January – March 2018 - SKP Group · Taking a step to further the objective of strengthening...
Transcript of January – March 2018 - SKP Group · Taking a step to further the objective of strengthening...
Investment Chronicle
January – March 2018
skpgroup.com
Foreword 03
Quarterly Compass 04
Deal Trends 05
Sectoral Insights 07
Mergers and Acquisitions 09
Equity Investments 11
Private Equity Exits 13
The Indian Terrain 15
Cross-border Transactions 16
SKP Transaction Advisory 17
Publications 18
Disclaimer: SKP’s Investment Chronicle summarises the list of deals announced based on information available in the public domain and the VCCEdge database. For our analyses, we have referred to information from media reports, the Department of Industrial Policy and Promotion (DIPP), the Reserve Bank of India (RBI) and other government sources.
AcknowledgmentHarshal Choudhary Ruchita Rathor
Contents INVESTMENT CHRONICLE: January – March 2018
Deepti AhujaSenior Partner and Vice President Global Sales, Business Advisory, Indirect Tax and Transfer PricingSKP Business Consulting LLP
© 2018 SKP Business Consulting LLP. 3
Foreword INVESTMENT CHRONICLE: January – March 2018
We are pleased to present SKP Investment Chronicle – our quarterly update that focuses on the deal-making landscape in India, comprising Mergers and Acquisitions (M&As) and equity investments and exits. In this report, we look at India’s transactions arena in the first quarter of 2018.
2018 started on a promising note for the overall deal landscape with 516 deals in Q1 amounting to USD 17,191 million. After a less than outstanding performance in 2017, M&As witnessed a steady start for 2018 in this quarter driven by major deals for consolidation and diversification. Private equity investments and exits, on the other hand, could not match up with the impressive benchmarks set in the previous year, specially in its last quarter.
Despite the mild results of this quarter, the outlook for the coming year remains positive as various government reforms and initiatives are expected to bear fruit. The economy has been witnessing a robust growth of above 6% and a stable currency. Moody’s has upgraded India’s sovereign rating after 14 years to Baa2 with a stable economic outlook. India has also jumped 30 places to achieve the 100th
position in World Bank’s global Ease of Doing Business index in 2018.
Various regulatory initiatives in 2017 like successful implementation of GST, the Insolvency and Bankruptcy Code (IBC), Real Estate (Regulation and Development) Act and the bank recapitalization plan are expected to keep up the growth momentum in 2018. Also, recent amendments to the Competition Act, 2002 are expected to make smaller acquisitions as well as acquisitions of growth-stage companies quicker and easier.
Backed by these developments, 2018 is expected to be a rewarding landscape for M&A deals, with positive investor sentiment and relative easing of the regulatory space.
© 2018 SKP Business Consulting LLP.
Quarterly Compass INVESTMENT CHRONICLE: January – March 2018
*Services sector includes Financial, Banking, Insurance, Non-Financial/Business, Outsourcing, etc.
Deal Value Mix
Source: SKP analysis
Particulars 2017 Q4 2017 Q1 2018 Movement*
Mergers & Acquisitions 861 225 229 2%
Equity Investments 1,108 268 232 -13%
Private Equity Exits 248 57 55 -4%
Total 2,217 550 516 -6%
Source: SKP analysis
* The movement mentioned above is a comparison between Q4 2017 and Q1 2018.
