Quarterly Issue Volume 9.9. Dealtracker. Providing M&A and Private Equity Deal Insights. Grant Thornton India LLP. All rights reserved.

Similar documents
January 2013 Volume 9.1. Dealtracker. Providing M&A and Private Equity Deal Insights. Grant Thornton India LLP. All rights reserved.

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

DealTracker. Providing M&A and Private Equity Deal Insight. July, 2014 Volume Grant Thornton India LLP. All rights reserved.

Dealtracker Providing M&A and Private Equity deal insights

Financial Reporting Advisory Services

May 2012 Volume 8.5. Dealtracker. Providing M&A and PE market insights. Grant Thornton India LLP. All rights reserved.

Union Budget Impact on the M&A & Private Equity investments in India

Union Budget : Impact on the Private Equity investments in India. Grant Thornton India LLP. All rights reserved.

Key highlights of the Interim Union Budget

The Companies Act 2013 Deciphering the term related parties under the Companies Act, 2013 and Clause 49 of the listing agreement

Union Budget Impact on the Real Estate sector

Setting new benchmarks of service excellence. Tax and Regulatory Services Expertise. Performance. Results

Union Budget Impact on the Real Estate and Infrastructure (REI) sector

Delhi ITAT upholds Indian subsidiary as PE and attributes profit for functions/risks not considered for TP analysis

Union Budget Impact on the Healthcare sector

BFSI Tax and Regulatory Services

RBI liberalises norms for investment by foreign portfolio investors in debt

August Deciphering the term related parties under the Companies Act, 2013 and Clause 49 of the listing agreement

Workshop on Transfer Pricing

Workshop on Transfer Pricing

India Watch. Welcome to the Autumn edition of Grant Thornton s India Watch, in association with the London Stock Exchange

Dealtracker. 8th. Providing M&A and Private Equity Deal Insights. Annual Edition Grant Thornton India LLP. All rights reserved.

Dealtracker Providing M&A and PE deal insights. Grant Thornton India LLP. All rights reserved.

Building bridges. A newsletter from Grant Thornton s Indo-Japan Desk Volume 1. Grant Thornton India LLP. All rights reserved.

Due Diligence Reviews Indirect tax perspective

Sector overview Key expectations Budget impact Budget announcements About Grant Thornton

Mergers & Acquisitions

Guidance Note on FATCA and CRS dated 30 November Key clarifications

AAR rules that provision of business support services to US affiliate are naturally bundled and are not intermediary services

Union Budget Impact on Agriculture and Food & Beverage industry Grant Thornton India LLP. All rights reserved.

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary. Mumbai Tribunal rules write-down of investment loss allowable if a direct and proximate nexus exists with a business

Amendments to the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, Executive summary

PE Monthly Roundup May 2017

Indian Equalization Levy on digital services to be effective from 1 June 2016, administrative rules notified

Delhi Tribunal rules income of non-resident that is not attributable to PE in India shall still be taxable in India as FTS

EY Tax Alert. Executive summary

Operational, prudential and reporting norms for Alternative Investment Funds. Executive summary

Aspire. Solutions for Indian business owners. Winter 2010

Mumbai Tribunal rules on DAPE in case of marketing and distribution activities carried out by an Indian branch for group companies

NE 1'JRE. Unaudited financial results for the quarter and ha f year ended 30 September 2018

EY Tax Alert. Executive summary

EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector

EY Tax Alert. Executive summary

EY Regulatory Alert. Executive summary

GST: How it will impact advertising budgets? June 2017

EY Regulatory Alert. Executive summary. SEBI releases Discussion Paper on review of framework for Institutional Trading

EY Tax Alert. Executive summary. Kolkata Tribunal rules on taxability of online advertisement revenues. 18 April mber 2012

EY Tax Alert. Executive summary. Chennai Tribunal upholds salary taxation of SARs benefits received from foreign parent of employer.

Mumbai Tribunal rules reimbursement of expenses on secondment of employees not FTS

EY Tax Alert. Executive summary

Pune Tribunal upholds tax deductibility of MTM exchange fluctuation loss on forex loan borrowed to reduce interest cost and hedge export receivables

EY Tax Alert. Executive summary

Global Business Tax Alert Sharp Insights

EY Tax Alert. Executive summary

Reserve Bank of India releases final guidelines for on tap licensing of Universal Banks in the private sector

EY Tax Alert Indian tax administration issues final rules on certain aspects for determining buy-back tax in India Executive summary

EY Tax Alert. Executive summary. Delhi Tribunal rules on advertisement and promotion expenses involving use of trademarks as not royalty.

