The management of the company doing the acquisition must have a clear and well-defined strategy for their specific business
In order to make a merger work, it is pertinent to have a sound strategic planning so that maximum benefit is taken out from the merger. Before signing on the dotted ... Views: 798
The Companies Act 2013 (New Act), which was substantially made effective from April 1, 2014, has the potential and capability to be a historic milestone for implementing Mergers & Amalgamations(M& A). So far, the provisions relating to M&A under the New Act are yet to be notified.
These are ... Views: 793
Ever since the government introduced the bankruptcy law, host of companies right from steel, power, cement and construction have put their distressed assets on sale and potential bidders are chalking out deals to snap up assets of loan defaulting companies. The wave of deal-making can push ... Views: 787
Transaction which has triggered the Open Offer Obligation :
Royal Nirman Private Limited (‘RNPL’) has entered into a Share Purchase Agreement (‘SPA’) with Promoter / Seller, WILO SE of the MPF Systems Limited (Target Company) on July 01, 2014 for acquisition of 18,87,697 Equity Shares ... Views: 785
ECommerce
There is no standard definition of the word ‘E-commerce’. It generally means a method of conducting business through electronic means rather than through physical means. Or in other words, buying and selling products through the digital medium, rather than from a brick-and-mortar ... Views: 779
Exit Planning is a process involving developing and planning an optimum time to exit a business with the objective to achieve the maximum return out of the accumulated wealth made over the tenure of the business.
I. Planning an exit strategy:
If you are setting up a business you will have ... Views: 776
Special Purpose Acquisition Vehicles (SPACs) have emerged as a promising option to raise public funding from offshore markets. They are especially suited for start-ups, who otherwise find it difficult to excite the conservative Indian retail investors. This has become all the more critical as ... Views: 774
After two years of negotiations with minority shareholders, facing regulatory hurdles and a lingering Rs 30,000-crore (including penalty) retrospective tax issues, the merger of cash-rich Cairn India with Vedanta is finally done. The merger – a $2.3 billion all-share deal -- will consolidate ... Views: 773
In order to consolidate its position in the chemicals business, Mumbaibased Clariant Chemicals (India) Ltd. (CCIL), a specialty chemical major had acquired Gujaratbased Masterbatches maker Plastichemix Industries (Plastichemix) for Rs 1350 million (approx $22 million). Masterbatches are solid ... Views: 773
One of the fundamental features of the Insolvency and Bankruptcy Code, 2016 (Code) is to resolve disputes in a timely manner — a window of 180 days extendable to 90 days — — given to the Insolvency Professional to help revive the company. Otherwise, it triggers mandatory liquidation due to ... Views: 765
The government’s unique mission -- Housing for All by 2022 --- has led to creation of more focus entities in the industry with plans of expansion to grab the opportunities that are going to come. As a move in that direction, Reliance Capital has announced that the Board of Directors has approved ... Views: 762
Pick up the right negotiating skills to make your deal a success
Be it buying groceries or buying or selling a company, negotiations matters the most to get the best deal. The best practices of deal makers depend on the specifics of the deal. Valuation is the first and foremost phase of deal ... Views: 756
What is Management Buy-out (MBO):
In an ideal MBO, financial institutions or other fund lending institutions act like venture capitalist and support management of the company in buying out stakes from the promoter(s) of the company. This changes the control of the business. The entire ... Views: 751
Leadership & Quotes: Ashish Kashyap
“Wherever there is a big problem there is an opportunity” ““build+invest+acquire”
Ashish Kashyap, founder and chief executive officer of ibido Group is a quintessential start-up entrepreneur in the Indian internet space. Within a span of few years, he ... Views: 750
When two big giants form a conglomerate it can change the dynamics of an industry; precisely what will happen in the chemicals and agricultural industries globally. Dow Chemical and DuPont, the two largest US chemicals companies, have agreed to a $130 billion merger of equals in an all-stock ... Views: 750
Facts of the Case
The appellant-assesse, is a private limited company running a super specialty hospital in Thrissur, Kerala. The said Company has 7 shareholders all belonging to the same family. Earlier a partnership firm was formed among 5 out of the 7 shareholders of the Company holding ... Views: 750
The country’s largest engineering and construction conglomerate Larsen and Toubro (L&T) has now been cast as an avaricious acquirer after it made hostile bid to take over Bengaluru-based I-T services company Mindtree. As a first move to one of the largest hostile takeovers India Inc. has seen, ... Views: 740
CURRENT TRANSACTION:
Adani Power Limited, a subsidiary of Adani Enterprises Ltd and a part of Adani Group, had executed a definitive agreement for the acquisition of 100% shares of the Udupi Power Corporation Limited from Lanco Infratech Limited- a Rs.6,000 crore deal.
