Vccedge Q1 2010

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Vccedge Q1 2010

  1. 1. A RESEARCH PUBLICATION | April 2010 QUARTERLY DEAL UPDATEQ1 2010 Statistics and analysis of Private Equity, Venture Capital and Mergers & Acquisitions in India
  2. 2. Contents Page Number I. Executive Summary 3 II. Private Equity Deal Flow - Introduction 4 - Deal Breakdown 5 - Sectoral Breakdown 7 - Regional Outlook 11 - Top 5 Private Equity Deals 12 III. Private Equity Exits 15 IV. M&A Round Up - Introduction 16 - Deal Breakdown 17 - Sectoral Breakdown 19Corporate Office:Mosaic Media Ventures Pvt. Ltd. - Regional Outlook 23B-128, First Floor, Sector 5, Noida - Top 5 M&A deals 24Uttar Pradesh, India - 201 301Tel: +91-120-4171111Email Id: sales@vccedge.com COPYRIGHT © 2010 All rights reserved.
  3. 3. QUARTERLY REPORTEXECUTIVE SUMMARYVCCEdge puts the Indian dealscape in context by Mergers & Acquisitions…bringing to you a set of statistics analyzing Indian  Deal value rose to $19,198 million in Q1 2010, up fromM&A, private equity and venture capital activity $5,195 million in Q1 2009.during the first quarter of 2010.  The number of domestic deals doubled from 39 dealsPrivate Equity… worth $2,270 million in Q1 2009 to 80 deals worth $4,069 Total private equity investment in India went up million in Q1 2010.by more than 185% from $675 million in Q1 2009  In terms of volume, the number of outbound deals moreto $1,943 million in Q1 2010. than doubled from 24 in Q1 2009 to 51 in Q1 2010, while The median deal amount and the average value in terms of value the increase was more than 7X, primarilyof private equity deals in Q1 2010 increased to due to the Bharti – Zain deal.$10 million and $26 million respectively from $8  The number of inbound deals increased to 29 in Q1 2010million and $19 million in 2009. from 24 deals in Q1 2009. Utilities, Consumer Discretionary & Financials  Telecommunication Services, Energy and Healthcarewere the most targeted sectors for investment were the most targeted sectors with deals worth $14,036with deals worth $484 million, $440 million and$403 million respectively. million, $1,172 million and $961 million respectively in the latest quarter. There were 32 exits worth $824 million in Q12010 as compared to only 9 exits in Q1 2009. 3
  4. 4. PRIVATE EQUITY INTRODUCTION After a turbulent 2009, private equity investments in India For the quarter ended March 2010, total announced deal value displayed steady signs of recovery in the first quarter of 2010. was $1,943 million, a jump of more than 185% from $675 million This was helped by improved GDP numbers, stability in the in Q1 2009. Total deal count in Q1 2010 also increased by 35% to business environment and an impressive recovery in the Indian 88 deals, up from 65 in Q1 2009. Interestingly, despite the stock market; which exhibited higher investor confidence, enormous growth in deal value on a quarter-on-quarter basis, the narrowing spreads and reduced volatility. The latest quarter deal count decreased by 11% to 88, down from 99 in Q4 2009. registered the highest value of deals since 2009. Exhibit 1:Private Equity Deal Flow in India 6000 190 200 $5,508 166 $5,184 180 $5,229 5000 149 160 133 140 4000 114 113 105 $3,345 120 Deal VolumeDeal Value ($ Mn) 100 99 93 3000 $2,605 81 $2,734 84 88 100 $2,555 73 66 65 $2,065 65 80 88 62 $1,943 2000 $1,697 $1,604 44 45 $1,526 $1,413 60 $1,246 $1,138 $1,178 40 1000 $716 $691 $675 $422 $379 20 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 Value($Mn) Volume (Source: VCCEdge) 4
