Volume 9.5 Dealtracker Providing M&A and Private Equity Deal Insights
Value (US$ bn) Number of Deals Dealtracker 2 May Deal Summary Total Deal Value 12 Month Trend Deal Round Up Deal Summary Volume Value (US$ mn) May 2011 2012 2013 2011 2012 2013 Domestic 23 19 22 727 488 891 Cross Border 28 16 17 3,583 1,148 403 Mergers & Internal Restructuring 5 5 3-25 11 Total M&A 56 40 42 4,310 1,661 1,304 PE 43 26 31 1,142 344 1,851 Grand Total 99 66 73 5,452 2,005 3,155 Cross Border includes Inbound 8 8 8 1,320 202 102 Outbound 20 8 9 2,263 945 301 Deal Summary Volume Value (US$ mn) Year to Date 2011 2012 2013 2011 2012 2013 Domestic 75 113 98 3,334 2,961 2,784 Cross Border 127 106 91 26,293 4,573 4,615 Mergers & Internal Restructuring 60 59 21-14,494 130 Total M&A 262 278 210 29,626 22,028 7,529 PE 155 184 169 4,502 3,082 4,395 Grand Total 417 462 379 34,129 25,110 11,923 Cross Border includes Inbound 52 65 50 20,398 2,550 3,626 Outbound 75 41 41 5,894 2,023 989 12 10-8 6 4 2 Year to Date Deal Summary 1 3 3 2 3 10 2 1 3 2 3 3 Highlights the total M&A, and PE deals in the month of were valued at US$3.16 bn (73 deals) as compared to US$2.00 bn (66 Deals) and US$5.45 bn (99 Deals) in the corresponding month of 2012 and 2011 respectively the year to date ( YTD ) M&A deal value in 2013 was US$ 7.53 bn, down 66% from US$ 22.03 bn during the corresponding period in 2012. However, excluding internal mergers and restructuring deals, the YTD M&A deal values were similar to levels seen in YTD May 2012 the YTD 2013 PE deal value was US$4.40 bn (169 deals) up by 43% compared to YTD May 2012 PE deal values. M&A Deal of the Month: Piramal Enterprises acquired 10% stake Shriram Transport Finance Ltd for US$ 301 mn. PE Deal of the Month: Qatar Foundation Endowment invested $1.26 bn in Bharti Airtel Ltd, picked 5% stake. 100 80 60 40 20 - Total Deal Volume 12 Month Trend 82 76 81 48 90 90 71 74 72 73 87 73
3 Mergers & Acquisitions Private Equity Top 5 Deals Acquirer Target % Stake US $ mn Piramal Enterprises Ltd Shriram Transport Finance Co Ltd 10% 301 Gaursons India 300 acre land from Jaypee Group 100% 273 Jindal Poly Films Suvarnabhoomi Developers Ceebros Hotels Pvt Ltd ExxonMobil Chemical- (BOPP) business 100% 235 DLF's 32 acre of land in Hyderabad 100% 118 Viceroy Hotels's Chennai Project Division 100% 89 Top 5 Deals M&A Ranges $100m - $499.9m 4 $50m - $99.9m 2 <49.9 m 12 Value not disclosed 24 0 20 40 PE Ranges Top M&A Sectors Sector Volume US$ mn % Real Estate 4 507 39% Banking & Financial 2 302 23% Services Plastic & Chemicals 2 237 18% IT & ITeS 10 75 6% Manufacturing 2 65 5% Top 5 M&A deals accounted for 78% of the Total M&A deal values. Top PE Sectors Investor Investee % Stake US $ mn Qatar Foundation Endow ment Bharti Airtel Ltd 5% 1,260 Baring Private Equity Lafarge India 14% 260 Goldman Sachs DEN Netw orks 15% 110 Tata Opportunities Fund Tata Sky Ltd 5% 50 Asian Development Bank NSL Renew able Pow er Pvt Ltd N.A. 30 > 1000m $100m - $499.9m $50m - $99.9m <49.9 m 1 2 1 17 Sector Volume US$ mn % Telecom 1 1,260 68% Cement 1 260 14% Media, Entertainment & 3 163 9% Publishing Pharma, Healthcare & Biotech 5 38 2% Pow er & Energy 1 30 2% Value not disclosed 10 0 20 40 Top 5 PE deals accounted for 92% of the Total PE deal values.
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5 Deal of the Month Qatar Foundation Endowment invested $1.26 bn in Bharti Airtel Ltd, picked 5% stake About the companies Qatar Foundation Endowment The Qatar Foundation Endowment is the investment arm of the Qatar Foundation - a non-profit organisation that focuses on education, science, and community development of Qatar. The organisation provides financial grants for development of pre and secondary schools, colleges, universities, and science and research institutions. Additionally, it offers Qatar Science Leadership Program and wholly-owned by the Qatari royal family. The Qatar Foundation Endowment is an investment vehicle of the Qatar Foundation controlled by Sheikha Mozah, the wife of the country's ruler. Bharti Airtel Ltd provides telecommunication systems and services in India, south Asia, and Africa. The company s Mobile Services segment offers GSM mobile services; and post-paid, pre-paid, roaming, Internet, m-commerce, and other value added services and this segment also offers 2G services; 3G services. The company s Telemedia Services segment provides voice and data communications through fixed network and broadband technology for small and medium business customers. Its Digital TV Services segment offers digital broadcasting services under the Direct-to-home platform. Transaction Terms: Qatar Foundation Endowment invested $1.26 bn in Bharti Airtel Ltd, picked 5% stake. Airtel sought approval of shareholders for issue and allottment of upto 1,99,870,006 equity shares at an issue price of Rs 340 per equity share for an aggregate consideration of over Rs 6795.58 crore on preferential basis, among other issues. The deal marks Qatar's first major investment in a listed Indian company. Transaction Rationale: Bharti Airtel Limited will use the proceeds to further strengthen the capital structure and to provide further flexibility to deliver on its growth strategy. Acquirer Target US $ mn % Stake Qatar Foundation Endowment Bharti Airtel Ltd 1,260.00 5.00%
6 This document captures the list of deals announced based on information available in the public domain and based on public announcements. Grant Thornton India LLP does not take any responsibility for the information, any errors or any decision by the reader based on this information. This document should not be relied upon as a substitute for detailed advise and hence, we do not accept responsibility for any loss as a result of relying on the material contained herein. Further, our analysis of the deal values are based on publicly available information and based on appropriate assumptions (wherever necessary). Hence, if different assumptions were to be applied, the outcomes and results would be different.
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