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Hindalco closes acquisition of Aleris; becomes world’s largest aluminium company

2 months ago  
Business / Blogs/ M&A Critique  
Hindalco Industries Limited, the Aditya Birla Group metals flagship company, has become the world's largest value-added aluminium downstream player in the world with a global footprint spanning 49 state-of-the-art manufacturing facilities in North America, Europe and Asia. This feat was achieved after the company’s wholly owned subsidiary Novelis Inc, completed the acquisition of Ohio-based Aleris nearly two years after signing the deal for an enterprise value of $2.8 billion, slightly higher than the initial estimate of $2.58 billion. The deal in indeed a long-term strategic bet, much like Novelis was in 2007, a point which Kumar Mangalam Birla, Chairman of the Aditya Birla Group has underlined. Aleris will be Hindalco’s second acquisition in the US after Novelis, which it had bought for $6 billion in 2007. Hindalco’s purchase of Novelis was the second biggest overseas deal by an Indian entity after Tata Steel’s $13 billion acquisition of Corus. Aleris was privately held by private e..
                 

Powerhouse in the making: RIL merges media content and distribution with Network18

2 months ago  
Business / Blogs/ M&A Critique  
In a move to consolidate its media and distribution business spread across multiple entities and reduce the number of listed entities, Reliance Industries Limited (RIL) has announced Scheme of Arrangement (Scheme) whereby, TV18 Broadcast Limited, Hathway Cable & Datacom Limited and Den Network Limited will get merged (Amalgamation) into Network18 Media & Investment Limited. Further, immediately after the Amalgamation, as a part of the same Scheme, the cable business undertaking, the ISP Business Undertaking and the Digital Business Undertaking of the amalgamated Network18 Media & Investment Limited will be transferred to the Wholly-Owned Subsidiaries (“WoS”) of the Network18 Media & Investment Limited. Network18 Media & Investments Limited (Network18) has presence in several media and entertainment businesses directly and through its subsidiaries like general news channels in Hindi, English and other regional languages, business news channels in Hindi, English and G..
                 

M&A deals perk up in health insurance

4 months 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

5 months 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

7 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

7 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..
                 

Titagarh Wagons Ltd moves ahead with consolidation of three entities

8 months ago  
Business / Blogs/ M&A Critique  
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 market Cap o..