January – December 2018 - SKP Group€¦ · The Walmart-Flipkart deal, the highlight of the year...

Investment Chronicle

January – December 2018

skpgroup.com

Maulik DoshiSenior Executive Director Transfer Pricing & Transaction Advisory ServicesSKP Business Consulting LLP

© 2019 SKP Business Consulting LLP. 2

ForewordWe are pleased to present the annual edition of SKP Investment Chronicle – our update that focuses on the deal-making landscape in India, comprising Mergers and Acquisitions (M&A), equity investments and exits. In this report, we look at India’s transactions arena in the year 2018.

With stable GDP growth, reviving economy from setbacks of policy reforms and investor confidence, India has emerged as one of the fastest growing economies in the world and one of the most attractive investment destinations. Driven by big-ticket transactions and strategic consolidation, 2018 has been a phenomenal year as total transaction value crossed the USD 100 billion mark. Although aggregate deal value has escalated owing to a handful of big-ticket transactions, deal volumes have been on a downward trajectory in 2018 over the previous year.

Mergers and acquisitions emerged as the forerunner of investment activities in 2018, contributing ~ 70% of the total deal landscape value. Owing to a slew of transactions crossing the USD 1 billion mark, including India’s biggest M&A deal till date, the declining performance of domestic and inbound deals from 2017 witnessed a commendable surge in this year. Geographic expansion, consolidation and stressed assets sale were some of the key drivers behind the big-ticket transactions.

Although equity investments observed a decline in terms of aggregate value and volume, global private equity funds, pension funds and sovereign wealth funds have demonstrated their confidence in India through sizeable investments and buyouts in 2018. Private equity exits, on the other hand, continued with their stellar performance of 2017 demonstrating stabilizing valuations and lucrative returns on investments.

Anticipation on the outcome of the upcoming general elections and ensuing fiscal budget and business policy reforms in the coming year will be key in driving investor sentiments in the short term. Although the year may begin on a cautious note, the deal landscape is expected to maintain traction as investors continue to remain motivated by the vast potential of the Indian market and increasing investment opportunities.

Investment Chronicle: January – December 2018

Yearly Compass

Deal Value Mix

Source: SKP analysis

Particulars 2016 2017 2018 Movement*

Mergers & Acquisitions 918 926 956 3%

Equity Investments 1212 1345 983 -27%

Private Equity Exits 245 285 199 -30%

Total 2375 2556 2138 -16%Source: SKP analysis

* The movement mentioned above is a comparison between 2018 and 2017.

Deal Volume Mix

Particulars 2016 2017 2018 Movement*

Mergers & Acquisitions 59,770 34,868 80,122 130%

Equity Investments 13,360 34,613 24,819 -28%

Private Equity Exits 6,851 12,493 12,319 -1%

Total 79,981 81,974 117,260 43%

USD million Average EInv Deal

Value

USD 25.24 million

Top PEE Deal Value

USD 960 million

Average M&A Deal

Value

USD 83.81 million

Top Sector by FDIInflow

Services

Top Indian State by

Deal Value

Maharashtra

Hot Sector

Consumer Discretionary

Top M&A Deal Value

USD 16,000million

Emerging Segment

Internet Retail; Metals and Mining

M&A CAGR

(4 years)

25%

Top Outbound

Partner

USA

Top EInv Deal value

USD 1,742.89 million

EInvCAGR

(4 years)

14%

M&A - Merger & Acquisitions EInv - Equity Investments PEE - Private Equity Exits

© 2019 SKP Business Consulting LLP.3


Overview Mergers And Acquisitions

615

Deal Trends

© 2019 SKP Business Consulting LLP.


