M&A Magazine

Shree Digvijay Cement Co. Ltd. (SDCCL) is engaged in manufacturing & selling of the Cement. The company has one manufacturing facility at Sikka, Jamnagar, Gujarat with an installed capacity of 10.75 lacsMT per annum. The company caters mainly in the domestic market within India under the brand “Kamal”. The equity shares of the company are listed on BSE.  The current promoter of the company is Votorantim Cimentos S.A. The board of directors of the Shree Digvijay Cement Co. Ltd . at their meeting held on 12 th November 2018, announced that the existing promoters have decided to sell its 75% holding in the company to a Private Equity Firm. Votorantim Cimentos S.A is a joint stock corporation, incorporated on January 30, 1997 in the State of São Paulo in the Federative Republic of Brazil. It is engaged in the production and sale of cement, aggregates and supplemental products, as well as of raw materials and byproducts, and other activities relating to its cement operations s

With an aspiration to grow in consumer wellness space, Ahmedabad based listed company Zydus Wellness Limited announced acquisition of an entity which is more than double in terms of revenue but almost equal to the price of its own. The move is going to do or die situation for the company. Zydus Wellness Limited (Zydus) is the listed entity of Zydus group and is one of the leading companies in the fast-growing Indian consumer health market. The company has grown over the years on the back of pioneering brands like Sugar-Free, EverYuth and Nutralite and innovations offering new benefits to consumers. Sugar-Free, the flagship brand of Zydus Wellness, launched in 1988, is currently having with over 93% market share. The Kraft Heinz Company (Kraft) is the fifth-largest food and beverage company in the world. Company’s iconic brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon,

Alembic Ltd (Alembic), incorporated in 1907, is part of Alembic group and it is engaged in the business of manufacturing and trading active pharmaceutical ingredients (API) and Real Estate Developments. It also has investment in Alembic Pharmaceuticals Limited (APL). Shreno Limited (Shreno), incorporated in 1944, is engaged in the business of manufacturing and trading of glassware items, machinery and equipments (engineering) required for various industries, making investments and real estate developments. Nirayu Pvt. Ltd. (Nirayu), incorporated in 1971, is currently holding investment in shares and securities of various entities. Current Shareholding of the companies Please Note: 1% OCPS of Shreno limited of book value Rs. 8.71 crores were converted in equity shares by alembic Limited in FY 2018 Therefore the final total investment by Alembic in equity is Rs. 35.13 crores. Alembic acquired 55% stake in Alembic City Limited resulting into WOS of the company

Mergers and acquisitions (M&A) have got a leg up, thanks to rising cases filed under the Insolvency and Bankruptcy Code (IBC) . Till the last count, M&A deals in distressed asset sales worth around $14.3 billion were done since the code became functional in December 2016, according to data from Kroll and Mergermarket. Such sales will rise as more and more companies line up to face the new bankruptcy law. Data from Insolvency and Bankruptcy Board of India show that more than $26 billion in distressed steel assets are coming on block, while banks are unwilling to take more haircuts and more companies will be put under the IBC and make their way through the NCLT process. In fact, opportunities for investors and acquirers have grown as quality assets at attractive valuations come to market. Distress M&As account for 12% of the total M&A value this year, led by deals involving Bhushan Steel ($7.4 billion).  In terms of actual deals, distressed M&As has accoun

In case of combination by way of Merger or Acquisition coming under the purview of the Competition Act 2002, when Competition Commission of India (CCI) on receipt of notice from the Parties under Section 6 of the Act or on its Suo moto inquiry, makes its prima facie opinion that the combination is causing or  likely to cause appreciable adverse effect on the competition (AAEC) , it starts investigation in to the combination. In that case, the parties to the combination must publish required information in Form IV and if found desired, CCI may invite comments from any person or member of public on the proposed combination by publishing the details provided in Form IV. Now, it is important to understand when and how CCI forms it prima facie opinion that the combination is causing or likely to cause appreciable adverse effect on the competition. Section 20 (4) of the Competition Act, 2002 states various factors, any or all which CCI takes into consideration to form the prima

On 19 th September Delta Magnets Ltd announced the merger of Arrow Textiles Ltd and MMG India Private Ltd with Delta Magnets Ltd. Post-merger the name of Delta Magnets Ltd will change to Delta Manufacturing Limited.   Delta Magnets Ltd (DML) started commercial production in 1986 and is one of the leaders in the hard ferrite industry, GPEL's clientele includes Philips, BPL, Bush (in the audio electronics industry), Bajaj Auto and Lucas-TVS (in the automobile equipment industry). DML has two wholly-owned subsidiaries and one step-down wholly-owned subsidiary: MMG India Private Limited which is into manufacturing of Soft Ferrites Magdev Limited which is into Trading of Ferrites Pilamec Limited (Step-down Subsidiary) - Trading of Ferrites MMG India Private Limited (MMG) is primarily engaged in the business of manufacturing of soft ferrites and coil winding. Arrow Textiles Ltd (ATL) is the leading manufacturer of the specialty textiles in India. The company manu

Last year Gloster Limited (Gloster) announced the group re-structuring where Gloster got merged with Kettlewell Bullen & Company Limited (KBC) subsequently the name was changed to Gloster Limited. Gloster Limited is engaged in manufacturing and exporting of all types of Jute & Jute allied products, Woven & Non-Woven Jute Geotextiles, Treated Fabric-Rot Proof, Fire Retardant, jute products for Interior Decoration and Packaging of Industrial and Agricultural produce. Company’s two manufacturing units are situated at Bauria, West Bengal. KBC, a promoter group company, was NBFC holding 17% stake in Gloster. Other than Gloster, it was holding shares of few listed & unlisted companies. The Transaction In 2016, the management has decided to merge its listed entity Gloster into unlisted KBC.  The appointed date for the transaction was 1 st January 2015. Post-Merger, the name of the KBC changed to Gloster Limited. Further, all cost related to the merger like st

In a move to consolidate its Agro-chemical business, Godrej Group has decided to merge its acquired listed entity into its listed holding company. Astec Lifesciences Limited (Astec), established in 1994, Astec Lifesciences Ltd manufactures a wide range of agrochemicals and pharmaceutical intermediates. Astec has two multipurpose production sites at Mahad. In August 2015, Godrej Agrovet acquired a majority stake in Astec. The equity shares of the company are listed on BSE and NSE. Godrej Agrovet Limited (Agrovet) is engaged is an agribusiness arm of Godrej Group with operations across five business verticals- animal feeds, crop protection, oil palm, dairy and poultry and processed foods. The equity shares of the company are listed on BSE and NSE. Revenue Mix for FY 18 The Transaction In a move to consolidate its Agro-chemical business, Godrej Group will merge Astec with the Agrovet. The appointed date for the transaction is 1 st April 2019. Shareholding Pattern