Mukesh Ambani helps Anil Ambani clear Ericsson dues. Xiaomi launches payment app in India. Hotel Leela Venture to sell 4 properties to Brookfield. Hyundai-Kia to invest in Ola.
Moving on to the top Business stories of the week.
L&T to buy 20.32% stake in Mindtree. Hotel Leela Venture to sell 4 properties to Brookfield.
In Agreement: L&T has agreed to buy Cafe Coffee Day Founder V.G. Siddhartha’s stake in Mindtree for INR3,269cr. L&T has agreed to pay INR980 per share for the 20.32% stake held by Siddhartha and his two affiliate companies.
The purchase price is a 1.8% premium to Mindtree’s closing share price of INR962.50 on Monday.
Looking For More: L&T said it would buy an additional 15% in Mindtree from the open market at INR980 per share. If L&T is successful in purchasing the stake, it will trigger an open offer, since takeover norms mandate that the acquirer should offer to purchase shares from the public once its stake crosses 25% in a listed firm.
No, Go: L&T’s hostile takeover bid for Mindtree has got a thumbs-down from analysts.
BrookLeela: Brookfield Asset Management has agreed to acquire four hotels and a land parcel from Hotel Leelaventure for INR3,950cr.
New Record: If the deal goes through it would be the largest-ever hotel deal by value in India.
The Brookfield-Leela deal will also entail buying the Leela brand, existing and all upcoming management contracts of Hotel Leelaventure and also absorbing the employees of the four hotels, the two companies said in a joint statement.
Put to Good Use: Hotel Leela said the proceeds from the slump sale of assets will help repay borrowings from banks and financial institutions. The company’s debt, according to its annual report for FY17-18 stood at c. INR3,800cr.
Mukesh Ambani helps Anil Ambani clear Ericsson dues. RCom-Jio to terminate asset sale agreement.
Eleventh Hour Rescue: Mukesh Ambani helped younger brother Anil Ambani clear dues worth INR453cr that RCom owed Ericsson, sparing Anil Ambani from a 3-month imprisonment.
In The Clear: RCom has now cleared its entire dues to Ericsson India, thereby clearing the contempt of a Supreme Court order.
Backstory: The SC had on February 20 said that failure to pay Ericson its dues within four weeks would land Anil Ambani in jail for three months.
Drop It: RCom and Reliance Jio have agreed to terminate the asset-sale agreement citing delays in approval from the government and lenders as the reason.
Strong Objections: Despite more than 45 meetings with lenders over 15 months, more than 40 lenders had refused to give consent to the transaction. Various approvals from the Department of Telecom were also pending.
Lyft kicks off roadshow before its IPO as it looks to raise $2.1bn. Hyundai-Kia to invest in Ola.
Rising Up: Lyft looks to raise $2.1bn in its IPO, valuing the firm at almost $20bn. The ride-hailing firm plans to put up more than 30m shares for sale with an anticipated price of between $62 and $68 each.
Big Boost: Hyundai Motor Group and Ola have formed a strategic partnership under which the former's automobile brands - Hyundai and Kia Motors will invest $300m in Ola.
Hot on The Trail: The partnership is expected to help Ola intensify its battle with US rival Uber, which is rapidly gaining share of the Indian market.
The three companies would collaborate on developing fleet and mobility solutions, building India-specific electric vehicles and infrastructure.
Ola has so far raised a total of $3.5bn in funding over 20 rounds from global investors, including SoftBank, Accel and Tiger Global Management.
Startups complain of no substantial respite from angel tax despite DPIIT notification. GST rate cut for real-estate.
No Response: More than a month after the Department for Promotion of Industry and Internal Trade (DPIIT) notified norms for startups seeking exemption from Section 56(2)(viib) of the IT Act, startups complain that little work has been done on the ground to bring them relief from the so-called ‘Angel Tax’.
Read more on the matter here.
Double the Choice: The GST council announced that builders can now choose between two different tax rates in case of incomplete residential projects. The new reduced tax rates will kick in from April 1. For new projects beginning 1 April, lower tax rates will apply.
Multiple Choice: The Council, decided to give builders the option of choosing tax rates between 12% with input tax credit facility or 5% without it, and in the case of affordable housing projects, 8% with tax rebates or 1% without it.
The decision brings clarity on taxation of under-construction houses sold during the transition to the new tax system that the Council had proposed earlier.
Xiaomi launches payment app in India. Netflix won’t feature its content on Apple streaming service.
Another One: Xiaomi has launched its payments app Mi Pay in the country. The platform is built on the Unified Payments Interface (UPI) in collaboration with National Payments Corporation of India (NPCI) and ICICI Bank and supports over 120 banks.
Only For Mi: The service offers instant peer-to-peer transfers to other Mi Pay users or bank accounts. It is highly integrated with Mi UI and allows for instant payments from other native Xiaomi apps such as SMS, contacts, and scanner.
Apple Away: Netflix has announced that it will not make its TV shows and movies available through Apple’s upcoming streaming service.
Watch Here: Netflix commented that it prefers its customers watch all of its content on Netflix itself and not on some other service.
Apple is expected to unveil a television and video service later this month, a move that will increase competition for Netflix and other online streaming services.
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