Providing M&A and Private Equity Deal...

© Grant Thornton India LLP. All rights reserved.

February 2014

DEALTRACKER Providing M&A and Private Equity Deal Insight

Volume 10.2


22% 35% 26%

5%

5%

12% 9%

11%

23% 16%

9%

1%

47% 40% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014

Total Deal Volume– February '14 Total Deal Value (US$ mn) – February'14

• The total M&A, and PE deals in the month of February 2014 were valued at US$ 2.6

bn (83 deals), as compared to US$ 3.3 bn (75 Deals) and US$15.5 bn (95 Deals) in

the corresponding months of 2013 and 2012 respectively. Excluding the US$ 12 bn

Sesa Goa and Sterlite Industries deal, the total deal activity stands at US$ 3.5 bn in

2012.

• Although the overall deal value is lower, M&A deal volume remains steady.

• The top M&A deal was Aman Resorts' acquisition of Silverlink Holdings ( US$ 358

mn), which represented 20% of total M&A deal value.

• The top PE deal was US$ 183 mn investment by Temasek and IDFC Alternatives in

GMR Infrastructure, which represented 22% of total PE deal value.

• A notable deal this month was that of Bharti Airtel's acquisition of Loop Mobile, which

points to the emerging trend of consolidation in Indian telecom sector.

Deal Summary Volume Value (US$ mn)

2012 2013 2014 2012 2013 2014

Domestic 21 26 22 1,149 436 502

Cross-border 14 12 28 711 2,090 1,330

Merger & Internal

Restructuring 15 7 1 12,896 30 5

Total M&A 50 45 51 14,757 2,556 1,837

Private Equity 45 30 32 697 760 815

Grand Total 95 75 83 15,454 3,316 2,652

Cross-border includes

Inbound 9 8 18 270 2,024 1,208

Outbound 5 4 10 441 66 122

Trend spotting

Key Highlights

Deal Round Up February 2014

2

7% 13%

19% 3%

2%

5%

2%

61% 46%

83%

1%

0.2%

5% 23% 30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014

PE

Merger & InternalRestucturing

Inbound

Outbound

Domestic

High value of mergers & internal

restructuring in 2012 is largely attributed

to the US$12bn Sesa Goa Ltd and

Sterlite Industries deal


Total Deal Volume– YTD February '14 Total Deal Value (US$ mn) – YTD February'14

• The total M&A, and PE deals YTD till February 2014 were valued at US$ 4.28 bn

(170 deals) as compared to US$ 4.5 bn (149 Deals) and US$17.71 bn (188 Deals) in

the corresponding months of 2013 and 2012 respectively.

• Overall deal momentum continues to remain moderate in the first two months of

2014.

• However, we see increasing trend in PE investments in the E-commerce sector and

emergence of consolidation in Indian Telecom sector by way of domestic M&A

Deal Summary Volume Value (US$ mn)

2012 2013 2014 2012 2013 2014

Domestic 41 43 30 1,683 1,088 547

Crossborder 35 32 49 1,625 2,292 2,197

Merger & Internal

Restructuring 30 11 6 12,946 50 58

Total M&A 106 86 85 16,254 3,430 2,802

Private Equity 82 63 85 1,458 1,070 1486

Grand Total 188 149 170 17,713 4,500 4,288

Cross border includes

Inbound 21 20 33 1,121 2,145 1800

Outbound 14 12 16 503 148 397

Trend spotting

Key Highlights

Share of PE deal value and volume in

the total deal activity continues to

increase

Deal Round Up YTD February 2014

3

22% 29% 18%

7%

8%

9%

11%

13%

19%

16% 7%

4%

44% 42% 50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014

10% 24% 13%

3%

3%

9% 6%

48%

42%

73%

1%

1%

8% 24% 35%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2012 2013 2014

PE

Merger & InternalRestucturing

Inbound

Outbound

Domestic


Acquirer Target Sector US $

mn Deal Type % Stake

Aman Resorts Group

Ltd Silverlink Holdings Hospitality 358.00 Acquisition 100%

Wilmar International Shree Renuka

Sugars

Agriculture &

Agro Products 200.00

Controlling

Stake N.A.

