL)
` Zylog Systems (ZSL IN) targets USD 100 mn acquisition. Looks at companies in
banking, financial services and insurance, pharma, ERP sectors. (THBL)
Source: ECNT= Economic Times, BSTD = Business Standard, FNLE = Financial Express, THBL = Business Line.
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