Merger & Acquisition Round Up – December 08 to 12, 2014

Vikram Akula, the founder and former Chairperson of SKS Microfinance, who was named by TIME Magazine as one of the 100 most influential people in the world, has been appointed Chairman of the financial inclusion start-up VAYA Finserv Pvt. Ltd. Akula will also take a 26% stake in VAYA.

Dec 12, 2014 10:12 IST India Infoline News Service

Top News
 
Reliance Capital evaluates opportunities to unlock value
 
The Exchange has sought clarification from Reliance Capital Ltd with respect to news article appearing in The Times of India on December 10, 2014 titled "RCap to gain 12 fold from Rs 500Crs Yatra.com stake sale"
 
Reliance Capital Ltd replied stating "We wish to inform that the Company is continuously engaged in evaluating opportunities to unlock value from all its minority investments in non-core areas outside its financial services businesses. As and when any transaction is finalised resulting in a disclosable event, the Stock Exchanges will be promptly informed as required under Clause 36 of the Listing Agreement.
 
Earlier report stated that  company is planning to exit the investment, pocketing a return of about 12 times in eight years.Other investors in Yatra.com include TV18 Group, Norwest Venture Partners, Intel Capital, IDG Ventures India and Vertex Venture.
 
Vikram Akula to acquire 26% stake VAYA
 
Vikram Akula, the founder and former Chairperson of SKS Microfinance, who was named by TIME Magazine as one of the 100 most influential people in the world, has been appointed Chairman of the financial inclusion start-up VAYA Finserv Pvt. Ltd. Akula will also take a 26% stake in VAYA.
 
VAYA is a business correspondent which facilitates savings and loans for self-help groups of women on behalf of banks. The company was founded by former SKS Microfinance executives and opened its first branch in July, and now has 23 branches with 183 employeesacross six districts of Eastern Maharashtra and Northern Karnataka.
 
“Now that my 3 year non-compete period is over, I was looking to get back to financial inclusion,” said Akula. “I chose to join VAYA because it is focused on under-banked districts, it has a great team, and it uses anext-generation technology platform that will become the future of financial inclusion.”  VAYA is the first business correspondent to use tablet banking in the field. The field officers tablets connect to a centralized online system that has the ability to interface seamlessly with core banking systems, to ensure daily cash settlement with partner banks.
 
Domestic News
 
Anil Ambani may sell 80% stake in Big Cinemas to Carnival Films: reports
 
Anil Ambani is planning set to sell a controlling stake in his multiplex business to Carnival Films which is backed by a Kochi based agri-trading company, according to reports.
 
Report said that Carnival is likely to pick up 80 per cent in Big Cinemas, a division of Reliance MediaWorks.The deal may be valued at around Rs 700-Rs 725 crore.
 
Reliance will continue to retain the residual minority stake, says report.
 
Pricol to acquire Brazil based auto component company
 
Pricol Ltd has announced that the Board of Directors of the Company at the meeting held on December 11, 2014 has proposed to acquire 99.99% of stake in a Brazil based auto component manufacturing company through its wholly owned subsidiary incorporated in Spain.
 
The aforesaid Company in Brazil achieved sales revenue of Rs. 3011 million during the calendar year 2013.
This acquisition will enable Pricol to make a foray into the Brazilian Auto Component Industry. The aforesaid acquisition is expected to be completed by the end of January 2015.
 
IVL to acquire Performance Fibers in China Synergies with HVA business
 
Indorama Ventures PCL (IVL), one of the world's foremost petrochemical producers, has reached a definitive agreement to acquire one of the world's premium automotive fiber businesses, Performance Fibers Asia, including all its Asian manufacturing operations and the right to continue using the name Performance Fibers. IVL will make the acquisition from an affiliate of Sun Capital Partners, Inc., a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies.
 
Performance Fibers Asia is the premier producer of tire fabrics in the region and is the 2nd largest production facility of its kind in China. Asia is the largest and fastest-growing market for tires globally, accounting for more than 50% of global tire demand in 2013 and expanding at 8% CAGR over the last five years.
 