  5. 5. PRIVATE EQUITY DEAL BREAKDOWN Exhibit 3:Median Deal Amount breakdown 16 15 15 14Exhibit 2: Private Equity Breakdown 12 10 10500 10 Angel 8 8 389 386 VC 8400 PE 6 291300 4 204 2200 180 116 0 82 99 83100 67 2005 2006 2007 2008 2009 Q12010 35 5 15 20 18 12 4 17 (Source: VCCEdge) 0 Exhibit 4: Average deal size in ($million) 2005 2006 2007 2008 2009 Q12010 50 46 45 $2208 Mn $7078 Mn $19581 Mn $12243 Mn $4404 Mn $1943Mn 40 35 33 (Source: VCCEdge) 30 26 26 Total number of Venture Capital investments announced in 25 Q1 2010 stands at 17 with an announced value of $117 19 20 14 million as against 23 deals at an announced value of $88 15 million in Q1 2009 and 37 deals amounting to $180 million 10 in Q1 2008. 5 0 2005 2006 2007 2008 2009 Q12010 (Source: VCCEdge) The median deal amount and the average value in Q1 ’10 increased to $10 million and $26 million respectively as the volume of larger deals (particularly deals > $100million) increased. 5
  6. 6. PRIVATE EQUITYDEAL BREAKDOWN Exhibit 5: Number of transactions by Deal Size Exhibit 6: Total investment by Deal Size Q12010 Q12010 Q12009 Q12009 Q12008 Q12008 Q12007 Q12007 Q12006 Q12006 Q12005 Q12005 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% Under $ 5mn $5 - $25 mn $25-$50 mn Undisclosed Under $ 5mn $5 - $25 mn $25-$50 mn $50 -$100 mn $100+ $50 -$100 mn $100+ (Source: VCCEdge) (Source: VCCEdge)Private equity deals under $50 million accounted for 91% of Larger deals ($50 million and above) accounted for 54% oftotal deal volume in Q1 ‘10. total capital invested in Q1 ’10 as against 43% in Q1 ‘09. Q105 Q106 Q107 Q108 Q109 Q110 Q105 Q106 Q107 Q108 Q109 Q110undisclosed 25 47 79 68 20 12 under $5 m 38 42 42 62 38 17under $5 m 18 20 24 25 18 13 $5 - $25 m 186 445 497 588 222 529$5 - $25 m 18 36 38 48 20 46$25 - $50 m 4 7 23 25 4 9 $25 - $50 m 146 209 433 805 126 351$50 - $ 100 m 1 2 6 9 2 4 $50 - $ 100 m 52 120 381 620 129 214$100+ 0 2 6 15 1 4 $100+ 0 430 1202 3153 161 832 (Source: VCCEdge) (Source: VCCEdge) 6
  7. 7. PRIVATE EQUITYSECTORAL BREAKDOWN Financials , $403 The major private equity deals were investments in Star Health & Utilities , $484 Allied Insurance, Coastal Projects Pvt. Ltd., Tikona Digital Networks Pvt. Ltd., Coffee Day Resorts & Hotels Ltd. and Asian Genco Pte Ltd. Other sectors, which have significantly contributed to private equity deal value in Q1 2010, are Information Technology and Industrials accounting for 14% of total deal value. Utilities , 5 Industrials , 7 Information technology , $134 Financials , 23Industrials , $131 Consumer Discretionary , $440 Exhibit 7: Top 5 Sectors by Deal Value in 2010 ($mn) Consumer (Source: VCCEdge) Discretionary , 17Utilities, Consumer Discretionary & Financials were the mosttargeted sectors for investment with deals worth $484 million,$440 million and $403 million respectively in Q1 2010. InformationTogether, they accounted for more than 68% of total private technology , 19equity deal value during the quarter.Exhibit 8: Sector Summary Exhibit 9: Top 5 Sectors by Deal Volume in 2010 Sector Volume Value Average Deal Size (Source: VCCEdge)Consumer Discretionary 17 440 29Consumer Staples 5 95 19 The most active sectors in terms of deal volume was FinancialsEnergy 2 26 13 with 23 deals in the quarter, followed by Information TechnologyFinancials 23 403 22 and Consumer Discretionary with 19 and 17 deals respectively.Health Care 5 82 16 Other sectors contributing to the deal volume were Industrials &Industrials 7 131 19 Utilities accounting for 7 and 5 deals each.Information Technology 19 134 10Materials 1 35 35Telecommunication Services 4 112 37Utilities 5 484 97 7 (Source: VCCEdge)
