Providing M&A and Private Equity Deal...
Transcript of Providing M&A and Private Equity Deal...
© Grant Thornton India LLP. All rights reserved.
February 2014
DEALTRACKER Providing M&A and Private Equity Deal Insight
Volume 10.2
© Grant Thornton India LLP. All rights reserved.
22% 35% 26%
5%
5%
12% 9%
11%
23% 16%
9%
1%
47% 40% 38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014
Total Deal Volume– February '14 Total Deal Value (US$ mn) – February'14
• The total M&A, and PE deals in the month of February 2014 were valued at US$ 2.6
bn (83 deals), as compared to US$ 3.3 bn (75 Deals) and US$15.5 bn (95 Deals) in
the corresponding months of 2013 and 2012 respectively. Excluding the US$ 12 bn
Sesa Goa and Sterlite Industries deal, the total deal activity stands at US$ 3.5 bn in
2012.
• Although the overall deal value is lower, M&A deal volume remains steady.
• The top M&A deal was Aman Resorts' acquisition of Silverlink Holdings ( US$ 358
mn), which represented 20% of total M&A deal value.
• The top PE deal was US$ 183 mn investment by Temasek and IDFC Alternatives in
GMR Infrastructure, which represented 22% of total PE deal value.
• A notable deal this month was that of Bharti Airtel's acquisition of Loop Mobile, which
points to the emerging trend of consolidation in Indian telecom sector.
Deal Summary Volume Value (US$ mn)
2012 2013 2014 2012 2013 2014
Domestic 21 26 22 1,149 436 502
Cross-border 14 12 28 711 2,090 1,330
Merger & Internal
Restructuring 15 7 1 12,896 30 5
Total M&A 50 45 51 14,757 2,556 1,837
Private Equity 45 30 32 697 760 815
Grand Total 95 75 83 15,454 3,316 2,652
Cross-border includes
Inbound 9 8 18 270 2,024 1,208
Outbound 5 4 10 441 66 122
Trend spotting
Key Highlights
Deal Round Up February 2014
2
7% 13%
19% 3%
2%
5%
2%
61% 46%
83%
1%
0.2%
5% 23% 30%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014
PE
Merger & InternalRestucturing
Inbound
Outbound
Domestic
High value of mergers & internal
restructuring in 2012 is largely attributed
to the US$12bn Sesa Goa Ltd and
Sterlite Industries deal
© Grant Thornton India LLP. All rights reserved.
Total Deal Volume– YTD February '14 Total Deal Value (US$ mn) – YTD February'14
• The total M&A, and PE deals YTD till February 2014 were valued at US$ 4.28 bn
(170 deals) as compared to US$ 4.5 bn (149 Deals) and US$17.71 bn (188 Deals) in
the corresponding months of 2013 and 2012 respectively.
• Overall deal momentum continues to remain moderate in the first two months of
2014.
• However, we see increasing trend in PE investments in the E-commerce sector and
emergence of consolidation in Indian Telecom sector by way of domestic M&A
Deal Summary Volume Value (US$ mn)
2012 2013 2014 2012 2013 2014
Domestic 41 43 30 1,683 1,088 547
Crossborder 35 32 49 1,625 2,292 2,197
Merger & Internal
Restructuring 30 11 6 12,946 50 58
Total M&A 106 86 85 16,254 3,430 2,802
Private Equity 82 63 85 1,458 1,070 1486
Grand Total 188 149 170 17,713 4,500 4,288
Cross border includes
Inbound 21 20 33 1,121 2,145 1800
Outbound 14 12 16 503 148 397
Trend spotting
Key Highlights
Share of PE deal value and volume in
the total deal activity continues to
increase
Deal Round Up YTD February 2014
3
22% 29% 18%
7%
8%
9%
11%
13%
19%
16% 7%
4%
44% 42% 50%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014
10% 24% 13%
3%
3%
9% 6%
48%
42%
73%
1%
1%
8% 24% 35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014
PE
Merger & InternalRestucturing
Inbound
Outbound
Domestic
© Grant Thornton India LLP. All rights reserved.
Acquirer Target Sector US $
mn Deal Type % Stake
Aman Resorts Group
Ltd Silverlink Holdings Hospitality 358.00 Acquisition 100%
Wilmar International Shree Renuka
Sugars
Agriculture &
Agro Products 200.00
Controlling
Stake N.A.
