Top Stories
Gabon approves sale to Bharti: Zain
Zain, Kuwait's telecom group reportedly said that the Gabon Government has approved the sale of Zain Gabon to Bharti Airtel. Bharti had struck a deal with Zain in March to buy the Kuwaiti telecoms operations in 15 African countries including Gabon for US$9bn. Gabon earlier said that Zain Gabon had not complied with telecoms regulations. "We have received confirmation from the Gabon government... advising us that they have no objection to the transaction between Zain and Bharti Airtel," said Nabil bin Salamah, Zain's CEO.
Bharti to make 1st payment to Zain in mid-May: report
UltraTech to buy Dubai's ETA Star Cement
UltraTech Cement plans to acquire Dubai-based ETA Star Cement Co for around US$380mn, according to reports. This move will give it direct access to markets in the Middle East and Bangladesh. UltraTech after getting regulatory approval to absorb the cement business of Grasim Industries, would have management control of ETA Star, the report stated. The company has not disclosed the terms of the deal, but said the deal would be funded by a mix of debt and internal accruals. ETA Star's manufacturing facilities include a 2.3mn tons a year clinker plant and 2.1mn tons grinding plant, both in the United Arab Emirates, a 0.4mn tons grinding plant in Bahrain and a 0.5mn tons grinding plant in Bangladesh. UltraTech said the transaction was likely to be completed by the end of the June quarter, and would be accretive to its earnings per share, the report added.
AT&T exits from Tech Mahindra
AT&T sold its entire 8.07% stake in Tech Mahindra a month after acquiring it from the Indian promoters. The US telecom major sold 7% stake in Tech Mahindra on April 28 and another 1% over the past few weeks in the market, thus making an exit from its stake in the software firm completely. The 7% stake was sold at Rs762.4 a share, giving AT&T Rs6.6bn and netting it a profit of around Rs5bn in a month's time. Bulk of the shares were purchased by LIC, according to reports. There was no official confirmation from any company. LIC already holds around 7.4% in Tech Mahindra, and the current transaction could take its stake up to 12-14%. AT&T had bought the Tech Mahindra stake in March 2010 by exercising an option it had to purchase the shares at US$3.5 a share or around Rs162 a share. AT&T acquired the right to exercise the options because it fulfilled certain revenue targets in terms of outsourcing contracts to Tech Mahindra.
Domestic News
Jindal Steel & Power to buy Oman's Shadeed Iron: report
Jindal Steel and Power is close to buy Oman-based Shadeed Iron & Steel for nearly US$500mn, according to reports. The sponge iron maker has already signed a pact with Shadeed and the deal would be funded through a mix of debt and internal accruals and Jindal Steel and Power has also tied up with Indian banks for funds, the report stated. Shadeed Iron & Steel, owned by Abu Dhabi's Al Ghaith Holdings PJSC, has a 1.6mn tons gas-based factory that makes sponge iron used in steel making at Sohar in Oman, the report added.
Zee Entertainment Board approves scheme of arrangement to buy 9X
The Board of Directors of Zee Entertainment Enterprises Limited (ZEEL) today, approved the Scheme of Arrangement between the Company and INX Media Private Limited (INX) for the demerger of ‘9X’ General Entertainment Channel Business Undertaking from INX and vesting into the Company. The proposed acquisition would be funded by issuance of new shares by ZEEL to shareholders of INX and the share swap ratio has been proposed at 1 (one) equity share of Rupee 1/- each of ZEEL for every 71 (seventy one) equity shares of Rupees 10/- each of INX held by the shareholders of INX, as on June 30, 2010. ZEEL would also take over liability of Rs600mn. Read More…
Infrastructure Developments acquires Intelspec Intl: report
M&M eyes South Korea's SsangYong: reports
United Spirits plans acquisitions in Overseas: report
ABG Shipyard sells 2.67% stake in Great Offshore
Cemex mulls buying Penna Cements: report
Zee Ent approves scheme of arrangement to buy 9X
Crompton Greaves buys 3 business units of Nelco
Oil India, IOC receives deadline for Gulfsands bid: report
Fund houses make a beeline for stake in SpiceJet: reports
Big Cinemas acquires 188 screens in US: report
Jay Shree Tea to acquire three tea estates in Africa: report
GMR Industries climbs on EID Parry deal
International News
HP to acquire Palm for US$1.2bn
Hewlett-Packard said that it will acquire Palm in a deal valuing the struggling cellphone maker at US$1.2bn. Palm’s common shareholders will receive US$5.70 a share in cash, a 23% premium over the closing price, H-P said in a statement. Elevation Partners LP, Palm’s biggest investor, gets US$485mn for its preferred shares and warrants. Shares of Palm, 30% owned by Elevation Partners, jumped above HP's cash offer. Some investors could be betting on a higher bid, while others could be covering short positions on the heavily shorted stock. Both the boards have approved the deal, which includes debt. Based on Palm's latest filing, the deal values Palm's 167.892 million shares outstanding at US$957mn.
