Bharti Airtel India’s leading telecom service provider today in its press release said that it has renewed its effort to acquire 49% stake in MTN. The deal is suppose to be of woofing 23 Billion $.
The deal being pursued, could potentially create a telco that will rank in the top 5 globally, with more than 200 million customers and $20 billion in annual revenues.
Bharti Airtel will buy a 49% shareholding in MTN. MTN and its shareholders will acquire a 36% economic interest in Bharti, of which 25% will be held by MTN and 11% by MTN shareholders.
Bharti and MTN have agreed to discuss the potential transaction until July 31 , 2009.
Company at a glance - Piramal Healthcare Limited, formerly Nicholas Piramal India Ltd., is a pharmaceutical company in India. It is engaged in pharmaceutical business (mainly consisting of manufacturing and sale of own and traded bulk drugs and formulations). During the fiscal year ended March 31, 2008 (fiscal 2008), the Company launched 30 new products (including extensions).
Overview - Piramal Healthcare is among the leading producers of halothane and isoflurane. With its latest acquisition of Minrad Internation (a generic inhalation anaesthetics company), Piramal Healthcare is set to strengthen its global presence in the critical care space, as the deal will give Piramal immediate access into the US market for the country's largest selling inhalation anaethetic sevaflurane.
Piramal has been on the prowl for quite sometime with its acquisition of Rhodia's Inhalation Anesthetics business in 2004 and 'Haemaccel' brand acquisition from PlasmaSelectAG of Germany.
Latest acquisition Minrad International Inc. - Combined Company will create a global company in inhaled anesthetic gas products. Piramal health care has acquired for $40 million, which comes to roughly 1900 crores.
Analysis - With the continued favorable environment for CRAMS business due to its inherent cost advantages, and strong MNC relations, Piramal will continue to be a big beneficiary of increased outsourcing from India. Its domestic business too continues to be strong and steady.
The Company should outperform its peers comfortably and can be considered for accumulation at every decline.
More over the Pharma industry is ever green in India.
The India Growth Story is one which is well known all around the world. The current global crisis and stock market meltdown has made good-growth oriented Indian Companies very very cheap with respect to valuations. Some are trading at up to 30-40% discounted share prices in comparison with 2007.
So is the time come for Mergers and foreign companies dishing out dollars to take good amount of percentage stakes in India Inc. ? Well we have seen the following mergers already:
Ranbaxy Labs
Tata Teleservices.
More than ever now is right time for cash rich foreign companies to increase the stakes in India. From a ROI perspective the whole world is sold on the fact that India is the land of opportunity, with an educated work force, a surging middle-class which propels consumer growth, the future is surely bright.
Also India's companies are well managed, have solid balance-sheets and good products on offer. Today what is hampering growth is lack of liquidity, slow lending by banks, higher interest rates and looming global crisis. Also the lower stock price makes the deal lucrative as the dollar is stronger than the rupee.
To top it all up, selling equity to generate capital is not such a bad idea, look at the deal with DoCoMo and Tata Tele, with the money also comes technical collaboration and experience which all adds value to the company and augurs well for growth.
Telecom sector, Banking, Airlines can all see some M&A action in the coming days.
Reeling under the liquidity pressure, the mutual fund industry could see more bailout deals -- similar to the takeover of Lotus India Asset Management -- in the coming days, say industry experts. "One or two more such kind of transactions may be seen in days ahead but that will mainly be for bailing out some problem-ridden fund houses," MF tracking firm Value Research CEO Dhirendra Kumar said. Value Research chief Kumar said, "The outlook for the mutual funds industry remains grim for the next two years and fixed income plans would come under pressure. The days ahead will also see mutual funds reinventing themselves to be more focussed on retail investors." Mutual fund industry has been under pressure for last two quarters and both the Reserve Bank and the Finance Ministry are ceased of the liquidity problem faced by the industry.
In order to provide liquidity to the cash-starved industry RBI last month opened a special repo window for the banks aggregating Rs 20,000 crore for on-lending to the industry.
The lackluster response from banks to pick up funds from this window forced the RBI to extend the window the limit is exhausted. Further reading Economic Times. Mergers and Accuasion