PwC ReportingInBrief. Amendments to Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance

MCA proposes to notify the provisions relating to restriction on layers of subsidiaries under the Companies Act, 2013

MoF issues Notifications and Circular for services relating to transportation of goods by vessel

Supreme Court rules accumulated losses of amalgamating company to be set off after reducing interest waiver benefit

PwC ReportingInBrief MAT Ind AS committee additional recommendations on main issues relating to first-time adoption

EY Tax Alert. Executive summary. CBDT sets up a Committee to deal with retroactive indirect transfer taxation. 1 September 2014

EY Regulatory Alert. Executive summary

Global Business Tax Alert Sharp Insights

Karnataka High Court rules that implementation of customized software is a service and cannot be subject to VAT

Control premium in India. Ernst & Young LLP July 2017

Bombay HC upholds non-taxability of deferred consideration on transfer of shares in the absence of accrual

EY Tax Alert. Executive summary

Securities and Exchange Board of India and the Reserve Bank of India issue guidelines for international financial services centres

EY Tax Alert. Executive summary. Bangalore Tribunal rules on deductibility of employee share reward discount cross-charged by foreign parent company

EY Tax Alert. Executive summary

Global Business Tax Alert Sharp Insights. Background/ Facts AAR s findings Conclusion Register for the India Budget 2018 webcasts Contacts

Reserve Bank of India releases draft guidelines for on tap licensing of Universal Banks in the private sector

CBDT revises rules relating to furnishing information in respect of payments to nonresidents

EY Tax Alert. Executive summary. CBDT notifies guidelines for onshore management of offshore funds. 17 March 2016

EY Tax Alert. Executive summary. SC settles certain controversies on profit-linked deduction for export units. 21 December 2016

EY Tax Alert Delhi High Court upholds weighted R&D deduction for recognized inhouse R&D facility from the date prior to recognition and approval

HC denies refund of SAD paid on import of coil sheets sold after corrugation as proflex roof

CBDT introduces form for employee investment declarations and extends due date for quarterly withholding statements

Regulatory Alert Stay Ahead

EY Alert. Executive summary

EY Tax Alert. Executive summary

Valuation Pulse IT and ITeS industry Q2 FY19

Mergers and Acquisition Alert Stay Ahead. Issue no: M&A/02/2018. In this issue:

EY Tax Alert. Executive summary

EY Tax Alert Bangalore Tribunal rules on constitution of service PE for services rendered virtually as well as physically

EY India Real Estate EY s point of view on Amended Foreign Direct Investment (FDI) Policy on Construction Development Sector

EY Tax Alert. Central Government modifies conditions for availing exemption from angel tax provision. Executive summary

Indian Administration issues draft Exit Tax Rules for charitable organisations; invites comments from stakeholders

EY Tax Alert. Executive summary

Mumbai Tribunal rules charterer includes slot charter arrangement for availing treaty benefit under Article 8 of India Malaysia DTAA

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary

CBDT amends rules relating to furnishing information in respect of payments to nonresidents

Transaction Tax India

This Tax Alert provides highlights of the Taxation Laws (Amendment) Bill, 2017 ( Bill ) introduced in the Lok Sabha on 31 March 2017.

EY Tax Alert. Executive summary

EY Tax Alert. Executive summary

Transcription:

Quarterly Issue Volume 9.9 Dealtracker Providing M&A and Private Equity Deal Insights

