M&A Magazine

The Aarti Industries Limited announced to separate its small business vertical and to merge one of its subsidiaries’ tiny manufacturing unit with itself. The move seems in the direction of concentrating on its core business verticals and to develop other “Strategically unfit” business verticals separately. Aarti Industries Limited (AIL) is one of the most competitive benzene-based speciality chemical companies in the world. AIL has 125+ products, 500+ domestic customers, 150+ export customers spread across the globe in 60 countries with a major presence in USA, Europe, Japan. AIL serves leading consumers across the globe of Speciality Chemicals and Intermediate for Pharmaceuticals, Agro Chemicals, Polymers, Pigments, Printing Inks, Dyes, Fuel additives, Aromatics, Surfactants and various other speciality chemicals. Currently, the company has three main divisions. Speciality Chemicals, Pharmaceuticals and Home & Personal Care. Past-Transactions The Transaction The

Piramal Phytocare Ltd (erstwhile Piramal Life Sciences Ltd) was engaged in the two business activities NCE Research Activity and Herbal business activity. However, NCE research activity was demerged to Piramal Health Care (Now Piramal Enterprises Ltd ) through a scheme of arrangement in December 2011 for approx. ₹196 crores. Post demerger Piramal Phytocare continued with its remaining business of Herbal products till date.   Since Piramal Phytocare is running into losses since past 5 years, Piramal Enterprises post-merger will absorb the losses of herbal business. Piramal Enterprises Ltd (PEL) is engaged in the business of pharmaceuticals, including research and development, financial services and information management through its subsidiaries. The product portfolio of the company is: Piramal Pharma Financial Services Healthcare Insights and Analytics The Company offers its products under brands, including Saridon, Lacto Calamine, i-pill/i-know, Polycrol, Tetmosol, U

The real estate sector in the country is in the doldrums as the slump in the residential segment because of poor demand and high inventory shows no sign of improvement. Lakhs of home buyers have been left stranded after a number of real estate companies have failed to deliver their projects on time. Leading companies like Jaypee Infratech is facing bankruptcy at the National Company Law Tribunal (NCLT) and the Supreme Court has asked the government-owned NBCC to take over all projects of Amrapali Builders and complete them as home buyers are stuck with incomplete projects for six to seven years and even much more. With sales going down and prices flat to declining, cash flows have dried up and construction activities have slowed down dramatically. And now with bank lending rates rising, buyers may stay away from loan-backed home purchases. The situation is even grave for smaller real estate companies as they are starved of funds as banks are reluctant to finance residential ho

SEBI Board in its meeting on 21 June 2018 has inter alia resolved: To amend SEBI ( Substantial Acquisition of Shares and Takeovers ) Regulations, 2011 ( the Takeover Code 2011 ) To replace SEBI ( Buy-back of Securities ) Regulations, 1998 with the new of 2018 To approve SEBI ( Issue of Capital and Disclosure Requirements ) Regulations, 2018 Following are the key points of consideration based on these proposals. Amendment in the Takeover Code, 2011 Existing Regulation As per existing regulation 18(4) of the Takeover Code, Acquirer can make upward revision in open offer price or in no. of shares to be acquired under Open Offer, upto the day prior to 3 working days before the commencement of the tendering period. Upward revision in no. of shares is subject to the other provisions of these regulations. Proposed Amendment It has been decided to grant additional time for upward revision of open offer price till one working day before the commencement of the tendering peri

The journey of Mahindra and CIE Automotive that began in 2013 is a well thought out and superbly executed strategy to become a global leader in auto components space. There was no dilution in equity or any fresh fund infusion by either group. Mahindra group got added synergy by having dependable global supplier having manufacturing facilities in various countries for its passenger vehicles, commercial vehicle and off-market vehicles. In 2013, the agreement between Mahindra's automotive component businesses and CIE Automotive was signed through which CIE invested in Mahindra CIE Limited (MCIE or earlier Mahindra Forgings Limited) and Mahindra & Mahindra invested in CIE. The deal was nothing but the merger of ambitious plans of both the entities to spread its wings. In this article, we have tried to analyse the where MCIE stands today? Whether the deal was truly accretive for all the stakeholder? Background of the deal The Mahindra Systech (Systech) was establishe

Companies Act 2013 majorly specifies only 3 modes of raising finance for companies viz: Public Issue, Rights Issue and Private Placement . Generally, for need based funding, companies always prefer private placement as an alternative for raising funds as the investors are usually identified beforehand. Also, Private companies have only two alternatives of raising funds, public issue not being applicable. Private Placement has therefore been the most utilized and at the same time, the more strenuous process owing to the restrictive provisions and heavy compliances mentioned in the Act and the Rules framed thereunder. Vide the Companies Amendment Act 2017, the earlier Section 42 has now been replaced with a complete new section.  Currently, only the provisos to the sub sections of Section 42 have been enforced w.e.f. 7 th of August 2018. Along with the Section, Rule 14 w.r.t. Private Placement in the Companies (Prospectus & Allotment of Securities) Rules, 2014 has also be