Aurobindoends ITCevaluatingexpansionofinorganicportfolio ... · Aashirvaad brand which is...
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CHENNAI | FRIDAY, 3 APRIL 2020 COMPANIES 3 . < AVISHEK RAKSHIT Kolkata, 2 April Cigarettes to hotels major ITC is evaluating inorganic expan- sion of its portfolio, including strengthening of the spices business. In a filing with the BSE, ITC said, “The company, as part of its business strategy, is always exploring inorganic growth opportunities and enquiries received from the market par- ticipants are suitably evaluat- ed”. The company was respond- ing to a clarification sought from the stock exchange over acqui- sition of Kolkata based spices major Sunrise Foods. However, ITC added, “The company has not entered into any exclusivity agreement for acquisition of Sunrise Foods”. Sunrise Foods has four fac- tories in Kolkata, Bikaner, Jaipur and Agra and has considerable presence in nine states focussed on the eastern and north-east- ern part of the country. Besides, it is also present in the neighbouring Nepal and Bangladesh. Sources said Sunrise’s revenue in the last financial year is estimated at around ~1,000 crore. ITC, which has been focu- ssing heavily on a larger play in its non-cigarettes businesses like packaged food, hotel, con- sumables and others, already has a strong back-end sourced spices business under the Aashirvaad brand which is available in the country as well as exported. ITC entered the branded spices business way back in May 2005. B DASARATH REDDY Hyderabad, 2 April I ndian drug major Auro- bindo Pharma on Thurs- day announced the termi- nation of a $900-million buyout agreement it had en- tered into with Sandoz for its US generic oral solids and der- matology businesses in September 2018. A mutual decision to termi- nate the agreement was taken as the approval for the transac- tion from the US Federal Trade Commission was not obtained within the anticipated timeline, Aurobindo said in a filing. Though the wait for the nod to conclude the transac- tion was extended multiple timelines in the past 19 mon- ths, Thursday’s announce- ment came as a surprise, because the Aurobindo lead- ership had as recently as the first week of February said they were about to get the approvals in a month or two. The transaction would have not only have been the biggest among Aurobindo’s acquisi- tions, but would have helped it more than double its US rev- enues on a consolidated basis, surpassing $2 billion. Focused on further ex- panding its US business, Aurobindo had entered into a deal to buy Sandoz’s derma- tology business and a portfo- lio of oral solids comprising 70 per cent of products on offer for divestment by Nova- rtis AG’s subsidiary. The proposed deal also included three manufacturing facilities in the US, and 100 per cent share-holding in Sandoz’s subsidiary Eon Labs, besides 300 products among several authorised generics, in-licens- ing products and branded der- matology products. Talking to analysts on Feb- ruary 7, Aurobindo Chairman P V Ram Prasad Reddy said they were hoping to receive approval that month, while Managing Director N Govin- darajan explained that the ap- proval would not stretch be- yond March, as it was in the final leg. The firm was prepar- ing to present the consolidated financials from April 1. With the deal falling thro- ugh, Aurobindo will lose the opportunity of immediately becoming the second largest generics player in the US, though its aim to become debt- free could be achieved quicker as the transaction was to be funded through debt. Aurobindo had reported ~16,993 crore in consolidated revenues for the nine months ending December 2019, about half of it generated from the US. Aurobindo ends $900-million Sandoz product acquisition deal ITC evaluating expansion of inorganic portfolio DEV CHATTERJEE Mumbai, 2 April Shapoorji Pallonji & Co, the flag- ship firm of the Pallonji Mistry group, has crossed an impor- tant financial milestone by repaying/refinancing ~3,000 crore of bank dues as on March 31. The dues were paid without pledging the group’s 18.5 per cent stake in Tata Sons, said a source close to the develop- ment. A private equity (PE) sou- rce said though the SP group wanted to offer Tata Sons shares as pledge, they were hes- itant to take these sh- ares as pledge bec- ause there could be potential litigation by the Tatas and lack of liquidity in the private limited firm’s shares. The PEs are also wor- ried that the Tata group will invoke the right of first refusal and will not transfer at a later date, if need be, said a PE source. In order to make sure the flagship firm repays its loans, the company promoters, the Mistry family, infused ~870 crore into the company in the second half of FY20. A source in SP group said the promoters had infused over ~2,500 crore over the past 18 months and there is a strong interest among global banks and