Deal Volume Mix
Particulars 2017 Q4 2017 Q1 2018 Movement
Mergers & Acquisitions 33,105 12,186 11,074 -9%
Equity Investments 31,562 10,408 4,730 -55%
Private Equity Exits 13,565 5,498 1,387 -75%
Total 78,232 28,092 17,191 -39%
USD million
USD million
Average EInv Deal
Value
USD 20.39 million
Top PEE Deal Value
USD 0.50 billion
Average M&A Deal
Value
USD 48.36 million
Top FDIInflow by
Sector
Services*
Top Indian State by
deal value
Maharashtra
Hot Sector
Information Technology
Top M&A Deal value
USD 5.78billion
Emerging Segment
Internet Retail
M&A CAGR
(4 years)
21.43%
Top Outbound
Partner
USA
Top EInv Deal value
USD 1.74 billion
EInvCAGR
(4 years)
17.77%
M&A - Merger & Acquisitions EInv - Equity Investments PEE - Private Equity Exits
Overview Mergers And Acquisitions
615
Deal Trends INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.Source: SKP analysis
8,924
15,997
3,082 1,840
12,186 11,074
3,381
5,547
9,979
5,628
10,408
4,730 2,014
1,563
2,539
3,964
5,498
1,387
Q1 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
PEE
EInv
M&A
4,856
13,565
966 692
8,920 8,713
435
1,092
846 867
650 1,008
2,240
1,055
247 260
426 962
1,393
285
1,023 21
2,189 390
Q1 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Others
Outbound
Inbound
Domestic
Equity Investments (EInv) Private Equity Exits
615
Deal Trends INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.Source: SKP analysis *Others primarily includes exit through buy-back and IPO
1,419 961
7,682
3,677
6,638
1,791
452 1,745
719
445
1,890
1,909 1,122
661
779
1,064
1,350
819
388
2,180
800
443
530
211
Q1 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Others
Venture Capital & Debt
Public Equity
Private Equity
1,118
45368 366
2,690
813
233
1,306894 1,039
1,780
208
410 67
694
962
118
108
254
145
584
1598
910
258
Q1 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018
Others*
Secondary Sale
Open Market
M&A
Sector Insights INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.M&A - Merger & Acquisitions EInv - Equity Investments PEE - Private Equity Exits
Telecommunication
Energy
IndustrialConsumer Staples
Consumer Discretionary
Financials
Materials
Healthcare
Information Technology
M&A USD 1,366.68 million 67 Deals
EInv USD 869.09 million 113 Deals
PEE USD 501.79 million 17 Deals
M&A USD 188.15 million 17 Deals
EInv USD 74.7 million 15 Deals
PEE USD 46.95 million 5 Deals
M&A USD 5,878.43 million 4 Deals
EInv - -
PEE Undisclosed 1 Deal
M&A USD 1,854.35 million 31 Deals
EInv USD 2,572.59 million 21 Deals
PEE USD 351.92 million 11 Deals
M&A USD 479.32 million 22 Deals
EInv USD 5.25 million 5 Deals
PEE USD 0.34 million 1 Deal
M&A Undisclosed 2 Deals
EInv USD 0.68 million 2 Deals
PEE - -
M&A USD 585.15 million 33 Deals
EInv USD 837.04 million 41 Deals
PEE USD 194.76 million 8 Deals
M&A USD 183.37 million 12 Deals
EInv USD 25.03 million 13 Deals
PEE USD 49.63 million 4 Deals
M&A USD 268.54 million 31 Deals
EInv USD 314.08 million 18 Deals
PEE USD 83.14 million 7 Deals
Bird’s Eye View
M&A USD 269.61 million 10 Deals
EInv USD 31.28 million 4 Deals
PEE USD 158 million 1 Deal
Utilities
SectorQ1 2016 Q1 2017 Q4 2017 Q1 2018 Weights Movement in
value*Value Deals Value Deals Value Deals Value Deals Q4 2017 Q1 2018
Consumer Discretionary 2,676 124 941 77 1,185 101 1,617 82 4% 9% 37%
Consumer Staples 276 34 69 33 646 40 258 29 2% 1% -60%
Energy 1,302 5 5 3 422 6 5,878 5 2% 34% 1292%
Financials 1,215 79 3,770 73 6,574 74 4,779 63 23% 28% -27%
Health Care 707 54 1,102 52 1,218 41 310 37 4% 2% -75%
Industrials 381 81 884 56 631 73 666 56 2% 4% 5%
Information Technology 3,458 201 1,783 222 5,538 183 2,738 197 20% 16% -51%
Materials 3,581 32 257 26 175 18 485 28 1% 3% 178%
Telecommunication 657 7 13,863 10 3,151 7 1 4 11% 0% -100%
Utilities 68 14 433 15 8,552 7 459 15 31% 3% -95%
Total 14,321 631 23,107 567 28,092 550 17,191 516 100% 100% -39%
Source: SKP analysis
* The movement mentioned above is a comparison between Q4 2017 and Q1 2018.
Sectoral Panorama USD million
Sector Insights INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
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While M&A activities hit a five year low in 2017 in terms of volume, 2018 has begun on a steady note with 229 deals. This quarter witnessed two deals over USD 1 billion amounting to 65% of the total activity. The energy sector accounted for most of the deal value due to the acquisition of a stake in HPCL by ONGC, followed by the financial and IT sector. IT sector, however, had the biggest share of the volume pie with 67 deals.
