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Hunting Indian govt assets: Anil Agarwal to set up $10 billion fund
International Desk
24 Jan 2022, 20:55
Photo: Collected
Vedanta Resources Ltd's plan to set up a USD 10 billion fund to acquire state-owned firms has attracted interest from sovereign wealth funds and the corpus will be floated once the government invites price for firms such as BPCL NSE -2.25 % or Shipping Corporation of India (SCI), its chairman said. Metals and mining magnate Anil Agarwal's group has expressed interest to acquire government stake in Bharat Petroleum Corporation Ltd (BPCL) and SCI NSE -3.77 %, worth over USD 12 billion. "We are creating a USD 10 billion fund," Agarwal said in an interview.
The fund will be made of Vedanta's own resources and outside investment. "We have a tremendous response for this, especially from the sovereign wealth funds," he said. The idea is to create a fund with a 10-year life span that will use a private equity-type strategy, buying into companies and boosting their profitability before seeking an exit.
Agarwal had previously stated that Vedanta would team up with London-based firm Centricus to create a USD 10-billion fund that will invest in stake sale of public sector undertakings. Centricus oversees USD 28 billion in assets. "They all want me to be the chairman," he told PTI in the interview.
While Vedanta has completed due diligence of BPCL, the government earlier this month postponed invitation of the price bid for sale of its stake in SCI. The government has not indicated any date for invitation of price bids for BPCL or SCI. "As soon as the government starts coming out with a disinvestment programme, in no time we can raise. Nobody wants to put in money and pay fees and other costs. All is ready and as soon as the government activates the bidding process, we will move forward. Money will not be a problem," he said.
Agarwal, who turned a tiny scrap metal business into London-headquartered Vedanta Resources, made a fortune buying state companies and fixing them. In 2001, it acquired Bharat Aluminium Company Ltd (BALCO), followed by the acquisition of the loss-making Hindustan Zinc in 2002-03.
In 2007, it acquired a 51 per cent controlling stake in Sesa Goa Ltd from Mitsui & Co and in 2018 Vedanta snapped up Electrosteel Steels Ltd (ESL), pipping suitors like Tata Steel.
He is now seeking to repeat that success, betting he can spot gems among the dozens of companies being put on the block by Prime Minister Narendra Modi's government to raise record proceeds.
The entrepreneurial dynamism in India "can be harnessed to unlock incredible transformation in the public sector", Agarwal said. "We believe that this strategy can, and will, play a crucial role in the country's ongoing industrialisation."
Source: The Economics Times
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Saudi Arabia to celebrate Eid on Wednesday
Eid-ul-Fitr will be celebrated in Saudi Arabia on Wednesday (April 10) as the Shawwal crescent was not sighted.
The Saudi Supreme Court confirmed this information in an announcement on Monday (April 8).
This time Fasting will last for 30 days in the country.
Earlier on Saturday (April 6), the country's Supreme Court called for sighting the moon of Eid on Monday evening. According to the order of the Supreme Court, millions of Muslims kept their eyes in the western sky after Maghrib prayers on this day. But shortly afterwards, the Saudi Supreme Court said that the moon of Shawwal was not sighted. Therefore, the holy Eid-ul-Fitr will be celebrated on Wednesday (April 10).
“The situation in East Turkestan is a global concern”
Salih Hudayar, foreign minister of East Turkestan Government-in-Exile (ETGE) on Saturday participated in a virtual discussion organised by the Asian Human Rights Forum, focusing on grave human rights violations, especially in Asian countries.
Salih Hudayar in his statement during the session, emphasised that the situation is a global concern that needs immediate international attention and action.
Three Tanzanian soldiers killed by mortar fire in DR Congo
The soldiers were part of a southern African peacekeeping mission sent to help government forces in the Democratic Republic of Congo fight M23 rebels.
Mortar fire in the eastern Democratic Republic of Congo (DRC) killed three Tanzanian soldiers who were part of a Southern African peacekeeping mission sent to help government forces fight M23 rebels, the Southern African Development Community (SADC) said on Monday.
"This unfortunate incident happened after a hostile mortar round had fallen near the camp they were staying at," the 16-member bloc said in a statement. Three other Tanzanian soldiers were wounded, it added.
The statement added that another South African soldier on the SADC mission had died while receiving treatment for unspecified health problems at a hospital in the provincial capital, Goma. It was not clear if that death was related to the mortar round.