17,182

3,144 1,884

12,658

21,165

30,614

12,516 15,827

7,270

10,351

6,329

10,662

6,576

7,003

6,258

4,981

3,575

2,066

2,294

4,558

1,263

9,731

908 418

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

PEE

EInv

M&A

14,012

1,271 685

9,290

18,728

11,651

1,836

8,631

1,079

601 873

752

1,130 17,559

1,429

3,557

1,488

248 260

427

891

1,067

387

1,873

602

1,023 65

2,189

416

336

8,864

1,767

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Others

Outbound

Inbound

Domestic

4


Equity Investments Private Equity Exits

615

Source: SKP analysis *Others primarily includes exit through buy-back and IPO

69 122 0

2323

315

7,977

157 100

2,492

953 1,119

1,896

344

612

590311

264

633 248

48

334

1,103

117 7

750

357928

292

270

38

44 0

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Others*

Secondary Sale

Open Market

M&A

Deal Trends



2,196

7,679

3,866

6,820

2,748

3,983 3,169

1,579

2,146

719

509

1,897

2,051

1,251

15

598

936

797

1,552

1,230

1,114

1,294

2,465

1,483

1,992

1,156

403

715

663

475

609

1,321

Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

Others

Venture Capital & Debt

Public Equity

Private Equity

5

Sector Insights

Telecommunication

Energy

IndustrialConsumer Staples


Financials

Materials

Healthcare

Information Technology

M&A USD 5,891 million 268 Deals

EInv USD 7,267 million 447 Deals

PEE USD 1,582 million 66 Deals



PEE USD 160 million 17 Deals


EInv USD 21 million 1 Deal

PEE - 1 Deal





EInv USD 393 million 14 Deals














Bird’s Eye View




Utilities



Sector2016 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Weights Movement in

value*Value Deals Value Deals Value Deals Value Deals Value Deals Value Deals 2017 2018

Consumer Discretionary 6,728 424 8,438 427 2,172 116 24,739 105 820 83 4,381 80 10% 27% 281%

Consumer Staples 796 103 1,887 157 333 41 634 29 1,336 25 6,013 21 2% 7% 341%

Energy 14,273 21 794 15 5,878 5 0 3 0 2 21 1 1% 5% 643%

Financials 15,879 295 18,856 342 5,301 81 1,859 75 1,522 56 1,860 48 23% 9% -44%

Healthcare 6,802 199 4,353 205 134 37 1,102 41 2,928 35 753 44 6% 4% 13%

Industrials 6,105 272 3,885 290 1,385 74 2,944 57 2,259 56 292 66 5% 6% 77%

Information Technology 11,083 881 14,112 950 3,178 237 5,953 187 2,804 186 2,805 171 17% 13% 4%

Materials 6,464 101 1,746 96 8,150 32 2,762 27 7,590 17 393 21 2% 16% 982%

Telecommunication 9,144 18 17,376 24 25 8 6,756 4 0 0 2,158 9 21% 8% -49%

Utilities 2,707 61 10,527 50 2,447 24 599 15 423 6 2,551 13 13% 5% -43%

Total 79,981 2,375 81,974 2,556 29,003 655 47,348 543 19,682 466 21,227 474 100% 100% 43%


* The movement mentioned above is a comparison between 2017 and 2018 deal values.

Sectoral Panorama USD million

Sector Insights



8

India witnessed record-breaking M&A activities in the year 2018, with the total deal value of over USD 80 billion crossing all benchmarks set in the last decade. While the total deal value witnessed a 130 percent increase in comparison to USD 34 billion in 2017, the deal volume grew by a marginal 3%, reflecting on the quality of deals that have taken form in this year.

With over 15 deals crossing the USD 1 billion mark, the top 5 deals itself contributed to 50% of the total deal value for the year. The Walmart-Flipkart deal, the highlight of the year alone accounting for 20% of the total deal value, is India’s biggest M&A deal to date.

Transactions in Consumer Discretionary and Materials sectors dominated the total M&A value during the year, while Information Technology took the lead in terms of volume. Consumer Discretionary sector was abuzz with deals in the media and internet retail segment for capturing the vast potential in the Indian market as well as consolidation. The materials sector was majorly dominated by transactions in the steel segment.