Game Show Network
LLC Bash Gaming
Media,
Entertainment
& Publishing
160.00 Acquisition 100%
Thomas Cook (India)
Ltd
Sterling Holiday
Resorts India Ltd. Hospitality 140.32
Majority
Stake N.A.
Sembcorp Industries
NCC Power
Projects - 1,320 MW
thermal power
project
Power &
Energy 136.77
Strategic
Stake 45%
Aman Resorts Group Ltd, a JV between Peak Hotels
and Resorts Group Ltd and Adrian Zecha, acquired stake
from DLF.
Wilmar buys stake in Shree Renuka Sugars, triggering an
open offer to be concluded soon
Top Deals
Notable Sectors Volume US$ mn
Hospitality 4 532
IT & ITES 11 253
Agriculture & Agro Products 2 205
Media, Entertainment &
Publishing 2 165
Power & Energy 2 142
Real Estate 2 133
FMCG, Food & Beverage 4 98
Pharma, Healthcare & Biotech 5 66
M&A Round Up – February 2014
Monthly Sectoral Snapshot
Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)
4
28%
13%
11% 9%
8%
31%
Hospitality
IT & ITES
Agriculture & Agro Products
Media, Entertainment &Publishing
Power & Energy
Others
21%
9%
8%
8% 6%
48%
IT & ITES
Pharma, Healthcare &Biotech
FMCG, Food & Beverage
Hospitality
Metal & Ores
Others
Deal has been approved by the fair trade regulator -
Competition Commission of India
© Grant Thornton India LLP. All rights reserved.
As part of the deal, few investors of GMR Energy have
swapped the equity stake with an equity stake in GMR
Infrastructure
Fairfax Financial invested in Thomas Cook to facilitate the
Sterling Resorts acquisition.
Top Deals
Notable Sectors Volume US$ mn
IT & ITeS 16 124
Infrastructure 2 344
Manufacturing 1 100
Hospitality 1 81
FMCG, Food & Beverages 2 71
Pharma, Healthcare & Biotech 2 28
Education 2 6
PE Round Up – February 2014
Monthly Sectoral Snapshot
Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)
5
50%
7% 6%
6%
6%
25% IT & ITES
Education
FMCG, Food & Beverage
Pharma, Healthcare &Biotech
Infrastructure
Others
42%
15%
12%
10%
9%
12% Infrastructure
IT & ITES
Manufacturing
Hospitality
FMCG, Food &Beverage
Others
Investor Investee Sector % Stake US$ mn
Temasek, IDFC
Alternatives GMR Infrastructure Infrastructure 12% 183.00
Canada Pension Plan
Investment Board
(CPPIB)
L&T Infrastructure
Development Projects
Ltd
Infrastructure N.A. 161.29
KKR Avantha Holdings Manufacturing N.A. 100.00
Fairfax Financial Thomas Cook Hospitality N.A. 80.65
Goldman Sachs, Mitsui
Global Investment
Global Beverages and
Foods Pvt. Ltd
FMCG, Food &
Beverage N.A. 50.81
© Grant Thornton India LLP. All rights reserved.
Deal of the Month - M&A
Ac
qu
ire
r
Rati
on
ale
Ta
rge
t
Inve
sto
r
Co
mm
en
ts
Inve
ste
e
Through it’s 100%
subsidiary - DLF
Global Hospitality
(DGHL) - DLF sold
its entire stake in
Silverlink Holdings
Ltd., owner of Aman
Resorts.
Temasek and IDFC
Alternatives have
agreed to
restructure their
existing investment
in GMR Energy Ltd.
(GEL)
Aman Resorts Group Ltd.
It is a joint venture between
Peak Hotels & Resorts
Group and Adrian Zecha. It
is a luxury hotel group with
presence in 15 countries.
Silverlink Holdings Ltd.
Silverlink Holdings, owner of
Aman Resorts at the time of
the sale, is a subsidiary of
DLF. DLF had purchased
100% equity in Aman
Resorts, including the Lodhi
Hotel, in 2007 from a group of
investors for $400 mn.
DLF is looking to hive of its
non-core assets in order to
bring down its debt. By
concluding this sale for
US$ 358 mn, it will be able
to reduce its outstanding
debt.