Game Show Network

LLC Bash Gaming

Media,

Entertainment

& Publishing

160.00 Acquisition 100%

Thomas Cook (India)

Ltd

Sterling Holiday

Resorts India Ltd. Hospitality 140.32

Majority

Stake N.A.

Sembcorp Industries

NCC Power

Projects - 1,320 MW

thermal power

project

Power &

Energy 136.77

Strategic

Stake 45%

Aman Resorts Group Ltd, a JV between Peak Hotels

and Resorts Group Ltd and Adrian Zecha, acquired stake

from DLF.

Wilmar buys stake in Shree Renuka Sugars, triggering an

open offer to be concluded soon

Top Deals

Notable Sectors Volume US$ mn

Hospitality 4 532

IT & ITES 11 253

Agriculture & Agro Products 2 205

Media, Entertainment &

Publishing 2 165

Power & Energy 2 142

Real Estate 2 133

FMCG, Food & Beverage 4 98

Pharma, Healthcare & Biotech 5 66

M&A Round Up – February 2014

Monthly Sectoral Snapshot

Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)

4

28%

13%

11% 9%

8%

31%

Hospitality

IT & ITES

Agriculture & Agro Products

Media, Entertainment &Publishing

Power & Energy

Others

21%

9%

8%

8% 6%

48%

IT & ITES

Pharma, Healthcare &Biotech

FMCG, Food & Beverage

Hospitality

Metal & Ores

Others

Deal has been approved by the fair trade regulator -

Competition Commission of India


As part of the deal, few investors of GMR Energy have

swapped the equity stake with an equity stake in GMR

Infrastructure

Fairfax Financial invested in Thomas Cook to facilitate the

Sterling Resorts acquisition.

Top Deals

Notable Sectors Volume US$ mn

IT & ITeS 16 124

Infrastructure 2 344

Manufacturing 1 100

Hospitality 1 81

FMCG, Food & Beverages 2 71

Pharma, Healthcare & Biotech 2 28

Education 2 6

PE Round Up – February 2014

Monthly Sectoral Snapshot

Top Sectors based on Deal Volume Top Sectors based on Deal Value (US$ mn)

5

50%

7% 6%

6%

6%

25% IT & ITES

Education

FMCG, Food & Beverage

Pharma, Healthcare &Biotech

Infrastructure

Others

42%

15%

12%

10%

9%

12% Infrastructure

IT & ITES

Manufacturing

Hospitality

FMCG, Food &Beverage

Others

Investor Investee Sector % Stake US$ mn

Temasek, IDFC

Alternatives GMR Infrastructure Infrastructure 12% 183.00

Canada Pension Plan

Investment Board

(CPPIB)

L&T Infrastructure

Development Projects

Ltd

Infrastructure N.A. 161.29

KKR Avantha Holdings Manufacturing N.A. 100.00

Fairfax Financial Thomas Cook Hospitality N.A. 80.65

Goldman Sachs, Mitsui

Global Investment

Global Beverages and

Foods Pvt. Ltd

FMCG, Food &

Beverage N.A. 50.81


Deal of the Month - M&A

Ac

qu

ire

r

Rati

on

ale

Ta

rge

t

Inve

sto

r

Co

mm

en

ts

Inve

ste

e

Through it’s 100%

subsidiary - DLF

Global Hospitality

(DGHL) - DLF sold

its entire stake in

Silverlink Holdings

Ltd., owner of Aman

Resorts.

Temasek and IDFC

Alternatives have

agreed to

restructure their

existing investment

in GMR Energy Ltd.

(GEL)

Aman Resorts Group Ltd.

It is a joint venture between

Peak Hotels & Resorts

Group and Adrian Zecha. It

is a luxury hotel group with

presence in 15 countries.

Silverlink Holdings Ltd.

Silverlink Holdings, owner of

Aman Resorts at the time of

the sale, is a subsidiary of

DLF. DLF had purchased

100% equity in Aman

Resorts, including the Lodhi

Hotel, in 2007 from a group of

investors for $400 mn.