The force includes soldiers from regional military heavyweights South Africa, Tanzania and Malawi.
The SADC mission suffered its first losses in mid-February, when two South African soldiers were killed and three wounded by a mortar bomb.
What is the SADC mission doing in DRC?
After several years of dormancy, the predominantly Tutsi M23 (March 23 Movement) group took up arms again in late 2021.
It has seized large swaths of DR Congo's North Kivu province, which has been wracked by violence in the decades since regional wars in the 1990s.
The Democratic Republic of Congo, the United Nations and Western countries accuse Rwanda of supporting the rebels in a bid to control the region's vast mineral wealth, a charge Rwanda denies.
The regional bloc SADC sent soldiers to North Kivu province in December to help the government tackle instability and armed groups in the restive eastern region.
The SADC mission was to take over from an East African peacekeeping force, whose mandate was ended by the DRC, which accused it of colluding with the rebels instead of fighting them.
Meanwhile, the UN mission in the Democratic Republic of Congo (MONUSCO) is also winding down. The 15,000 UN troops began leaving in February at the request of the DRC government, which considers them ineffective.
Ireland: Simon Harris elected new prime minister
Ireland's parliament has voted in Simon Harris as the country's youngest ever prime minister. Harris, 37, replaces Leo Varadkar after he abruptly quit last month citing personal and political reasons.
Simon Harris has become the Republic of Ireland's youngest ever prime minister, or taoiseach, after being elected to succeed party colleague Leo Varadkar.
The 37-year-old former health and higher education minister, best known for coordinating Ireland's initial response to the COVID-19 pandemic, received 88 votes from lawmakers, with 69 against.
Fine Gael party leader Harris will now travel to the official residence of the president of Ireland, Michael D. Higgins, where his appointment will be confirmed.
Harris' predecessor both as Fine Gael leader and taoiseach, Varadkar, abruptly stepped down last month citing personal and political reasons. Varadkar formally resigned at an audience with President Higgins on Monday evening, paving the way for Harris' election on Tuesday.
Who is Ireland's new prime minister, Simon Harris?
Born in Greystones, County Wicklow, on Ireland's east coast, about 30 kilometres (18 miles) south of Dublin, Harris quit university aged 20 to work as a political aide, was elected to parliament at just 24 and was handed a cabinet post before he turned 30.
At Fine Gael's annual party conference on Saturday, the father-of-two outlined his focus on law and order, supporting small businesses and reconnecting with rural voters.
What are Simon Harris' political challenges?
But Harris takes charge of a coalition government which has less than a year until an election which could see the opposition left-wing, Irish Republican Sinn Fein take power for the first time.
Recent polling data shows Fine Gael on just 21% of the vote, ahead of coalition partners Fianna Fail (16%) but behind Sinn Fein (26%).
Harris he will face the same deep-rooted problems, including unease at record numbers of asylum seekers but most notably a severe shortage of affordable housing.
Data on Monday showed asking prices for Irish homes rose by 6.5% year-on-year in the first quarter of 2024, the fastest rate of growth since 2022.
An opinion poll on Sunday showed housing remained Irish voters' top concern, and Harris has pledged to fix the crisis "once and for all."
Harris is due to announce a reshuffle of the Fine Gael members of the cabinet, which therefore won't include the foreign or finance ministries, but a coalition agreement leaves little room for major new policy initiatives.
China’s real estate crisis: Shanghai-based property giant Shimao Group faces liquidation suit
Amid the real estate crisis in China, another Shanghai-based property giant Shimao Group said on Monday that it had received a liquidation petition from a Chinese state-owned bank in yet another instance of creditors taking legal action to reclaim money from troubled developers in the world’s second-largest economy, CNN reported on Monday.
A “winding-up petition” was filed against the company by China Construction Bank (Asia) on April 5 in Hong Kong, according to a stock exchange filing by Shimao. The petition is in “connection with a financial obligation of the company for approximately HK 1,579.5 million dollars (USD 204 million),” the filing said.
Shimao said it will “oppose the petition vigorously” and will continue to work toward an offshore restructuring that maximizes value for its stakeholders.
“The company is of the view that the petition does not represent collective interests of the company’s offshore creditors and other stakeholders,” it said.