While the arrival of Reliance Jio is disrupting margins and market shares in the telecom sector, 2017 saw various deals targeted at achieving financial stability and operational synergies. Although, the spate of
acquisitions in telecom seems to have abated in the current quarter, deals aimed at gaining new technologies and venturing into new business models are expected as operators scramble for a share in the revenue pie. Government initiatives like easing of the spectrum cap from 25% to 35% and plans to allow 100% FDI through the automatic route are expected to further encourage this.
Giving effect to the provisions of Section 234 of the Companies Act which now allows merger of an Indian company into a foreign one in addition to the converse, RBI has rolled out regulations that would further encourage cross-border M&A.
The utilities and energy sector is expected to see more consolidation of state-owned units to bring synergies through economies of scale and better negotiating power. The sale of distressed assets, majorly in energy and steel sectors, under the newly institutionalized Insolvency and Bankruptcy Code is also expected to continue.
Overall, the outlook for M&A remains positive with India gaining significantly in World Bank’s Ease of Doing business index and amendments to Competition Act paving the way for quicker and easier transactions.
Deal Buyer Target Type Value % Sought Sector
1 Oil and Natural Gas Corporation Ltd Hindustan Petroleum Corporation Ltd Domestic 5,778.40 51.1 Energy
2 IDFC Bank Ltd Capital First Ltd Domestic 1,460.00 100 Financials
3 Singapore Telecommunications Ltd Bharti Telecom Ltd Inbound 411.38 NA Information Technology
4 Ensono Holdings LLC Wipro Ltd, Hosted Data Centre Business Inbound 405.00 100 Information Technology
5 Shree Cement Ltd Union Cement Company P.S.C. Outbound 283.35 92.83 Materials
Top M&A Deals
Mergers and Acquisitions INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
USD million
Source: SKP analysis
Total Deal Volume 229
Total Deal ValueUSD 11,074 million
Top SectorEnergy
Top Outbound CountryUSA
Top RegionMaharashtra
SECTOREnergy
DEAL TYPEDomestic
DEAL VALUEUSD 5,778.4 million
% SHARE51.11%
RATIONALEConsolidation
SECTORFinancials
DEAL TYPEDomestic
DEAL VALUEUSD 1,460 million
% SHARE100%
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Target: Capital First Ltd
Buyer: IDFC Bank Ltd
Target: Hindustan Petroleum Corporation Ltd
Buyer: Oil and Natural Gas Corporation Ltd
Taking a step to further the objective of strengthening India’s public sector through consolidation, state-owned ONGC has acquired the 51.11% government stake in another state-owned oil refiner, HPCL. The all cash transaction is an off-market one, funded through borrowings from seven public and private sector banks.
While ONGC is a major producer of crude oil and natural gas, amounting to about 70% of domestic production, HPCL commands about 21% market share of petroleum products and ranks first among lube marketers in the country. The acquisition makes ONGC India’s first oil major to have a presence across the entire value chain, as it adds economies of scale and makes room for an ability to take risks and higher investment decisions.
At a time of financial stress, this related party transaction between the government and a government-owned company has helped the government meet its annual disinvestment target.
In a share-swap deal, India’s leading infrastructure financier IDFC bank has announced a deal to acquire retail lender Capital First. IDFC Bank will issue 139 shares for every 10 shares of Capital First. The merged banking entity will have combined assets under management of INR 880 billion and a distribution network of 194 branches.
Capital First lends primarily to small and medium enterprises commanding a considerable retail network in the form of a loan book of USD 3.5 million. The merger is in line with IDFC’s strategy of diversification through retailization. The merger is also attractive to Capital First since it will provide it access to low cost funding while supporting its intention of becoming a universal bank.
The merger is expected to be completed by October 2018. The transaction is subject to regulatory approvals from RBI, Securities and Exchange Board of India, Competition Commission of India and National Company Law Tribunals.
DEAL HIGHLIGHTS
DEAL HIGHLIGHTS
Prime Deals INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
RATIONALEDiversification
11Source: SKP analysis
The numbers indicate that deal-making has been largely tepid in the first quarter of 2018, mainly due to the absence of any big-ticket deals. The total value of deals, majorly driven by the financial sector this quarter, has fallen by 55%. The fall in volume is merely 13%, mainly due to a few big-ticket deals in Q4 2017 like Energon Power and Axis bank. As is the case with M&A, the IT sector rules in terms of volume of equity investments, accounting for nearly half of the total deals.
The financial and consumer discretionary sector has accounted for most of the value quarter ended March
2018 with the trend being expected to continue. Significantly, the Insurance Regulatory and Development Authority (IRDAI) has recently framed regulations to allow private equity funds to invest in insurance companies as promoters, paving the way for increased FDI in this sector.
