Deal Communique -June Vol- 03 [09 June - 16 June 2013]

7/28/2019 Deal Communique -June Vol- 03 [09 June - 16 June 2013]

1/24


2/24

Weekly Insight of Private Equity,Venture Capital, Merger & Acquisition

Deal Communiqu is the INDEL Advisors initiative to present an insight of

deal space related to private equity, venture capital and merger &acquisition announced during the week in India.

This report captures the details of deals announced based on the

information available in the public domain and public announcements and is

therefore intended for general guidance only. It is not intended to be a

substitute for detailed research or the exercise of professional judgment. Wehave taken utmost care while bringing the deal details through this report,

however, neither INDEL Advisors LLP nor any other member of INDEL Global

can accept any responsibility for loss occasioned to any person acting or

refraining from action as a result of any material in this Deal Communiqu.

On any specific matter reference should be made to the appropriate

advisors.

In case you require any further information on this report or wish to provide

your feedback, please mail us at [email protected]. Your feedback is

important to us.


3/24

Private Equity

Private Equity

Norwest Venture to invest Rs.60cr in Snowman Logistics

Tata Group plans to invest in Chandan & Chandan Industries

BanyanTree Growth Capital invests in Atria Brindavan Power

Varhad Capital plans to launch two Funds

DEG invests in Super Specialty Hospital Chain Ivy

Oaktree Capital invests in Cogent Glass

RanaKapoor said to have bid for Goldman Sachs owned Four Seasons Hotel

Essel Group, Shyam Telecom may sell stake in JV


4/24

2013 INDEL Advisors LLP. All right reserved

Deal Concise

Norwest Venture to invest Rs.60 cr in Snowman Logistics

PE Fund Norwest Venture Partners (NPV) isinvesting R60 Cr in Gateway Distriparks's subsidiary

Snowman Logistics (SLL) for about 14% stake in the

company, a BSE filing stated.

The money will be used to fund the growth plans

of Snowman Logistics.

Further, Gateway Distriparks has executed a SPAwith IFC to acquire about 5 % (Pre-NVP

investment) of IFC s stake in SLL for about R18 Cr.

SLL is an integrated temperature-controlled

logistics provider with a pan-India presence. Its

primary business lines are: Storage, Transportation

and Consignment agency. It operates through 25

facilities at 18 locations in the country capable ofwarehousing in excess of 45,000 pallets. It also

operates 220 leased and owned refrigerated

trucks. This February, IFC was planning to provide

loan to SLL which is proposing to set up

temperature controlled storage facilities at two

new locations in Orissa and Gujarat.

SLL was initially promoted by the Amalgamgroup in 1997. Subsequently, three Japanese

companies - Mitsubishi Corporation, Mitsubishi

Logistics Corporation and Nichirei Logistics Group

acquired a significant stake in SLL. In November

2006, Gateway Distriparks Ltd acquired a

majority stake in SLL. Currently, it has

management control and holds a 53% stake inSLL. The other major shareholders - Mitsubishi

Corporation, Mitsubishi Logistics Corporation and

Nichirei Logistics Group together hold

approximately 26%. IFC, which invested about

$5Mn in the company in 2010 also holds 19.9%

stake in the company.

Announcement Date | 14 June 2013

Industry | Transport/Logistics


5/24


6/24

Deal Concise

BanyanTree Growth Capital invests in Atria Brindavan Power

BanyanTree Growth Capital ("BTGC") II LLC has

invested R500 Mn in Atria Brindavan Power

Limited ("ABPL"), a Bangalore-based renewable

power generation company.

ABPL which was set up in 2000 by the Atria group,

focuses on Small Hydel Power plants and hasdemonstrated a strong track record of constructing

SHP projects. BanyanTree will have a board

representation.

It is one of the premier SHP developers in the

country with an operating portfolio of over 46 MW

in hydro assets with plans to add wind and solarenergy projects to the portfolio. The proposed

investment will enable Atria to further augment its

generating capacity. The deal marks BTGCs second

investment in the current year from its second

Fund. BTGC II has been one of the few funds

to have raised capital in a challenging

environment and announced its 2nd close at

just under USD 150 million in January 2013.

BTGC I is fully invested in 9 companies and

has started returning money to investors.


Industry | Cleantech



7/24

Deal Concise

Varhad Capital plans to launch two Funds

Varhad Capital Group plans to launch two funds,

one for funding women entrepreneurs and

another for affordable housing, each having a

corpus of $100 Mn, BS states.

