News release

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News release

  1. 1. Indian Outbound M&A News release “We expect the next wave of overseas acquisitions to be focussed on Natural Resources, Industrials, Engineering, Alternative Energy, Auto-Components and Telecom” Sourav Mallik, Executive Director of M&A at Kotak Investment Banking Mumbai, (16 July, 2008) -- India’s bearish GDP growth forecasts have highlighted the impact of the global financial crisis, and the gloomy economic conditions resonate in the value of outbound cross-border M&A from India, which has steadily declined since mid-2008. However, over the last year India has seen large cross-border value deals such as Tata Motor’s takeover of Jaguar and Landrover Ltd, and the huge recovery of the BSE Sensex Index since the announcement of the Congress Party’s victory at the national elections is a representation of the optimism felt throughout the economy and global economists at large, fermenting the ideal elixir for M&A sector growth. Speaking at an event today centered on India outbound M&A activity - presented by mergermarket, Deloitte, Kotak Investment Banking, Nishith Desai Associates and SJ Berwin - Sourav Mallik, Executive Director of M&A at Kotak Investment Banking, commented on India’s recent cross-border activity and attempted to forecast in which sectors deal making will occur going forward: “While we have witnessed a relatively quiet cross-border period, we expect selective interest in outbound M&A by Indian corporates to revive. With the global slowdown, there are a number of quality assets worldwide that are at attractive valuations and with liquidity slowly returning (more in the domestic Indian environment), Indian companies have an excellent opportunity to make some value-creating acquisitions. We expect the next wave of overseas acquisitions to be focussed on Natural Resources, Industrials, Engineering, Alternative Energy, Auto-Components and Telecom, and selectively in other sectors based on the strength of individual companies." Tandeep Minhas, Partner, Corporate Finance, SJ Berwin LLP, agreed that Indian cross-border activity is far from dead, but added a word of advice on how to complete successful mergers in the current climate: "Opportunities still exist for Indian cash rich companies looking to make acquisitions of distressed assets in Europe. Careful planning of the terms of a distressed bid will be critical to its success. The winners will be those who understand the assets and move quickly, offering uncomplicated cash deals which reflect both the value and the risk in the assets being sold." Historical data from mergermarket[1] suggests that North America has witnessed most outbound M&A from India in terms of volume (34%), and the UK and Ireland in terms of value (34%). Where does the panel think geographical opportunities for Indian companies lie in the near future? Siddharth Shah, Head of Corporate and Securities Practice Group, Nishith Desai Associates, noted 1 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com
  2. 2. that “We may see the next round of outbound M&A activity intensify within the mid-cap Indian corporate sector and the target markets where we may see more level of activity could be parts of EU, Asia Pacific and the US where Indian corporates may find strategically important assets available at distressed valuations.“ Avinash Gupta, Head - Financial Advisory, Deloitte Touche Tohmatsu India Private Limited, summarised on a positive note: “Indian corporates will continue to look overseas for accretive acquisitions which fit into their longer and shorter term strategies.” Participating panelists: Avinash Gupta, Head - Financial Advisory, Deloitte Touche Tohmatsu India Private Limited Sourav Mallik, Executive Director – M&A, Kotak Investment Banking Tandeep Minhas, Partner, Corporate Finance, SJ Berwin LLP Siddharth Shah, Head of Corporate and Securities Practice Group, Nishith Desai Associates Anjali Naik, Assistant Editor for Asia Pacific, mergermarket (moderator) [1] mergermarket tables illustrating Indian outbound trends, top deals and geographical activity are displayed below. 2 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com
  3. 3. PR contacts: Anna Bengtsson Marketing Manager, The Mergermarket Group +44 (0) 207 059 6334 anna.bengtsson@mergermarket.com mergermarket is an independent Mergers and Acquisitions (M&A) intelligence service with an unrivalled network of dedicated M&A journalists based in 62 locations across the Americas, Europe, Asia-Pacific, the Middle East and Africa. Unlike any other service of its kind, mergermarket specialises in providing forward-looking origination and deal flow opportunities integrated with a comprehensive deals database – resulting in real revenues for clients. For more information, please visit www.mergermarket.com Ramya Krishnan-AniL Nishith Desai Associates Legal & Tax Counseling Worldwide Mobile : + 91 9004650363 Dir. : +91 22 66695123 Email: ramya@nishithdesai.com www.nishithdesai.com About Nishith Desai Associates Nishith Desai Associates is a research based international law firm with offices in Mumbai, Bangalore, Silicon Valley and Singapore. The Firm specializes in strategic legal, regulatory and tax solutions coupled with industry expertise in an integrated manner. Core practice areas include Cross-border transactions, Fund Structuring and Investments, Mergers & Acquisitions (M&A) , International Tax, Dispute Resolution (litigation and arbitration), Corporate Law, Employment Law and Intellectual Property Law; in addition to specialization in industry verticals including financial services, IT and telecom, pharma and life sciences, media and entertainment, real estate and infrastructure. For more information, please visit www.nishithdesai.com Phiroza Choksi Kotak Investment Banking Mobile: +91 98203 63681 E-mail: phiroza.choksi@kotak.com About Kotak Investment Banking http://kmcc.co.in/ Kotak Investment Banking (KIB) is a full-service premier investment bank in India offering a diverse suite of advisory and capital market solutions to clients across all major industry sectors. KIB offers M&A Advisory, Equity and Debt Capital Markets, Restructuring and Recapitalization Advisory, Structured Finance, Private Equity Advisory and Infrastructure Advisory. KIB has consistently ranked high on the M&A and Equity league tables. KIB is a subsidiary of the Kotak Mahindra Bank Limited, one of India's leading banking and financial services organizations with a consolidated net worth of Rs 6,523 cr as on March 31, 2009. 3 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com
  4. 4. KV Siva Prasad, Brand & Communications, Deloitte Mobile: +91 9810818475 Dir.: +91 124 6792042 Email: sivprasad@deloitte.com About Deloitte In this press release Deloitte refers to Deloitte Touche Tohmatsu India Pvt Ltd (DTTIPL), a company established under the Companies Act 1956, as amended. DTTIPL is a member firm of Deloitte ToucheTohmatsu, a Swiss Verein, whose member firms are legally separate and independent entities. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. About SJ Berwin SJ Berwin is a leading international law firm. Our 600 lawyers, including more than 175 partners, deliver commercial legal advice to businesses determined to succeed in today's competitive environment. Richard Gerrard Head of Marketing Communications SJ Berwin LLP Direct Line: +44 (0)20 7111 5099 Fax: +44 (0)20 7111 2000 Email:richard.gerrard@sjberwin.com Web Site: www.sjberwin.com Tandeep Minhas Partner, Corporate Finance Direct Line: +44 (0)20 7111 2488 Fax: +44 (0)20 7111 2000 Email:tandeep.minhas@sjberwin.com Web Site: www.sjberwin.com 4 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com
  5. 5. 5 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com
  6. 6. 6 80 Strand, London WC2R 0RL, United Kingdom tel:+44 (0)20 7059 6100 www.mergermarket.com

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