Post demonetization, an increasing move towards digital wallets and e-commerce may spur additional investment in the information technology space; Chinese e-commerce giant Alibaba’s investments in Paytm and Zomato being the latest in this space. Hence, consumer technology, retail and the BFSI are
expected to lead in terms of value.
Long-term capital gains tax on listed securities has been announced in the fiscal budget removing the historical tax advantage enjoyed by investors. This move is expected to incentivize investments by limited partners in private equity and venture capital funds which majorly back unlisted securities.
The planned recapitalization of public sector banks along with banking sector reforms is expected to push credit growth up by 15%, in turn encouraging investment.
Deal Investor Target Type Value % Sought Sector
1 Azim Premji Foundation, KKR India Advisors Pvt Ltd, among others
Housing Development Finance Corporation Ltd Public Equity 1,742.89 3.87 Financials
2 Alibaba Group Holding Ltd, SoftBank Vision Fund LP Paytm E-Commerce Pvt Ltd Private Equity 445 23.51 Consumer
Discretionary
3 Alibaba Group Holding Ltd Zomato Media Pvt Ltd Private Equity 200 18 Information Technology
4 Fairfax India Holdings Corporation The Catholic Syrian Bank Ltd Private Equity 187.53 51 Financials
5 ASK Property Investment Advisors Pvt Ltd Shriram Properties Pvt Ltd Private Equity 155.44 NA Financials
Top Equity Investment Deals USD million
Equity Investments INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
Total Deal Volume 232
Total Deal ValueUSD 4,730 million
Emerging SegmentInternet Retail
Top RegionKarnataka
Top SectorFinancials
SECTORFinancials
DEAL TYPEPublic Equity
DEAL VALUEUSD 1,742.89 million
% SHARE3.87%
RATIONALEPrevention of Stake Dilution
SECTORConsumer Discretionary
DEAL TYPEPrivate Equity
DEAL VALUEUSD 445 Million
% SHARE23.51%
RATIONALEStrengthening Operations
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Target: Paytm E-Commerce Pvt Ltd
Buyers: Alibaba Group Holding Ltd, SoftBank Vision Fund LP
Target: Housing Development Finance Corporation Ltd
Buyers: Azim Premji Foundation, KKR India Advisors PvtLtd, among others
HDFC, the country’s largest mortgage lender has secured funding from a consortium of investors comprising of Azim Premji Foundation, PI Opportunities Fund I, private equity major KKR India Advisors Pvt Ltd, Canadian pension fund OMERS Administration Corporation, Carmignac Gestion S.A., Singapore’s sovereign fund GIC Pvt Ltd HDFC issued 64,329,882 shares to the investor group represented by multiple entities on a preferential allotment basis at INR 1,726.05 per share.
HDFC’s board has also approved raising of INR 18,960 million through qualified institutional placement.
Majority of these funds will be used to maintain its stake at 21% in the preferential allotment of its banking arm HDFC Bank Ltd. The rest of the funds are expected to be used for several initiatives. HDFC, with its subsidiary HDFC Ergo, plans to explore opportunities in health insurance. Acquisition and resolution of stressed assets in the real estate sector is also one of its priorities.
Japan-based SoftBank Group is investing USD 400 million in India’s Paytm E-Commerce Pvt Ltd while China-based Alibaba Group, an existing investor is investing USD 45 million in the latest round of funding. The funding is expected to come in four tranches, of which the first tranche has been completed. The funding values the online retailer at approximately USD 1.9 billion. Alibaba, which is an existing investor in Paytm will see a dilution in its stake from 36.3% to just over 30% while SoftBank becomes an owner of 21.1% stake.
The funding reinforces the investors’ confidence in Paytm Mall’s offline-to-online operating model which is helping offline sellers to participate and take advantage of this e-commerce boom. The funds would be mainly deployed to strengthen existing technology and build superior logistics while strengthening the Paytm Mall brand.
This demonstrates SoftBank’s commitment to the Indian e-commerce sector. Softbank had invested USD 2.5 billion in Paytm’s rival Flipkart in 2017 while also investing in Snapdeal. SoftBank also owns a stake in Paytm’s payments arm.
DEAL HIGHLIGHTS
DEAL HIGHLIGHTS
Prime Deals INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
13Source: SKP analysis
2017 was a buoyant year for exits with deal value clocking over USD 13.5 billion, up 97% in value compared to 2016. However, 2018 has been off to a comparatively slow start with Q1 witnessing 55 deals amounting to USD 1,387 million – down 11% compared to the same period last year. The top 5 deals accounted for 72% of the said value. Information Technology sector saw the most number of exits followed by Financials.
