Reliance Industries Planning To Buy Orix's Stake In IL&FS
Reliance Industries Limited is planning to acquire Japan's Orix Corporation's 23.87% stake in Infrastructure Leasing And Finance Company (IL&FS), for around $1.2Bn.
If the deal materialises, RIL will be second largest investor in IL&FS after LIC and will mark its entry into the financial services business.
Transaction Reference: The Economic Times
Set up in 1980 by Central Bank Of India, HDFC and UTI, IL&FS focus on financing and developing infrastructure projects.
IL&FS other main investors include HDFC and and sovereign wealth fund Abu Dhabi Investment Authority.
It owns four listed entities - IL&FS Engineering (formerly Maytas Infrastructure), IL&FS Transportation, IL&FS Investment Managers and NOIDA Toll Bridge. It also owns 41% stake in the prestigious $100 Bn Delhi Mumbai Industrial Corridor project.
Orix had invested $25 Mn in IL&FS in 1994.
Established in 1964, Tokyo-based Orix Corporation is an integrated financial service group providing services such as leasing, corporate finance, real estate related finance and development, life insurance and investment & retail banking. It has operations in 23 countries with around 18,049 employees.
Orix has assets of around $83 Bn and a debt of around $69 Bn. In 2010, the company earned a profit of around $406 Mn on revenues of $10 Bn.
Recently, RIL sold 30% stake in oil and gas blocks to British Petroleum for $7.2 Bn and is also going to enter into JV with British Petroleum for sourcing and marketing of gas.
Reliance has also diversified into telecom by acquiring Infotel Broadband in a $1 Bn deal in 2010. Also, in August 2010, RIL acquired a stake in hotel chain EIH Ltd, which runs the luxury Oberoi and Trident hotels.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 28/02/11 | Orix Corporation - IL&FS - Reliance | M&A | Reliance Industries Limited | 1200.00 |
| 19/04/10 | IL&FS - Stake Sale | IPO / Offerings | 300.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 11/05/12 | M&A | Warburg Pincus International | Future Capital Holdings Limited (Co.) | - | Planned |
| 08/05/12 | M&A | HCL Group | DLF Pramerica Life Insurance Company Limited | - | Planned |
| 08/05/12 | M&A | AEGON | Aegon Religare Life Insurance Company Limited | - | Rumor |
| 02/05/12 | Private Equity | International Finance Corporation | MAS Financial Services Limited | 12.00 | Planned |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Infrastructure Leasing & Financial Services Limited | Central Bank of India Housing Development Finance Corporation Limited Unit Trust of India |
Plot C22, G Block, Bandra Kurla Complex, Bandra East |
India Infrastructure Finance Company Limited Infrastructure Development Finance Company Limited SREI Infrastructure Finance Limited |
www.ilfsindia.com |
| Reliance Industries Limited | Mukesh D Ambani | Reliance Industries Limited Makers Chambers - IV, Nariman Point, Mumbai 400 021. India. |
Indian Oil Corporation Limited Hindustan Petroleum Corp. Limited Cairn India Limited Essar Oil Limited |
www.ril.com |
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