LANCO INFRATECH ... Views: 737
A consortium of 26 bankers led by State Bank of India (SBI) have finally decided to take the grounded Jet Airways to bankruptcy court after failing to revive the company and find buyers. Insolvency proceedings have been initiated against debt-ridden Jet Airways, which stopped flying on April 17. ... Views: 734
In the Corporate Insolvency Resolution Process (CIRP) of Jet Airways (India) Ltd., the question came up for discussion on the validity and priority of the Insolvency proceedings being conducted at a country outside India, where the CIRP for Jet Airways is already initiated under Indian ... Views: 724
Shasun Pharmaceuticals has got the approval from Madras High Court for Scheme of Amalgamation with Strides Arcolab Ltd. The Competition Commission of India (CCI) has issued its approval for the proposed merger of drug manufacturers Shasun Pharmaceuticals Ltd and Strides Arcolab. The merger was ... Views: 724
Billionaire investor Prem Watsa-backed Thomas Cook India had acquired vacation ownership Sterling Holiday Resorts for Rs 870 crore, marking its foray into the hospitality sector. For Thomas Cook, it was the second purchase after Ikya Human Solutions in February 2013. The transaction was ... Views: 724
To order to bring in efficiency in the functioning of loss-making public-sector banks (PSBs), the government is considering merging at least four such banks because of rising bad loans. The four banks are Oriental Bank of Commerce, Bank of Baroda, Central Bank and IDBI Bank with a combined loss ... Views: 723
While there are several valuation techniques, one must choose the one which suits the both the buyer and the seller.
Valuation in any merger is the amount a buyer is willing to pay the seller and if the latter is willing to accept the deal amount. There are different techniques to value a ... Views: 719
Leadership & Quotes: Ashish Kashyap
“Wherever there is a big problem there is an opportunity” ““build+invest+acquire”
Ashish Kashyap, founder and chief executive officer of ibido Group is a quintessential start-up entrepreneur in the Indian internet space. Within a span of few years, he ... Views: 715
The Tax department has fixed its eagle eye on yet another target — this time it's inbound mergers and acquisitions (M&As). Forty companies are said to have received notices and the total tax demand could exceed Rs 4,000 crore, according to estimates.
Income tax isn't levied on inbound foreign ... Views: 710
In a colossal deal, Microsoft Corp. has entered into a definite agreement to purchase LinkedIn Corporation for $196 per share in an all-cash transaction valued at $26.2 billion. Post transaction LinkedIn will retain its distinct brand, culture, and independence. Here are a few of the important ... Views: 707
In April 2014, Sun Pharmaceutical acquired 100% of Ranbaxy Laboratories for $4 billion to create world’s fifth largest specialty generic pharma company. Under these agreements, Ranbaxy will merge into Sun Pharma and the shareholders of Ranbaxy will receive 0.8 shares of Sun Pharma for each share ... Views: 702
Tata Group is one of the oldest and biggest group in the country. The group has many companies and we always see restructuring happening in the group and subsidiaries year after year. There can be many reasons behind internal restructuring like better group structure, selling of profitable or ... Views: 700
Bartronics Asia Pte. Ltd. (BAPL) wholly owned subsidiary of Bartronics India Ltd. had acquired 51 per cent stake in Systems America Inc. (SYAI), is headquartered in Pleasanton, California, US and listed in the OTC Equities category in the USA. SYAI was founded in 1994. SYAI is the leader in ... Views: 698
Section 66 of the Companies Act, 2013 allows companies to reduce their share capital. The scheme of Reduction of share capital is undertaken by companies in the following manner:
Company can extinguish or reduce its liability on its unpaid share capital.
Company can extinguish or reduce its ... Views: 693
At the Tata Group, the two chiefs – the present and the past – has had a varied style of functioning, yet their ultimate goal is to take the group to the zenith and build a global conglomerate to reckon with.