The deal activity slacked off majorly post January 2018 which saw about 50% of the deals in the entire quarter. In 2017, a major route of exit was through the open
market with private equity players exiting as companies lined up IPOs. In contrast, open market merely accounted for 15% of the exits in Q1 2018. Mismatch in valuations and investors attempting to maintain higher-level returns are assumed to have hindered exits. Contributing to the poor performance of exits has been global volatility triggering a decline in open market deals.
Majority of the exits in Q1 2018 were due to strategic acquirers and promoters wresting back control over growth expectations. As per the trend, consumer technology and media are expected to observe exits
through strategic sales.
While the risk-return ratio of countries like USA and China is yet higher than India, the upswing in open market exits in 2017 pointed to the growing maturity of the investment sector in the country.
Recently, strategic investors may have been more active since they are more willing to ascribe to higher valuations and tolerate longer gestation periods. Financial investors are more likely to predominate in non-control deals in infrastructure or real estate sectors.
Deal Seller Target Type Value % Sought Sector
1 ChrysCapital IV LLC, Credit Suisse Private Equity LiquidHub Inc M&A 498 NA Information Technology
2 HDFC Property Fund Agile Real Estate Pvt Ltd - 181.62 NA Financials
3 Standard Chartered Private Equity Advisory India Pvt Ltd Sterlite Power Grid Ventures Ltd M&A 158 28.4 Utilities
4Tiger Global Management LLC, Bertelsmann Corporate Services India Pvt Ltd, Liberty Media Corporation
Saavn Media Pvt Ltd M&A 104 NA Consumer Discretionary
5 KKR India Advisors Pvt Ltd Coffee Day Enterprises Ltd Open Market 62.37 5.92 Industrials
Top Equity Exit Deals USD million
Private Equity Exits INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
Total Deal Volume 55
Total Deal ValueUSD 1,387 million
Top SectorInformation Technology
Emerging SegmentMedia
Top RegionMaharashtra
SECTORUtilities
DEAL TYPEM&A
DEAL VALUEUSD 158 million
% SHARE28.4%
RATIONALEComplete Ownership
SECTORConsumer Discretionary
DEAL TYPEM&A
DEAL VALUEUSD 104 million
% SHARENA
RATIONALEConsolidation and Market Acquisition
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Target: Saavn Media Pvt Ltd
Buyers: Tiger Global Management LLC, Bertelsmann Corporate Services India Pvt Ltd, Liberty Media Corporation
Target: Sterlite Power Grid Ventures Ltd
Buyer: Standard Chartered Private Equity Advisory India Pvt Ltd
Sterlite Power has bought back the 28.4% stake in its transmission infrastructure business from Standard Chartered Private Equity. It now owns 100% stake in this business.
The investment in the power transmission business was made by Standard Chartered in 2014. With this exit, it has made 100% gains on its investment within four years.
This deal underscores Sterlite’s belief in the growth potential of the power transmission sector. It now commands close to 30% market share in the tariff-based competitive bidding segment for transmission infrastructure projects.
The power transmission sector promises stable returns, in contrast with the problem-riddled power generation sector. With the government’s focus to ensure power for all by 2019, this sector is witnessing growth with a recent acquisition by Adani Transmission. Infrastructure investment trust IndiGrid is also looking to invest in transmission assets.
Creating one of the largest mobile advertising mediums in the country, Reliance’s music streaming unit JioMusic is set to merge with its contemporary Saavn Media, with the combined entity expected to be valued at approximately USD 1 billion.
At a valuation that is believed to be considerably lower than Saavn’s previous funding rounds, Reliance Industries acquired 41.1% stake in Saavn Media through subscription of equity shares for a cash consideration of USD 124 million. Of this amount, USD 104 million has been set aside for providing partial exit through buy back of shares of existing investors.
In addition to the above subscription, Reliance will also receive further equity shares of Saavn as payment for slump sale of JioMusic, and will invest another USD 80 million in the combined entity, taking its shareholding in Saavn to 81.7%.
The resulting media platform will have a cross-border content and reach since most of Saavn’s revenues come from outside India.
