Category: Finance

Hathway Cable Unit GTPL Hathway files papers for IPO to raise US$45 million

Cable TV and broadband internet services provider Hathway Cable & Datacom Ltd has intimated a potential initial public offering (IPO) listing on Monday where the company is looking to raise Rs 300 crore (approximately US$45 million).

The IPO filing of Draft Red Herring Prospectus was completed by its material subsidiary, GTPL Hathway Pvt. Ltd with the Securities and Exchange Board of India as well as with both the Stock Exchanges, i.e. BSE Limited and National Stock Exchange of India Limited.

The GTPL Hathway IPO was approved by the Hathaway’s board since August 2016.

As per details of the draft prospectus, the company notes that its IPO will seek to raise funds for GTPL through a fresh issue of equity shares while giving an option to existing GTPL shareholders to sell their holdings.

Offering cable TV and broadband services, GTPL Hathway is one of the largest cable television operators in India, found in several cities which includes Pune, Ahmedabad, and Kolkata.

Despite being one of the many subsidiaries and partnerships owned by the listed Hathway Cable and Datacom Limited, GTPL Hathway is arguably one of its most profitable associations as well as one of the largest contributors to Hathway’s consolidated numbers across major financial and operational parameters.

On the other hand, Hathway’s own cable TV operations span across almost 140 cities, alongside their broadband service which is provided in 21 cities across the country.

At present, Hathway has approximately 1.4 million broadband customers base which the company claims to constitutes approximately 52% of the total cable broadband market in India.

Besides Hathway, who owns a 50% stake of GTPL Hathway, other major shareholders include co-founders – Aniruddhasinhji Jadeja and Kanaksinh Rana – who owns a direct 14.6% alongside another indirect 29.1% through shareholding entity Gujarat Digi Com Private Limited and 5.2 per cent shares of GTPL respectively.

Shares of Hathaway Cable & Datacom Ltd was last trading in BSE at Rs, 34.55, which shows a Rs 0.25 increase as compared to the previous close of Rs34.30. The total number of shares traded during the day was 12593 in over 88 trades.

The stock hit an interday high of Rs 34.74 and intraday low of 34.25. The net turnover during the day was Rs.434100

The demerger will be subjected to requisite approvals from the shareholders, creditors, high courts, DoT, stock exchanges, Sebi and other applicable regulatory authorities.

The company has hired JM Financial Institutional Securities Ltd, BNP Paribas, Motilal Oswal Investment Advisors Pvt. Ltd and Yes Securities (India) Ltd to manage the initial share sale.

By Vivian Foo, Unicorn Media

Tiger Brokers raises US$29 million Series B funding round backed by CITIC Goldstone, Huagai Capital

Beijing-based online brokerage firm Tiger Brokers Co. on Wednesday has successfully raised US$29 million for its Series B funding round, which was participated by CITIC GoldStone Fund Management Co., Ltd. and Huagai Capital.

Existing investors including Zhen Fund and China Renaissance K2 Ventures have also participated in the round, which is worth 200 million yuan (about US$29 million).

This funding round follows the financing back in September 2015 where Tiger Brokers secured an RMB 100 million (about US$16 million) round backed by Chinese smartphone maker Xiaomi Inc.

Founded in June 2014, Tiger Broker, through its web securities and transaction platform, provides brokerage services for Chinese investors that wish to invest in securities abroad, particularly stocks listed on the U.S. and Hong Kong exchanges.

In addition to access to China A-shares, as well as U.S. and Hong Kong stocks, Tiger Brokers also support transactions involving securities margin trading in addition to 13,000 U.S. stocks, share options, and ETF products.

“We invested in Tiger Brokers in its angel round because we believe in its objective of serving the trading needs of the global Chinese investors,” said the managing partner at China Renaissance K2 Ventures, Li Li.

Following the deal, Mainland China’s CITIC Securities Co., Ltd., the brokerage arm of the biggest state-owned financial conglomerate and parent of CITIC GoldStone, will also serve as a mentor to Tiger Brokers, providing strategic advice on the company’s growth moving forward.

The company aims to use the latest proceeds on technology infrastructure upgrade, big data development, user experience improvement as well as new business initiatives.

“Growth in securities trading apps is an inevitable trend, in tandem with the accelerating popularity of smartphones and driven by the demand by Asia-based investors for a more globally diversified allocation of their assets,” Tiger Brokers CEO, Wu Tianhua said.

“Our goal is to make Tiger Trade the app of choice for any Chinese speaking investor with an international investment portfolio,” Wu further adds.

The international securities startups also announced last week about its plans to advance its online brokerage services into Singapore, which provides investors with an opportunity to access to low-commission cross-border investment choices.

By Vivian Foo, Unicorn Media

SATS to acquire 10% stake in Evergreen Sky Catering Corp for US$22.3 million from Malaysia Airlines

Airport services group SATS has entered into a conditional share sale agreement with Malaysia Airlines in acquiring a 10 percent stake in their in-flight meals caterer Evergreen Sky Catering Corporation (ESCC).