PE consortium led by
Temasek and IDFC
Singapore’s sovereign
wealth fund Temasek and
IDFC had invested US$ 225
mn in Compulsory
Convertible Preference
shares in GEL in 2010 from
which it is now exiting.
GMR Infrastructure
Bangalore based GMR
Group has offered a clutch
of PE Investors a small
stake in its flagship
company in order to
facilitate their exit in one of
GMR’s units – GMR
Energy.
Subject to satisfaction of
conditions, GMR
Infrastructure Limited (“GIL”),
the parent of GEL, will issue
CCPS to Temasek and IDFC
led consortium through a
preferential allotment.
Deal of the Month - PE
6
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© Grant Thornton India LLP. All rights reserved.
Acquirer Target Sector
Acquisition
price
(US$ mn)
Deal Type % Stake Domestic/
Crossborder
Wilmar International Shree Renuka Sugars Agriculture & Agro Products 200.00 Controlling Stake N.A. Inbound
Gillanders Arbuthnot & Co Ltd Group Development Ltd Agriculture & Agro Products N.A. Acquisition 100% Outbound
Hero Group, through Rockman
Industries
Sargam Diecastings Private
Limited Automotive N.A. Majority Stake N.A. Domestic
Sohan Lal Commodity
Management Pvt Ltd B.P Jain Finance & Investment Banking & Financial Services 8.06 Acquisition 100% Domestic
Fimbank P.l.c. India Factoring and Finance
Solutions Pvt. Ltd. Banking & Financial Services N.A. Strategic Stake 30% Inbound
Tilaknagar Industries IFB Agro - Indian Made Foreign
Liquor Brands Breweries & Distilleries N.A. Acquisition 100% Domestic
Alstom Bharat Forge Power
Ltd. Kalyani Alstom Power Electricals & Electronics N.A. Merger N.A.
Merger &
Internal
Restructuring
Quest Global Engineering Beeken TechQuest Engineering N.A. Acquisition 100% Outbound
Cargill Inc Dalmia Continental - Leonardo
Olive Oil business FMCG, Food & Beverage N.A. Acquisition 100% Inbound
Godrej Industries Ltd Wadala Commodities Ltd. FMCG, Food & Beverage N.A. Acquisition 100% Domestic
Godrej Consumer Products Ltd
(GCPL)
Darling Group Holdings’
Nigeria business FMCG, Food & Beverage N.A.
Increasing Stake
to 100% 49% Outbound
MSR India Ltd Farmax India Ltd FMCG, Food & Beverage 0.10 Minority Stake N.A. Domestic
Aman Resorts Group Ltd. - JV
between Peak Resorts and
Adrian Zecha
Silverlink Holdings -
Amanresorts (Except Lodhi
Hotel, Delhi)
Hospitality 358.00 Acquisition 100% Inbound
Thomas Cook (India) Ltd Sterling Holiday Resorts India
Ltd. Hospitality 140.32 Majority Stake 75% Domestic
I. M&A Deals
8
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Acquirer Target Sector
Acquisition
price
(US$ mn)
Deal Type % Stake Domestic/
Crossborder
SAMHI Hotels Regenta One Hotel Hospitality 28.87 Acquisition 100% Domestic
Muthoot Leisure and Hospitality
Services Xandari Resort & Spa Hospitality N.A. Acquisition 100% Outbound
Feedback Infra Dubai Consultants Infrastructure Management N.A. Acquisition 100% Outbound
eBay Snapdeal IT & ITES 133.70 Increasing Stake N.A. Inbound
Sophos Group Cyberoam Technologies IT & ITES 70.00 Majority Stake 88% Inbound
Keywords Studios Plc Babel Media Ltd IT & ITES 8.80 Acquisition 100% Inbound
MakeMyTrip Ltd Easy to Book Holding B.V. IT & ITES 5.00 Acquisition 100% Outbound
Infibeam ODigMa IT & ITES 5.00 Acquisition 100% Domestic
Blueocean Market Intelligence Cognicient IT & ITES N.A. Acquisition 100% Outbound
Caralta Corporation GMID Associates Private
Limited IT & ITES N.A. Acquisition 100% Inbound