DEAL HIGHLIGHTS
DEAL HIGHLIGHTS
Prime Deals INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
Consumer Discretionary
15Source: SKP analysis
Materials Consumer Staples
IT & ITES
Financials
Healthcare
Utilities
Industrials
Top five states by transactions(Domestic + Inbound Deals)
The Indian Terrain INVESTMENT CHRONICLE: January – March 2018
© 2018 SKP Business Consulting LLP.
Top Sectors
43 Deals 13 Deals 9 Deals
5 Deals 6 Deals
Top Sectors
30 Deals 26 Deals 23 Deals
16 Deals 12 Deals
Haryana
M&A USD 614 million 17 Deals
PEI USD 399 million 23 Deals
PEE USD 49.63 million 5 Deals
Top Sectors
23 Deals 5 Deals 4 Deals
6 Deals 5 Deals
Delhi
M&A USD 325 million 19 Deals
PEI USD 34 million 25 Deals
PEE USD 226.98 million 8 Deals
Top sectors
19 Deals 9 Deals 9 Deals
4 Deals 7 Deals
Uttar Pradesh
M&A USD 39 million 6 Deals
PEI USD 682 million 10 Deals
PEE - -
Top Sectors
8 Deals 4 Deals 1 Deal
1 Deal 1 Deals
Maharashtra
M&A USD 7,925 million 55 Deals
PEI USD 2,017 million 38 Deals
PEE USD 405.95 million 18 Deals
Karnataka
M&A USD 574 million 16 Deals
PEI USD 529 million 53 Deals
PEE USD 108.55 million 9 Deals
Source: SKP analysis 16
UNITED ARAB EMIRATES
Shree Cement Ltd acquired Union Cement Company P.S.C.
Deal value: USD 283.35 million % Sought: 92.83
Sector: Materials
In its first acquisition outside India and its biggest one so far, Shree Cement Ltd has agreed to acquire Union cement. The deal is finalized at a profitable valuation.
Union Cement has been a consistent performer with a high operting margin, with half of its output exported to other countries in the Gulf region and East Africa.
The transaction is subject to approval from UAE‘s regulatory bodies.
Times Internet Ltd acquired MX player
Deal value: USD 200 million % Sought: Majority
Sector: Information Technology
Times Internet has acquired majority stake in Seoul based MX player. It will help Times Internet to launch its Over-the-Top (OTT) video service. There is currently stiff competition in the Indian OTT segment with online video market expected to grow at 35%.
MX player is popular in countries like India, Pakistan, Bangladesh, Sri Lanka among others, and is among the top 20 most used apps in aforementioned countries.
InMobi Technologies Pvt Ltd acquired Aerserv LLC
Deal value: USD 90 million % Sought: 100
Sector: Consumer Discretionary
InMobi aims to make inroads in the video ads sector through its acquisition of AerServ, an American mobile video Ad startup. The acquisition is set to increase revenues from InMobi’s existing customers besides paving the way for new ones. Aerserv has significant capabilities in programmatic advertising providing increased transparency to mobile publishers as well as brand advertisers. It will help InMobi to gain a presence in the US and enter markets like China and the Asia Pacific. Advertising sold programmatically is expected to grow at a rate of 21% in the next two years.
JSW Steel Ltd acquired Acero Junction Holdings Inc
Deal value: USD 80.85 million % Sought: 100
Sector: Materials
JSW Steels is set to acquire Acero Junction, a manufacturer of hot rolled coils used in consumer durables based in USA. JSW would gain an opportunity to establish a deeper market presence in North America. The steel mill asset of Acero remains largely non-operational. Once operational, it will provide downstream access to JSW.
Reliance Industries Ltd acquired stake in Eros International
Deal value: USD 48.75 million % Sought: 5
Sector: Consumer Discretionary
Through its subsidiary, RIL is acquiring a 5% stake in film entertainment company Eros International. With video content becoming a key driver for data consumption for RIL’s telecom arm, the move is expected to push Reliance’s content strategy. Eros International will also gain new platform through this move, bringing synergies to both parties.
Sector Country USD (million) Volume
USA 370 16
Malaysia 0.98 4
UAE 283.35 2
Top deals by volume
Cross-border Transactions INVESTMENT CHRONICLE: January – March 2018
SOUTH KOREA
THE UNITED STATES OF AMERICA
THE UNITED STATES OF AMERICA
THE UNITED KINGDOM
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SKP Transaction Advisory INVESTMENT CHRONICLE: January – March 2018
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Other Publications
Medical Device Industry in India Union Budget 2018
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Investment Chronicle: January – March 2017
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Global Expansion UpdatesThe Buy American Act and Trade Agreements Act
Investment Chronicle: January – December 2016
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