Merger & Acquisition Round Up - December 01 to 05, 2014

The Union Minister of Finance, Corporate affairs and Information and Broadcasting Arun Jaitley stressed the need for sharing of global experiences in the field of mergers and acquisitions to fully develop the competition law and practice.

Dec 05, 2014 10:12 IST India Infoline News Service

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FM stressed need for sharing of global experiences in the field of mergers and acquisitions
The Union Minister of Finance, Corporate affairs and Information and Broadcasting Arun Jaitley stressed the need for sharing of global experiences in the field of mergers and acquisitions to fully develop the competition law and practice. The Finance Minister was delivering the Inaugural Address after inaugurating the 'International Competition Network (ICN)'s Merger Workshop, 2014' at a function here today in the national capital. He hoped that the workshop would help in achieving that objective among others.
 
The two-day workshop is being hosted by the Competition Commission of India (CCI), being a co-chair of the Merger Working Group. The theme of the workshop is "International Cooperation and Remedies in Merger Review". The Finance Minister also released the book entitled "Competition Tracker", a compilation of Orders issued by CCI, on this occasion.
 
The Finance Minister Jaitley said that mergers and acquisitions have transnational effect. He further said though there would continue to be mergers and acquisitions leading to big corporate conglomerates yet there is need to draw a red line to avoid dominance and curbing of open competition in market by them. He said that is why we need an active and responsive regulator. However, the Finance Minister cautioned about growth of multi-sectoral regulators in recent times and chances of their crossing in each other's jurisdictional areas. He hoped that the current Workshop will also look into this aspect and come out with positive and practical suggestions/recommendations in this regard.
 
Earlier delivering the Welcome address, Ashok Chawla, Chairman, Competition Commission of India (CCI) said that competition is very essential in the market as it leads to innovations and is helpful to the consumers at large in order to get best and new products at reasonable and competitive prices. He said that mergers and acquisitions are recognized world over as they help in organic growth of the market. He however cautioned that some mergers and acquisitions adversely affect the competition and therefore, there is need for regulation.
 
Sahara sells Gurgaon land worth Rs 1,211 cr to M3M
Sahara has sold land parcel worth Rs 1,211 crore to Gurgaon-based developer M3M India Ltd, says report. Report stated that the 185-acre land in Gurgaon, would be used for mix-use development. M3M India Director Pankaj Bansal stated that the entire amount will be paid in instalments over a period of six months. The deal comes within days of Supreme Court permitting the Sahara Group to proceed with the sale of four domestic properties.
 
Domestic News
 
Pfizer completes merger with Wyeth
Pfizer Limited, announced the completion of the merger with Wyeth Limited. The company had received approvals from the Bombay High Court earlier and has today filed the order with the Registrar of Companies to conclude the merger process. The merger places Pfizer Limited among the top 10 pharmaceutical companies in India by market share. Pfizer Inc.,USA, through its subsidiaries holds the majority stake in both companies and will continue to remain the majority shareholder with an approximate 63.9% holding in Pfizer Limited, post-merger. As a result of the merger, Pfizer Ltd now has a significantly stronger portfolio of offerings across a wider therapeutic universe. Importantly, the company now debuts its offering in Vaccines with India's largest vaccine brand and builds a robust presence in the areas of Women's Health with a portfolio that includes some of the best known brands in Oral Contraception and Folic Acid supplements.
 
With the conclusion of the process, all employees of Wyeth Limited are also now a part of Pfizer Limited. The company has already completed the necessary steps to ensure a seamless transition and integration of the workforce into Pfizer Ltd.
 
Azim Premji in talks to acquire under 5% stake in HDFC Life: reports
Azim Premji is in talks to acquire under 5% stake in HDFC Life for a little over $100 million, or Rs 600 crore, according to reports. Report stated that Premji Invest is discussing acquisition of shares from HDFC in a secondary transaction. HDFC plans to divest a small part of its 72.37% stake in the life insurer.
 
Dishman Pharma may sell entire SEZ land
The Exchange had sought clarification from Dishman Pharmaceuticals and Chemicals Ltd with respect to news appearing on ET NOW on December 02, 2014 titled "Dishman in talks with some investors to sell Gujarat Land."
 