DLF is looking to hive of its

non-core assets in order to

bring down its debt. By

concluding this sale for

US$ 358 mn, it will be able

to reduce its outstanding

debt.

PE consortium led by

Temasek and IDFC

Singapore’s sovereign

wealth fund Temasek and

IDFC had invested US$ 225

mn in Compulsory

Convertible Preference

shares in GEL in 2010 from

which it is now exiting.

GMR Infrastructure

Bangalore based GMR

Group has offered a clutch

of PE Investors a small

stake in its flagship

company in order to

facilitate their exit in one of

GMR’s units – GMR

Energy.

Subject to satisfaction of

conditions, GMR

Infrastructure Limited (“GIL”),

the parent of GEL, will issue

CCPS to Temasek and IDFC

led consortium through a

preferential allotment.

Deal of the Month - PE

6


Acquirer Target Sector

Acquisition

price

(US$ mn)

Deal Type % Stake Domestic/

Crossborder

Wilmar International Shree Renuka Sugars Agriculture & Agro Products 200.00 Controlling Stake N.A. Inbound

Gillanders Arbuthnot & Co Ltd Group Development Ltd Agriculture & Agro Products N.A. Acquisition 100% Outbound

Hero Group, through Rockman

Industries

Sargam Diecastings Private

Limited Automotive N.A. Majority Stake N.A. Domestic

Sohan Lal Commodity

Management Pvt Ltd B.P Jain Finance & Investment Banking & Financial Services 8.06 Acquisition 100% Domestic

Fimbank P.l.c. India Factoring and Finance

Solutions Pvt. Ltd. Banking & Financial Services N.A. Strategic Stake 30% Inbound

Tilaknagar Industries IFB Agro - Indian Made Foreign

Liquor Brands Breweries & Distilleries N.A. Acquisition 100% Domestic

Alstom Bharat Forge Power

Ltd. Kalyani Alstom Power Electricals & Electronics N.A. Merger N.A.

Merger &

Internal

Restructuring

Quest Global Engineering Beeken TechQuest Engineering N.A. Acquisition 100% Outbound

Cargill Inc Dalmia Continental - Leonardo

Olive Oil business FMCG, Food & Beverage N.A. Acquisition 100% Inbound

Godrej Industries Ltd Wadala Commodities Ltd. FMCG, Food & Beverage N.A. Acquisition 100% Domestic

Godrej Consumer Products Ltd

(GCPL)

Darling Group Holdings’

Nigeria business FMCG, Food & Beverage N.A.

Increasing Stake

to 100% 49% Outbound

MSR India Ltd Farmax India Ltd FMCG, Food & Beverage 0.10 Minority Stake N.A. Domestic

Aman Resorts Group Ltd. - JV

between Peak Resorts and

Adrian Zecha

Silverlink Holdings -

Amanresorts (Except Lodhi

Hotel, Delhi)

Hospitality 358.00 Acquisition 100% Inbound

Thomas Cook (India) Ltd Sterling Holiday Resorts India

Ltd. Hospitality 140.32 Majority Stake 75% Domestic

I. M&A Deals

8



Acquisition

price

(US$ mn)


Crossborder

SAMHI Hotels Regenta One Hotel Hospitality 28.87 Acquisition 100% Domestic

Muthoot Leisure and Hospitality

Services Xandari Resort & Spa Hospitality N.A. Acquisition 100% Outbound

Feedback Infra Dubai Consultants Infrastructure Management N.A. Acquisition 100% Outbound

eBay Snapdeal IT & ITES 133.70 Increasing Stake N.A. Inbound

Sophos Group Cyberoam Technologies IT & ITES 70.00 Majority Stake 88% Inbound

Keywords Studios Plc Babel Media Ltd IT & ITES 8.80 Acquisition 100% Inbound

MakeMyTrip Ltd Easy to Book Holding B.V. IT & ITES 5.00 Acquisition 100% Outbound

Infibeam ODigMa IT & ITES 5.00 Acquisition 100% Domestic

Blueocean Market Intelligence Cognicient IT & ITES N.A. Acquisition 100% Outbound