The erstwhile Chairman of the $110 billion salt-to-software conglomerate, Ratan ... Views: 690
At a time when Indian individuals are increasingly investing in mutual funds to build long-term corpus and assets under management (AUM) of the industry are growing rapidly, there are ownership changes happening in India mutual fund industry. With DSP Group -- headed by Hemendra Kothari -- ... Views: 689
CSL Limited has closed its transaction to acquire Novartis global influenza vaccine business for a cash consideration of US$275 million. The combined business will create the second largest influenza vaccine business in the US$4 billion global industry and will have manufacturing plants in the ... Views: 688
ALLIANCE INTEGRATED METALIKS LIMITED:
The company started as a financing company in the name of “BS Holding and Credit Private limited” in the year 1989 based in New Delhi. In the year 1996 it was converted into a limited company with the name BS Holding and Credit Private limited” and in the ... Views: 679
Indian companies are increasingly looking at South East Asian countries for business and mergers and acquisitions (M&As) because there is a good strategic and cultural fit with companies in the region. Indian companies in sectors such as healthcare, consumer and industrials have done M&As with ... Views: 677
Mahindra & Mahindra Ltd approved a scheme of demerger of the Two Wheeler undertaking of Mahindra Two Wheelers Limited and transfer and vesting thereof as a going concern into M&M.
Mahindra & Mahindra Limited (M&M) is the listed company, engaged in the business of sale of tractors, general ... Views: 676
Adani Power Ltd (APL), the country's largest private sector power generation company, has acquired Lanco Infratech’s Udupi plant for Rs 6,000 crore. The installed capacity of the plant is 1,200 MW. APL’s installed capacity is capacity at present is 10,440 MW, comprising of 4,620 MW at Mundra in ... Views: 674
“We decided that we weren't going to be in any business that wasn't global. You're not safe if you're only at home. You can't compete in a small pool anymore"
Born on 1st May 1955, in Mumbai, Anand Mahindra is the son of the second daughter of K.C. Mahindra, the founder of Mahindra Ltd. His ... Views: 668
IT Company Mastek Limited, a BSE-NSE Listed Company, had demerged its insurance products and service business into a separate listed company. Mastek is an IT solutions player with global operations providing new technology and intellectual property led enterprise solutions to insurance, ... Views: 668
A new entrant in the banking space, Bandhan Bank has acquired HDFC Ltd-promoted Gruh Finance in an all-share deal. On January 7, 2019, the board of directors of Bandhan Bank and Gruh Finance approved the merger subject to regulatory and shareholder approvals. The merger will reduce the promoter ... Views: 663
An equity share with differential rights is like an ordinary equity share, but it provides more or fewer voting rights to the shareholder. The difference in voting rights can be achieved by increasing or reducing the degree of voting power. Companies Act, 2013 allows shares with superior and ... Views: 655
Tech Mahindra completed Satyam’s merger with itself. The merged entity will be called Tech Mahindra and Mr. Anand Mahindra will be its Chairman. Tech Mahindra Managing Director, C. P. Gurnani announced that the swap will be in the ratio of two shares of Tech Mahindra for every 17 shares of ... Views: 654
Unilever announced on 19 July 2016 that it has signed an agreement to acquire Dollar Shave Club (DSC), a Venice, California-based company at a huge premium. Michael Dublin, the founder of the Dollar Shave Club, will remain CEO for running the razor business as an independent subsidiary. It's ... Views: 654
In May 2011, Kokuyo S&T Co. Ltd. a consolidated subsidiary of Kokuyo Co. Ltd. ("Kokuyo") entered into an agreement with the promoters of Camlin Limited to purchase majority of Camlin shares (50.3% stake for over Rs. 366 crore in three tranches) after which the Indian firm was converted into a ... Views: 646
With changing demographic profile of India, rapid urbanisation, spread of digital payments and increasing purchasing power, the retail sector is poised for a quantum leap. India is becoming one of the largest preferred retail destinations globally. The early indications are showing up now. In ... Views: 643
US software firm Ebix has acquired Nasdaq-listed Yatra Online Inc to boost its India travel ventures at an enterprise value of $336 million, or Rs 2,350 crore in an all stock deal. Once the transaction is complete --- the deal marks Ebix's biggest acquisition till date in India --- it is ... Views: 642
The merger agreement sets forth, preconditions to closing, closing procedures, and post-closing obligations
Moreover, when one is dealing with billions of dollars, every aspect of the deal and the risks must be noted down in the document.
In a merger or acquisition transaction, there are ... Views: 642
At a time when mergers and acquisitions are increasing at a much faster pace across all industries globally, the failure rate of such acquisitions can be as much as 90%, according to a recent Harvard Business Review report.
So, why so many failures take place in M&A? Is it because companies ... Views: 640
In order to expand its paper business, US-based International Paper (IP) acquired 75% stake in Hyderabad-based AP Paper Mills for up to $423 million (Rs 1,888 crore) in October 2011. The deal included:
Purchase of a 53.46% stake from the company’s promoters—L.N. Bangur and his family for $257 ... Views: 639