  8. 8. PRIVATE EQUITYSECTORAL BREAKDOWNENERGY INDUSTRIALS $324 30 $26 3 400 20 $20 300 $239 12 18 19 15 20 2 2 2 200 $144 $131 10 1 $112 10 1 11 $3 100 5 $0 0 7 0 0 0 0 0 $0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  The Oil & Gas Exploration & Production sub-industry led this  Deal volume in Q1 2010 decreased by 63%. sector with 2 deals in Q1 2010.  Invested capital decreased by 60% from the $324 million spent  Energy accounted for 1.3% of deals in Q1 2010. in Q4 2009.  Industrials accounted for 6.7% of deals in Q1 2010.MATERIALS 150 10 CONSUMER DISCRETIONARY 7 500 $440 20 100 14 400 14 15 $54 $98 5 10 17 300 15 $238 50 $35 10 1 200 $164 $17 1 $1 1 $58 $74 5 0 2 0 100 Q1 Q2 Q3 Q4 Q1 0 0 Q1 Q2 Q3 Q4 Q1 2009 2010 Value($ Mn) Volume 2009 2010 (Source: VCCEdge) Value($ Mn) Volume (Source: VCCEdge) Materials was not popular among the investors. The sector saw 1 deal at a value of $35 million in Q1 2010.  Consumer Discretionary accounted for 22.6% of deals in Q1 2010. 8
  9. 9. PRIVATE EQUITYSECTORAL BREAKDOWNCONSUMER STAPLES FINANCIALS 200 $174 10 500 $403 25 400 $371 20 150 $95 22 23 300 15 100 3 5 5 $119 17 $205 3 2 200 $162 10 50 $1 3 $5 $10 100 10 5 8 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge) Value($ Mn) Volume  The Agricultural Products sub-industry led this sector with 4 deals  The Financials sector saw 23 deals at a value of $403 million in in Q1 2010. Q1 2010.  Consumer Staples accounted for 4.9% of deals in Q1 2010. The sector accounted for 20.7% of deals in Q1 2010.HEALTH CARE INFORMATION TECHNOLOGY 150 $136 10 400 25 $331 6 20 17 19 20 100 5 5 300 8 14 5 15 3 $91 $82 200 $144 9 $155 $134 10 50 $27 $30 100 5 $27 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume (Source: VCCEdge) Value($ Mn) Volume (Source: VCCEdge)  Healthcare saw 5 deals at a value of $82 million in Q1 2010. The sector accounted for 4.2% of deals in Q1 2010.  Information Technology accounted for 6.9% of deals in Q1 2010. 9
  10. 10. PRIVATE EQUITYSECTORAL BREAKDOWNTELECOMMUNICATION SERVICES UTLITIES300 $271 6 600 10 $484 9 8 4200 4 400 3 6 $112 $222 $197 5 4100 2 200 2 4 1 2 1 $67 $62 $1 $0 $50 0 0 0 0 1 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge) Telecommunication Services saw 4 deals at an announced  Utilities industry saw 5 deals at an announced value of $484 value of $122 million. The sector accounted for 5.8% of deals in million in Q1, 2010. Q1 2010. • The sector accounted for 24.9% of deals in Q1 2010. As seen in Q1 2009, Q1 2010 also saw a large number of deals in Information Technology and Financials sectors. 10
  11. 11. PRIVATE EQUITYREGIONAL OUTLOOKA detailed analysis on the existing and DELHIdeveloping infrastructure, manufacturing (Metro City - Fast industrial & economicclusters and consumer markets has brought to growth; Several auto componentsthe fore key locations that have witnessed manufacturers, general manufacturing Amritsarincreased Private Equity investment. clusters ) Jalandhar Dehradun Ludhiana Top 5 States by deal value Top 5 City Investments States Volume Value ($ mn) State Volume Value ($ mn) Jaipur Lucknow Maharashtra 21 420 Kanpur Mumbai 20 420 Karnataka 14 313 Bangalore 14 313 Ahmedabad Bhopal Andhra Pradesh 5 109 Hyderabad 4 102 Indore Baroda Delhi 5 90 Delhi 5 90 Surat Tamil Nadu 7 82 Mumbai Chennai 6 75 (Source: VCCEdge) (Source: VCCEdge) Pune Hyderabad Vizag MUMBAI (Financial capital of India; Fast industrial & HYDERABAD economic growth; preferred destination Tier I Bangalore Chennai (IT/ITES and pharmaceuticals hub ) for companies) Mangalore Tier II Mysore BANGALORE (IT hub of India; Garments and textile Coimbatore CHENNAI clusters & emerging biotechnology (Metro city; IT & manufacturing hub industry) Cochin and healthcare industries) 11
