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Sun Pharma to take Taro Private

Sun Pharmaceutical Industries Ltd and Taro Pharmaceutical Industries Ltd. announced today that they have entered into a merger agreement together with certain affiliates of Sun Pharma.

The merger agreement provides that all shareholders of Taro other than Sun Pharma and its affiliates will receive a cash payment of $ 39.50 per share upon the closing of the merger. Sun Pharma and its affiliates collectively own approximately 66.0% of the outstanding Taro ordinary shares and 100% of Taro’s founders shares, representing approximately 77.5% of the outstanding voting power in Taro.

Upon completion of the merger, Taro will become a privately held company, will be wholly owned by affiliates of Sun Pharma, and its ordinary shares will no longer be traded on the New York Stock Exchange.

DLF arm inks pact with Lodha...To divest stake in DLF Cyber City

DLF Ltd has announced that the Company, along with its three wholly-owned subsidiaries - i) DLF Cyber City Developers Ltd., ii) DLF Universal Ltd. and iii) Jawala Real Estate Pvt. Ltd. ('Jawala'), have entered into an agreement with Lodha Developers Limited ('Lodha') for divesting the entire stake of the Company, DLF Cyber City Developers Ltd. and DLF Universal Ltd. in 'Jawala' for an enterprise value estimated to be Rs. 27bn subject to final adjustments at completion.

The completion is expected by the end of October 2012.

After completion of the divestment, which is subject to fulfillment of certain conditions precedent by the parties and payment of amounts due under the agreement by Lodha, 'Jawala' will cease to be a subsidiary of the Company.The Company is disclosing the same to ensure transparency though the completion is expected by the end of October 2012.The above transaction is in line with the Company's objective of divesting its non-strategic assets.

Reliance Capital completes sale of 26% stake in RCAM

Reliance Capital has completes Sale of 26% stake in Reliance Capital Asset Management to Nippon Life Insurance.

The entire transaction proceeds of Rs14.50bn has been duly received from Nippon Life Insurance.

The transaction pegs the total valuation of RCAM at approximately Rs56bn.

In Focus Stories

Deal activity remained steady in July 2012: Grant Thornton India

Commenting on the deals Raja Lahiri | Partner, Transaction Advisory Services, Grant Thornton India LLP says.

July 2012 witnessed increase in deal value, US$ 2bn from US$ 1.4 Billion in June 2012 which is a welcome surprise in the deal market given the overall economic head-winds.

Deal activity remained steady in July 2012 (75 deals), although slight decline, compared to 83 deals in June 2012.

July 2012 witnessed increase in M&A (US$ 1.9 bn/ 44 deals) compared to US$ 0.7 Billion / 48 deals in June 2012.  This was largely driven by outbound deals such as GMR – UFS deal (US$ 0.6 bn), Grasim – Terrace Bay Pulp (US$ 0.36bn) and Crompton Greaves – ZIV Group (US$ 0.19 bn).

During July 2012, PE/VC activity was good in terms of no of deals (US$ 166mn / 31 deals), however, deal values declined compared to US$ 762M in June 2012.  Average deal sizes have fallen due to more activity in VC deal space.

PE/VC deal space continued to see activity in the e-commerce / internet space and renewable energy space.

Companies which have cash will drive M&A deal momentum going forward since the time offers good deal opportunities in terms of valuation.

Domestic News

DLF sells Mumbai plot for Rs 27.50bn: reports

DLF has sold its 17.5-acre plot at Lower Parel in Mumbai to Lodha Developers for Rs. 27.50bn, according to reports.

Reports stated that the deal involved payment of the first installment of Rs. 5bn on August 13 and final payment of Rs. 22.50bn in October.

In June 2005, DLF had bought the land in Mumbai in an auction from National Textile Corporation for Rs. 7.02bn, report says.

The deal would help the company in bringing down its consolidated debt significantly by the end of current fiscal.

Sahara Group to buy stake in Beverly Hilton hotel: reports

The Sahara Group is in talks with US-based Oasis West Realty to pick up a controlling stake in Beverly Hilton hotel, according to reports. Reports stated that owner of Oasis, Beny Alagem, had approached Sahara to sell 55% stake in the iconic hotel for about $340 mn ( Rs 19bn)

Oasis plans to add a 170-room, five-star hotel and a 150-condos residential tower to the nine-acre property, says report.

Last month Sahara bought a majority stake in New York's iconic Plaza hotel for Rs 32bn.

LIC cuts stake in ACC by 2.68%

Life Insurance Corporation has sold 2.68% stake in cement maker ACC for Rs. 1.87bn through open market operations, according to reports.

Reports stated that LIC had 10.51 % stake or 18.77 crore shares in ACC prior to the transactions that took place between November last year.

Following the transactions, LIC’s shareholding in ACC, in which Swiss major Holicm has the majority stake, has come down to 7.82%, says report.There are reports that as of June-end, LIC had 8.55% stake in ACC and Holcim had 50.30% stake.