Caralta Corporation GMID Associates Private

Limited IT & ITES N.A. Acquisition 100% Inbound

Gaana.com Musicfellas.com IT & ITES N.A. Acquisition 100% Domestic

e-Zest Neurosynaptic IT & ITES N.A. Strategic Stake N.A. Domestic

Persistent Systems Ltd CloudSquads Inc IT & ITES N.A. Acquisition 100% Domestic

Saxon Global Inc Wit Innovation Technologies

Pvt Ltd IT & ITES N.A. Acquisition 100% Inbound

Asian Paints Ltd Berger International Ltd Manufacturing N.A. Increasing stake

to 96.7% N.A. Outbound

I. M&A Deals

9



Acquisition

price

(US$ mn)


Crossborder

PUK-WERKE KG Kunststoff-

Stahlverarbeitung GmbH & Co Profab Engineers Pvt Ltd Manufacturing N.A. Acquisition 100% Inbound

Game Show Network LLC Bash Gaming Media, Entertainment &

Publishing 160.00 Acquisition 100% Inbound

DDB Mudra, Omnicom Group 22Feet Media, Entertainment &

Publishing N.A. Acquisition 100% Domestic

UD Industrial Holding Pte Ltd Uttam Value Steels Metal & Ores 32.16 Minority Stake 10% Inbound

JSW Steel Vallabh Tinplate Metal & Ores 7.42 Strategic Stake 50% Domestic

Religare Health Trust Fortis Mohali hospital property Pharma, Healthcare &

Biotech 45.50 Acquisition 100% Inbound

HCL Group Bharat Family Clinic Pharma, Healthcare &

Biotech N.A. Strategic Stake N.A. Domestic

Lupin Ltd Nanomi B.V. Pharma, Healthcare &

Biotech N.A. Acquisition 100% Outbound

Manipal Health Enterprises Ltd SK Soni Hospital Pharma, Healthcare &

Biotech N.A. Acquisition 100% Domestic

HLL Lifecare Limited Goa Antibiotics and

Pharmaceuticals Ltd

Pharma, Healthcare &

Biotech N.A. Majority Stake 74% Domestic

Axiall Corporation Shriram Vinyl Polytech Plastics & Chemicals 5.59 Strategic Stake 50% Inbound

Artek Surfin Chemicals Ltd Galata Chemicals Plastics & Chemicals N.A. Increasing

Stake to 100% N.A. Outbound

Sembcorp Industries NCC Power Projects - 1,320

MW thermal power project Power & Energy 136.77 Strategic Stake 45% Inbound

I. M&A Deals

10



Acquisition

price

(US$ mn)


Crossborder

Greenko

Lanco Budhil Hydro Power

Project, Two power plants of

5MW each

Power & Energy N.A. Acquisition 100% Domestic

Mahindra Lifespace

Developers Ltd 12 Acre Land parcel from Ireo Real Estate 76.13 Acquisition 100% Domestic

Kolte-Patil Developers Ltd 34-acre land parcel at Wakad Real Estate 56.45 Acquisition 100% Domestic

Bharti Airtel Ltd Loop Mobile Telecom N.A. Acquisition 100% Domestic

Balmer Lawrie & Co Ltd Vacations Exotica Destinations

Pvt Ltd Travel & Tourism 3.23 Acquisition 100% Domestic

Corporate Executive Board Talent Neuron Others N.A. Acquisition 100% Inbound

TUV Rheinland NIFE India Others N.A. Majority Stake N.A. Inbound

Outsourcing Inc Alp Consulting Others 5.00 Majority Stake 51% Inbound

Modern India Ltd Verifacts Services Pvt Ltd Others 4.50 Majority Stake 76% Domestic

I. M&A Deals

11


II. Private Equity

Investor Investee Sector % Stake Investment Value

(US$ mn) Mode

Samena Capital Mahindra Two Wheelers Ltd Automotive 7% 29.40 Secondary

Motilal Oswal Private Equity Intec Capital Banking & Financial Services 16% 6.02 Primary

DSG Consumer Partners Furtados School of Music (FSM

Education Private Limited) Education N.A. N.A. Primary

Michael & Susan Dell Foundation Gray Matters India Pvt. Ltd Education N.A. N.A. Primary

Goldman Sachs, Mitsui Global

Investment

Global Beverages and Foods Pvt.

