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M&A deals perk up in health insurance

one month ago  
Business / Blogs/ M&A Critique  
Mortgage lender HDFC Ltd has completed the acquisition of a majority stake in Chennai-based Apollo Munich Health Insurance Company Ltd for Rs 1,495.81 crore. Last year, TTK Group had exited from the Cigna TTK Health Insurance joint venture by selling its 31.5% stake to Manipal Group for Rs 500 crore. Similarly, Max India has sold its 51 per cent stake in Max Bupa Health Insurance Company to private equity firm True North. The consolidation in the health insurance business is perking up. Four out of six standalone health insurance companies in the country have seen either full buyouts or stake sale being bought by private equity investors or strategic players. There were actually seven standalone health insurance companies, but the Insurance Regulatory and Development Authority of India (IRDA) had directed Reliance Health Insurance in November last year to transfer its entire portfolio to Reliance General Insurance and stopped it from selling new policies as the company's solvency ratio..
                 

Madura Micro Finance to merge with Credit Access Gramin

one month ago  
Business / Blogs/ M&A Critique  
Madura Micro Finance Ltd. (MMFL), an unlisted NBFC – MFI (Micro Finance Institution), is going to get amalgamated into Credit Access Grameen Ltd. (CAGL) a listed NBFC-MFI. It is going to be part cash - part stock deal, divided into 2-steps. Earlier, in 2018, MMFL was in advanced talks with Federal bank, a listed commercial banking company. Those talks fell through and now CAGL is all set to acquire 100% of MMFL. Credit Access Grameen Ltd. (CAGL) formerly known as Grameen Koota Financial Services Pvt. Ltd is listed on the NSE and BSE with MCap of approx. Rs. 12,300 Crores. CAGL, founded by Vinatha Reddy and Suresh Krishna in 1999, offers a variety of financial products like Group Lending, Retail Finance and Insurance. It provides micro-credit loans to support business enterprises, home improvement, family welfare and emergencies. As a strategy, they mainly target women borrowers from rural and low-income households. As of September 2019, CAGL has 887 branches, spread across 13 states ma..
                 

Government merges BSNL and MTNL

4 months ago  
Business / Blogs/ M&A Critique  
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 assets worth of Rs 38,000 crore. The ..
                 

Mangalam Timber merges with Mangalam Cement

4 months ago  
Business / Blogs/ M&A Critique  
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 Power Plants of 17.5 M..
                 

Hinduja Group restructures media & communications business

4 months ago  
Business / Blogs/ M&A Critique  
The Hinduja Group via its main holding company Hinduja Ventures had originally started with the communication business and now has multiple businesses via its subsidiaries and investments. The media and communication arms have been tallying up losses for the last few years the group started to consolidate its HITS and Broadcaster and DAS services via demerger and mergers. The restructuring of its media and communication business will enable the group to expand its digital offerings in the rural market and reach of the group’s entire product portfolio to smaller towns and cities. The board of directors of Hinduja Ventures approved integration of IndusInd’s Media and Communications (IMCL – demerged company) with Hinduja Ventures. Hinduja Ventures Ltd (HVL) –is a listed public company incorporated in the year 1985 is in the business of Media & communication, Real Estate, Treasury & Investment, through its various subsidiaries and also have dark Fibre Leasing business and close to ..