The group plans to float both funds in the next 24

months and will approach overseas funds to seek

investments into the corpus.

The affordable housing fund will invest in

developers and companies that build houses

valued up to R25 Lac each. It might also invest in

NBFC giving loans to people to buy such homes.

These two funds will do selection of prospective

investment targets, based on in-house research on

growth prospects, profile and management

capabilities.

Varhad Group caters to SMEs looking to access

growth capital and expand business. It has

divisions- Varhad Investment Managers, the asset

management division; Varhad Capital, the

investment banking arm and Varhad Financial

Consultancy Services, the financial consultancy

division.

Varhad Investment Managers recently launched

its debut R5 Bn DICCI SME Fund, Indias first SEBI

registered social impact investment fund. It got

an initial contribution of R10 Cr by the Small

Industries Development Bank of India. The

Varhad group has also invested R5 Cr in this fund.


Industry |Banking/Financial Services



8/24

Deal Concise

DEG invests in Super Specialty Hospital Chain - Ivy

German developmental finance institution DEG

has invested R70 Cr ($12 Mn) in Ivy Hospital, a

Mohali based super specialty hospital chain. The

funds raised will be utilized to set up more

hospitals in north India including Bathinda,

Amritsar, Hoshiarpur, Simla, Karnal and embark on

a multiphase expansion.

Incepted in 2007, Ivy Hospital is a healthcare

providers in Punjab with a network of three

operational hospitals at Mohali, Nawanshahr and

Khanna. The hospitals currently offers 25 specialty

departments providing treatment to more than

one lack patients every year.

Besides it has achieved the most coveted

distinction among healthcare providers NABH

accreditation, is the highest seal of quality

certification for hospitals in India. DEG is a

subsidiary of KfW in Europe and finances

investments of private companies in developing

and transition countries. Its portfolio in India

stands at over EUR 500 Mn across 50

companies. This is its first investment in any

healthcare company in India. In April, DEG along

with Proparco invested R60 Cr in NSELRenewable Power.


Industry | Healthcare



9/24

Deal Concise

Oaktree Capital invests in Hyderabad based Cogent Glass

US-based investment firm Oaktree Capital

Management has bought about 60% stake in

Hyderabad based Cogent Glass Limited for an

estimated enterprise value of R200 Cr, BS states.

Jean Rollier of Oaktree has been appointed non-

executive chairman of Cogent's board.

Founded in 2010, Cogent offers complete solution

of Type I glass primary packaging in tubular and

moulded, catering to all glass needs for

pharmaceutical companies. It has a plant located

in Addakal near Hyderabad.

Oaktree Capital Management of Los Angeles is aleading investment firm managing over $80 Bn in

assets, with a global portfolio of companies and, in

particular, with several investments in the

packaging sector.

The firm was co-founded in 1995 by a group

who had formerly worked together at the TCW

Group starting in the 1980s.

One of Oaktree's portfolio firm, SGD, a France-

based manufacturer of glass packaging hasagreed to extend technology and marketing

support to Cogent Glass.


Industry | Basic Industries



10/24

Deal Concise

Yes Bank CEO-RanaKapoor and NRI Ravi Pillai have said to bid for

Goldman Sachs owned Four Seasons HotelFast growing private bank YES Bank's CEO

RanaKapoor and NRI Ravi Pillai have been

identified as contenders to buy Four Seasons

Hotel in Bangalore, TOI states. The ongoing

project is a lifestyle development with names like

Deepika Padukone and Infosys founders havingbought homes in it.

Goldman Sachs owns 73% stake in the project

through Whitehall, its real estate unit, and firms

like RMZ Corp, Oberoi Realty and Nitesh Estates

have also evinced interest in it. Other

development partners are Westcourt and

Century Real Estate holding the remaining 27%

and even these may plan to exit the project. The

under-construction venture going on for almost

five years includes a hotel, luxury residences,

retail and office space among others.

It is 6.5 acres property near MerkiCricle, a half

an hour drive from the Bengaluru International

Airport and Goldman had bought the land

along with Century for R400 Cr and later U.Ks

Westcourt was brought in as a partner to

develop the land. Four Seasons is a Canadian

hospitality chain which operates through

management contracts with real estate

developers and land owners and the its recent

strategy has been to invest into projects in

China (having 14 properties) and India.