institutions to lend against Tata Sons shares. The fund infusion in the flagship com- pany includes ~1,900 crore from the proceeds of the Sterli- ng & Wilson Solar’s initial pub- lic offering. “All our existing bankers have been supportive to us,” said a SP group official. The official said the group, on a consolidated level, had a strong order book in excess of ~1.2 trillion as of March 2020 with multi-year revenue visi- bility. As of September last year, the flagship company SPCPL alone had an order book stood of ~37,813 crore. The company also assured lenders that it would sell its land bank and solar, road and overseas assets to reduce its de- bt in the coming quarters. The group also has made invest- ments in the real estate, electri- cal contracting, water purifica- tion, infrastructure development via JVs. Some of these investments will be monetised by way of stake sale of fresh PE investments in these companies. As on September 30, 2019, the total external debt of the flagship firm on standalone basis stood was ~9,019 crore, which reduced the overall gear- ing ratio of Shapoorji Pallonji & Co below 2.5 times as on March 31, 2020. The firm also reduced its financial guarantees to ~2,428 crore as of September last year from ~2,943 crore as on March 31, 2019. This does not include debt covered in form of letter of comfort given by Shapoorji Pallonji & Co to its various subsidiaries/ associ- ates/JVs and the principle out- standing, according to a state- ment by Care Ratings. SP group flagship firm averts crisis Pays ~3,000 crore dues to lenders Zydus Cadila gets final nod from USFDA to market seizures drug Drug firm Zydus Cadila on Thursday said it had received final approval from the US health regulator to market generic Lamotrigine extended- release tablets, used to treat certain types of seizures. The company has received final approval from the United States Food and Drug Admin- istration (USFDA) to market Lamotrigine extended-release tablets USP, Zydus Cadila said. The product will be manufact- ured at the group's facility at special economic zone in Ahmedabad, it added. PTI The transaction would have helped Aurobindo’s to double its US revenues on a consolidated basis, surpassing $2 billion In order to make sure the flagship company repays its loans, the promoters infused ~870 cr into the firm in the second half of FY20
Transcript of Aurobindoends ITCevaluatingexpansionofinorganicportfolio ... · Aashirvaad brand which is...
CHENNAI | FRIDAY, 3 APRIL 2020 COMPANIES 3. <
AVISHEK RAKSHITKolkata,2April
Cigarettes to hotels major ITCis evaluating inorganic expan-sion of its portfolio, includingstrengthening of the spicesbusiness.
In a filingwith theBSE, ITCsaid, “The company, as part ofits business strategy, is alwaysexploring inorganic growthopportunities and enquiriesreceived from the market par-ticipants are suitably evaluat-ed”.Thecompanywasrespond-
ingtoaclarificationsoughtfromthe stock exchange over acqui-sition of Kolkata based spicesmajorSunriseFoods.
However, ITC added, “Thecompany has not entered intoany exclusivity agreement foracquisition of Sunrise Foods”.
Sunrise Foods has four fac-toriesinKolkata,Bikaner,JaipurandAgra and has considerablepresenceinninestatesfocussedon the eastern and north-east-ernpartof thecountry.
Besides, it is also present inthe neighbouring Nepal and
Bangladesh. Sources saidSunrise’s revenue in the lastfinancial year is estimated ataround~1,000crore.
ITC, which has been focu-ssingheavily ona largerplay inits non-cigarettes businesseslike packaged food, hotel, con-
sumables and others, alreadyhas a strong back-end sourcedspices business under theAashirvaad brand which isavailable in the country as wellas exported. ITC entered thebranded spices business wayback inMay2005.
B DASARATH REDDYHyderabad,2April
I ndian drug major Auro-bindo Pharma on Thurs-day announced the termi-
nation of a $900-millionbuyout agreement it had en-tered into with Sandoz for itsUSgeneric oral solids andder-matology businesses inSeptember2018.
Amutualdecisiontotermi-nate the agreement was takenastheapproval forthetransac-tionfromtheUSFederalTradeCommissionwasnotobtainedwithintheanticipatedtimeline,Aurobindosaid ina filing.
Though the wait for thenod to conclude the transac-tion was extended multipletimelines in the past 19 mon-ths, Thursday’s announce-ment came as a surprise,because the Aurobindo lead-ership had as recently as thefirst week of February saidthey were about to get theapprovals in a month or two.
Thetransactionwouldhavenotonlyhavebeen thebiggestamong Aurobindo’s acquisi-tions,butwouldhavehelpeditmore than double its US rev-enues on a consolidated basis,surpassing$2billion.
Focused on further ex-panding its US business,Aurobindohadentered intoadeal to buy Sandoz’s derma-tology business and a portfo-lio of oral solids comprising70 per cent of products onoffer for divestment byNova-rtis AG’s subsidiary.
