Dealtracker Providing M&A and Private Equity deal insights

Transcription

1 Dealtracker Providing M&A and Private Equity deal insights April 2015 Volume 11.4

2 Disclaimer 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. Dealtracker editorial team: Monica Kothari, Sowmya Ravikumar

3 M&A PE Deal round up - April 2015 Deal summary Volume Value (US$mn) Domestic , Cross-border ,121 1, Merger & Internal Total M&A % 58 1,803 6,874 83% 1,195 Private Equity % 89 1, % 1,992 Grand Total ,152 7,550 3,187 Cross border includes Inbound Outbound Highlights The month witnessed 147 deals worth US$ 3.1 billion, which was higher in terms of volume (47%) and lower in terms of value (57%), as compared to the same period in 2014 April 2015 saw an overall 83% decrease in M&A deal value, though deal volume increased by 21%. April 2014 was the month in which the US$ 3.2 billion Sun-Ranbaxy merger took place PE investment activity witnessed 71% increase in volume and 194% increase in value, as compared to the previous period. This was largely driven by e-commerce deals. The month also saw 2 QIPs worth US$ 145 million and 5 IPOs worth US$ 118 million. Total deal value trend (US$ mn) April 2015 Total deal volume trend April , , Domestic Internal Inbound Outbound Domestic Internal Inbound Outbound

4 M&A PE Deal round up - YTD April 2015 Deal summary Volume Value (US$mn) Domestic ,966 4,943 2,272 Cross-border ,936 3,817 4,514 Merger & Internal , Total M&A % 189 7,022 11,313 40% 6,798 Private Equity % 308 2,650 2,680 72% 4,602 Grand Total ,672 13,993 11,400 Cross border includes Inbound ,593 2,622 3,651 Outbound ,343 1, Highlights YTD April 2015 saw an overall M&A deal value decrease by 40%, as compared to YTD April This was largely because the latter witnessed the US$ 3.2 billion Sun-Ranbaxy merger. In terms of volume, there was an increase in overall M&A in YTD April 2015, compared to YTD April While cross-border deals have shown increased activity in terms of deal value, the deal volume in YTD 2015 was relatively lower. There were 3 inbound deals worth over US$ 500 million each during YTD 2015 PE investments witnessed a quantum leap in volume and value at US$ 4.6 billion (308 deals) in YTD 2015, against US$ 2.6 billion (183 deals) in YTD Total deal value trend (US$ mn) YTD April Total deal volume trend YTD April 4, ,650 2, ,966 4,943 2,272 3,593 3,651 2,552 2, ,343 1, Domestic Internal Inbound Outbound Domestic Internal Inbound Outbound

5 M&A round up - April 2015 Key Sectors Notable Sectors Volume US$ mn IT & ITES Manufacturing Pharma, Healthcare & Biotech Retail & Consumer 5 52 Media & Entertainment 4 42 Education 2 10 IT & ITeS sector continues to lead in terms of M&A activity, both with respect to values and volumes. E- commerce remains the key driver in the sector The month witnessed big ticket deals in manufacturing like MESCO Steel Pvt. Ltd's acquisition of Maithan Ispat Ltd for US$ 187 million, contributing 19% of the total deal value Top sectors based on deal value (US$ mn) Others 9% Media & Entertainment 4% Retail & Consumer 4% Pharma, Healthcare & Biotech 14% IT & ITES 50% Manufacturing 19% Top M&A Deals of the Month Acquirer Target Sector US$ mn Deal Type % Stake MESCO Steel Pvt. Ltd. Dr Reddy's Laboratories Ltd Infosys Maithan Ispat Limited UCB Kallidus Inc.- Skava Manufacturing 187 Acquisition 100% Pharma, Healthcare & Biotech 128 Acquisition 100% IT & ITES 120 Acquisition 100% Top sectors based on deal volume IT & ITES 33% Manufacturing 17% Pharma, Healthcare & Biotech 15% Diageo Plc United national breweries Retail & Consumer 36 Increasing stake to 100% 50% Retail & Consumer 9% Sadbhav Group Dhule Palesner Tollways Limited Infrastructure Management 33 Majority Stake 60% Others 19% Media & Entertainment 7%

6 PE round up - April 2015 Key Sectors Top sectors based on deal value (US$ mn) Notable Sectors Volume US$ mn IT & ITES Pharma, Healthcare & Biotech IT & ITES 52% Education 6 21 Banking & Financial Services Real Estate Professional / Business Services 3 11 Others 6% Real Estate 6% The month witnessed continued interest in IT & ITES (e-commerce & IT solutions) contributing more than half of total PE deal values and volumes. IT&ITES, Manufacturing and Pharma sectors have witnessed big ticket deals worth over US$ 100 million Pharma, Healthcare & Biotech 9% Banking & Financial Services 11% Manufacturing 16% Top PE Deals of the Month Investor Investee Sector % Stake US$ mn DST Global,Accel Partners, Tiger Global and Steadview Capital Advent and Temasek JP Morgan Asset Management Temasek Steadview Capital,Tiger Global Management and Kinnevik Olacabs.com - ANI Technologies Pvt Ltd Crompton Greaves Ltd- Consumer Products division Canaan Partnersportfolio in India Glenmark Pharmaceuticals Ltd Quikr India Pvt. Ltd. IT & ITES N.A. 400 Manufacturing 34% 316 Banking & Financial Services Pharma, Healthcare & Biotech 100% 200 4% 151 IT & ITES N.A. 150 Top sectors based on deal volume IT & ITES 60% Others 18% Professional / Business Services 3% Education 7% Pharma, Healthcare & Biotech 8% Banking & Financial Services 4%

7 Deal of the month - M&A Deal of the month - PE MESCO Steel acquires Maithan Ispat for US$ 187 million DST Global, Accel Partners, Tiger Global and Steadview Capital invests US$400 million in Bangalore-based Olacabs Sector: Manufacturing Sector: IT&ITES Acquirer Target Investor Investee MESCO Steel group Mideast Integrated Steel Ltd. (MISL) was: Incorporated in 1992, MISL is a steel manufacturing company with assets in Odisha. It belongs to the MESCO Steel Group, which has business interests in steel and airlines. Maithan Ispat Ltd is a part of the Rs 15 billion Kolkata based Maithan Group, having manufacturing interests in refractories, ferro-alloys, cement, direct reduced iron, rebars, billets and sections. The company was set up in 2004 under an MOU with the state of Odisha at Kalinganagar, Jajpur. DST Global, Accel Partners, Tiger Global and Steadview Capital are growth focussed investment companies, which help entrepreneurs build lasting, category-defining technology companies. Comments OlaCabs is a technology focussed cab aggregator based out of Bengaluru.. Olacabs.com/Ola app on mobile, is a marketplace for all types of cabs and car rentals. Rationale The acquisition will provide MISL access to Maithan Ispat Limited s iron ore mines in Odisha. The deal will take Mesco Steel s capacity to 2.2 million tonne per annum and will also help bail out Maithan, which is under debt burden. This funding will be used for technology enhancement and to further expand to Tier 2 and Tier 3 cities with a target to reach 100 cities by the end of the year. Out of the US$ 400 million investment, US$ 100 million is earmarked for TaxiForSure.

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