Ltd FMCG, Food & Beverage N.A. 50.81 Primary

Phenomen Ventures Foodpanda FMCG, Food & Beverage N.A. 20.00 Primary

Fairfax Financial Thomas Cook Hospitality N.A. 80.65 Primary

Temasek, IDFC Alternatives GMR Infrastructure Infrastructure 12% 183.00 Primary

Canada Pension Plan Investment

Board (CPPIB), through its

Singapore-based wholly owned

subsidiary

L&T Infrastructure Development

Projects Ltd Infrastructure N.A. 161.29 Primary

Madison India Capital

Management LLC, existing

investors

iYogi Technical Services Pvt Ltd IT & ITES N.A. 35.00 Primary

CDC Group Jabong.com IT & ITES N.A. 27.90 Primary

IDG Ventures and Ascent Capital Newgen Software IT & ITES N.A. 17.74 Primary +

Secondary

Nokia Growth Partners, August

Capital, Draper Fisher Jurvetson,

Helion Ventures, and Nexus

Venture Partners

PubMatic IT & ITES N.A. 13.00 Primary

12


II. Private Equity


(US$ mn) Mode

Helion Advisors, Social+Capital

and Berggruen Holdings Ezetap IT & ITES N.A. 8.00 Primary

Shah Capital, Fortisure Ventures,

Opus Capital, Helion Advisors and

founder Diaz Nesamoney

Jivox IQ IT & ITES N.A. 5.80 Primary

American Express Ventures Capillary technologies IT & ITES N.A. 4.00 Primary

Jungle Ventures, Spring Seed

Capital Crayon Data Pte Ltd IT & ITES N.A. 1.19 Primary

Unnamed eVaidya - e Health Access Pvt Ltd IT & ITES N.A. 0.56 Primary

AngelPrime, GSF Accelerator CareerStack Innovation Pvt Ltd IT & ITES N.A. 0.50 Primary

Angel Investors Knottykart Marketing Pvt Ltd IT & ITES N.A. 0.48 Primary

Angel Investors LogicLadder IT & ITES N.A. 0.28 Primary

Blume Ventures, Rajan Anandan,

Angel Investors IntelloCut IT & ITES N.A. 0.20 Primary

Nisa Godrej, LionRock Capital Hopscotch Wholesale Trading Pvt

Ltd IT & ITES N.A. N.A. Primary

The Social+Capital Partnership,

Angel Investors Mango Games Pvt Ltd IT & ITES N.A. N.A. Primary

Palaash Ventures and Angel

Investors SilverPush IT & ITES N.A. N.A. Primary

KKR Avantha Holdings Manufacturing N.A. 100.00 Primary

13


II. Private Equity


(US$ mn) Mode

Info Edge Canvera Digital Media, Entertainment &

Publishing 1% 0.24 Secondary

Aditya Birla PE Thyrocare Technology Pharma, Healthcare & Biotech 8% 20.97 Secondary

Bamboo Finance, Saama Capital Modern Family Doctor Pvt Ltd Pharma, Healthcare & Biotech N.A. N.A. Primary

Everstone Capital Aparajitha HR Others 25% 16.13 Primary

Aavishkaar Fund Nepra Resource Management Pvt

Ltd Others N.A. 7.00 Primary

Unnamed Merajob India Others N.A. 3.00 Primary

14


IV. IPO

Company Issue Price (INR) Equity Offered Sector

Capital Raised

(INR mn)

Capital Raised

(US$ mn)

Agrimony Commodities Ltd 10 3,020,000 Retail 30,200,000 0.49

Polymac Thermoformers Ltd 35 2,200,000 Plastics & Chemicals 77,000,000 1.24

Investor Investee Sector % Stake

Investment Value

(US$ mn)

Aspire Emerging Fund and Highbluesky

Emerging Market Fund Shilpi Cable Manufacturing 15% 3.26

III. QIP

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.

15


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