  12. 12. PRIVATE EQUITYTOP 5 DEALS IN 2010Exhibit 10: Top 5 Private Equity deals in Q1 2010S No. Target Buyer Value ($ Mn) Morgan Stanley Infrastructure Partners, General Atlantic LLC, Goldman 1 Asian Genco Pte Ltd. Sachs, Norwest Venture Partners, Everstone Capital 425 Kohlberg Kravis Roberts & Co., New Silk Route Partners, Standard Chartered 2 Coffee Day Resorts & Hotels Ltd. Private Equity 200 3 Tikona Digital Networks Pvt. Ltd. Indivision India Partners, Oak Investment Partners, Goldman Sachs 107.1 4 Star Health & Allied Insurance Co. Ltd. ICICI Venture Ltd., Sequoia Capital India, The Carlyle Group 100 Fidelity International Ltd., Sequoia Capital India, Baring Private Equity Asia, 5 Coastal Projects Pvt. Ltd. Deutsche Bank AG 55.15 Top 5 deals accounted for more than 45% of the total private equity deals in Q1, 2010. Morgan Stanley Infrastructure Partners and others invest $425 MN in Asian Genco Pte Ltd.  Morgan Stanley Infrastructure Partners, General Atlantic LLC, Goldman Sachs Investment Management, Norwest Venture Partners and Everstone Capital invested $425 million (INR 19.33 billion) in Asian Genco Pte Ltd.  The company will use these funds for grow their power generation assets across India.  Wong Partnership LLP acted as legal advisor to Asian Genco Pte Ltd. on the deal.  Asian Genco is an infrastructure company with investments in Indian power generation assets and engineering services businesses. (Source: VCCEdge) 12
  13. 13. PRIVATE EQUITYTOP 5 DEALS IN 2010Kohlberg Kravis Roberts & Co. and others invest $200 MN in Coffee Day Resorts & Hotels Ltd. Kohlberg Kravis Roberts, New Silk Route Partners and Standard Chartered Private Equity acquired 20% stake in Bangalore based Coffee Day Resorts & Hotels Ltd. for a price of $200 million (INR 9.21 billion). The company will use the proceeds to increase the number of retail outlets and also add international locations to its portfolio in Austria, Pakistan and Dubai. AZB Partners, Simpson, Thacher & Bartlett acted as legal advisor to KKR and Dua Associates, Tatva Legal advised Coffee Day on the deal. Coffee Day Resorts & Hotels Ltd., a wholly owned subsidiary of Amalgamated Bean Coffee Trading Co. Ltd., owns and operates hotels and resorts. (Source: VCCEdge) Indivision India Partners and others invest $107 MN in Tikona Digital Networks Pvt. Ltd.  Goldman Sachs Investment Partners, Indivision India Partners and Oak India Investments acquired 70% stake in Mumbai based Tikona Digital Networks Pvt. Ltd. for a price of $107.1 million (INR 5 billion).  The company will use the funds to expand its network coverage to 50 cities by 2010 from 10 cities.  Tikona Digital Networks designs and develops wireless broadband services for home and enterprise customers in India. TDN provides edge voice, video, IT applications and multimedia content services over any broadband or IP centric network. (Source: VCCEdge) 13
  14. 14. PRIVATE EQUITYTOP 5 DEALS IN 2010ICICI Venture and others invest $100 MN in Star Health & Allied InsuranceICICI Venture Ltd., Sequoia Capital India and Carlyle Group acquired 40% stake in Chennai based Star Health & Allied Insurance Co.Ltd. for a price of $100 million (INR 4.5 billion).The deal values the target company at $250 million (INR 11.25 billion).MAPE Advisory Group acted as financial advisor to Star Health and Ernst & Young advised the investors on the deal.Star Health & Allied Insurance Co. Ltd. provides individual and group health insurance products in India. (Source: VCCEdge) Fidelity International Ltd. and others invest $55 MN in Coastal Projects Pvt. Ltd.  