As per details of the agreement, SATS will be acquiring 11 million ordinary shares in the capital of Evergreen Sky Catering for RM100 million (about US$22.3 million), adding to its originally owned 16.5 million ordinary shares which represent 15 percent in ESCC.

Following the acquisition, the Singapore-listed SATS would now own 27.5 million ordinary shares in the capital of ESCC, which represents 25 percent of the total issued ordinary shares in the capital of ESCC.

With this, ESCC would also become an associated company of SATS, the provider of gateway and food solutions announced during its filing at the Singapore stock exchange on Tuesday.

Commenting on the deal, SATS said, “The proposed acquisition is in line with the company’s strategy of growing the scale of its food business and enhancing its connectivity to better serve its customers across key airports in Asia.”

The acquisition is not expected to have any material impact on the company’s net tangible assets per share and consolidated earning per share for the current financial year.

Shares of SATS closed at S$0.02 cents higher at S$4.85 on Tuesday.

By Vivian Foo, Unicorn Media

Indonesia-based reinsurer Marein to raise US$41 rights issue in 2017

Maskapai Reinsurance Indonesia (Marein), one of only four local reinsurance companies in the country, has made plans to raise US$41 million from a rights offering in 2017.

The company said it will sell up to 130 million new shares in a right issue by June 2017 in order to strengthen its existing capital.

Reinsurers provide insurance for other insurance companies, Marein along with Reasuransi Indonesia Utama, Reasuransi Nasional Indonesia, and Tugu Reasuransi Indonesia are the only four local reinsurance companies in Indonesia.

Local firms often lack capital compared to their larger foreign reinsurance peers, forcing Indonesian insurance firms to seek coverage for big insurance policies abroad.

However, when local insurance firms pay for premium overseas coverage, it will complicate government efforts to balance the country’s current account.

Hence, Financial Services Authority (OJK) has requested the four reinsurers, Marein and its rivals to increase their capacity to cover more clients.

“In order to increase the capacity, we have to raise capital,” said Marein president director Robby Loho to Jakarta Globe.

“The company is expected to reap IDR 1.5 trillion in premium income this year, with an increment of 40 percent from last year’s IND 1.07 trillion”, said Yanto J. Wibisono, Marein’s finance director.

Besides, the premium income at Marein has also reached IDR 907 billion in the first nine months this year, increasing by 29 percent from the same period in 2015. This was driven by a double-digit growth in life and general reinsurance segments this year.
Fitch Ratings, one of the big three credit rating agencies affirmed Marein’s national insurer financial strength with an A+, as well as its international IFS rating of BB back in August.

Fitch said that the rating reflects Marein’s high business concentration in catastrophe-prone Indonesia, its modest market position, and despite its long operating record, small asset size compared with some of its local and regional peers.

By Vivian Foo, Unicorn Media.

Japan’s Outsourcing Inc acquires German Orizon Holding for US$85.2 million

Japanese Business Process Outsourcing (BPO) firm Outsourcing Inc. has announced the acquisition of German staffing company Orizon Holding for an estimated €81.6 million (about US$ 85.2 million).

Outsourcing has acquired the full stake of the business through the Japanese group’s German subsidiary OSI Holding in a move to safeguard its business operations amid a highly unpredictable and volatile market.

The closing of the transaction is expected to occur by June 30, 2017. This deal will also see an exit for private equity firm Silverfleet Capital Partners after almost ten years in portfolio.

The acquisition of Orizon Holding is part of Outsourcing’s latest plan – VISION 2020: Tackling New Frontiers, in which the Tokyo-headquartered firm aims to grow in the direction of Lehman-class environmental change.

However, the BPO firm also noted that it has been conventionally engaged in manufacturing outsourcing business and confronted volatility risks since the collapse of Lehman Bros in 2008.

Thus, with this acquisition, Outsourcing Inc. can leverage on the strategic location of Germany, one of Europe’s leading industrialized countries for the overseas expansion of their manufacturing businesses.

Besides, Orizon Holding is also the eight largest staffing company in Germany with its strengths in mechanical engineering, aviation, and medical sectors.

“Orizon surpasses its peers in profitability and is expected to achieve ongoing growth,” Outsourcing Holdings said in a statement.”This transaction will provide the group with a strong foothold to develop into the European industrial nations, including those in Eastern Europe.”

The company has kickstarted some medium-term management initiatives to scale globally into the sectors with less susceptibility of fluctuations.

The plans call for outsourcing business to convenience stores industry and the U.S. military bases in Japan, while undertaking the public services contracted to the private sectors in Australia and the UK.

In August 2016, Outsourcing Inc. has earlier strengthen its Europe footprint by acquiring British BPO business Liberata for 43 million pounds (about US$ 53.4 million).

By Vivian Foo, Unicorn Media

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