Palm has been struggling to boost sales in the lucrative smartphone market as consumers have shunned its latest launches even as rivals such as Apple and RIM have stepped up their presence. Speculation had been building up over the past few weeks over a possible takeover offer for Palm. Slow sales of Palm's latest smartphone models have depressed the stock, raising questions on the company's future prospects. Palm's chairman and chief executive, Jon Rubinstein, is expected to remain with the company. The transaction is expected to close during H-P's third fiscal quarter ending July 31.
ICE buys Climate Exchange: report
Futures exchange group Intercontinental Exchange Inc has reportedly agreed to buy Climate Exchange for 395mn pounds. The move will help to create a single trading platform for environmental contracts worldwide. Shareholders in Climate Exchange, the operator of the European, Chicago and Chicago Futures climate exchanges, will receive 750 pence a share in cash, representing a 57% premium on April 29th closing price, the report stated. ICE, which already provides technology and clearing services to Climate Exchange, said it would combine the British company's emissions markets with its own futures and energy markets. Atlanta, Georgia-based ICE said the deal would slightly reduce earnings for the remainder of 2010, but would add to earnings from 2011.
Apple buys voice search firm Siri
Apple agreed to buy mobile-application developer Siri to gain access to a technology that lets users execute internet search from their handsets through voice commands. The acquisition agreement has been signed but the deal has not closed yet, said Shawn Carolan, a managing director at Siri investor Menlo Ventures was quoted as saying. Siri has raised about US$23.8mn in funding in the past two years. The San Jose, California-based company has about 25 employees. Read More…
UAL Corp to merge with Continental Airlines: report
South Africa's MTN in talks to acquire Orascom
Symantec Corp to acquire PGP Corp, GuardianEdge Tech
BG Group to sell half of Seabank Power stake to Cheung Kong: report
Australia OKs Shell-Petrochina bid for Arrow
Macquarie buys US$928mn worth of car lease portfolio: report
Gulfsands discards further proposal at same price
Evonik Energy to buy stakes in power projects: report
Invensys Operations Management acquires Skelta Software
Investindustrial sells 49.9% stake in Inaer Aviation Group: report
Integra Software Services acquires Silver Editions
San Miguel Corp to buy Petron stake: report
Charles River Lab to acquire WuXi PharmaTech: report
Sembcorp Inds to buy Cascal: report
Hertz Global Holdings to acquire Dollar Thrifty Automotive: report
M&A Terms
Promissory Note: A written promise by the buyer to pay a specified portion of the total consideration (usually with interest) at an agreed upon time after closing, subject to the satisfaction of all outstanding contingent liabilities by the seller.
Recast or Restated Financials: Financial statements that present the calculations used to determine the adjusted EBITDA.
Representations and Warranties: Statements that another party is relying on as factual (e.g. “the company does not have any tax liens”).
Sale (Asset): In an asset sale the buyer only buys certain core assets of the company usually not including cash, accounts receivable and any liabilities.
Sale (Stock): In a stock sale the buyer buys the entire corporation usually including all assets and liabilities.