Deutsche Bank AG, Fidelity International Ltd. Sequoia Capital India, Baring Private Equity Asia acquired 16% stake in Hyderabad based Coastal Projects Pvt. Ltd. for a price of $55.15 million (INR 2.5 billion).  The company will use the funds for the working capital purposes. Coastal Projects Pvt. Ltd. is executing over 300 kms of tunnel work in Andhra Pradesh, Karnataka, Kerala, Himachal Pradesh and several north-eastern states.  Motilal Oswal Investment Advisors acted as the financial advisor to Coastal Projects on the deal. (Source: VCCEdge) 14
  15. 15. PRIVATE EQUITYPRIVATE EQUITY EXITSExhibit 11: Top Private Equity Exits in Q1’ 10S.No. Target Buyer Exit Type Deal Value ($ mn) 1 Aamby Valley Ltd. Siva Ventures Ltd. Buyback 323 2 India Infoline Investment Services Pvt. Ltd. Orient Global Tamarind Fund Pte Ltd Buyback 72 3 Sun TV Network Ltd. Nalanda India Fund Open market 61 4 Jubilant Foodworks Ltd. The India Private Equity Fund, JP Morgan Partners IPO 58 Reliance India Power Fund, Tano India Private 5 Ravin Cables Ltd. Equity Fund M&A 44 (Source: VCCEdge) Secondary Buyback, 4 M&A, 8 Sales, 2 IPO, 5 Open Market, 13 Exhibit 12: Private Equity Exits in Q1’ 10 There were 32 exits worth $824.44 million in Q1, 2010. In comparison there were only 9 exits each in Q1’09. 15
  16. 16. MERGERS & ACQUISITION INTRODUCTION M&A activity in India has surged over the last few quarters. Total announced deal value in Q1 2010 was $19,198 million, a 250% increase over the $5,195 million witnessed in Q1 2009 and a 265% The year ahead will see an increase in value and volume of increase over Q4 2009. The total deal count also increased by 70% Indian M&A activity as investor confidence and liquidity to 167 in Q1 2010 from 98 in Q1 2009. return to the market. Strategic investors will try to take advantage of lower valuations in the midst of the crisis and strengthen their position across various sectors. Exhibit 13:M&A Deal Flow in India 25000 167 180 $21,671 157 152 148 160 146 20000 $19,198 128 125 125 140 118 117 108 112 135 120 104Deal Value ($ Mn) 15000 97 $15,301 98 95 87 100 80 Deal Volume 66 $9,518 80 10000 62 $7,856 $6,744 $5,199 60 $4,977 $4,952 $5,195 $5,249 $3,940 $4,116 40 5000 $3,215 $3,152 $3,021 $2,761 $2,943 $1,485 20 $747 $959 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2005 2006 2007 2008 2009 2010 Value($Mn) Volume (Source: VCCEdge) 16
  17. 17. MERGERS & ACQUISITIONDEAL BREAKDOWNThe number of domestic deals increased from 68 and 39 Exhibit 14: M & A Breakdownin Q1 2008 & Q1 2009 respectively to 80 in Q1 2010. The 250 234value of domestic deals was $4,069 million in Q1 2010 215 207 Domestic 194compared to $2,270 million in Q1 2009. 200 Inbound 153 162 147 OutboundIn terms of volume, the number of outbound deals more 150 135than doubled from 24 in Q1 2009 to 51 in Q1 2010, while 106 111 100 86 89 80in terms of value the increase was more than 7X from 66 70$1,862 million to $13,236 million. 51 50 37 29The number of inbound deals increased to 29 in Q1 2010 0from 24 deals in Q1 2009 at a higher value. 2005 2006 2007 2008 2009 Q12010 $7912 Mn $25891 Mn $32850 Mn $27458 Mn $14296 Mn $19198 MnExhibit 15:Median Deal Amount breakdown (Source: VCCEdge) 40 Exhibit 16: Median deal amount by deal type 33 50 46 30 40 43 40 40 19 20 18 30 26 15 15 25 25 12 10 20 24 21 21 19 20 18 10 0 12 8 8 7 6 2005 2006 2007 2008 2009 Q12010 0 (Source: VCCEdge) 2005 2006 2007 2008 2009 Q12010 Domestic Inbound Outbound (Source: VCCEdge) The median deal amount in Q1 2010 increased to $33 million as the volume of larger 17 deals (particularly deals > $100 million) increased.
