Ashok Leyland (AL) has decided to acquire a 9 per cent stake in Hinduja Leyland Finance Ltd (HLFL) as against it’s original plan to acquire 19 per cent. The company was initially planning to invest around Rs 1200 crore, but will now invest Rs 390.49 crore.
After considering the feedback on the proposal from minority stakeholders, the company decided to restrict the acquisition of shares by AL to 6.99% of the paid-up capital of HLFL at a price of Rs 119 per share aggregating to Rs.390.49 crore from Everfin Holdings and Hinduja Group, said the company.
In a meeting held on March 18, 2020, the AL board had approved the acquisition of up to 19% of equity shares in Hinduja Leyland Finance Limited (HLFL) from existing shareholders in HLFL in tranches for a consideration not exceeding Rs.1200 crore subject necessary approvals. AL considers HLFL a very significant subsidiary for financing its vehicles like all OEMs in the automotive sector.
The AL board continues to believe that the proposal to raise the shareholding in HLFL was consistent with the philosophy to prevent any future dilution based on HLFL’s growth plans.
AL touched a fresh 52-week low of Rs 47.25, falling 26.03 per cent in intraday trade on Thursday. This came a day after the company board approved the company’s plan to acquire up to 19 per cent additional equity shares in HLFL.
Last month the company, during its third quarter analyst call, said that during the current market slowdown, the company had decided to conserve cost and reduce capex and investments. Earlier, the management said that capex for the year would be Rs 1,200-1,300 crore as against company’s initial plan of Rs 2,000 crore. The company added that for the next 4-5 years, routine capex would be around Rs 400-500 crore.
Share price of Ashok Leyland declined 25.25 per cent at tne closing of the market on Thursday, to Rs 48.10 per share, after hitting a 52-week low of Rs 47.25 during the day. On Friday, the price stood at Rs 43.90.
HLFL had registered a revenue of Rs 2560.64 crore in 2018-19 with a 30 per cent growth from Rs 1961.27 crore during the previous quarter. Profit after tax grew almost 51 per cent growth to Rs 275.64 crore in 2018-19 as compared to Rs 182.04 crore during the previous year.
Airbnb gets US$1bn investment for post-virus recovery – CTV News
SAN FRANCISCO, UNITED STATES —
Airbnb on Monday announced it was taking a billion U.S. dollars in new investment to endure and, it hopes, thrive in a travel world transformed by the coronavirus pandemic.
Silver Lake and Sixth Street Partners will invest the money into the home-sharing platform in the form of debt and equity, according to Airbnb.
“While the current environment is clearly a difficult one for the hospitality industry, the desire to travel and have authentic experiences is fundamental and enduring,” Silver Lake managing partner Egon Durban said in a release.
“Airbnb’s diverse, global, and resilient business model is particularly well suited to prosper as the world inevitably recovers and we all get back out to experience it.”
The fresh resources will enable the San Francisco-based company to invest in its community of “hosts” as well as local experiences provided along with stays in homes, according to Airbnb co-founder and chief Brian Chesky.
Airbnb said it will focus particularly on long-term stays, from students needing housing to remote workers, building on a rising demand the platform has seen as people self-isolate during the pandemic.
Terms of the investment include putting $5 million into a Superhost Relief Fund for established, highly-rated hosts who need help with rent or mortgage payments due to the coronavirus’s devastating effects.
Airbnb employees started the fund with a million dollars, and the two co-founders contributed another $9 million, according to the company.
Airbnb is also helping hosts with financial losses after guests cancelled travel plans.
Carnival Stock Soars 20% on Saudi Investment and New Liquidity Assessment – Motley Fool
Embattled cruise line operator Carnival (NYSE:CCL) is sailing higher Monday after Saudi Arabia’s sovereign wealth fund disclosed a large stake in the company and analysts suggested it has sufficient liquidity to survive through November even if it’s unable to sail any ships.
The two new developments sent Carnival’s stock soaring almost 20% in morning trading.
Not quite smooth sailing
The Public Investment Fund, Saudi Arabia’s official investment vehicle, disclosed it owns 43.5 million Carnival shares, the equivalent of an 8.2% stake in the cruise line operator. It makes the Saudi government the third largest shareholder. Because the sovereign wealth fund share purchase increased its stake above a 5% threshold, it was required to disclose the holding.
Carnival was also bolstered by the news that even though it’s burning through about $1 billion a month, it has plenty of money to survive its cruise ships being idled in port, even under a worst-case scenario.
However, since Wells Fargo analysts see a more favorable scenario developing with at least some of its ships being able to sail again this summer, it foresees Carnival coming out of the coronavirus pandemic in a much better position than many believed. Wells Fargo does see Carnival’s profits taking a hit, with operating cash flow turning negative to the tune of about $2.2 billion this year versus a $5.7 billion in positive cash flow last year.
Carnival raised $6.25 billion in debt and equity last week to make it through the downturn. It also suspended its dividend and halted stock buybacks to preserve cash.
FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION PROVIDES UPDATE ON APRIL 1ST PAYMENT STATUS OF THE INVESTMENT PORTFOLIO – GlobeNewswire
TORONTO, April 06, 2020 (GLOBE NEWSWIRE) — Firm Capital Mortgage Investment Corporation (the “Corporation”), (TSX: FC) discloses that, with the passing of the April 1st payment due dates on its Investment Portfolio, there have been no material increases in terms of arrears since March 1, 2020.
We would like to assure shareholders that the Corporation has been taking proactive action to mitigate the impact of the COVID-19 situation and that at present, even during these challenging times, loan arrears in the Corporation’s Investment Portfolio are not materially different than as at March 1, 2020, and that new defaults after January 1, 2020 are part of normal business operations and not as a result of the COVID-19 situation:
- Of the 111 pre-authorized payments submitted on April 1, 2020; six payments were returned NSF, of which five were replaced, leaving one outstanding payment relating to an investment representing 0.4% of the Investment Portfolio. Management has been in negotiations to resolve it;
- Three payments were not received, all relating to one borrower on three investments, representing 1.4% of the Investment Portfolio. That same borrower has historically always paid by month end. Management is not concerned given the loan-to-value exposure; and
- Management has been managing and addressing seven loans which are currently under legal workouts initiated before April 1, 2020, with one loan being sold under enforcement proceedings, closing April 30, 2020 with the full repayment of principal and interest.
The Corporation’s Mortgage Banker minimizes risks associated with defaulting mortgages through diligent monitoring of the Investment Portfolio, active communication with borrowers and the implementation of appropriate and timely enforcement procedures on defaulted mortgages. The Mortgage Banker has substantial experience in servicing mortgage loans, including the implementation of enforcement proceedings.
Thank you for your continued support!
ABOUT THE CORPORATION
Where Mortgage Deals Get Done®
The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Corporation’s investment objective is the preservation of shareholders’ equity, while providing shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions. The Corporation is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act (Canada). Accordingly, The Corporation is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. Full reports of the financial results of the Corporation for the year are outlined in the audited financial statements and the related management discussion and analysis of Corporation, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Corporation’s website at www.firmcapital.com.
The Corporation has provided the above information in response to various enquiries received from shareholders and other stakeholders. Unless otherwise required by applicable securities laws, the Corporation does not intend, nor does the Corporation undertake any obligation, to update or revise any information contained in this press release or to provide any additional information, similar or otherwise, to reflect subsequent periods, information, events or circumstances, or otherwise.
For further information, please contact:
Firm Capital Mortgage Investment Corporation
President & Chief Executive Officer
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