Quarterly Issue Volume 9.3. Dealtracker. Providing M&A and Private Equity Deal Insights. Grant Thornton India LLP. All rights reserved.

Transcription

1 Quarterly Issue Volume 9. Dealtracker Providing M&A and Private Equity Deal Insights

2 Dealtracker Quarter 1, 201: Deal Snapshot Quarter 1 Deal Summary Q1 Deal Summary Year Domestic Cross Border Mergers & Internal Restructuring Total M&A PE Grand Total Cross Border includes Inbound Outbound Domestic 1% Destination Of M&A Deals Q1 201 Crossborder 69% Volume Outbound 4% Value (US$ bn) Inbound 65% Total M&A values reduced by 75% in Q1 201 compared to Q Excluding internal mergers and restructuring M&A deal values increased by 14% compared to Q PE values decreased by 9% and volumes decreased by 26% in Q1 201 compared to Q Highlights the total M&A, PE deals in Q1 201 were valued at US$5.85 billion (219 Deals) as compared to US$20.5 billion (299 Deals) and US$20.48 billion (217 Deals) in the corresponding quarters of 2012 and 2011 respectively. the total value of outbound deals (Indian companies acquiring businesses outside India) in Q1 201 was US$0.19 billion (21 deals) as compared to US$0.69 billion (26 deals) during Q1 2011, registering a decline of over 72% in value the total value of inbound deals (foreign companies or their subsidiaries acquiring Indian businesses) in Q1 201 was US$2.90 billion (29 deals) as compared to US$1.26 billion (6 deals) in Q1 2011, registering a increase of over 10% in value. the total value of domestic deals in Q1 201 was US$1.41 billion (66 deals) as compared to US$2.01 billion (71 deals) and US$2.40 billion (41 deals) during the corresponding quarters in 2012 and 2011 respectively PE deal values amounted to US$1.29 billion (90 deals) in Q1 201 as compared to US$2.1 billion (121 deals) and US$2.61 billion (75 deals) during the corresponding quarters in 2012 and 2011 respectively. there were QIP deals valued at US$ million in the first quarter of IPO were listed in the Q1 201, which raised a sum of US$1.48 million from the public.the total amount raised through IPO during the period Jan-Dec 2012 was US$ 1.16 billion from 24 IPOs. 2

3 Q1 11 Q2 11 Q 11 Q4 11 Q1 12 Q2 12 Q 12 Q4 12 Q1 1 Q1 11 Q2 11 Q 11 Q4 11 Q1 12 Q2 12 Q 12 Q4 12 Q1 1 US$ Million Volume US$ Million Volume Q1 11 Q2 11 Q 11 Q4 11 Q1 12 Q2 12 Q 12 Q4 12 Q1 1 Q1 11 Q2 11 Q 11 Q4 11 Q1 12 Q2 12 Q 12 Q4 12 Q1 1 US$ Billion Volume US$ Billion Volume Dealtracker M&A Trend PE Trend QIP Trend IPO Trend ,

4 Dealtracker M&A Top sectors (by Value) PE Top sectors (by Value) Plastic & Chemicals % FMCG, Food & Beverages 2% Media, Entertainment & Publishing % Automotive 2% Manufacturing 5% Banking & Financial Services 6% Others* 10% Pharma, Healthcare & Biotech 41% Infrastructure Management 5% FMCG, Food & Beverages 7% Logistics % Cement 8% Others* 6% Pharma, Healthcare & Biotech 22% Power & Energy 15% IT & ITeS 6% IT & ITeS 8% Power & Energy 22% Banking & Financial Services 1% Real Estate 1% *Also includes sectors less than 1% 4

5 Quarter 1, 201: TOP 10 Deals * Subject to Regulatory Approvals M&A Dealtracker Acquirer Target Sector US $ Mn Deal Type % Agila Specialties Pvt Ltd (Strides s injectable Pharma, Healthcare & Mylan Inc business) Biotech 1, Acquisition 100% GMR Energy (Singapore) Majority FPM Power Holdings Ltd Pte Ltd Power & Energy Stake 70% NTPC Ltd Nabinagar Power Generating Company Pvt Ltd Power & Energy Strategic Stake N.A. Aliaxis Group SA Ashirvad Pipes Pvt Ltd Manufacturing Majority Stake N.A. Webhelp S.A. HEROtsc subsidiary of Hero Group IT & ITeS Acquisition 100% L&T General Insurance Company Limited * Exide Industries Ltd Varun Beverages IPG Mediabrands Future Generali India Insurance Company Ltd. ING Vysya Life Insurance Pvt Ltd Pearl Drinks-Bottling Business Interactive Avenues Banking & Financial Services Merger N.A. Banking & Financial Services FMCG, Food & Increasing Stake to 100% 50% Beverages 72.7 Acquisition 100% Media, Entertainment & Publishing 72.7 Acquisition 100% 5

