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  • M&A Tracker

M&A Tracker

04 June 2020

Rajesh Thakkar
Partner & Leader - Transaction Tax

M&A in India

Between March 2020 and May 2020, around 65 M&A deals were announced of which 31 M&A deals were completed. The aggregate value of deals announced is USD 7315.14mn; dominated by cross border deals (33) followed by domestic deals (32)

In terms of sectors (considering only closed deals), Consumer Staples saw maximum deal value, with deals worth USD 429.25mn followed by Health Care with deals worth USD 167mn and Financials with deals worth USD 149.86mn

Significant Deals completed between March 2020 to May 2020

Target Company: GlaxoSmithKline Consumer Healthcare Limited
Acquiring Company: Hindustan Unilever Limited
Deal Value (in mn USD): 415
Sector: Consumer Staples

  • Hindustan Unilever Limited acquired Horlicks' intellectual property rights for Indian territory from GlaxoSmithKline Consumer Healthcare Limited for a consideration of USD 415mn
  • Post transaction, the Horlicks brand would operate under the ownership of Hindustan Unilever Limited in India
  • Horlicks, with a volume share of close to 50 percent in Health Drinks, was introduced in India in the 1930s and has been an everyday nutrition staple in households across generations
  • The said transaction will enable Hindustan Unilever Limited to utilise cash on its balance sheet and create value for shareholders

Target Company: Praha Vaccines a.s.
Acquiring Company: Novavax, Inc
Deal Value (in mn USD): 167
Sector: Health Care

  • Novavax, Inc. acquired Praha Vaccines a.s. from Poonawalla Investments and Industries Private Limited for USD 167mn in an all-cash deal
  • Post transaction, Praha Vaccines a.s. operates as a wholly owned subsidiary of Novavax, Inc
  • The acquisition provides the vital assets required to produce more than 1bn doses of vaccines per year
  • The acquisition of Praha Vaccines is supported by Novavax’ funding arrangement with the coalition for Epidemic Preparedness Innovations (CEPI), enabling Novavax to expand its manufacturing capacity

Target Company: DMI Finance Private Limited
Acquiring Company: Nexon
Deal Value (in mn USD): 123
Sector: Financials

  • Delhi-based DMI Group, which operates in consumer lending and affordable housing segments, has raised USD 123mn of equity capital from South Korean gaming company Nexon, which is listed on the Tokyo Stock Exchange
  • The proceeds of equity capital will be used to fund balance sheet growth primarily in the digital consumer and MSME finance businesses
  • The equity funding values the company at over USD 1bn.

Significant deals announced between March 2020 to May 2020 but not completed

Target Company: Jio Platforms Limited.
Acquiring Company: Facebook Inc.
Deal Value (in mn USD): 5,730
Sector: Telecommunication Services

  • Facebook Inc., through its wholly owned subsidiary Jaadhu Holdings, LLC has entered into an agreement to acquire a 9.99% stake in Jio Platforms Ltd. for a consideration of USD 5.73bn
  • As per the terms of the transaction, Facebook will be issued fresh equity shares and will get a board position on Jio Platforms
  • The said deal will help Jio Platforms to pare debt
  • The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalisation
  • As a part of the transaction, Jio Platforms, Reliance Retail Ltd. and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp
  • The transaction is subject to regulatory and other customary approvals and the approval of the Competition Commission of India

Target Company: Uttam Galva Steels Limited
Acquiring Company: Nithia Capital Resources Advisors LLP, Carval Investors LP
Deal Value (in mn USD): 208
Sector: Materials

  • CarVal Investors LP and Nithia Capital Resources Advisors LLP are acquiring Uttam Galva Steels Limited for USD 208mn under the Insolvency and Bankruptcy Code
  • Uttam Galva Steels Limited is engaged in the manufacturing and exporting of cold rolled steel and galvanised steel under the brand name Uttam Eb-Tech, Suraksha, Spectrum
  • On 30 April 2020, the National Company Law Tribunal (NCLT) approved the resolution plan submitted by a consortium of CarVal Investors and Nithia Capital Resources Advisors to acquire Uttam Galva Steels Limited