Inbound transactions took a significant hit in 2017, with their total value falling to USD 3.3 billion. The rise in inbound transactions to USD 23.7 billion in 2018 reflects the rebuilding confidence of investors in the Indian economy.

Distressed assets sale, implementation of Insolvency and Bankruptcy Code, government’s disinvestment efforts in state-owned entities, penetration in Indian markets in steel, energy and E-commerce segments drove the record-breaking M&A transactions in 2018.

With short-term political instability in 2019, India is banking upon stable GDP growth, continuing reforms like GST, RERA, IBC and government efforts to increase ease of doing business in India, geopolitical instability in the west and investment inflows in emerging sectors to continue its M&A uptrend in 2019.

Deal Buyer Target Type Value % Sought Sector

1 Walmart Inc. Flipkart Pvt. Ltd. Inbound 16,000 77% Consumer Discretionary

2 Bharti Infratel Ltd. Indus Towers Ltd. Domestic 6,234 58% Telecommunication Services

3 Oil and Natural Gas Corporation Ltd. Hindustan Petroleum Corporation Ltd. Domestic 5,778 51.11% Energy

4 Bamnipal Steel Ltd. Bhushan Steel Ltd. Domestic 5,596 72.65% Materials

5 Hindustan Unilever Ltd. GlaxoSmithKline Consumer Healthcare Ltd. Domestic 4,542 100% Consumer Staples

Top M&A Deals

Mergers and Acquisitions

USD million


Total Deal Volume 956

Total Deal ValueUSD 80,122 million

Top SectorConsumer Discretionary

Top Outbound CountryUSA

Top RegionMaharashtra



9

Prime Deals – M&A

SECTOR DEAL TYPEDEAL VALUE

% SHARE RATIONALE

Target: Flipkart Pvt Ltd

Buyer: Walmart Inc.


USD 16,000 million

77%

Inbound

Market penetration and expansion

DEAL HIGHLIGHTS August 18, 2018 witnessed the closure of world’s biggest e-commerce deal in which US-based retail company Walmart Inc. acquired a majority stake in e-retailer, Flipkart Pvt Ltd. With this acquisition, Walmart will have access to Flipkarts’s fashion portals Myntra and Jabong and digital money transfer application, PhonePe.

The Indian e-commerce industry is rapidly growing at an annual rate of 51% and is expected to reach USD 120 billion by 2020 and USD 200 billion by 2026, giving impetus to international giants to make brave bets on the Indian market such as this USD 16 billion acquisition.

As a result of this transaction, Walmart, Amazon and Paytm Mall have become major players in the Indian e-commerce ecosystem. The acquisition is expected to build a hybrid offline-online model with Walmart’s multi channel physical retail presence and Flipkart’s online penetration in India through eKart, the logistics division of Flipkart which serves 800 cities across India. Both parties have agreed to maintain different brands and operations post the acquisition.

• Ready platform for entry into India’s B2C market

• Access to Flipkart’s 40% market share in Indian online retail and a registereduser base of 175 million

• Opportunity to diversify into fashion, electronics, mobile and large appliancessegments

• Partnership to leverage Walmart’s retail expertise and Flipkart’s Indian marketinsights

• Access to logistics infrastructure developed by Flipkart

Benefits of Acquisition to Walmart

Walmart Inc. Flipkart Pvt LtdAcquisition of majority stake in Flipkart Pvt Ltd

Consideration of USD 16 billion(inclusive of USD 2 billion capital infusion)

Valuation Flipkart was valued at USD 22 billion

Remaining Shareholders Flipkart co-founder Binny Bansal, Tencent Holdings Ltd., Tiger Global Management LLC and Microsoft Co

Tran

sact

ion

Stru

ctur

e

• Windfall returns for Tiger Global, SoftBank Vision Fund and Accel

• Intensification of competition in India E-commerce sector

• Quality and affordable goods for Indian customers

• Creation of employment opportunities in retail and logistics sector in India

• Creation of support system for farmers, SMEs and women entrepreneurs

Impact of the Transaction



SECTORMaterials

DEAL TYPEDomestic

DEAL VALUEUSD 5,596.05 million

% SHARE72.65%

RATIONALESale of Distressed Assets

SECTORMaterials

DEAL TYPEDomestic


% SHARE58%

10

Target: Indus Towers Ltd.

