Biz Mn A Review


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Biz Mn A Review

  1. 1. %Bizness Read on ................................... Mergers and Acquisitions reportedly for Rs.10 crore. For Dabur the acquisition is not just MA about acquiring a brand but making its presence felt on the global scene as a business house Review 2004 with a sizeable overseas presence. Touch is a brand leader in Egypt with annual sales of around 15 - KenSource million Egyptian pounds and would give Dabur a ready In this issue we present the most striking MA deals of the year 2004 which consumer base in the country. managed to grab the headlines signaling the evolution of the Indian corporate Dabur’s move stems from its plans world. to acquire a foothold in regular hair oil using countries across the Arab WHAT THE BIG BOUGHT ZEE ACQUIRED RAJSHRI world, North Africa and the PRODUCTIONS Gulf. Dabur already has a INFOSYS EXPANDED THE Media major Zee Telefilms manufacturing facility in Egypt, INORGANIC WAY Limited acquired one of the oldest which it was forced to set up, Having bought out a 100% stake banners in Bollywood, Rajshri following the smuggling of some in the Australia based Expert Productions, in a deal not of its brands like Dabur Amla and Information Services Pty Ltd for an involving cash. The value of the Vatika, though not in large approximate sum of A$31 million, deal is however pegged at close to quantities. In addition to that the Rs.50 crore. The Barjatya family company is also looking at setting who are promoters of Rajshri up a manufacturing base in Productions will in turn be issued Karachi in Pakistan for which it has shares of Zee Telefilms as signed an MOU with Muller and consideration. If successful, this Phips— a distribution company to Indian software major Infosys will be the first major step towards market Vatika shampoo, Dabur Technologies Limited embarked consolidation in the Indian film Amla hair oil and Hajmola in that on an inorganic expansion path. industry with Zee trying to further country. Founded in 1994, Expert is one of its interest in film production and Australia’s leading infotech service distribution via this route. VSNL WAS SEEN BUYING providers specialising in design, DISHNET’S DSL BUSINESS building and integration of DABUR SHOPPED IN EGYPT In a move to consolidate its business solutions. Indian FMCG major Dabur position in the telecom business, India Limited was seen buying Tata owned, Videsh Sanchar ACC BOUGHT OUT ORISSA Egypt’s hair oil brand ‘Touch’ Nigam Limited (VSNL) is all set to GOVT STAKE IN IDCOL FOR buy Dishnet’s Internet and Digital Rs.176.00 CRORE Subscriber Line (DSL) business for In one of the first major Rs.309 crore. The move would disinvestments to be made, the provide VSNL with a jumpstart Orissa government finally sold off over its rivals in broadband its stake in the 1m ton Idcol Cement services and diversification into at Baragarh to ACC for a sum of wireless data transmission Rs.176.00 crore. ACC will now business. Dishnet has applied enhance the splinter capacity by to the Department of 35% and the plant capacity to 2 Telecommunications (DOT) for million tonnes. frequency in the 450 Mhz band and
  2. 2. %Bizness Read on ................................... has offered to pay a license fee of acquisition gives TISCO a TATA’S BOUGHT OUT DAEWOO Rs.500 crore for 5+5 Mhz frequency manufacturing footprint in seven TRUCK UNIT FOR Rs.465 all over the country. This is in countries. NatSteel is Singapore’s CRORE addition to the 15% revenue share In a $102 million deal Tata largest steel company having steel that the company would be paying Motors is buying out Daewoo mills in China, Thailand, Australia, to the department. Commercial Vehicle putting in half Vietnam and the Philippines. the money by way of equity and Apart from steel, the company also the balance coming in the form of has an interest in industrial and MAHINDRA GROUP PICKED UP bank loan to Daewoo Commercial chemical sectors in the Asia-Pacific MAJORITY STAKE IN US Vehicles. The acquisition would region. NatSteel is to spin off its COMPANY The Mahindra group has allow Tata Motors the perpetual steel business into a separate bought a majority stake in and exclusive right to use the subsidiary post, which TISCO will Bristlecone, a California based Daewoo trademark for Daewoo acquire it as a 100% holding. This technology consulting and services Commercial Vehicle’s trucks in also brings into TISCO’s fold a 26% firm. Mahindra is in the process South Korea and other overseas stake that NatSteel holds in of consolidating its five existing markets. Daewoo Commercial Malaysia based, Southern Steel subsidiaries to form a new Vehicles was spun from Daewoo Berhad, which is a 1.3 million overseas joint venture company. Motors in November 2002 and is tonne steel company. The the second largest maker of heavy acquisition would provide TISCO commercial vehicles in South with access to key Asian markets MOODY’S INCREASED STAKE Korea with a market share of 26%. including China. Though