6 Quarter 1, 201: TOP 10 Deals PE Dealtracker Investor Investee Sector % US $ mn Government of Singapore Investment Corporation Greenko Group Power & Energy N.A Blackstone Sree Jayajothi Cements Ltd Cement 5% Oppenheimer Funds Apollo Hospitals Enterprise Pharma, Healthcare & Biotech 5% Blackstone Panchshil Realty - Eon Free Zone Real Estate 50% Aditya Birla Private Equity, Norwest Venture Partners, Faering Capital, Gaja Capital, GPE (India), Argonaut Ventures, UTI Invest Advisory The Ratnakar Bank Ltd. Banking & Financial Services N.A IFC Smart Value Homes Ltd Real Estate N.A Baring PE Dabur India Ltd FMCG, Food & Beverages N.A Everstone Capital Transpole Logistics Pvt Ltd Logistics N.A Pharma, Healthcare & ChrysCapital Ipca Laboratories Ltd Biotech 4% Macquarie SBI Infrastructure Investments Pte, SBI Macquarie Infrastructure Trust WestBridge Capital Partners Temasek GMR Jadcherla Expressways Pvt Ltd Infrastructure Management 74% 7.45 Pharma, Healthcare & Dr Lal PathLabs Biotech Pharma, Healthcare & N.A HealthCare Global Enterprises Biotech N.A

7 Dealtracker M&A Deal of the Quarter Mylan Inc Acquired Agila Specialties Pvt Ltd (Strides s injectable business) About the companies Mylan Inc. engages in the development, manufacture, marketing, licensing, and distribution of generic and branded generic pharmaceuticals, specialty pharmaceuticals, and active pharmaceutical ingredients (APIs) worldwide. It operates in two segments, Generics and Specialty. The Generics segment primarily develops, manufactures, sells, and distributes generic or branded generic pharmaceutical products in tablet, capsule, and injectable or transdermal patch forms, as well as API. It also focuses on developing APIs with non-infringing processes to partner with manufacturers. Agila Specialties Pvt Ltd (Strides s injectable business) manufactures and markets pharmaceutical products. The company offers penicillin, oncology drugs, and sterile injectables. The company was formerly known as Strides Specialties Pvt Ltd. Agila Specialties Private Limited operates as a subsidiary of Strides Arcolab Ltd. Transaction Rationale: According to Mylan, the acquisition of Agila will create a global injectables leader, significantly expanding and strengthening Mylan's global injectables platform and providing Mylan entry into new high-growth geographic markets. Transaction Terms: Mylan will pay Strides Arcolab US$1.6 billion in cash. The agreement also provides for up to an additional US$250 million in potential payments subject to the satisfaction of certain conditions by Strides. Acquirer Target US $ mn % Stake Mylan Inc Agila Specialties Pvt Ltd (Strides s injectable business) % 7

8 Dealtracker 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. 8

9 About Grant Thornton Dealtracker Grant Thornton India LLP is a member firm within Grant Thornton International Ltd. The firm is one of the oldest and most prestigious accountancy firms in the country. Today, it has grown to be one of the largest accountancy and advisory firms in India with nearly 1,200 professional staff in New Delhi, Bangalore, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai and Pune, and affiliate arrangements in most of the major towns and cities across the country. Service Areas The firm s core service areas are as follows Assurance - Audit - FRAS Taxation - Compliance & Outsourcing - Direct tax - Indirect tax - Transfer Pricing - US Tax Our Corporate Finance Services (CFS) practice leverages on our understanding of corporate strategy, capital markets, and international jurisdictions and regulatory requirements, to help unlock the potential for growth in dynamic businesses. We operate in a matrix structure with a sector focus and service focus to increase our ability to service clients. Our pool of highly experienced and qualified personnel possesses the requisite expertise to assist businesses in their varied transactions requirements pertaining to acquiring, divesting, listing, or raising capital. Our CFS practice offers the following services: Lead advisory Transaction advisory Valuation To know more visit us on corporate-financeservices/ Advisory Business Risk Corporate Social Responsibility Corporate finance Forensic & Investigations Government & Infrastructure Healthcare &Life Sciences Leadership Consulting Please contact us at contact@in.gt.com if you would like to receive the list of deals. We would be delighted to receive your feedback! contact@in.gt.com Dealtracker Editorial team: Ankita Arora, Sowmya Ravikumar & Karthik Vishwanathan 9

10 Contact To know more about Grant Thornton India LLP, please visit or contact any of our offices as mentioned below: NEW DELHI National Office Outer Circle L 41 Connaught Circus New Delhi T BENGALURU Wings, First Floor 16/1 Cambridge Road Ulsoor Bengaluru T CHANDIGARH SCO 17 2nd Floor Sector 17 E Chandigarh T CHENNAI Arihant Nitco Park, 6th floor No.90, Dr. Radhakrishnan Salai Mylapore Chennai T GURGAON 21st Floor, DLF Square Jacaranda Marg DLF Phase II Gurgaon T HYDERABAD 7th Floor, Block III White House Kundan Bagh, Begumpet Hyderabad T KOLKATA 10C Hungerford Street 5th floor Kolkata T PUNE 401 Century Arcade Narangi Baug Road Off Boat Club Road Pune T MUMBAI 16th floor, Tower II Indiabulls Finance Centre Senapati Bapat Marg Elphinstone (W) Mumbai T Grant Thornton India LLP (formerly Grant Thornton India) is registered with limited liability with identity number AAA-7677 and its registered office at L-41 Connaught Circus, New Delhi, Grant Thornton India LLP is a member firm within Grant Thornton International Ltd ( Grant Thornton International ). Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered by the member firms independently. For more information or for any queries, write to us at contact@in.gt.com