  18. 18. MERGERS & ACQUISITION DEAL BREAKDOWN Exhibit 17: Number of transactions by Deal Size Exhibit 18: Total investment by Deal Size Q110 Q110 Q109 Q109 Q108 Q108 Q107 Q107 Q106 Q106 Q105 Q105 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% under $5 mn $5 - $25 mn $25 - $50 mn undisclosed under $5 mn $5 - $25 mn $50 - $ 100 mn $100+ $25 - $50 mn $50 - $ 100 mn $100+ (Source: VCCEdge) (Source: VCCEdge) M&A deals under $100 million accounted for 80% of total Larger deals ($100 million and above) accounted for 90% of deal flow in Q1 2010. total capital invested in Q1 2010 as against 86% in Q1 2009. Q105 Q106 Q107 Q108 Q109 Q110 Q105 Q106 Q107 Q108 Q109 Q110undisclosed 33 49 58 95 46 81 under $5 m 32 48 46 25 30 27under $5 m 14 19 22 9 27 19 $5 - $25 m 106 217 247 256 97 275$5 - $25 m 10 18 22 20 8 20 $25 - $50 m 238 371 315 470 191 650$25 - $50 m 7 10 8 13 5 17$50 - $ 100 m 1 3 1 7 5 12 $50 - $ 100 m 71 183 81 451 400 871$100+ 1 9 14 8 7 17 $100+ 300 2201 20984 6654 4477 17376 (Source: VCCEdge) (Source: VCCEdge) 18
  19. 19. MERGERS & ACQUISITION SECTORAL BREAKDOWN Industrials, $757 Financials, $805 The major transactions were the acquisitions of Zain Africa BV, TowerHealth Care, $961 assets of Aircel, Parkway Holdings Ltd. and Trinity Coal Corp.Energy, $1,172 Materials, 16 information Technology , 38 Financials, 20 Telecommunication Services, $14,036 Exhibit 19: Top 5 Sectors by Deal Value in 2010 ($mn) (Source: VCCEdge)Telecommunication Services, Energy and Healthcare were themost targeted sectors for acquisitions with deals worth $14,036 Consumermillion, $1,172 million and $961 million respectively. Together, Industrials, 28 Discretionary, 28they accounted for 84% of total private equity deal value duringthe quarter. Exhibit 21: Top 5 Sectors by Deal Volume in 2010 Exhibit 20: Sector Summary (Source: VCCEdge) Sector Volume Value Average Deal SizeInformation Technology 38 110 16Consumer Discretionary 28 570 47 The most active sectors in terms of deal volume was InformationIndustrials 28 757 47 Technology with 38 deals in the quarter, followed by ConsumerFinancials 20 805 62 Discretionary and Industrials with 28 deals each. Other sectorsMaterials 16 325 41 contributing to the deal volume were Materials & FinancialsConsumer Staples 12 430 54 accounting for 20 and 16 deals respectively.Healthcare 8 961 160Energy 7 1172 167Telecommunication Services 7 14036 2005 19Utilities 3 34 34
  20. 20. MERGERS & ACQUISITIONSECTORAL BREAKDOWNENERGY INDUSTRIALS2000 9 2000 $1,898 28 30 $1,747 23 7 7 201500 1500 16 5 $1,172 6 20 4 131000 1000 $757 3 $474 $476 3 $338 10 $366 500 500 $56 $87 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  Energy accounted for 6.1% of deals in Q1 2010.  Industrials accounted more than 3.9% of deals in Q1 2010.MATERIALS CONSUMER DISCRETIONARY 2000 $1,820 20 750 28 30 16 $637 600 $570 1500 13 12 15 28 25 20 450 12 12 8 $309 1000 10 300 $578 6 10 $547 500 $277 $325 5 150 $49 $32 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  Deal volume increased by more than 160%.  Q1 2010 and Q4 2009 saw 28 deals each.  Invested capital increased by 17% in Q1 2010.  Invested capital increased by 84% in Q1 2010. 20