the IN ICRA – BUYING OUT BANKS It is also in the production of acquisition is expected to add AND FI’S Moody’s, the global rating tractors and other utility vehicles nearly 36% more to TISCO’s sales, agency, is buying out holdings of with an annual capacity of 20,000 the bottom line impact of the same Union Bank of India, Allahabad vehicles. Employing close to 800 is expected to be minimal or Bank, United Bank of India and people, the firm has been under negligible. four other banks and institutions court protection while the parent in ICRA. The total of 8.18 lakh company sold most of its IOC WAS SEEN ACQUIRING worth of shares held by these seven passenger car operations to STAKE IN INDONESIAN FIRM banks and financial institutions put General Motors Corp and partners Indian Oil Corporation board together (amounting to 7.61% in 2002. has approved a proposal to bid for holding in the company) will be up to 40% stake in Indonesia’s bought out by Moody’s at Rs.115 largest independent upstream TISCO WENT SHOPPING per share aggregating to Rs.9.41 The country’s largest private company, PT Medco Energi crore. The acquisition would sector steel maker, Tata Iron International. 85%of Medco is held enhance Moody’s holding in ICRA Steel Company Limited has signed by New Links while public and to 31.05% from the existing 23.44%. a definitive agreement with financial institutions hold 15%. ICRA was promoted in 1991 by Singapore based NatSteel to Thailand’s PTT Exploration and leading financial institutions and acquire all of its steel business in Production Company has a 34% banks as Investment Information an all cash deal amounting to stake in New Links, 26% is owned and Credit Rating Agency of India. nearly Rs 1300 crore. The by US fund manager Credit Suisse Other major shareholders in ICRA First Boston and the remaining include IFCI, State Bank of India, 40% is held by the Panigoro family Life Insurance Corporation of of Indonesia. The option facing India, Unit Trust of India, General IOC is to either acquire 40% stake Insurance Corporation of India, while the other option was to Punjab National Bank, Indian Bank acquire 17% from PTT Exploration and UCO Bank. and Production Company of
  3. 3. %Bizness Read on ................................... control in the television channel of business. Having sold off Sri Adhikari Brothers Television mushrooms, now the company is Network Limited. The channel, on the look out for a buyer for its popularly known as SAB TV, was leather business. Both these spun off into a separate company businesses were acquired by HLL recently. The intention behind as part of its acquisition of Ponds selling off the channel to a strategic (India) Ltd in 1998. Both the partner was seen as a move by SAB businesses in combination Thailand and CSFB. If IOC does to hive off non-core businesses and contributed close to Rs.100 crore to buy the 40% stake in Medco, it concentrate HLL’s turnover and were mostly would be its first upstream on its parent export-centric. acquisition overseas, this would business of also make IOC the largest television GODREJ MEDICAL TRANS- shareholder along with the content. SET, CRIPTION COMPANY TO BE Panigoros. IOC has been on the on the other BOUGHT OUT BY US FIRM look out for acquiring a medium- hand, through the acquisition Cbay Systems, a US based, back sized foreign oil and gas company would add a channel to its existing office healthcare, Business Process since April for which it has set bouquet of channels. Outsourcing firm is negotiating apart a $ 2 billion. It also planned with the Godrej group to buy out WHAT THE BIG SOLD an exploration and production Godrej Remote Services, a division. company in the business of HLL SOLD ITS MUSHROOM outsourced medical transcription. BUSINESS Godrej Industries currently holds ICICI OneSource ACQUIRED Hindustan Lever is exiting yet a little above 12% in Cbay, US, 51% IN PIPAL RESEARCH another business in a bid to ICICI OneSource has acquired a which is likely to go up after the restructure its business portfolio. 51% stake in US based Pipal US Company acquires Godrej The company is selling its Research, a company focused on Remote Services and issues shares mushroom processing and export customized business research, in the US Company to it in business to an NRI entrepreneur analytics and information services. exchange. The deal would enhance couple based in the US. As per Though the size of the deal is yet CBay’s presence in India adding to the deal, HLL will transfer its to be known the ICICI OneSource it the 160 employees that GRS entire stake in KICM (Madras) – management sees a tremendous currently has on its role. Cbay the company running the potential in the business research intends to hike the head count to mushroom business to Ramana and analytics area. The company over 400 after the acquisition. Epparala and Siva Epparala. The would not currently be merged Apart from outsourced medical deal has been struck at a with ICICI OneSource and will transcription, Cbay also considerable discount