Industry | Real Estate



11/24

Deal Concise

Essel Group, Shyam Telecom may sell stake in JV

Essel Group and Shyam Telecom are exploring

strategic options including selling a majority

stake in JV- EsselShyam Communication ltd. Both

Essel Group and Shyam Telecom own 30% stake

in the company, while PE firm Kubera Capital

owns another 30% and the remaining 10% is

with employees and IL&FS.

In the JV, Kubera Cross-Border Fund had invested

$22 Mn for a mionority stake in 2008.

EsselShyam had acquired the local V-SAT

business of Australian telco Telstra where IL&FS

was an existing investor and after the buyout,

IL&FS came on board as a financial investor.

EsselShyam is a technology service providerspecializing in Media Broadcasting, production,

post production, distribution for multi-platform /

multi devices along with satellite based telecom,

SCADA solution provider for telemetry, hydrology

and variety of scientific and environmental

technological services.

Last year, the company and its advisors tried to

divest 49% stake, but could not due to the FDI

cap. But now with the relaxation in FDI limit of

up to 74%, the company is looking forward to

sell a minority stake.

Its speculated, Nasdaq listed divsified giant

Liberty Media Corporation, with subsidiarieslike Barnes & Nobles and investments in Time

Warner and Viacom, along with specialised PE

players like Providence Equity Partners could

be potential suitors for the company.


Industry | Media



12/24

PeopleStrong Raises Funds From HDFC, Lumis Partners

Worldfloat May Dilute Minority Stake

TastyKhana Secures Investment From Delivery Hero

Venture Capital


13/24

Deal Concise

PeopleStrong Raises Funds From HDFC, Lumis Partners

HDFC Holdings and Lumis Partners have made

investment in PeopleStrong, HR outsourcing and

technology company, BS states. The funds raised

will be used to strengthen the companys Asia

operations, to upgrade technology and the

account management verticals.

Founded by Pankajbansal and Shelly Singh,

PeopleStrong is ampHRO (Multi-process HR

Outsourcing) and Technology company,

headquartered in Gurgaon. It enables Business

Leaders and CEO's in transforming their peopleagenda.

The company delivers employee services

across regions and time zones for more than

300,000 employees and have hired more than

40,000 employees through a unique

technology interface coupled with high end

decision making Tools for people data. Earlier,the company had raised funds from HR Fund.


Industry | Services



14/24

Deal Concise

Worldfloat may dilute minority stake

Social network worldfloat.coms promoters are in

talks with VCs in the US to dilute a 10% stake, BL

states. They are planning to dilute stake for

around $3 Mn.

Worldfloat.com was launched in June 2012 and

has increased its presence in 62 countries across

the world, including the US, China, Europe andGulf countries. The total value of portal is

estimated at $300 Mn.

Nearly 80% users of the portal are Indians and 20

% from other countries. The networking site

expects 30 Mn users by the year end. It has

received buyout offers from venture capitalist ofnearly $300 Mn, whose core business is real

estate in and around New Delhi.

Worldfloat is the only social network in the world

where people could earn money up to R10,000

through a treasure hunt game and do social

networking at the same time. India's

homegrown networking site WorldFloat has

come up with new gaming feature that allows

users to make money, even as plans are afoot

for another add-on to help people source

money from large numbers of people for theirprojects.

Users also have an option to watch a large

collection of movies and update themselves

with latest Indian and international news on a

real-time basis.


Industry | Media



15/24

Deal Concise

TastyKhana Secures Investment From Delivery Hero

Online food ordering service - TastyKhana has

secured $5 Mn investment from Delivery Hero,

and it also announced strategic partnership with

the DeliveryHero.

Founded by Shachin Bharadwaj and Sheldon

Dsouza in 2007, Tastykhana provides one-stopsolution for any food related requirement. It has

partenered with 1000 restaurants In Mumbai and

associated with more than 3,000 restaurants

across the seven cities it operates in. Currently, its

online food delivery services are available in Pune,

Mumbai, Bangalore, Gurgaon, Delhi, Noida and

Faridabad. It offers food ordering services on

Android, iPhone and Blackberry apps.

In 2008, it acquired Food on Wheels, a food

delivery company, where it got 30 to 40

restaurants and experienced people to actually

deliver food.

Founded in 2010, European-based company

Delivery Hero is a global network of online food

ordering marketplaces. It is backed by Ru-Net,

Kite Ventures, Tengelmann Ventures,

Holtzbrinck Ventures, Point Nine Capital and

Team Europe. Till date, it has raised over $100

Mn, including $31 Mn in April to acquire the

delivery service OnlinePizzaNorden Group.