Dealtracker Quarter 3, 2013: Deal Snapshot Quarter 3 Deal Summary Q3 Volume Value (US$ bn) 2011 2012 2013 2011 2012 2013 Domestic 59 46 51 1.11 1.29 1.31 Cross Border 63 56 55 6.32 4.01 4.92 Mergers & Internal Restructuring 26 11 14-0.07 3.77* Total M&A 148 113 120 7.43 5.37 10.00 PE 90 92 113 1.87 2.25 2.10 Grand Total 238 205 233 9.30 7.63 12.10 Cross Border includes Inbound 35 24 38 2.63 0.70 1.59 Outbound 28 32 17 3.69 3.32 3.33 YTD Volume Value (US$ bn) 2011 2012 2013 2011 2012 2013 Domestic 148 178 168 4.51 4.42 4.44 Cross Border 208 180 169 32.79 9.12 15.24 Mergers & Internal Restructuring 105 80 40-14.62 4.27 Total M&A 461 438 377 37.31 28.16 23.95 PE 285 311 320 7.37 6.05 8.13 Grand Total 746 749 697 44.68 34.21 32.08 Cross Border includes Inbound 93 100 103 23.12 3.67 5.70 Outbound 115 80 66 9.67 5.45 9.54 Highlights Indian M&A market showed moderate levels of deal activity in the first nine months of Calendar Year (CY) 2013. With 377 deals amounting to US$23.9bn, Year To Date ("YTD") 2013 recorded lower levels of deal activity compared to 2011 and 2012. However, excluding internal mergers and restructuring deals, YTD 2013 M&A deal values increased by 45% over YTD 2012 due to some large cross-border deals. Private Equity deal value in YTD 2013 increased by 34% over YTD 2012. M&A Deal of the Quarter (July Sep 2013): ONGC Videsh Ltd acquires 10% of Rovuma Area 1 Offshore Block for US$2.64 billion. PE Deal of the Quarter (July Sep 2013) : Baring PE invested US$400 million in Hexaware Technologies Ltd for a 41.8% stake. Unilever Plc increased around 15% stake in Hindustan Unilever for US$3.1 billion through an open offer. Domestic 21% Destination Of M&A Deals Q3 2013 Crossborder 79% Inbound 26% Outbound 53% *M&A (mergers & internal restructuring) include Unilver s increasing stake in HLL (US$ 3.1 billion) 2

Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 US$ Billion Volume Dealtracker M&A Quarterly Trend M&A Top sectors Q3 2013 20.0 18.0 16.0 14.0 12.0 10.0 148 183 18.4 178 147 113 160 131 126 9.3 120 10.0 200 180 160 140 120 100 Banking & Financial Services 4% IT & ITeS 2% Telecom 3% Manufacturing 5% Electricals & Electronics 2% Others 6% FMCG, Food & Beverages 32% 8.0 6.0 4.0 7.4 7.3 4.4 5.4 7.2 4.6 80 60 40 Pharma, Healthcare & Biotech 6% Cement 14% Oil & Gas 26% 2.0 20-0 3

Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 US$ Billion Volume Dealtracker Private Equity Quarterly Trend Private Equity Top sectors Q3 2013 5.0 4.5 4.0 3.5 88 121 98 93 90 90 4.4 117 113 140 120 100 Infrastructure Management 4% Hospitality 4% Media, Entertainment & Publishing 2% Others 5% 3.0 2.5 2.0 90 1.9 2.1 1.7 2.3 1.7 2.1 80 60 FMCG, Food & Beverages 4% Manufacturing 5% IT & ITeS 38% 1.5 1.0 0.5 1.4 1.3 40 20 Automotive 9% Real Estate 9% Banking & Financial Services 18% 0.0 0 4

Dealtracker Quarter 3, 2013: TOP Deals M&A ONGC Videsh Ltd Rovuma Area 1 Offshore Block US$ 2640 mn UltraTech Cement Ltd Jaypee Cement's 5 mtpa Gujarat facility US$ 590 mn Cipla Ltd Cipla Medpro US$ 512 mn Emerson Group Virgo Valves & Controls Ltd US$ 450 mn * SingTel Bharti Airtel US$ 302 mn My Home Industries Ltd Sree Jayajothi Cements Ltd US$ 230 mn McGraw Hill Financial Inc CRISIL US$ 214 mn Toshiba Corporation Vijai Electricals Ltd., Transmission and Distribution Business US$ 200 mn Endurance International Group Inc Directi Web Technology Pvt Ltd US$ 110 mn *Sing Tel s investment in Bharti Airtel represents an investment only 5