Buyer: Bharti Infratel Ltd.

Target: Bhushan Steel Ltd.

Buyer: Bamnipal Steel Ltd.

On May 18, 2018 Mumbai-based Tata Steel Ltd. through its wholly owned subsidiary, Bamnipal Steel Ltd. completed the acquisition of 72.65% stake in Bhushan Steel Ltd. for a consideration of USD 7,456 million, with the acquisition partly being financed through a bridge loan availed by Bamnipal Steel. Bhushan Steel has been renamed as Tata Steel BLS Ltd. post the acquisition.

Winning the bid to acquire debt-laden Bhushan Steel in an insolvency auction, Tata Steel is the first company to successfully acquire a stressed asset under the Insolvency and Bankruptcy Code (IBC), 2016. The investment in the target, being financed through equity infusion and inter-corporate debt, will be used to pay off financial and operational creditors of Bhushan Steel. As per the resolution plan approved by the National Company Law Appellate Tribunal, all the employees of the target will be taken on board.

With this step towards materializing its inorganic growth strategy, Tata Steel aims to grow its existing business in flat products and leverage operating synergies over the next 2-3 years.

On April 25, 2018 New Delhi-based Bharti Airtel Ltd. announced the merger of Indus Towers Ltd. with its tower arm Bharti Infratel Ltd., making the world’s second largest telecom infrastructure company. Indus Towers will operate as the wholly owned subsidiary of the merged entity. At present, Bharti Infratel, Vodafone, Idea Cellular and Providence own 42%, 42%, 11.15% and 4.85% stake in Indus Towers respectively.

The merged entity will create a pan-India tower infrastructure company with over 163,000 towers, operating across all 22 telecom circles in India. The two companies’ complementary offerings will create a tower operator with the ability to expand market footprints and offer high quality shared passive infrastructure services needed to support the nationwide expansion of wireless broadband services using 4G/4G+/5G technologies.

The proposed merger has received approvals from Competition Commission of India and Securities and Exchange Board of India and is still subject to other statutory approvals. The transaction is expected to close by May 2019.

DEAL HIGHLIGHTS

DEAL HIGHLIGHTS

Prime Deals – M&A

RATIONALEStrategic Consolidation



Deal Investor Target Type Value % Sought Sector

1 GIC, Azim Premji Foundation, KKR India Advisors, among others

Housing Development Finance Corporation Ltd Public Equity 1,743 3.87% Financials

2 Warburg Pincus, Temasek Holdings, SingTel Innov8 Fund, SoftBank Airtel Africa Ltd Pre-IPO 1,250 28.41% Telecommunication

Services

3 Abu Dhabi Investment Council, TPG Capital UPL Corporation Ltd. Private Equity 1,200 22% Consumer Staples

4 Lightspeed Venture Partners IX, Sequoia Capital India IV Oravel Stays Pvt Ltd Venture Capital 1,000 NA Information Technology

5 Resurgent Power Ventures Pte. Ltd Prayagraj Power Generation Company Ltd Private Equity 826 NA Utilities

11Source: SKP analysis

Equity investments in India observed deals over USD 24 billion in 2018 through 983 transactions as against USD 34.6 billion through 1,345 transactions in 2017, accounting a 28% decrease.

