Monday, March 12, 2012

Anil Ambani sells 8% stake in NICE for over Rs 300 cr

Industrialist Anil Ambani has sold nearly half of his 15 per cent stake in NICE Ltd, an entity developing Bangalore-Mysore infrastructure corridor, for over Rs 300 crore.

Ambani, who heads telecom-to-financials conglomerate Reliance Group, has sold an eight per cent stake for USD 65 million (over Rs 300 crore) out of his total holding of 15 per cent in NICE Ltd held in his personal capacity, sources said.

When contacted, a Reliance Group spokesperson declined to comment.
Ambani had acquired 15 per cent stake in NICE (Nandi Infrastructure Corridor Enterprises Ltd) for Rs 60 crore way back in 2005 and the latest deal has given him a return of nearly 10-times in about seven years ago.

NICE was formed by industrialist Baba Kalyani-led Kalyani Group of Companies and SAB International Ltd to develop the Bangalore-Mysore Infrastructure Corridor.

As the owners of this Build-Own-Operate-Transfer (BOOT) project, NICE will implement the project in its various phases and operate the facilities after completion of construction.

Sources said that the shares have been sold by Ambani to a Mauritius-based fund affiliated to global financial services giant JP Morgan and values NICE Ltd at over Rs 4,000 crore.

Pursuant to this deal, JP Morgan's stake would rise to 18 per cent in this entity, where Kalyani group's BF Utilities holds nearly 75 per cent.

Shares of BF Utilities today soared by over 10 per cent to close at Rs 431.65 at the BSE. Shares of another group company Bharat Forge Ltd also rose over 5 per cent to Rs 326.90.

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