Shimao’s debt troubles date back to July 2022, when it failed to pay the interest and principal on a USD 1 billion bond. The company’s shares were down over 14 per cent in Hong Kong on Monday, having fallen nearly 40 per cent this year.
China’s massive real estate sector fell into trouble after the government clamped down on excessive borrowing by developers in 2020 in an attempt to cool the property bubble. Since then, dozens of Chinese developers have defaulted on their debts, CNN reported.
The industry has since become a drag on the broader economy, which is grappling with a slow recovery from three years of pandemic lockdowns and a series of headwinds, from record-high youth unemployment to mounting financial stress at local governments.
In January, Evergrande, the world’s most-indebted property developer and the poster child of China’s property crisis, was ordered to liquidate by a Hong Kong court.
The liquidation order, made by the city’s High Court, came after the embattled Chinese real estate giant and its overseas creditors failed to agree on how to restructure the company’s massive debt during talks that went on for 19 months.
There are still questions about how the collapse of Evergrande will affect investors, thousands of workers and homebuyers waiting for their apartments.
Country Garden, another major developer that defaulted on its debt last year, received a liquidation petition in February from a creditor after not repaying a loan.
Source: The Print
Myanmar: Junta troops withdraw from border town, rebels say
Anti-junta rebels say they have driven government troops from a key border hub near Thailand. If the news is verified, it signals another setback for Myanmar's military as it battles a number of ethnic rebel groups.
Troops loyal to Myanmar's military junta have pulled out from the town of Myawaddy at the Thai border after a dayslong assault by an ethnic armed group, a rebel spokesman said on Thursday.
The fighting has caused large numbers of people to try to flee to neighboring Thailand from the border town, which is a major trading hub.
Myanmar's military junta, which took power in a 2021 coup, has suffered a number of recent defeats at the hands of ethnic rebel groups and a civilian militia movement, with some saying it could soon be toppled.
What do we know so far?
Padoh Saw Taw Nee, a spokesman for the Karen National Union (KNU), told AFP news agency that around 200 junta soldiers stationed in the town had withdrawn to a bridge linking it to the Thai border town of Mae Sot.
"We took [Myanmar military battalion] 275 at 10 p.m. last night," he said.
The KNU said last week that its troops had attacked a junta camp near Myawaddy, forcing some 600 security personnel and their families to surrender.
Thai immigration officials said some 4,000 people were entering Thailand daily from Myanmar, compared with the some 1,900 that usually crossed the border.
Thailand has said it is prepared to accept up to 100,000 people displaced by the clashes. The kingdom has stepped up security on its side of the border and is preparing to send more immigration officials to the region in anticipation of an increased flow of people fleeing the fighting.
Myawaddy is a vital trading hub for Myanmar's junta and saw about $1.1 billion (€1 billion) in goods pass through in the past 12 months, according to the country's commerce ministry.
US: Gunfire at Philadelphia Eid al-Fitr event injures three
A shooting between two rival groups at an Eid al-Fitr event injured three, including a 15-year-old suspect. Police have taken five people into custody.
Gunfire was exchanged at an Eid al-Fitr event outside a mosque in Philadelphia between two rival groups, injuring at least three people.
Around 30 shots were fired at the Muslim celebration marking the end of the month of Ramadan around 2:30 p.m. local time, police said. Around 1,000 people were present at the event, including many children.
The event occurred at Clara Muhammad Square. Many people ran to tents near the park, hid behind trees or dropped to the ground and shielded children.
One man was shot in the stomach, and a juvenile victim had a wound to the hand, police said.
Five taken into custody
Five people have been taken into custody, including a 15-year-old who was shot by the police in the leg and shoulder and taken to the hospital. The suspects include four males and a female. Five guns were also confiscated. Possible motives for the shooting have not yet been determined.
"We are very, very fortunate today that we did not have more individuals shot and anyone killed. Ninety-nine percent of the people attending this event were good people who wanted to have a good time," Philadelphia Police Commissioner Kevin Bethel said in a press conference.
"This is just a celebration of life for God to forgive us for our sins. There's one month that God chains the devil down, so whoever did this can't even blame the devil," Zania Weatherford, who was present near the venue, told AP news agency.
"All my years of living in Philadelphia, I've never seen nothing like this, especially at the masjid. Just as much crime as it may be in Philadelphia. It was always separated from the masjid," said Thomas Allen, who was at the Philadelphia Masjid.