The proposed deal alsoincludedthreemanufacturingfacilities intheUS,and100percentshare-holdinginSandoz’ssubsidiary Eon Labs, besides300 products among severalauthorisedgenerics, in-licens-
ingproductsandbrandedder-matology products.
Talking to analysts on Feb-ruary 7, Aurobindo ChairmanP V Ram Prasad Reddy saidthey were hoping to receiveapproval that month, whileManaging Director N Govin-darajan explained that the ap-proval would not stretch be-yond March, as it was in thefinal leg. The firmwas prepar-ingtopresenttheconsolidatedfinancials fromApril 1.
With the deal falling thro-ugh, Aurobindo will lose theopportunity of immediatelybecoming the second largestgenerics player in the US,thoughitsaimtobecomedebt-freecouldbeachievedquickeras the transaction was to befunded throughdebt.
Aurobindo had reported~16,993 crore in consolidatedrevenues for the nine monthsending December 2019, abouthalfofitgeneratedfromtheUS.
Aurobindoends$900-millionSandozproductacquisitiondeal
ITCevaluatingexpansionof inorganicportfolio
DEV CHATTERJEEMumbai,2April
ShapoorjiPallonji&Co,theflag-ship firmof thePallonjiMistrygroup, has crossed an impor-tant financial milestoneby repaying/refinancing~3,000 crore of bank dues asonMarch31.
Thedueswerepaidwithoutpledging the group’s 18.5 percent stake in Tata Sons, said asource close to the develop-ment.Aprivateequity(PE)sou-rce said though the SP groupwanted to offer Tata Sonssharesaspledge,theywerehes-itant to take these sh-ares as pledge bec-ause there could bepotential litigationbythe Tatas and lack ofliquidityintheprivatelimited firm’s shares.ThePEsarealsowor-ried that the Tatagroupwill invoke theright of first refusaland will not transfer at a laterdate, if need be, said a PEsource. In order to make surethe flagship firm repays itsloans,thecompanypromoters,theMistryfamily, infused~870crore into the company in thesecondhalf ofFY20.
A source in SP group saidthepromotershadinfusedover~2,500 crore over the past 18months and there is a stronginterest among global banksandinstitutionstolendagainstTata Sons shares. The fundinfusion in the flagship com-pany includes ~1,900 crore
fromtheproceedsoftheSterli-ng&WilsonSolar’s initialpub-lic offering. “All our existingbankers have been supportiveto us,” said a SP group official.
The official said the group,on a consolidated level, had astrong order book in excess of~1.2 trillion as of March 2020with multi-year revenue visi-bility.AsofSeptemberlastyear,the flagship company SPCPLalonehadanorderbook stoodof ~37,813crore.
The company also assuredlenders that it would sell itsland bank and solar, road andoverseasassetstoreduceitsde-bt in the comingquarters. Thegroup also has made invest-mentsintherealestate,electri-calcontracting,waterpurifica-
tion, infrastructuredevelopment viaJVs. Some of theseinvestments will bemonetisedbywayofstakesaleoffreshPEinvestmentsinthesecompanies.
AsonSeptember30, 2019, the totalexternal debt of the
flagship firm on standalonebasis stood was ~9,019 crore,whichreducedtheoverallgear-ingratioofShapoorjiPallonji&Cobelow2.5timesasonMarch31,2020.Thefirmalsoreducedits financial guarantees to~2,428 crore as of Septemberlast year from ~2,943 crore ason March 31, 2019. This doesnot include debt covered informof letter of comfort givenbyShapoorjiPallonji&Cotoitsvarious subsidiaries/ associ-ates/JVsandtheprincipleout-standing, according to a state-mentbyCareRatings.
SPgroupflagshipfirmavertscrisisPays~3,000croreduestolenders
Zydus Cadila getsfinal nod fromUSFDA to marketseizures drugDrugfirmZydusCadilaonThursdaysaidithadreceivedfinalapprovalfromtheUShealthregulatortomarketgenericLamotrigineextended-releasetablets,usedtotreatcertaintypesofseizures.ThecompanyhasreceivedfinalapprovalfromtheUnitedStatesFoodandDrugAdmin-istration(USFDA)tomarketLamotrigineextended-releasetabletsUSP, ZydusCadilasaid.Theproductwillbemanufact-uredatthegroup'sfacilityatspecialeconomiczoneinAhmedabad,itadded. PTI
The transactionwouldhavehelpedAurobindo’s todouble itsUS revenuesonaconsolidatedbasis, surpassing$2billion
In order to makesure the flagshipcompany repaysits loans, thepromotersinfused ~870 crinto the firm inthe second halfof FY20
