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MARKETFOCUSIndian government pavesway for privatisation» Biggest off-loading ofshares undertaken» Privatisation toregenerate state-ownedindustry» ONGC 10% stake saleMarch 2004 is gearing up tobe a busy month in theIndian equity markets. Somuch so that investors havealready nicknamed itprivatization month.Privatization month willsee the biggest off-loading ofshares ever undertaken bythe Indian government (orany government worldwide)– it will divest more than $3billion of state-owned stock.If the part-privatization isIn brief»Nokia plans to buy outPsion’s share in Symbian,in a move to consolidate itsinfluence on the operatingsystem used in mostEuropean smart phones.The £135.7 million dealwould increase Nokia’sstake from 32.2% to 63.3%,but it is facing strongopposition from Psion’slargest shareholder whosays an IPO of Symbianshould be consideredinstead.»Juniper Networks is toacquire network-securitysoftware maker NetScreenTechnologies for $3.6billion in stock. Juniper hasbeen buoyed by a recoveryin the telecoms sector. Itfully subscribed it willbecome the largest equityplacement in India’s capitalmarket history.The equity sale formspart of a governmentinitiative designed toregenerate a percentage ofthe country’s hithertotraditionally state-ownedand controlled industries.By selling a proportion oftheir share holdings,expanding the capitalmarket base and increasingliquidity, the IndianGovernment hopes toattract foreign investmentand intellectual expertise.“The government islooking to establishreported fourth quarter netincome of $14.7 million upfrom $8.5 million.»Singapore-based STAssembly Test Servicesmade a $1.6 billion bid forSilicon Valley’s ChiPAC. Thedeal will create the thirdlargestcompany in the chipassembly and test services“back-end” service providermarket behind Amkortechnologies and AdvancedSemiconductor Engineering.»Diners Club Malaysiaannounced the first assetbackedsecuritization for itscharge card receivables inMalaysia with the issuanceof Domayne AssetCorporation Bhd’s (DACB)RM132 million ($34.7million) Medium TermNotes of 3.5 years tenure.widespread ownership, andeventually, a totaldivestment in companiesthat it perceives as being innon-core areas, i.e. sectorsthat are not classified asaffecting national security,”says Ravi Menon, director ofinvestment banking atHSBC in Mumbai.“This is all part of agovernment initiative thatreally kicked off in June2003, when the IPO fromMaruti began to open up thedomestic equity markets toforeign institutionalinvestors,” says YogeshShetty, group director ofcommercial foreignexchange at Travelex.Diners Club Malaysia willsell its charge cardreceivables on a revolvingbasis to DACB which will, inturn, raise the financing bydeclaring a trust over thesereceivables and issuingMTNs. This is the firstsecuritization deal of itskind in Malaysia.»Russia’s sixth-largest oilcompany, OAO Tatneft,won approval from theTurkish government to buya majority of oil refinerTupras for $1.3 billion.Tupras controls 87% ofTurkey’s refining market.»Enersur, the Peruvianbasedsubsidiary of Belgianenergy company Tractebel,won a 30-year concessionfrom the Peruviangovernment for the 130MWThe government’s jewelin the crown, and ahighlight of privatisationmonth, will be the publicoffering of a 10% stake inthe Oil and Natural GasCorporation (ONGC) India’slargest domestic companyby market capitalisation,worth an estimated $2.5billion. The governmentowns 84% of ONGC atpresent and will retain amajority stake in thecompany, along witheffective control after thesale is completed.Other state-ownedheavyweights hitting themarkets in March includeGail, the largest gasdistributor, the Bank ofMaharashtra, IBP, the oilretailer, and the DredgingCorporation.The Government hastried and failed in the pastto partly privatise some ofIndia’s largest state-ownedYuncan hydroelectricproject. Enersur bid $53million. Norway’s statepower company Statkraftand the US-based PSEGdeclined to take part in thebid.»Financing for the largestpipeline project in history –the $3.65 billion Baku-Tbilisi-Cayhan – wascompleted in February. Thefinancing for the projectwhich spans threejurisdictions and over 1700km, needed 17,000signatures to be finalised.The project is beingdeveloped to provide aprimary export route for oilproduced off-shoreAzerbaijan.»Suez-Tractebel ofBelgium and Mimag of11 cf March 2004 corporatefinancemag.com