Despite the slip in overall performance, the year witnessed some big ticket investments in the start-up ecosystem as the market for start-up funding in India matures with investors making cautious but larger bets. Several Indian start-ups in the e-commerce and internet software & services industry, such as Oyo, Swiggy, Byju’s have crossed the USD 1 billion valuation mark in 2018. In the coming year, healthcare, fintechand artificial intelligence are the industries to watch on the valuation front.

Increasing internet penetration and access to smart phones coupled with higher disposable income and adoption of practices such as use of payment gateways, etc., have encouraged subsequent funding rounds by private equity and venture capital investors in e-commerce companies. Companies in the Indian e-commerce ecosystem have also scaled up faster in comparison to other sectors, backing investor confidence.

For 2019, private equity investors are banking upon India’s economic growth drivers which include rising private consumption & income levels, growing government expenditure and improved performance

in the export sector. In the short term, investors may adopt a cautious strategy and hold back on certain bets, foreseeing the upcoming general elections and fiscal budget in the coming year. However, these factors may not affect the overall positive investor sentiment and the investment momentum is expected to augment in the second half of the year.

Top Equity Investment Deals USD million



Emerging SegmentWireless Telecommunication; Food Products


Top SectorInformation Technology


Equity Investments Investment Chronicle: January – December 2018

SECTORFinancials

DEAL TYPEPublic Equity


% SHARE3.87%

RATIONALEPrevention of Stake Dilution; Growth Capital

SECTORTelecommunication Services

DEAL TYPEPre-IPO

DEAL VALUEUSD 1,250 Million

% SHARE28.41%

RATIONALEDebt reduction and Growth

12

Target: Airtel Africa Ltd.

Buyers: Warburg Pincus, Temasek, SingTel Innov8, SoftBank

Target: Housing Development Finance Corporation Ltd.

Buyers: GIC, Azim Premji Foundation, KKR India Advisors, among others

On January 13, 2018 Mumbai-based HDFC Ltd. announced issuance of 6.4 crore equity shares on preferential basis to an investor group comprising Singapore-based GIC Pvt.Ltd., Bengaluru-based Azim Premji Foundation, PI Opportunities Fund I, KKR India Advisors Pvt. Ltd, Carmignac group companies and OMERS Administration Corp. to raise USD 1742.89 million. The company also plans to raise further funds through qualified institutional placement.

As a result of this transaction HDFC Ltd., witnessed 3.87% dilution in its equity base. Majority of the funds raised through this preferential allotment are earmarked for participation in preferential share issue by HDFC Bank Ltd, maintaining HDFC Ltd.’s shareholding in the former at 21%. Moreover the capital raised is also expected to fund HDFC Ltd.’s inorganic growth plans in real estate, health insurance and mortgage financing space.

The mortgage lender is exploring opportunities in the health insurance sector through its subsidiary HDFC Ergo General Insurance Company Ltd. and the corporation is also eyeing the real estate sector for acquisition and resolution of stressed assets.

On October 24, 2018 UK incorporated Airtel Africa Ltd., a subsidiary of New Delhi-based Bharti Airtel Ltd.’s announced USD 1.25 billion of fund raising from an investor group comprised of New York-based Warburg Pincus LLC, Japan-based SoftBank Group Corp., Singapore-based Temasek Holdings Pvt. Ltd., SingTel Innov8 Fund Ltd. and two other undisclosed investors through primary equity issuance at a post money valuation of USD 4.4 billion.

Giving headway to Bharti Airtel’s plans to monetise assets and reduce debt, the capital raised through this new share subscription will be primarily used to reduce Airtel Africa’s existing debt of ~USD 5 billion. Airtel Africa also intends to go public in the near future, further aiding its debt reduction.

Airtel Africa has been constantly trying to consolidate its position as a major player in the telecom sector in Africa through various acquisitions. Additionally, the new funds will also enable expansion of its operations in the African continent by upgrading and developing network infrastructure, entering new markets and growing Airtel Money in the region.

