Kumar Mangalam Birla, chairman, Aditya Birla Group, is planning to restructure unlisted group companies to raise funds ahead of Vodafone Idea’s $3.6 billion rights issue.
Kumar Mangalam Birla, chairman, Aditya Birla Group, is planning to restructure unlisted group companies to raise funds ahead of Vodafone Idea’s $3.6 billion rights issue, The Economic Times reported citing sources.
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SKI Carbon Black Mauritius Ltd (Birla Carbon) is ready to buy a controlling interest in Swiss Singapore Overseas Enterprises Pte Ltd for $450 million, the report said quoting sources. Both are promoter companies of Birla as he owns 100 percent of Kiran Investments, which owns these entities.
Axis Bank, Standard Chartered Bank, Bank of America Merrill Lynch and Citi are believed to be funding the acquisition, the daily said.
Carbon Black is likely to be in talks with banks to raise short-term debt of $300 million and $150 million and is seeking relaxation in loan covenants from 3.5 times debt to Ebitda (earnings before interest, taxes, depreciation, and amortisation) to 4.1-4.2 times, sources told the paper.
Birla and the group companies will contribute Rs 7,250 crore to the rights issue and the Vodafone Group is likely to pitch in Rs 11,000 crore, the report added.