Delivery Hero claims a network of 22,000

restaurants and operates in 12 countries.


Industry | Technology



16/24Merger & Acquisition

Delhivery buys cash collection service from Gharpay

Yourstory buys social entrepreneurship platform - ThinkChange India

Apollo Tyres acquires Cooper Tire & Rubber Co.

Finland's Fortum acquires a Solar Project in Rajasthan

Cleantech Energy firm P2 Solar acquires two Indian Projects

NeST Group acquires Tyco's Indian Unit

GMR Infra buys stake in Delhi Duty Free Services

Merger & Acquisition


17/24

Deal Concise

Delhivery buys cash collection service from Gharpay

Logistics service and supply chain provider

Delhivery (SSL Logistics) has acquired offline cash

collection service of Gharpay, a Bangalore based

doorstep payment network, which has 750 clients.

Post acquisition, Gharpay brand will be owned by

Delhivery. The acquisition will help Delhivery to

strengthen its payment collection feature.

Launched in 2011, Gharpay offers a doorstep cash

payment network for businesses and claims to

have a network of more than 1,000 pincodes

across India. It claims to already have more than

500 clients in India including BookMyShow, Info

Edge, Cleartrip, Zomato, Groupon, and Jet Airwaysamong others. The company had raised an

undisclosed amount of funding from Blume

Ventures with participation of existing

investors, $200,000 from Sequoia Capital and

Kae Capital, and a seed investment of $100,000

from Raju Reddy.

Gurgaon based Delhivery provides logistics and

backend solutions for E-Commerce to offer

multiple supply chains for retailers. It providesprocurement, warehousing, packaging and last

mile delivery services. Last year, Times Internet

had picked up a minority stake in the company.


Industry | Services



18/24

Deal Concise

Yourstory buys social entrepreneurship platform - ThinkChange India

YourStory.in, the media platform covering

startups and early stage deals, has acquired

social enterprise platform ThinkChange India.

Financial details of the merger remain

unknown. ThinkChange will be merging with

SocialStory, which is YourStorys web platform

for the social enterprise and impact investing

segments.

ThinkChange India is a five year old firm

operating as an online platform for people in

the social entrepreneurship and enterprise

space. It will cease to operate as part of the

acquisition.

Back in 2010, ThinkChange was brought on

board as the media partner for an initiative

targeted at social entrepreneurship by

YourStory.in and CNBC- TV18 Young Turks. Social

impact investments have been on the rise in

India with growing awareness and keeping in

mind the untapped potential the nascent

industry serves to be.


Industry | Media



19/24

Deal Concise

Apollo Tyres acquires Cooper Tire & Rubber Co.

Apollo Tyres is set to acquire American tire firm,

Cooper Tire & Rubber Company in one of the high

values deal of the year.

It makes for the headline in the M&A dealscape

because the $2.5 Bn buyout is slightly higher than

the $2.3 Bn Tata-JLR deal in 2008. Sullivan &

Cromwell LLP and Amarchand & Mangaldas &Suresh A Shroff& Co. served as legal advisers to

Apollo Tyres. BofA Merrill Lynch served as

financial adviser and Jones Day served as legal

adviser to Cooper Tire, according to the

statement. Morgan Stanley and Deutsche Bank

also served as financial advisers to Apollo Tyres.

In addition it will take Apollo into the top echelon

of global tire makers by placing it in the seventh

position. Its an all cash deal. The combined

entities will raise $2.5 Bn from bond sales with

maturity going on till eight years and Apollos

new debt exposure will be around $450 Mn.

Part of the funds will be raised through asset-

backed loans. Apollo will pay $35 a share to

Coopers shareholder, a premium of around 42%

to the recent closing price of Cooper Tire.

Last month Sumitomo Rubber Industries was

set to takeover Apollo Tyres South Africa

including the Ladysmith Tyre plant and Dunlop

Brand rights for $60 Mn.


Industry | Airlines / Autos



20/24

Deal Concise

Finland's Fortum acquires a Solar Project in Rajasthan

Energy generation company, Fortum has bought

a 5-MW PV solar power plant in Rajasthan.

The financial details of the acquisition remain

unknown.

The power plants peak capacity is 5.4 MW and

its annual production is around 9 gigawatt-hours.It was built as part of the Jawaharlal Nehru

National Solar Mission (JNNSM), the Indian

governments initiative for 22 gigawatts of

installed solar power generation capacity by

2022.