DEAL HIGHLIGHTS

DEAL HIGHLIGHTS

Prime Deals – EInv



13

* Excluding exits through M&A route included in top M&A deals

At an aggregate deal value of USD 12.3 billion, Private Equity Exits maintained momentum with the impressive decade-high performance of 2017. Total deal volume, in contrast, observed a 30% decline during the year, emphasising the noteworthy increase in average deal values and improving returns on exit.

Consumer discretionary, information technology, and financials were the prime sectors this year, accounting for the highest exit activity in terms of value and volume.

Mergers and acquisitions emerged as the most favourable exit route this year, contributing ~70% of the total exit value. As the market for start-ups matures, 2018 witnessed several strategic buy-outs of start-ups by industry players for consolidation, talent/technology acquisition, providing exits to financial investors at enviable returns.

Following M&A have been open market transactions and secondary sales as popular exit routes, accounting for some of the top exits this year. On the other hand, IPOs, which remained a leading exit route till the previous year, recorded a significant decline in 2018 owing to the volatility in stock markets.

Exit route trends are expected to be similar in 2019, with M&A being the preferred exit route as strategic investors look towards inorganic growth methods. Anticipation on the political and economic environment during the first half of 2019 may continue to result in scarcer exits through IPOs in the short term, although the latter part of the year is expected to pick up traction.

Deal Seller Target Type Value % Sought Sector

1 Apax Partners LLP GlobalLogic Inc. Secondary Sales 960 48% Information Technology

2 International Finance Corp., Kedaara Capital Fund, Warburg Pincus India Pvt. Ltd. AU Small Finance Bank Ltd. Open Market 360.21 13% Financials

3 Warburg Pincus LLC ICICI Lombard General Insurance Company Ltd. Open Market 281.93 5.48% Financials

4 Abraaj Capital Ltd., Warburg Pincus India Pvt.Ltd., Aureos South Asia Fund, IFC

Continental Warehousing Corporation (Nhava Sheva) Ltd. Secondary Sales 268.44 60.40% Industrials

5 Blackstone Advisors India Pvt. Ltd. Mphasis Ltd. Open Market 219.96 8% Information Technology

Top Equity Exit Deals* USD million

Private Equity Exits



Top SectorConsumer Discretionary

Emerging SegmentInternet, Software and Services


© 2019 SKP Business Consulting LLP.Source: SKP analysis


SECTORInformation Technology

DEAL TYPESecondary Sales

DEAL VALUEUSD 960 million

% SHARE48%

RATIONALReturn on investment

SECTORFinancials

DEAL TYPEOpen Market

DEAL VALUEUSD 360.21 million

% SHARE13%

RATIONALEReturn on investment

14

Target: AU Small Finance Bank Ltd

Seller: IFC, Kedaara Capital Fund, Warburg Pincus India Pvt Ltd

Target: GlobalLogic Inc.

Seller: Apax Partners LLP

On July 13, 2018 Jaipur-based AU Small Finance Bank Ltd. announced partial exit of private equity investors, Washington-based International Finance Corp, Mauritius-based Kedaara Capital Fund and Mumbai-based Warburg Pincus India Pvt. Ltd. from its shareholding structure through open market transactions.

Aggregate 13 % stake was sold by World Bank’s private investment arm, Kedaara Capital and Warburg Pincus for USD 360.21 million. Warburg and Kedaara capital’s investment in the bank dates back to 2012 and 2014 respectively and the exit has resulted in more than 5 times of return on capital.

The financial institution received banking license from Reserve Bank of India in December 2016 and is operational since April 2017. It also received a capital infusion of USD 147 million from Temasek Holdings, which it intends to use for development of its assets on the digital and physical market platforms to improve reachability.

DEAL HIGHLIGHTS

DEAL HIGHLIGHTS

Prime Deals – PEE


On May 21, 2018 private equity firm Apax Partners LLP announced the sale of its ownership representing 48% stake in GlobalLogic Inc. to Switzerland-based private equity firm, Partners Group AG for USD 960 million. The transaction values the software development service provider at USD 2 billion, with revenues of ~USD 500 million in 2017.