given the function as an independent undertakes healthcare and billing poor state of its current revenues. company providing value to ICICI and receivables management. The HLL’s decision to sell the business OneSource. Founded in 2001 the firm provides information came in after it failed to rope in a company caters to the financial management for hospitals, clinics joint venture partner for the services, pharmaceuticals and and physician groups and its biotechnology utilities and the IT services include dictation and sector. documentation management. It also works on a franchisee model where a certain portion of the work SONY TO BUY A MAJORITY is sub-contracted to external STAKE IN SAB TV Sony Entertainment Television vendors who then set up a smaller India is set to acquire a majority capacity and develop licenses for
  4. 4. %Bizness Read on ................................... software. With close to 70% of its after 18 months. The stake sale will shares being held by private equity get Balaji 123.25 crore for the 21% investors, hedge funds and stake sale. Following the allotment, individual investors the same Asian Broadcasting will have to would get an opportunity to exit make an open offer for an the company once the company additional 20% as per SEBI goes in for a Nasdaq listing in the guidelines. next six to eight months time. THE CONSOLIDATION MOVES Some of the prominent investors in the company include; TDA Capital IDEA GETS ESCOTEL FOR Partners, Strategic Ventures Fund, with an equity base of Rs.100 crore Rs.1150 CRORE GMO Capital, Kingdom Capital, operates an international contact Idea Cellular fully bought out Baupost Group and Godrej centre at Navi Mumbai with a Escotel in a deal valued at around Industries. The management holds facility of 116 seats but only 48 of Rs.1150 crore; the transaction is to 30% of the equity with no single those are operational currently. Its be settled by paying Rs.275 crore investor with more than a 12% major client is ATT and its 2002- in cash and the balance of Rs.890 stake. 03 revenues from sales and services crore by way of debt. and other income stood at Rs.6.13 crore. IDBI PUTS UP TECHNOLOGY BOARD APPROVED IFCI-PNB ARM FOR SALE MERGER IDBI Intech, the information AVAYA BUYS OUT TATA FROM Development financial technology business of IDBI is up TATA TELECOM institutions are rapidly for sale. Set up in March 2000 as a The Tata group has sold a 25% disappearing from the financial wholly owned subsidiary of the stake in Tata Telecom to its joint scene. In yet another case, the institution, the company had for its venture partner the New Jersey Punjab National Bank has acquired based Avaya Inc in an $18 million the country’s oldest term lending deal. Avaya will be making an institution, IFCI Limited. This is a open offer for a minimum 20% move towards the merger of the stake in the company at the same two that has received the in- price. Currently holding 25.5% in principal approval from the board the company will further it to of directors of both PNB and IFCI. 50.60% and further to 70% after the Conceived by the Ministry of open offer. Presently, public and Finance the merger aims at ending others hold 40% in the company. the troubles of the ailing financial main business IT related activities. institution once and for all, which The move to hive off the business STAR GRABBING BALAJI PIE had been time and again comes from the requirement of Television content company, burdening the government with banking companies not allowed to Balaji Telefilms is making a demand for assistance. have any interest in unrelated preferential allotment of 17263790 activities. IDBI is soon to be shares / warrants convertible into ITC CONSOLIDATES converted into a commercial bank shares representing 25.1 % holding ITC plans to merge three of its following the amendment to the to Asian Broadcasting FZ LLC— a ventures with itself: ITC Hotels, IDBI Act in Parliament. The Star Group affiliate, at a reported Ansal Hotels and Bay Island company is by itself working on price of Rs 90 per share. The Hotels. While ITC Hotels and Bay the deal and has not yet found any allotment is to be split into two Island Hotels are subsidiaries of takers for the idea though Godrej parts, namely 21% in the form of the company, Ansal Hotels is an Lawkim is learnt to have evinced share and the balance in the form associate company. ITC had earlier interest in the same. The company of warrants convertible into shares denied moves of consolidating the