Dishman Pharmaceuticals and Chemicals Ltd clarified "We would like to clarify that Dishman Pharmaceuticals and Chemicals Limited (DPCL) had acquired on a long term lease basis Land located at the Pharma and Finechem SEZ being developed by Dishman Infrastructure Limited (DIL), a company promoted by the promoters of DPCL.
 
However, owing to withdrawal of the benefits granted earlier to SEZ developers/units located therein by the Government, the said company DIL has suspended the work on the SEZ development since last around two years and is looking at various options including de-bonding the SEZ and selling off the entire SEZ land. If this happens, DPCL's lease will also be cancelled and DPCL will get back the money invested in the Land leased to it in the said SEZ. Kindly note that, in this circumstance, we submit that, in our view, this does not require any disclosure at this stage under Clause 36 of the Listing Agreement."
 
Acrysil acquires 74% stake in Homestyle Products Limited
Acrysil Limited, one of the leading quartz and stainless steel kitchen sink manufacturing and trading companies, has acquired 74% stake in U.K. based kitchen sink distribution company, Homestyle Products Ltd., for Rs.20.50 crores.  The acquisition has been made by Acrysil UK Ltd., Acrysil's wholly owned subsidiary in the U.K.
 
Homestyle Products Ltd. is in business of importing and marketing kitchen sinks principally in the U.K. market.  It also deals in faucets and allied products to provide holistic solutions to its customers.  The Company achieved a turnover of ?2.35 million (approx INR 23 Crores) with EBITDA of ?0.54 million (approx INR 5.3 Crores) for the year ended 30 June 2014.
 
This investment will mark the entry of Acrysil into the premium U.K. market for kitchen sinks and accessories.  Acrysil presently exports its products to more than 35 countries worldwide including USA, France, Germany, Russia and countries in the Far East and Middle East.  In FY14, exports accounted for nearly 74% of Acrysil's turnover.
 
Balaji Telefilms to buy 51% stake in Marinating Films
Balaji Telefilms Ltd has announced that the Company has signed a Share Purchase Agreement with Marinating Films Private Limited (MFPL) on December 3, 2014 and by virtue of this agreement the Company will purchase and hold 51% of the Paid-up Equity Share Capital of MFPL.
 
MFPL is the owner of the concept, format and all proprietary rights and intellectual property rights ("IPR") in Box Cricket League ("BCL"), "The Indian Telly Calender" ("ITC") and "Indian Telly Style Awards" ("ITSA") and organizes BCL, ITC and ITSA on a yearly basis. And now by virtue of the IPR Assignment agreement dated December 3, 2014 between the Company and MFPL, the Company now owns 51% IPR in BCL, ITC and ITSA.
 
ATC plans to acquire 51% stake in Viom Networks: reports
American Tower Corp (ATC) is planning to acquire a 51% stake in Viom Networks, according to reports. Report said that the deal may be valued at worth $900 mn-$1 bn. Viom is majority-owned by the Tatas (54%), who hold the stake through unlisted telecom arm Tata Teleservices. Srei owns around 18.5% while the rest is held by PE funds including IDFC Private Equity, SBI Macquarie, Oman Investment Fund, GIC of Singapore and AMP Capital, says report.
 
PVR clarifies reports on acquiring SPI Cinemas
With reference to the news item appearing in the Newspaper dated December 01, 2014 titled "PVR in negotiations to acquire SPI Cinemas", PVR Ltd has clarified that as part of its continuing business strategy to look for growth opportunities, the Company is constantly on the look out for and in discussions with potential partners in various capacities to further its business.
 
The company is not aware of any negotiations or transactions including any negotiation or transaction with SPI Cinemas that require disclosure under Clause 36 of the Listing Agreement. The Company will make the necessary disclosure as and when any concrete alliance or transaction emerges out of such discussions. Further, we are not aware of any other information not disclosed to the stock exchanges which could explain the aforesaid movement in the trading of the shares of the Company."
 
International News
 
Microsoft buys Accompli
Microsoft has reportedly said that it was acquiring the mobile email management application Accompli. The deal may be valued at worth more than $200 mn, says report. The deal gives Microsoft a startup helping people more easily manage their mail on handsets using Google Android. Accompli's Javier Soltero satted on his blog that the app "will become part of Microsoft's ambitious effort to reimagine productivity for the mobile era."

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