M&A Magazine

Very Small Aperture Terminal ( VSAT ) provides satellite-based telecommunication and internet access to companies and individuals with applications from your our direct TV at our homes, ATMs, in-flight services to military usage in the remotest of the location. In India, although the VSAT services are regulated by the Department of Telecom (DoT), the operators can setup/install VSAT hubs and devices to communicate with the satellites. In the past 10 years, only one out of the seven players, NELCO or previously known as Tatanet Services is able to grow and win market share. In 2009 NELCO had 8% of the market and after 10 years it has 24% market share* in the industry while others have seen contracting market share like Hughes (35.77%), HCL Comnet (5.96%), BSNL (5.31%) and Bharti Airtel (27.33%). This trend in market share exemplifies that the Industry is under constant pressure and faced head winds all last 10 years. With high competition in the VSAT business and in the Telecom ...

After a long-drawn case, the National Company Law Tribunal ( NCLT ) Mumbai has given approval to Dalmia Cement ( Bharat ) regarding the resolution plan for the revival of Murli Industries . Dalmia Cement (Bharat) Ltd is a one of the prominent player in the cement manufacturing industry and is a wholly-owned subsidiary of the Dalmia Bharat Ltd who is listed on stock exchange having a market cap of Rs 18,738 crore (approx.) Murli Industries Ltd . has an integrated cement manufacturing plant with an installed capacity of 3MT in Chandrapur district, Maharashtra along with the captive thermal power plant of 50mw. In addition, Murli Industries also has paper and solvent extraction units in Maharashtra. The operations of the Murli Industries (Corporate Debtor) came to stand still during FY 2015-16. IBC Process against Murli Industries Ltd Section 7 application filed by one of the financial creditor Edelweiss Asset Reconstruction Company Limited (EARC) was admitted by NCLT and Corpo...

An equity share with differential rights is like an ordinary equity share, but it provides more or fewer voting rights to the shareholder. The difference in voting rights can be achieved by increasing or reducing the degree of voting power. Companies Act, 2013 allows shares with superior and inferior voting rights. For any company planning to get listed on the stock exchanges, SEBI will allow it to continue to have DVR with superior voting rights only to technology driven companies, obviously subject to certain conditions as discussed later in the article. Issue of DVRs under Companies Act, 2013 Section 43 of the Companies Act, 2013 provides that Equity share capital can be – with voting rights or with differential voting rights as to dividend, voting or otherwise.   As regards issue of fresh DVR, a company is required to comply with the conditions contained in Rule 4 of the Companies (Share Capital & Debentures) Rules, 2014 . Pursuant to the notification dated 5 t...

US software firm Ebix has acquired Nasdaq-listed Yatra Online Inc to boost its India travel ventures at an enterprise value of $336 million, or Rs 2,350 crore in an all stock deal. Once the transaction is complete --- the deal marks Ebix's biggest acquisition till date in India --- it is expected to create India's largest and most profitable travel services company. The $2-billion Atlanta-based software company has set a $7 for each outstanding diluted share of Yatra, totalling 48 million shares. The $7 price a piece was 84% premium to Yatra Online's closing share price of $3.8 as of March 8, 2019. However, Ebix has announced in the press note that it reserves the right to reduce its offer at its discretion if it does not receive a positive engagement response from the Yatra board in a timely manner or if any subsequent steps are taken by the company that could have an adverse impact on its future value. The board of directors of both the company has approved th...

The Board of Directors of Fairchem Speciality Limited announced the separation of its “Oleo Chemical & Nutraceutical Business” through a demerger . To take the company to the next level, the famous Fairfax group acquired a significant stake in the company & thereafter immediately the company acquired “ Aroma Business ” from Privi Organics Limited . As a result of the acquisition by Fairfax & demerger, the erstwhile promoters stake got changed from 62% to 4%.  Interestingly, only after less than three years, the promoters have decided to part away. What made them think of separation of the business? What will be the impact on minority shareholder and the largest promoter shareholder Fairfax Group? Formation of FAIRCHEM SPECIALTY LTD. Till 2015-16, the company was operated as Adi Fairchem Limited (AFL) having a business of speciality oleo chemical & nutraceuticals. In late 2015, Canada based Fairfax Group (FIH) entered into a Share Purchase Agreement with...