  5. 5. %Bizness Read on ................................... hotels business with the parent marketing rights of two products revival proposal to the Industrial company but the move as it comes – Halothane and Isofluorane. Development Bank of India. Sun now is seen as a way of Pharma is the only company to consolidating the group’s have submitted a revival proposal RANBAXY ACQUIRED AVENTIS hospitality business under one along with a deposit of Rs.5 crore ARM roof. Apart from creating Going further, another Indian to the IDBI, which was made economies of scale, the merger company, Ranbaxy Laboratories compulsory for all bidders in order would help the hotels business acquired RPG Aventis SA, the to keep away non-serious bidders. reduce costs to a great extent. France based generic Pharma Company of Aventis. Unofficially LOCAL PHARMA IN GLOBAL sources put the deal in the range INDAL MERGED WITH EXPANSION MODE of 70 million euros working out to Local Pharma major Jubilant HINDALCO Aditya Birla group Flagship roughly Rs.385 crore making it the Organosys acquired two Belgium largest overseas acquisition by an based pharmaceutical companies Indian Pharma company. in all cash deal valued at Rs.75 core. The company floated a fully owned subsidiary in Belgium in 50% OF SYNBIOTICS TO BE the name of Jubilant Pharma NV, BOUGHT OUT BY KREBS which is to acquire an 80% stake BIOCHEM Krebs Biochem was seen talking each in Pharmaceutical Services to acquire a 50% stake in Incorporated NV and PSI Supply Company, Hindalco decided to Synbiotics, a bulk drugs and NV. The balance 20% will remain merge with itself all the businesses Pharma Company owned by the with the founder Lieve Vermassen, of Indian Aluminium Company Ahmedabad based, Ambalal who will continue to be the (Indal), except the latter’s Sarabhai Enterprises (ASE). ASE chairman of the company. aluminium foils division at Kollur will however continue to hold the in Andhra Pradesh. This merger balance stake in the formulations DR.REDDY’S BUYS OUT US would help Hindalco strengthen and bulk drugs company which COMPANY FOR $ 11 MILLION its position in the aluminum sector. manufactures streptomycin and Struggling to launch products tetracycline. Synbiotics has been a from its own portfolio in the US CHURNING sick case with the BIFR with huge market, Indian drug major, Dr. PHARMACEUTICALS losses which nevertheless have Reddy’s Laboratories Limited been coming down and are (DRL) switched to the MA route NPIL GETS UK COMPANY expected to be somewhere in the to get there. DRL has acquired US RHODIA’S UNIT FOR range of Rs.1.20 crore for the based Trigenesis Therapeutics at a $14MILLION Finacial Year 03-04. total investment of $11 million. In its first international Having suffered a setback on the acquisition giving it headway in Amlodipine front; the company SUN PHARMA IS SOLE BIDDER the regulated markets, Nicholas has changed its strategy of looking FOR HINDUSTAN ANTIBIOTICS Piramal has acquired the global After Thombre Group and KP at the US market. Earlier a US court inhalation anesthetic business of Pharma decided to quit the race for of appeals for the Federal Circuit Rhodia Organique Fine from UK the countries first pharma PSU, in a deal valued at $14 million. Hindustan Antibiotics Limited, Rhodia’s inhalation anesthetic Sun Pharma emerged as the sole business reported sales of $14 contender for the takeover of the million in 2003 and gives NPIL sick company referred to the BIFR. access to manufacturing facilities In addition to this, the company’s and technology in addition to the management has also submitted a
  6. 6. %Bizness Read on ................................... declared that the company’s most of the other Indian hypertension drug did infringe on companies, Torrent too has Pfizer’s patent. This meant that Dr identified the European market as Reddy’s could not go ahead with one of its focus areas for tapping the launch of its own generic generic opportunities. version of Pfizer’s patented drug Norvasc (API: Amlodipine GLENMARK GOES SHOPPING Besylate). Continuing the trend in the WOCKHARDT BUYS OUT ESPARMA’S MAKETING AND SALES UNIT Wockhardt acquired the business of German pharma company Esparma in a $1 million deal to be funded through its pharma sector Glenmark internal accruals. This earmarks Pharmaceuticals acquired Brazil- Wockhardt’s entry into the based Laboratories Klinger German market and further through its wholly strengthens its presence in the owned subsidiary, Glenmark European Union. It is Wockhardt’s Farmaceutica Ltd in a deal valued third global acquisition; the earlier at $5.2 million. two, Wallis Laboratory in 1998 and CP Pharmaceuticals in 2003 also MATRIX CONSOLIDATES being in the European region. In a bid to geographically de-risk and enhance transparency and corporate governance practices, TORRENT CLOSE TO BUYING Matrix Laboratories Limited has GERMAN COMPANY FOR decided to merge four group Rs.300 CRORE Torrent Pharmaceuticals, companies with itself. These flagship of the Ahmedabad based include Vera Laboratories Limited, Torrent group, was seen acquiring Fine Drugs and Chemicals a German Company engaged in Limited, Medikon Laboratories the generic drugs business for a Limited and Calibre Engineering consideration of Rs.300 crore. Like Pvt Limited. SUN ACQUIRES THREE US BRANDS FOR $ 5.4 MILLION Mumbai based Sun Pharma was seen buying 3 drug brands from an unlisted American company, Women’s First Healthcare (WFHC), which came up for sale resulting from the Chapter 11 bankruptcy of the company, for a total consideration of $5.4 million.