Apax Partners had acquired 96% in the information technology outsourcing firm in 2013 for USD 420 million, of which it sold 48% to Canada Pension Plan Investment Board in 2017 at more than 3x returns. Giving a complete exit to Apax Partners from GlobalLogicat a return on investment of 4.5x, this transaction marks one of the biggest equity exits in the Indian IT sector. Partners Group and Canada Pension Plan Investment Board will hold 48% each in the business software engineering service provider.

The information technology outsourcing firm is based in the United States with an offshore model and a base in India including engineering centres across the country. GlobalLogic Inc. serves the retail, media, automotive, electronics and medical technology sectors.



15Source: SKP analysis

Materials Consumer Staples

IT & ITES

Financials

Healthcare

Utilities

Industrials

Top five states by transactions(Domestic + Inbound Deals)

Top Sectors

197 Deals 61 Deals 46 Deals

21 Deals 18 Deals

Top Sectors


71 Deals 45 Deals

Haryana


PEI USD 3,311 million 100 Deals


Top Sectors


15 Deals 13 Deals

Delhi




Top sectors


29 Deals 14 Deals

Uttar Pradesh

M&A USD 824 million 30 Deals



Top Sectors


5 Deals 2 Deals

Maharashtra




Karnataka

M&A USD 819 million 110 Deals




The Indian Terrain Investment Chronicle: January – December 2018

Sector Country Volume USD (million)

USA 42 2,755

UAE 6 428

Germany 6 143

Source: SKP analysis 16

HCL Technologies Ltd to acquire IBM Corp’s software assets

Deal value: USD 1,775 million % Sought: 100%

Sector: Information technology

Noida-based HCL Technologies Ltd has agreed to acquire certain software products from New York-based IBM Corp. for USD 1,775 million. The transaction is subject to approvals and is expected to close by mid-2019.

The products being acquired service companies in the security, marketing and commerce space. The acquisition is expected to scale up HCL’s revenue in the products & platforms segment. The acquisition is also expected to increase HCL’s market share by 5% from current 12% market share in the said segment.

Shree cement Ltd acquired a majority stake in Union Cement Company P.S.C.

Deal value: USD 297.94 million % Sought: 97.61%

Sector: Materials

Kolkata-based Shree Cement Ltd. has completed the acquisition of a 97.6 per cent stake in the UAE-based Union Cement Company P.S.C. through its Dubai-based subsidiary Shree International Holdings Ltd. for USD 297.94 million.

Union Cement is one of the leading cement manufacturers in the UAE. The acqusition will mark Shree Cement‘s first acquistion outside India and will help in scaling up its production capacity and expand overseas.

Motherson Sumi Systems Ltd acquired Reydel Automotive France SAS

Deal value: USD 201 million % Sought: 100%

Sector: Consumer Discretionary

New Delhi based Motherson Sumi Systems Ltd has completed the acquisition of France-based ReydelAutomotive France SAS through its subsidiary Samvardhana Motherson Automotive Systems Group BV on August 2, 2018.

With 20 manufacturing plants across 16 countries, Reydel Automotive manufactures automotive interior components and modules. The acquisition will expand Motherson’s automotive interiors product portfolio.

Times Internet Ltd acquired a majority stake in MX Player

Deal value: USD 146.47 million % Sought: NA

Sector: Infomation Technology

Gurugram-based Times Internet Ltd digital arm of Times Group has acquired a majority stake in Seoul-based video platform, MX Player.

With this acquisition, Times Group company is making its foray in the digital content space. As a digital media player with more than 50 million daily users, MX Player will have to face competition from Netflix, Hotstar, Amazon Prime, Jio TV.

