Top Stories
SEBI panel suggests rewriting takeover rules
A SEBI panel on takeover rules recommended a complete rewrite of regulations. The recommendations include raising the public offer trigger to 25%, from 15%; obligation on any acquirer to buy out all minority shareholders instead of just 20%; introducing the ability to control concept; doing away with non-compete fees, and improving the definition of indirect control of companies. The market regulator can exempt buyers from offers based on conditions that have been laid out. C. Achuthan, former presiding officer at the Securities Appellate Tribunal (SAT), submitted the report to SEBI chairman CB Bhave.
"The philosophy of equitable and fair treatment of all shareholders should have a primacy over other considerations," said the report. The regulator will take a decision on implementing the suggestions after receiving comments from public till end-August. It has the right to implement, or reject, any of the recommendations.
It has also suggested that if an acquirer ends up with more than the minimum required holding for listing, he could either gradually raise the public holding to 25% or delist the company by buying out the rest at the offer price. The determination of offer price may also be relaxed to just about 12 weeks of volume weighted average of the market price, instead of the higher of 26 weeks average.
SEBI's proposed new takeover code will adversely impact M&A activity by raising the cost of acquisitions. At the same time, a few proposals could lead to increased takeover opportunities in Indian companies. The new takeover rules might also result in a slew of open-market purchases by promoters as they try to ward off the threat from hostile takeovers.
Nikhil Gandhi enters education space with Everonn buy
Nikhil Gandhi-controlled SKIL Infrastructure, promoter of Pipavav Shipyard, entered into an agreement to acquire 40 lakh convertible debentures, which when converted, will represent 20.28% stake in Everonn Education. SKIL also made an open offer to acquire an additional 20% stake in Everonn Education at Rs 536.16 a share.
SKIL will acquire 3.9 lakh shares in the Chennai-based education services provider, at Rs536.16 a piece, aggregating to over Rs2.11bn, Everonn Education said in a public announcement. The public offer will open on September 9 and closes on September 28. But, the open offer may not succeed as it is made at a discount to the current market prices. SKIL will buy a combination of OCDs and equity shares from the open offer in such a manner that its holding in Everonn stays at 21%.
Everonn’s promoter and managing director P. Kishore will hold a 22% stake in the company, post the open offer, against his current stake of 26%.
In Focus Stories
AZB, E&Y top Venture Intelligence league tables
The Venture Intelligence League Tables, the first such initiative exclusively tracking transactions involving India-based companies, are based on volume of PE and M&A transactions advised by Transaction and Legal Advisory firms.
Private Equity Deals
Among PE transactions, AZB advised 25 deals worth over US$1.5 billion during the period including Olympus Capital's US$300 million investment in Tata Power's coal mine SPVs in Indonesia, the US$217 million investment by Standard Chartered PE, KKR and New Silk Route in Coffee Day Resorts and the US$175 million investment by Temasek into National Stock Exchange. Other legal advisors who advised a significant number of PE transactions during H1’10 include ALMT Legal and J Sagar Associates with 7 deals each.
M&A deals
Among M&A transactions, AZB advised 25 deals worth almost US$13 billion during the period, including the Bharti’s acquisition of Zain’s African operations, Jindal Steel’s acquisition of Oman’s Shadeed Iron & Steel and American Tower Corp’s acquisition of Essar Telecom Infrastructure. Other legal advisors who advised a significant number of M&A transactions during H1’10 include Tatva Legal (11 deals) and Trilegal (8). Read More…
Domestic News
GTL Infra completes acquisition of 17,500 Aircel Towers
GTL Infrastructure Ltd has announced that the Board of Directors of the Company at its Meeting held on July 19, 2010 have taken on record the conclusion of the purchase of telecom towers of Aircel Ltd. and its subsidiaries. Consequent to the completion of all conditions precedent of the definitive agreements, the final transaction value after adjustments based on Aircel disclosures is Rs80.26bn.