Gaana.com Musicfellas.com IT & ITES N.A. Acquisition 100% Domestic
e-Zest Neurosynaptic IT & ITES N.A. Strategic Stake N.A. Domestic
Persistent Systems Ltd CloudSquads Inc IT & ITES N.A. Acquisition 100% Domestic
Saxon Global Inc Wit Innovation Technologies
Pvt Ltd IT & ITES N.A. Acquisition 100% Inbound
Asian Paints Ltd Berger International Ltd Manufacturing N.A. Increasing stake
to 96.7% N.A. Outbound
I. M&A Deals
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Acquirer Target Sector
Acquisition
price
(US$ mn)
Deal Type % Stake Domestic/
Crossborder
PUK-WERKE KG Kunststoff-
Stahlverarbeitung GmbH & Co Profab Engineers Pvt Ltd Manufacturing N.A. Acquisition 100% Inbound
Game Show Network LLC Bash Gaming Media, Entertainment &
Publishing 160.00 Acquisition 100% Inbound
DDB Mudra, Omnicom Group 22Feet Media, Entertainment &
Publishing N.A. Acquisition 100% Domestic
UD Industrial Holding Pte Ltd Uttam Value Steels Metal & Ores 32.16 Minority Stake 10% Inbound
JSW Steel Vallabh Tinplate Metal & Ores 7.42 Strategic Stake 50% Domestic
Religare Health Trust Fortis Mohali hospital property Pharma, Healthcare &
Biotech 45.50 Acquisition 100% Inbound
HCL Group Bharat Family Clinic Pharma, Healthcare &
Biotech N.A. Strategic Stake N.A. Domestic
Lupin Ltd Nanomi B.V. Pharma, Healthcare &
Biotech N.A. Acquisition 100% Outbound
Manipal Health Enterprises Ltd SK Soni Hospital Pharma, Healthcare &
Biotech N.A. Acquisition 100% Domestic
HLL Lifecare Limited Goa Antibiotics and
Pharmaceuticals Ltd
Pharma, Healthcare &
Biotech N.A. Majority Stake 74% Domestic
Axiall Corporation Shriram Vinyl Polytech Plastics & Chemicals 5.59 Strategic Stake 50% Inbound
Artek Surfin Chemicals Ltd Galata Chemicals Plastics & Chemicals N.A. Increasing
Stake to 100% N.A. Outbound
Sembcorp Industries NCC Power Projects - 1,320
MW thermal power project Power & Energy 136.77 Strategic Stake 45% Inbound
I. M&A Deals
10
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Acquirer Target Sector
Acquisition
price
(US$ mn)
Deal Type % Stake Domestic/
Crossborder
Greenko
Lanco Budhil Hydro Power
Project, Two power plants of
5MW each
Power & Energy N.A. Acquisition 100% Domestic
Mahindra Lifespace
Developers Ltd 12 Acre Land parcel from Ireo Real Estate 76.13 Acquisition 100% Domestic
Kolte-Patil Developers Ltd 34-acre land parcel at Wakad Real Estate 56.45 Acquisition 100% Domestic
Bharti Airtel Ltd Loop Mobile Telecom N.A. Acquisition 100% Domestic
Balmer Lawrie & Co Ltd Vacations Exotica Destinations
Pvt Ltd Travel & Tourism 3.23 Acquisition 100% Domestic
Corporate Executive Board Talent Neuron Others N.A. Acquisition 100% Inbound
TUV Rheinland NIFE India Others N.A. Majority Stake N.A. Inbound
Outsourcing Inc Alp Consulting Others 5.00 Majority Stake 51% Inbound
Modern India Ltd Verifacts Services Pvt Ltd Others 4.50 Majority Stake 76% Domestic
I. M&A Deals
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II. Private Equity
Investor Investee Sector % Stake Investment Value
(US$ mn) Mode
Samena Capital Mahindra Two Wheelers Ltd Automotive 7% 29.40 Secondary
Motilal Oswal Private Equity Intec Capital Banking & Financial Services 16% 6.02 Primary
DSG Consumer Partners Furtados School of Music (FSM
Education Private Limited) Education N.A. N.A. Primary
Michael & Susan Dell Foundation Gray Matters India Pvt. Ltd Education N.A. N.A. Primary
Goldman Sachs, Mitsui Global
Investment
Global Beverages and Foods Pvt.