HIL Ltd acquired Parador Holding GmbH

Deal value: USD 97.36 million % Sought: 100%

Sector: Consumer Discretionary

Hyderabad-based HIL Ltd a part of CK Birla Group has acquired Germany-based Parador Holding GmbH through its German wholly owned subsidiary, HIL International GmbH for a cash consideration of USD 97.36 million.

Parador provides roofing and building solutions to customers across the globe. With this acquisition, HIL will be able to leverage Parador’s technology, brand equity and market access.

Top deals by volume

Cross-border Transactions

UNITED ARAB EMIRATES

SOUTH KOREA

UNITED STATES OF AMERICA

GERMANY


FRANCE


17

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http://www.skpgroup.com/data/resource/skp_investment_chronicle_2017_january_to_march_.pdf

http://www.skpgroup.com/data/resource/skp_investment_chronicle_2017_january_to_march_.pdf

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http://www.skpgroup.com/data/resource/skp_advamed_medical_device_industry_in_india_.pdf

http://www.skpgroup.com/data/resource/skp_advamed_medical_device_industry_in_india_.pdf

https://www.skpgroup.com/data/resource/investment_chronicle_january_march_2018_.pdf

https://www.skpgroup.com/data/resource/investment_chronicle_january_march_2018_.pdf

https://www.skpgroup.com/data/resource/investmentchronicleq32018final_.pdf

https://www.skpgroup.com/data/resource/investmentchronicleq32018final_.pdf

http://www.skpgroup.com/data/resource/skp_squire_report_buy_american_act_and_trade_agreements_act_.pdf

http://www.skpgroup.com/data/resource/skp_squire_report_buy_american_act_and_trade_agreements_act_.pdf

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19

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We provide an array of solutions encompassing Consulting, Business Services, and Professional Services. Our solutions help businesses navigate challenges across all stages of their life-cycle. Through our direct operations in USA, India, and UAE, we serve a diverse range of clients, spanning multinationals, listed companies, privately owned companies, and family-owned businesses from over 50 countries.

Our multidisciplinary teams serve a wide range of industries, with a specific focus on healthcare, food processing, and banking and financial services. Over the last decade, SKP has built and leveraged capabilities across key global markets to provide transnational support to numerous clients.

From inception, SKP’s founders have propagated a culture that values professional standards and personalized service. An emphasis on collaboration and ethical conduct drives us to serve our clients with integrity while delivering high quality, innovative results. We act as partners to our clients, and take a proactive stance in understanding their needs and constraints, to provide integrated solutions. Quality at SKP is of utmost importance, and SKP is ISO/ISE 27001 certified for information security and ISO 9001 certified for quality management.

We have been recognized over the years by global organizations, like the International Accounting Bulletin and Euro Money Publications.

Our team provides you with solutions for tomorrow; we help you think next.

About SKP



India - MumbaiUrmi Axis, 7th FloorFamous Studio Lane, Dr. E. Moses Road Mahalaxmi, Mumbai 400 011IndiaT: +91 22 6730 9000E: [email protected]

USA - Chicago2917 Oak Brook Hills Road Oak Brook, IL 60523USAT: +1 630 818 1830E: [email protected]

UAE - DubaiEmirates Financial Towers503-C South Tower, DIFCPO Box 507260, DubaiUAET: +971 4 2866677E: [email protected]

Canada - Toronto269 The East MallToronto, ON M9B 3Z1CanadaT: +1 647 707 5066E: [email protected]

The contents of this presentation are intended for general marketing and informative purposes only and should not be construed to be complete. This presentation may contain information other than our services and credentials. Such information should neither be considered as an opinion or advice nor be relied upon as being comprehensive and accurate. We accept no liability or responsibility to any person for any loss or damage incurred by relying on such information. This presentation may contain proprietary, confidential or legally privileged information and any unauthorised reproduction, misuse or disclosure of its contents is strictly prohibited and will be unlawful.

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January – December 2018 - SKP Group€¦ · The Walmart-Flipkart deal, the highlight of the year...

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