Top Stories
Numeric Power sells UPS biz to Legrand
Numeric Power Systems Ltd. has announced that its Board of Directors has approved the sale of the UPS business to Indo Asian Electric Pvt. Ltd. The UPS business has been sold to the wholly owned subsidiary of Legrand SA for a consideration of Rs 8.37bn.
The sale is subject to the consent of the shareholders of the Company, applicable statutory and other regulatory approvals. To give effect to this transaction, the parties concerned have entered into a Business Transfer Agreement. The Company will continue to carry on other activities like Green Energy (Solar and Wind Power), Iron and Alloy foundry production, LED lighting, etc.
Piramal Healthcare to acquire further 5.5% stake in Vodafone
Piramal Healthcare and Vodafone Group has announced that Piramal has agreed to purchase approximately 5.5% of the issued equity share capital of Vodafone India Limited (“VIL”) from ETHL Communications Holdings Limited (“Essar”) for a cash consideration of approximately Rs3,007 crores (approximately £385 mn) taking the total shareholding of Piramal in VIL to approximately 11%.
The transaction follows the settlement between Vodafone and Essar over the sale of Essar’s approximately 33% stake in VIL, announced in July 2011, and the purchase by Piramal of approximately 5.5% of the issued share capital of VIL from Essar in August 2011.
The transaction contemplates various exit mechanisms for Piramal, including both participation in a potential initial public offering of VIL and a sale of its stake to Vodafone.
Etihad, Qatar Airways not looking to acquire stakes in Kingfisher Airlines: reports
Two major Gulf Arab carriers Etihad Airways and Qatar Airways reportedly said that they have no interest in acquiring stake in struggling Kingfisher Airlines, according to reports.
Reports stated that Kingfisher was in early talks with Qatar Airways about a possible stake in the company.
Etihad's chief executive James Hogan also said that that they too had no interest in the Indian carrier. He declined to elaborate.
Kingfisher, controlled by liquor baron Vijay Mallya, is in talks with potential investors, says report.
In Focus Stories
Aerospace & Defence M&A Results are record-breaking: PwC
Global aerospace and defence (A&D) merger and acquisition (M&A) value reached a record level in 2011, according to Mission Control, a quarterly analysis of M&A activity in the global A&D sector by PwC. Aggregate deal value reached $43.7 bn supported by 341 deals in 2011, compared to total deal value of $21.9 bn and 332 deals in 2010. The 2011 record surpassed the previous A&D deal record of $42 billion in 2007.
The primary driver of deal value in 2011 was the $16 billion transaction, the largest in sector history. However, volume drivers were broad-based, with higher numbers for small deals (less than $50 mn) and mega deals (above $1 billion) alike. A total of six mega deals were completed in 2011, recovering from the recent low of only two such announcements in 2009.
This led to an increase in average transaction sizes, even when removing the impact of the $16 million deal. There was also a big increase in deals for aerospace targets in 2011, measured on both a volume and value basis, while the number of defence deals decreased. Aerospace deal multiples also surpassed defence targets, reflecting the more attractive outlook for that part of the sector.
Domestic News
Piramal Healthcare gets seat on Vodafone India Board
Piramal Healthcare will have the “customary rights” that come with holding 11% equity in Vodafone India, including a board seat, according to reports.
Reports stated that the company will appoint Rajesh Laddha, Chief Financial Officer, Piramal Healthcare, to the board of Vodafone India.
The running of the company will be with the Vodafone management, says report.
Thomas Cook to start process for sale of India biz
Thomas Cook Group PLC (TCG) stated that "it is launching a formal sale process for its 77.1 per cent shareholding in Thomas Cook (India) Limited (TCIL)," India's largest integrated travel and travel related financial services company. "Thomas Cook has received a number of unsolicited informal expressions of interest from third parties to acquire its stake in TCIL and, as a result, has decided to formalise the process."
The announcement was made by Thomas Cook PLC to its shareholders at its AGM on February 8, 2012.
Thomas Cook (India) Ltd (TCIL), a public limited company listed on the National Stock Exchange and Bombay Stock Exchange since 1983, is an independent entity, and has no financial or operational dependencies on the parent.
Temasek pares stake in ICICI Bank
Shares of ICICI Bank declined on Wednesday after Temasek Holdings pared its stake in the private bank in a deal worth up to US$303mn.
Temasek held 39.83mn shares of ICICI Bank, or 3.46%, as of end-December, via its unit Allamanda Investments, according to exchange data.ICICI Bank's 15.9mn shares were sold in the range of Rs. 924 to Rs. 937.75 each, reports said,. That is a slight discount to Tuesday's close price.
The deal would raise Rs. 14.9bn at the top end of the price band, reports added. Goldman Sachs was the sole bookrunning lead manager for the deal, according to reports.
Goldman Sachs in talks to acquire Fidelity India Fund Management: reports
Goldman Sachs Asset Management India are in talks to acquire Fidelity India Fund Management, according to reports.
The negotiations are on in the US and a deal, if concluded, could be announced by February, say report.
Reports stated that Fidelity had Rs. 90bn assets under management until December 2011.
Flipkart buys Letsbuy for US$20-25mn: report
Flipkart, India's biggest online retailer of books and electronics gadgets, has acquired Letsbuy, for an estimated US$20-$25mn, according to reports.Reports stated that the acquisition involves a combination of cash and equity. Letsbuy, which has 350 employees, will continue to operate independently under current management,says report.
Assam Co plans to sell some of its tea estates: reports
Numeric Power sells UPS biz to Legrand...Stock spurts
OCL Iron acquires stake in Aron Auto
Global News
Glencore and Xstrata approve all-share merger
The Glencore Directors and the Independent Xstrata Directors have reached an agreement on the terms of a recommended all-share merger of equals.
Brief summary of the deal
Creation of a major natural resources group with a combined equity market value of US$90bn and a unique business model, fully integrated along the commodities value chain, from mining and processing, storage, freight and logistics, to marketing and sales
Merger ratio of 2.8 New Glencore Shares for every Xstrata Share held, excluding Xstrata Shares already owned by the Glencore Group, providing Xstrata Shareholders other than Glencore with a 45 per cent. stake in the Combined Entity
The Merger values each Xstrata Share at 1,290.10 pence and the entire issued and to be issued share capital of Xstrata at approximately £39.1bn (US$61.9bn) and represents a premium of:
Approximately 15.2 per cent. to Xstrata’s closing share price of 1,119.50 pence as at 1 February 2012, being the last business day prior to the announcement by Xstrata that it was in discussions with Glencore
Management team to be led by current Xstrata CEO, Mick Davis, as CEO of the Combined Group, Ivan Glasenberg, current Glencore CEO, as Deputy CEO and President, Trevor Reid, current Xstrata CFO, as CFO and Steven Kalmin, current Glencore CFO, as Deputy CFO
Carrier completes acquisition of Sauter Race Technologies
Oracle acquires Taleo Corp. for US$1.9bn
RedBox to buy NCR Corp.'s entertainment assets