  21. 21. MERGERS & ACQUISITIONSECTORAL BREAKDOWNCONSUMER STAPLES FINANCIALS 500 12 $430 15 400 1000 $805 25 $819 8 $376 12 10 800 20 300 5 5 600 20 15 200 $205 10 5 400 14 14 10 $217 100 $97 11 $0 $3 200 $71 5 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  Invested capital increased by 17% in Q1 2010.  Financials accounted for 4.2% of deals in Q1 2010.  Consumer Staples accounted for 2.2% of deals in Q1 2010.HEALTH CARE INFORMATION TECHNOLOGY 800 401500 12 15 $654 11 $1,050 600 38 30 $9611000 10 28 11 400 20 5 22 $243 500 $410 8 5 200 $118 17 $123 $110 10 $235 $226 14 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  Deal volume decreased by more than 33%.  Deal volume increased by more than 32%.  Invested capital increased by 134% in Q1 2010.  Invested capital decreased by more than 50 % in Q1 2010. 21
  22. 22. MERGERS & ACQUISITIONSECTORAL BREAKDOWNTELECOMMUNICATION SERVICES UTLITIES16000 9 140 $132 7 $14,03614000 120 612000 6 100 5 7 610000 5 6 80 4 8000 4 3 60 3 6000 4 3 $37 $34 4000 40 1 2 3 3 2000 20 1 $791 $201 $41 $403 $0 $0 0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2009 2010 2009 2010 Value($ Mn) Volume Value($ Mn) Volume (Source: VCCEdge) (Source: VCCEdge)  Telecommunication Services accounted for 73% of deals in  Deal volume decreased by more than 40%. Q1 2010.  Invested capital decreased by 8% in Q1 2010. As seen in Q1 2009, Q1 2010 also saw a large number of deals in Information Technology. 22
  23. 23. MERGERS & ACQUISITIONREGIONAL BREAKDOWN DELHI (Metro City - Fast industrial & economic growth; Several auto components manufacturers, general manufacturingGUJARAT clusters ) Amritsar(Oil and Natural Gas producers and JalandharManufacturers of Wool, Silk, Synthetic Fibers, DehradunTextiles, Basic Metals, Alloys, Rubber, Plastic, Ludhiana Top 5 states according to deal valuePetroleum, Transport Equipments and Parts,Coal Products) State Volume Value ($Mn) Jaipur Kanpur Lucknow Maharashtra 34 1969 Delhi 6 769 Ahmedabad Bhopal Karnataka 18 363 Indore Tamil Nadu 11 233 Baroda Gujarat 5 192 Surat (Source: VCCEdge) Mumbai Pune Hyderabad Vizag Tier I Tier II MAHARASHTRA (Fast industrial & economic growth; preferred destination for companies) Bangalore Chennai TAMIL NADU Mangalore (Electronics, software, auto components, Mysore pharmaceuticals, leather hub) KARNATAKA (IT hub; Garments and textile clusters & Coimbatore emerging biotechnology industry) Cochin 23
  24. 24. MERGERS & ACQUISITIONTOP 5 DEALS IN 2010Exhibit 22: Top M&A deals in Q1 2010S. NO. Target Buyer Type Price ($ million) 1 Zain Africa BV, African Operations Bharti Airtel Ltd. Outbound 10700 2 Aircel Ltd., Tower Assets GTL Infrastructure Ltd. Domestic 1800 3 Parkway Holdings Ltd. Fortis Healthcare Ltd. Outbound 685 4 Trinity Coal Corp. Essar Group Outbound 600 5 Unitech Wireless Ltd. Telenor ASA Inbound 433 The top 5 deals accounted for more than 71% of the total M&A deals in Q1 2010. Acquisition of the African Operations of Zain by Bharti Airtel Ltd.  Bharti Airtel Ltd. entered into a definite agreement to acquire African operations of Zain Africa BV for a price of $10.7 billion (INR 493.56 billion).  The buyer will pay $9 billion (INR 415.14 billion) in cash and will assume debt of $1.7 billion (78.41 billion).  Zain Africa BV provides mobile telecommunication services in the Middle East and African continent. The company offers mobile voice and data services to individual and business customers. (Source: VCCEdge) 24