This acquisition represents the continuation of IVL's strategy to increase and strengthen its presence in the high value-added ("HVA") automotive safety applications. Performance Fibers Asia brings together a broad and complementary portfolio of innovative products to IVL, following the acquisition of PHP Fibers and Trevira in the last two years. The combined three businesses are expected to have annual revenue of at least $850 million.
 
The Performance Fibers business in Europe and the Americas will continue to operate separately under the ownership of Sun Capital and the leadership of the existing management team in those regions.
 
Performance Fibers Asia production facilities are strategically situated in the Pearl River Delta city of Kaiping, where IVL's Guangdong facility is a supplier of specialty PET polymers, providing immediate synergies in the raw material supply chain and operational excellence.
 
The Carlyle Group acquires a 54.85% stake in Newgen KnowledgeWorks
 
Global alternative asset manager The Carlyle Group has invested US$32.8mn to acquire a 54.85% stake in Chennai, India-based Newgen KnowledgeWorks Private Limited, a provider of publishing and technical services for many of the world’s largest and most prestigious publishers, particularly in the USA, the UK and Europe. Equity for the transaction comes from First Carlyle Ventures III, an investment fund advised by The Carlyle Group.
 
Carlyle acquired the stake held by Franklin Templeton Private Equity Strategy, Aureos South Asia Fund and ePlanet Capital in Newgen. Carlyle had earlier invested in Newgen in 2004 and exited its investment in 2011.
 
Prabhakar Ram, Founder & CEO of Newgen said: “Newgen has emerged as a preferred service provider for its clients due to its high service quality, efficiency and focus on automation. We are extremely happy to partner with Carlyle again, which engaged in numerous value creation activities and acted as a catalyst in the growth of the company during its previous stint with Newgen.”
 
International News
 
New Call acquires WaveCrest
 
New Call Telecom, the rapidly expanding international telecom company, announces the acquisition of leading international wholesale voice business WaveCrest. The acquisition comes only weeks after New Call acquired Nimbuzz, a fast-growing Indian mobile technology brand with more than 200m users across the globe.
 
Founded in 2001 and headquartered in London, WaveCrest has offices in Dubai, New York, Milan, Paris and Frankfurt. The company provides high-quality, low-cost international calling solutions to retail brand owners, other operators and end users. With a state-of-the-art IP network, WaveCrest terminates in excess of 3bn voice minutes per year and generates revenues approaching $120m. Since 2010 WaveCrest has been providing a fully hosted Over the Top (OTT) international calling solution for Tesco and is working with other leading brands to deliver similar OTT solutions to their existing client bases.
 
Nigel Eastwood, CEO of New Call Telecom, says: “I am delighted New Call has acquired WaveCrest. There are considerable synergies between our two companies and this acquisition is in line with our international expansion strategy. In common with Nimbuzz, which processes more than 1bn VoIP call minutes per month, WaveCrest has a global reach built on their state-of-the-art technology.”
 
Diadeis acquires Graphic Systems Group
 
Diadeis has announce the acquisition of Graphic Systems Group, an independent American graphic production agency. For more than 30 years, GSG has been the partner of choice for many of the world's leading brands, including L’Oréal, Novartis, Abercrombie & Fitch, Avon, and NBC. The company is entrusted with a wide range of mission-critical campaigns from special promotions to full-scale production consolidation. Founded in 1980 as a photographic retouching and fine art graphics specialist, GSG is now New York’s pre-eminent independent creative production agency, offering multilingual packaging mechanicals, premedia, digital, visual merchandising and software implementation.
 
Diadeis is already well established throughout Europe, Asia, Africa and the Middle East. This increased presence in North America helps the company cement its position as a leading international player in the design and premedia industry. This purchase places Diadeis amongst the top 3 global players in the industry by strengthening its ability to meet the needs of the leadingbrand owners across all their markets.

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