This transaction is likely to provide GTL Infra the platform to become the World's largest neutral and independent tower company with a portfolio of around 32,500 towers across all 23 telecom circles. Read More…
Etisalat close to buying 26% in RCOM: report
Emirates Telecommunications Corp (Etisalat) is reportedly said to buy a 26% stake in Reliance Communications. According to reports, the deal is estimated to be worth US$3bn, and the two groups are considering merging Reliance with Swan Telecom.
Bafna Pharma to acquire UK Company: report
Bafna Pharmaceuticals is reportedly close to acquiring a company in the UK having approvals to sell generic drugs, in a bid to augment its presence in the highly-regulated British market. Pharma Company already has approvals from authorities to sell 11 molecules in the UK and the target company's kitty of 96 molecules will help Bafna immensely. The company plans to manufacture the products at a new manufacturing facility which went on stream recently. Read More…
Glodyne completes acquisition of DecisionOne Corp
Glodyne Technoserve Limited has completed the acquisition of DecisionOne Corporation, one of the largest independent technology infrastructure management company in North America, having a revenue of around US$200mn. The company has long standing relationships with Fortune 500 Companies across US and Canada. The integration process has been initiated. Read More…
Dabur India in talks to acquire Hobi Kozmetik: report
FIIs pick up around 15% in REI Agro: report
JFE Holdings plans to invest US$1 bn in JSW Steel: report
Vishal Retail rises on Future Group interest buzz
IDBI Bank approves in-principle to merge IDBI Homefinance Ltd
Actis to acquire Halonix lighting business: report
Temptation Food settles dispute with Karen Anand Gourmet Kitchens
Legrand offers to acquire Indo Asian Fusegear's Switchgear biz
Global News
BP to sell oil assets to Apache for US$7bn
Apache Corp. agreed to buy BP's oil and natural-gas fields across North America and Egypt for US$7bn. Apache will scoop up BP properties in Alberta and British Columbia as well as the Permian Basin of West Texas and New Mexico, and Egypt's Western Desert. But, the Prudhoe Bay, Alaska, operations were not part of the deal. Apache will add estimated proved reserves of 385 million barrels of oil equivalent to its portfolio. BP aims to raise US$10bn this year for its cleanup effort in the Gulf of Mexico.
Last month, the beleaguered British oil major had said it will raise cash to set up a US$20bn fund for the worst spill in US history. Separately, reports suggested that Tony Hayward, Chief Executive Officer of BP was to step down from his post in late August or September. In related development, BP suspended its relief well drilling as tropical storm Bonnie was expected to hit the eastern side of Gulf of Mexico by Saturday.
Also, the large vessel that is burning off oil collected from the water was also expected to leave the areas soon. Plans to plug the broken well for good using mud and cement and permanently choke off the oil were put off temporarily.
Nokia Siemens to buy Motorola unit for US$1.2bn
Unilever to sell Italian frozen food operations: report
Reckitt Benckiser to buy SSL for 2.54bn pound: report
Blackstone to buy Morgan's Japan loans: report
GM to acquire AmeriCredit Corp for US$3.5bn: report
Genco to buy ATC Tech in US$512.6mn: report
Kumho Investment plans to sell NY property: report
Ajel Infotech to merge with RTEngines
Inland Real Estate acquires five retail properties: report
Hewitt Associates to acquire EnnisKnupp
California General Bank and Professional Business Bank announce merger
A&B Properties acquires West Oahu industrial Park
ALD Vacuum acquires 30% stake in Dynatech Furnaces
Korea Electric to buy 20% stake in Bayan Resources: report
SRA acquires Sentech
Inland Real Estate Corp to acquire The Point at Clark
SmartBear Software, AutomatedQA and Pragmatic Software merge
TransPerfect enters into merger agreement with AD-COM
ConAgra Foods completes sale of Gilroy Foods & Flavors