  25. 25. MERGERS & ACQUISITIONTOP 5 DEALS IN 2010Acquisition of Tower Assets of Aircel Ltd. by GTL Infrastructure Ltd. GTL Infrastructure Ltd. acquired tower assets of Aircel Ltd. for a price of $1.8 billion (INR 84 billion). The debt for the deal was syndicated by SBI Capital Markets Ltd. Citigroup Inc and Barclays Capital acted as financial advisors for GTL Infrastructure Ltd. Nomura, Rothschild and Standard Chartered Bank acted as financial advisors for Aircel Ltd. Wadia Ghandy advised GTL and Amarchand advised Aircel on the deal. (Source: VCCEdge) Fortis Healthcare Ltd. invested in Parkway Holdings Ltd.  Fortis Healthcare Ltd. acquired 23.9% stake in Singapore based Parkway Holdings Ltd. from TPG Capital for approximately $685.3 million (INR 31.10 billion).  AZB & Partners acted as legal advisor to Fortis Healthcare Limited on the deal.  Parkway Holdings Ltd. provides health care services. (Source: VCCEdge) 25
  26. 26. MERGERS & ACQUISITIONTOP 5 DEALS IN 2010 Essar Group acquired Trinity Coal Corp.  Essar Group agreed to acquire Trinity Coal Corp. for approximately $600 million (INR 27.47 billion) from Denham Capital Management LP.  Trinity Coal Corp. is a coal producing company. (Source: VCCEdge) Telenor ASA acquired stake in Unitech Wireless Ltd. Telenor ASA acquired 7.15% stake in Unitech Wireless Ltd. for a price of $433.36 million (INR 20.22 billion). The additional investment will allow Uninor to proceed as per the business plan and successfully expand operations in India. This is the fourth and final round of investment from the Telenor group, which is to inject a total of INR 61.20 billion for a 67.25% stake in the joint venture with Indian real estate company Unitech Ltd. Unitech Wireless Ltd. is a telecom services player in India. It has licenses to operate in all 22 circles across the country. (Source: VCCEdge) 26
  27. 27. JUST LAUNCHED Public Company ComparablesVCCEdge is an online financial research platform Choose your comp set and see EV/EBITDA, EV/EBIT, EV/PAT and EV/Revenue using our proprietary compbrought to you by The VCCircle Network. tool for back of the envelope valuations. Enhanced Industry Classification Companies Screen companies and data on the basis of 10 Sectors, VCCEdge contains more than 10,000 companies 24 Industry Groups, 68 Industries and 154 Sub- searchable on various parameters including industry Industries. and geography. Private Company Financials Intelligence Now see financial data for private equity funded VCCEdge allows users to keep a close tab on deals in companies and M&A targets. Get deep insights and the market using its innovative tracking tool. deal origination ideas in hot sectors. Deals Public Company Financials VCCEdge has all mergers and acquisitions, private Key financial highlights of all Indian listed companies. equity and venture capital deals in India starting Powerful Financial Screener Directories Screen public and private companies on the basis of VCCEdge contains listings of private equity/venture Margins, Revenue, Profit or any other financial criteria. capital funds, investment banks and law firms activeFor more information: For sales enquiries:Arjun Bahl I Analyst I VCCEdge Shashank Randev I BDM I VCCEdge+91-120-4171103 Iarjun@vccircle.com +91-120-4171111 I sales@vccedge.com

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