Thomas Cook concludes stake sale operations to Fairbridge Capital 
Thomas Cook Group PLC (TCG) has concluded the sale of 76.69% stake in its India operations to Fairbridge Capital (Mauritius) Ltd. (Fairbridge), a subsidiary of Fairfax Financial Holdings Ltd. The deal was approved with 99,99% votes by shareholders at a General Meeting on August 9, 2012.

The shares transfer process was concluded post completion of all shareholder & regulatory requirements. Thomas Cook (India) Ltd (TCIL), a public limited company listed on the National Stock Exchange and Bombay Stock Exchange since 1883, is an independent entity, and has no financial or operational dependencies on TCG.

Fairbridge is an investment company engaged in long-term investments and acquisitions in the Indian region with a focus on long-term capital appreciation through a flexible and value-oriented approach.

GMR Infra to exit stake in Homeland Energy Group: reports

GMR Infrastructure has initiated a process to exit its 55% stake in Canada-based publicly held Homeland Energy Group, for $100 mn, according to reports.

Reports stated that the company had acquired majority stake in Homeland Energy during 2008.

The company has coal reserves of 350 mn tonnes in South Africa and is a significant shareholder in Homeland Uranium Inc,says report.

Global News

Google buys Frommer’s travel guides from John Wiley

US publishing house John Wiley & Sons is planning to sell all of its travel assets — including the well known Frommer’s brand — to Internet titan Google, according to reports.

Reports stated that Google planned to add Frommer’s travel expertise to its “Local” offerings at the Google+ social network, where users can search for specific places or browse for nearby businesses or services.

The financial terms of the deal has not been specified yet, says report.
Google added that the Zagat restaurant review content to its Google+ social network in May, as it rolled out a new local search feature that takes on services such as Yelp.

Netflix CEO buys Facebook shares worth US$1mn

Netflix Inc. CEO Reed Hastings has acquired Facebook shares worth about $1 mn, according to reports.

Hastings, a member of Facebook's board of directors, revealed that he bought 47,846 shares of Facebook  at an average price of $21.03 a share, says report.

Reports stated that Facebook's stock has fallen nearly 45% since it first sold public shares to investors at $38.

Carlyle, China PE firms bid US$3.5bn for Focus Media

U.S. buyout fund Carlyle Group and some of China's top private equity funds are targeting the biggest ever delisting of a New York-listed Chinese company, according to reports.

Reports stated that Carlyle, the world's biggest fund by assets, FountainVest Partners, CITIC Capital Partners, CDH and China Everbright are backing a proposed $3.5 bn delisting of display-advertising firm Focus Media Holding Ltd .

Citigroup Credit Suisse and DBS Bank are backing the Focus Media deal, and have asserted they are highly confident of underwriting a financing, says report.

Carlyle Group buys Getty Images for $3.3 bn

Global alternative asset manager The Carlyle Group  and Getty Images management announced  they have formed a partnership to acquire Getty Images, Inc., a global creator and distributor of still imagery, video and multimedia products, from Hellman & Friedman for $3.3 billion.

Carlyle will acquire a controlling stake in Getty Images, while Getty Images Co-Founder and Chairman Mark Getty and the Getty family will roll substantially all of their ownership interests into the transaction. Getty Images management, including Co-Founder and Chief Executive Officer Jonathan Klein, will also invest significant equity in the company.

“Getty Images consistently demonstrates growth, leadership and prominence as one of the world’s leading media companies. This partnership with The Carlyle Group reflects and bolsters our ongoing strategy, strong management team and the talent of our dedicated employees. We are delighted to collaborate with Carlyle, with its formidable pedigree and success, and take the business into its next phase of development and growth,” said Jonathan Klein, Co-Founder and Chief Executive Officer of Getty Images.

Tesoro to buy BP refining assets

Tesoro Corporation announced  that its Board of Directors has approved agreements for the Company to purchase BP's integrated Southern California refining and marketing business. The purchase price of BP's assets is $1,175 mn, plus the value of inventory at the time of closing.  At current prices, the inventory is valued at approximately $1,300 mn.

The transaction is subject to regulatory approval and is expected to close before mid-2013.  The purchase price is expected to be financed initially through a combination of cash and debt with proceeds from the subsequent sale of the associated logistics assets to Tesoro Logistics LP (NYSE:  TLLP) generating an estimated $1 billion of cash proceeds in the first year.  Earnings per share accretion is expected to be about 24% in each of the first and second year of operations.

"This transaction is a unique opportunity for Tesoro to combine the best aspects of two West Coast refining and marketing businesses resulting in a more efficient integrated refining, marketing and logistics system," said Greg Goff, President and CEO.  "Given Tesoro's existing operations on the West Coast and our understanding of the complexities and challenges of operating in California, we are well positioned to generate significant operational efficiencies, increase our ability to satisfy market demand and reduce stationary source air emissions."

Julius Baer to buy Merrill Lynch private bank outside US

Toshiba may sell 16% of Westinghouse stake

Chalco will buy 35.3% of Ningxia Power for $318mn: reports

HNI Corporation acquires BP Ergo

Lloyds sells private equity assets to Coller: reports