Also the plant has a guaranteed electricity pricefor 25 years and the return is assured through

the PPA with government.

Finnish firm Fortums power division is

responsible for power generation and trading

in the Nordic wholesale electricity markets and

for providing expert services to electricity and

heat producers globally. Hydropower and

nuclear power account for the majority of the

company's production. Fortums plan is toinvest some millions of euros in developing its

PV solar competence and operations in India.

Announcement Date | 12 May 2013




21/24

Deal Concise

Cleantech Energy firm P2 Solar acquires two Indian Projects

P2 Solar, developer of solar PV power projects,

has acquired two projects in India. Earlier last

month it acquired a renewable energy project to

develop a mini-hydro facility in Punjab and the

second one is a 500 KW mini-hydro facility located

immediately downstream from its previouslyannounced project.

The first one is Project Rajgarh, involving a 700

KW mini-hydro facility on the Sidhwan irrigation

canal in Ludhiana and is a minor diversion project,

creating little impact on the water channel and

surrounding terrain. Second project, Project Tibbawas acquired through P2s wholly owned Indian

subsidiary, Jagat Energy Pvt. Ltd.

P2 is engaged in construction of new solar PV

projects where renewable energy policies are

favorable and where the public and private

sectors are actively seeking to incorporate

solar PV into their electricity consumptionprofiles.





22/24

Deal Concise

NeST Group Acquires Tyco's Indian Unit

NeST Group has bought the tool room of American

manufacturing company Tyco's Indian arm, Tyco

Electronics Tools (India) Pvt. Ltd., located at Cochin

SEZ.

The financial details remain unknown. Estimates

suggest the company is planning to invest R60-70

Cr for upgradation which would bring the total cost

of buying and upgrading to R150 Cr.

Tyco Electronics, now known as TE Connectivity,

designs and manufactures highly engineered

solutions that connect data and power. It serves a

diversified range of customers in over 150countries including automotive, consumer

electronics, aerospace, medical and energy to

name a few.

NeST Group, headquartered in Kochi, has

several hardware and software facilities spread

across Thiruvananthapuram, Kochi, Bangalore

and Mysore in India and in the U.S.


Industry | Technology



23/24

Deal Concise

GMR Infra buys stake in Delhi Duty Free Services

GMR Infra has acquired 17.03% equity stake in

Delhi Duty Free Services Pvt. Ltd. for an

undisclosed amount. The company is into

operating, maintaining and managing the Duty

Free outlets at IGI Airport, New Delhi under

concession from Delhi International Airport Pvt.

Ltd. for a period of 15 years upto 2024-25.

Delhi International Airport Pvt. Ltd. (49.9%) and

Yalorvin Ltd. (33.07%) are the other shareholders

in the company. Yalorvin is a subisidiary of

AerRianta International cpt, which is wholly

owned by the Dublin Airport Authority, an

undertaking of the Government of Ireland.

GMR has been doing some divestitures off late

owing to high debt and adoption of "Asset Light,

Asset Right strategy". Earlier this year it divested

70% stake in GMR Energy (Singapore) Pte to FPM

Power for SGD 660 Mn (R2,907 Cr). GMR is alsosaid to have been initiated the process to exit

from the Istanbul SabihaGoken International

Airport, which it manages in Turkey.

The recent buy also falls in line with its earlier

plan to acquire minority stakes in the proposed

airport projects in Myanmar (Burma) and LatinAmerica. In February last year, GMR Hyderabad

International Airport had planned to divest 100%

stake in Hyderabad Duty Free Retail, a GMR

Group company that owns and manages duty

free outlets at the International Airport.

.


Industry | Retail / Leisure/ Travel/ Textile



24/24

www.indelglobal.com

INDEL Advisors LLPINDEL is a global business advisory and consulting firm led by experienced professionals withentrepreneurial skills dedicated to serve middle-market companies in their Tax, Audit, Legal,

Transaction and Advisory services. With the unique depth of thought combined with the global

expertise of leading professionals, INDEL is committed to protect and enhance the enterprise

value of its clients. At INDEL we live through our people. INDEL is about a collective vision with

a common goal that allow its people to stand together. Founded in 2009, the firm is

headquartered in New Delhi and has offices located in major financial centers.

Deal Communique -June Vol- 03 [09 June - 16 June 2013]

Documents

Transcript of Deal Communique -June Vol- 03 [09 June - 16 June 2013]