M&A Magazine

In what seems to be last attempt, government has finally decided to revive by merging the two loss-making state-owned telecom companies Bharat Sanchar Nigam Ltd ( BSNL ) and Mahanagar Telephone Nigam Ltd ( MTNL ) . The two telecom companies have been bleeding and their subscriber base dwindling as competitors such as Bharti Airtel, Vodafone Idea and Reliance Jio had rolled out pan India 4-G services and cut prices on voice and data. MTNL , which is largely present in cities such as Delhi and Mumbai, will act as a unit of BSNL until the merger is completed. While MTNL is listed, BSNL is not listed. The two companies have a total debt of Rs 40,000 crore. The merger bill will be about Rs 70,000 crore which includes voluntary retirement scheme (VRS), capital infusion, goods and service tax and bond guarantee. The Centre will raise Rs 15,000 core through sovereign bonds to strengthen the two-state run telecom companies and the government will monetise telecom a...

The BK Birla group-controlled Mangalam Cement Ltd and Mangalam Timber Products Ltd have been merged to attain value of scale. The consolidation will help in efficient utilization of their resources, reduction in overheads and other expenses and improvement in other parameters. Mangalam Timber Products Limited (MTPL), a listed company primarily engaged in the manufacture of Medium Density Fibre Board (MDF) and sells its products under the brand name “DURATUFF”. MDF is used in making furniture, Particle board, Doors and all kind of carpentry all kinds of carpentry work. Mangalam Cement Limited (MCL), a listed company having registered office in Kota Rajasthan. A well-established cement manufacturing company having two cement manufacturing plants located at Morak, Rajasthan and Aligarh, Uttar Pradesh producing Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) and marketed under the brand name of "Birla Uttam" . MCL has also set up two Captive Thermal Po...

TITAGARH Group is a leader in manufacturing of heavy engineering equipment, like freight wagons, railway castings – bogies and couplers. The group is operated in India and Europe through several subsidiaries and joint ventures. Titagarh Wagons Limited (TWL) is in the business of manufacturing of rail rolling stock including railway wagons, passenger coaches, steel castings of various configurations, shipbuilding, bridges and special projects for defence establishment of India and other heavy engineering equipment/ product. The Shares of the TWL are listed on NSE and BSE. The market cap of TWL is around Rs 600 crore. CIMMCO Limited (CIMMCO) a public limited company incorporated in the year 1943 under the Companies Act, 1913 under the name Texmaco (Gwalior) Limited. Thereafter the name of the company changed several times with the current name changed in the year 2010. The shares of CIMMCO are listed on NSE and BSE. The majority shares of CIMMCO (74.89%) are held by TWL. The mar...

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...

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 ...

Consolidation is picking in the radio industry. In a move to take on other radio giants, the two separately listed entities HT Media Limited and Next Mediaworks Limited has decided to consolidate their operation. HT Media Limited (HTML) is a media conglomerate with interests in the newspaper, radio, digital media and education businesses. The Company is involved in printing and publishing of English newspaper ‘Hindustan Times’, Hindi newspaper ‘Hindustan’ and Business newspaper ‘Mint’. HT Music & Entertainment Company Limited (HTMEL ) is a wholly owned subsidiary of HTML which is operating the FM Radio station in Chennai. Next Mediaworks Limited (NML) is a listed holding company of Next Radio Limited (NRL) which operates FM radio stations under the brand “Radio One” in Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Pune and Ahmedabad. Radio Business of HTML The company operates radio stations under the brand names of ‘Fever’ and ‘Nasha’. Fever FM operates a ra...

RHI Magnesita Group , a leading global supplier of the high-grade refractory product, systems and services has a presence in India through its acquired listed entity Orient Refractories and two other unlisted companies. The group has decided to consolidate its refractories business in India. Orient Refractories Limited (Orient) is in the business of manufacture and marketing of refractory products, systems and services and has various global partners for its international quality products In 2011, Orient Abrasives Limited demerged its refractory business into Orient. In January 2013 RHI Acquired 43.6% share capital of the Orient and further 26% via open offer. The transaction price for 69.6% totalled approximately INR 360 cores. RHI India Private Limited (RHI India), incorporated in 2007 is a subsidiary of Dutch Brasil Holding B.V., which is ultimately owned by RHI Magnesita N.V. RHI India is engaged in the business of purchase, sale, import, export and marketing of ref...