Dealtracker Quarter 3, 2013: TOP Deals Baring Private Equity Hexaware Technologies Ltd US$ 400 mn Private Equity Naspers, Tiger Global, Accel, ICONIQ. Flipkart Online Services US$ 200 mn TPG Capital Shriram City Union Finance Ltd US$ 193 mn Blackstone Agile Electric Sub Assembly Pvt Ltd- Igarashi Motors India Limited US$ 110 mn Softbank Jasper Infotech Pvt Ltd- Snapdeal.com US$ 75 mn Lulu Group- Yusuffali M A Federal Bank US$ 72.73 mn Citi Venture Capital International Sansera Engineering Pvt Ltd US$ 61.82 mn Red Fort Capital Lotus Greens Developers US$ 58.87 mn Morgan Stanley, Tata Capital, QRG, Citi, India Financial,Vallabh Bhanshali Janalakshmi Financial Services Pvt Ltd US$ 52.42 mn 6

Dealtracker M&A Deal of the Quarter ONGC Videsh Ltd acquires 10% of Rovuma Area 1 Offshore Block for US$2.64 billion About the companies ONGC Videsh Ltd ("OVL") ONGC Videsh Limited engages in the acquisition, exploration, development, production, transportation, and export of crude oil and natural gas worldwide. As on 30 May, 2013, the company had interest in 32 exploration and production projects located in 16 countries, including Vietnam, Russia, Sudan, South Sudan, Azerbaijan, Iraq, Libya, Myanmar, Syria, Cuba, Brazil, Nigeria, Colombia, Venezuela, and Kazakhstan. It had total proven, probable, and possible reserves of 432.92 MMTOE. Rovuma Area 1 Offshore Block Offshore Area 1 Block comprises oil and gas reserves. The block is used for drilling operations for crude oil exploration. The block is located in Mozambique. Transaction Rationale: The completion of transaction is subject to existing preferential rights, governmental approvals in India and Mozambique, pre emption rights, relevant regulatory approvals and other customary closing conditions. The acquisition would mark OVL s entry into this emerging world-class offshore gas basin with significant future upside potential, and is consistent with OVL's strategic objective of adding high quality international assets to its existing portfolio. Transaction Terms: ONGC Videsh Limited has entered into a definitive agreement to acquire 10% stake in Offshore Area 1 Block in Mozambique from Anadarko Petroleum Corporation for $2.6 billion. The transaction is expected to be financed through internal cash balance and fresh borrowings. Acquirer Target % Stake US $ Bn ONGC Videsh Ltd Rovuma Area 1 Offshore Block 10% 2,640 7

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

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 1,500 professional staff in New Delhi, Bangalore, Chandigarh, Chennai, Gurgaon, Hyderabad, Kolkata, Mumbai, Noida 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 http://www.grantthornton.in/html/services/ corporate-financeservices/ Advisory Business Risk Corporate Social Responsibility Corporate finance Forensic & Investigations Government & Infrastructure Healthcare &Life Sciences Leadership Consulting Please write to 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

Contact Dealtracker To know more about Grant Thornton India LLP, please visit www.grantthornton.in or contact any of our offices as mentioned below: NEW DELHI National Office Outer Circle L 41 Connaught Circus New Delhi 110 001 T +91 11 4278 7070 BENGALURU Wings, 1st floor 16/1 Cambridge Road Ulsoor Bengaluru 560 008 T +91 80 4243 0700 CHANDIGARH SCO 17 2nd floor Sector 17 E Chandigarh 160 017 T +91 172 4338 000 CHENNAI Arihant Nitco Park, 6th floor No.90, Dr. Radhakrishnan Salai Mylapore Chennai 600 004 T +91 44 4294 0000 GURGAON 21st floor, DLF Square Jacaranda Marg DLF Phase II Gurgaon 122 002 T +91 124 462 8000 HYDERABAD 7th floor, Block III White House Kundan Bagh, Begumpet Hyderabad 500 016 T +91 40 6630 8200 KOLKATA 10C Hungerford Street 5th floor Kolkata 700 017 T +91 33 4050 8000 MUMBAI 16th floor, Tower II Indiabulls Finance Centre SB Marg, Elphinstone (W) Mumbai 400 013 T +91 22 6626 2600 NOIDA Plot No. 19A, 7th Floor Sector 16A, Noida 201301 T +91 120 7109001 PUNE 401 Century Arcade Narangi Baug Road Off Boat Club Road Pune 411 001 T +91 20 4105 7000 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, 110001 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 www.grantthornton.in 10