Ltd FMCG, Food & Beverage N.A. 50.81 Primary
Phenomen Ventures Foodpanda FMCG, Food & Beverage N.A. 20.00 Primary
Fairfax Financial Thomas Cook Hospitality N.A. 80.65 Primary
Temasek, IDFC Alternatives GMR Infrastructure Infrastructure 12% 183.00 Primary
Canada Pension Plan Investment
Board (CPPIB), through its
Singapore-based wholly owned
subsidiary
L&T Infrastructure Development
Projects Ltd Infrastructure N.A. 161.29 Primary
Madison India Capital
Management LLC, existing
investors
iYogi Technical Services Pvt Ltd IT & ITES N.A. 35.00 Primary
CDC Group Jabong.com IT & ITES N.A. 27.90 Primary
IDG Ventures and Ascent Capital Newgen Software IT & ITES N.A. 17.74 Primary +
Secondary
Nokia Growth Partners, August
Capital, Draper Fisher Jurvetson,
Helion Ventures, and Nexus
Venture Partners
PubMatic IT & ITES N.A. 13.00 Primary
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II. Private Equity
Investor Investee Sector % Stake Investment Value
(US$ mn) Mode
Helion Advisors, Social+Capital
and Berggruen Holdings Ezetap IT & ITES N.A. 8.00 Primary
Shah Capital, Fortisure Ventures,
Opus Capital, Helion Advisors and
founder Diaz Nesamoney
Jivox IQ IT & ITES N.A. 5.80 Primary
American Express Ventures Capillary technologies IT & ITES N.A. 4.00 Primary
Jungle Ventures, Spring Seed
Capital Crayon Data Pte Ltd IT & ITES N.A. 1.19 Primary
Unnamed eVaidya - e Health Access Pvt Ltd IT & ITES N.A. 0.56 Primary
AngelPrime, GSF Accelerator CareerStack Innovation Pvt Ltd IT & ITES N.A. 0.50 Primary
Angel Investors Knottykart Marketing Pvt Ltd IT & ITES N.A. 0.48 Primary
Angel Investors LogicLadder IT & ITES N.A. 0.28 Primary
Blume Ventures, Rajan Anandan,
Angel Investors IntelloCut IT & ITES N.A. 0.20 Primary
Nisa Godrej, LionRock Capital Hopscotch Wholesale Trading Pvt
Ltd IT & ITES N.A. N.A. Primary
The Social+Capital Partnership,
Angel Investors Mango Games Pvt Ltd IT & ITES N.A. N.A. Primary
Palaash Ventures and Angel
Investors SilverPush IT & ITES N.A. N.A. Primary
KKR Avantha Holdings Manufacturing N.A. 100.00 Primary
13
© Grant Thornton India LLP. All rights reserved.
II. Private Equity
Investor Investee Sector % Stake Investment Value
(US$ mn) Mode
Info Edge Canvera Digital Media, Entertainment &
Publishing 1% 0.24 Secondary
Aditya Birla PE Thyrocare Technology Pharma, Healthcare & Biotech 8% 20.97 Secondary
Bamboo Finance, Saama Capital Modern Family Doctor Pvt Ltd Pharma, Healthcare & Biotech N.A. N.A. Primary
Everstone Capital Aparajitha HR Others 25% 16.13 Primary
Aavishkaar Fund Nepra Resource Management Pvt
Ltd Others N.A. 7.00 Primary
Unnamed Merajob India Others N.A. 3.00 Primary
14
© Grant Thornton India LLP. All rights reserved.
IV. IPO
Company Issue Price (INR) Equity Offered Sector
Capital Raised
(INR mn)
Capital Raised
(US$ mn)
Agrimony Commodities Ltd 10 3,020,000 Retail 30,200,000 0.49
Polymac Thermoformers Ltd 35 2,200,000 Plastics & Chemicals 77,000,000 1.24
Investor Investee Sector % Stake
Investment Value
(US$ mn)
Aspire Emerging Fund and Highbluesky
Emerging Market Fund Shilpi Cable Manufacturing 15% 3.26
III. QIP
This document captures the list of deals announced based on information available in the public domain and based on public announcements. Grant Thornton India LLP does
not take any responsibility for the information, any errors or any decision by the reader based on this information. This document should not be relied upon as a substitute for
detailed advise and hence, we do not accept responsibility for any loss as a result of relying on the material contained herein. Further, our analysis of the deal values are based
on publicly available information and based on appropriate assumptions (wherever necessary). Hence, if different assumptions were to be applied, the outcomes and results
would be different.
15
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