Buyout deals by PE firms in India

Mint August 28, 2007 page 18

Puchase of 50.1% + 20% open offer can be counted as the 10th buyout deal by PE firms in India.

The article quotes ICICI Venture Funds Management Co.'s buyout of Tata Infomedia, Actis Capital Llp's buyout of ICI India Ltd.s nitrocellulose manufacturing unit. The article mentioned that ACTis did 3 more deals. ICICI Venture went on to do first successful LBO deal, ACE Refractories Ltd. in 2005, which was sold this month for Rs.550 cr against an investment of Rs. 100 cr. Blackstone backed a management buyout of Mumbai based Intelenet Global Services Pvt. Ltd.


Banks which lend to LBO investors abroad are not yet comfortable doing the same in India.

author: Snigdha Sengupta, Mints resident expert on PE and VC. Comments and questions are welcome at venturematters@livemint.com

M & A course 2007 June-Sep Case History Assignments

1. Tata-Corus
2. Hindalco-Novelis
3. Dr. Reddy’s-Beta Pharm
4. Mallya – White and Mackay
5. Suzlon-
6. Vodafone-Hutch Essar
7. Cement
8. Oracle – Iflex
9. Jet airways - Sahara
10. Franklin Templeton – Kothari Pioneer Mutual fund
11. Recent Acquisitions by CISCO
12. Recent Acquisitions by Merrill Lynch
13. Recent Acquisitions by GE
14. Vodafone-Mannesmandemag
15. Arcellor-Mittal
16. Grasim – L&T
17. Tata-VSNL
18. Holcim-ACC
19. Acquisitions by Ranbaxy
20. Arrangement between Mukesh Ambani and Anil Ambani and subsequent mergers and demergers

Areas to be covered as applicable

Initial contacts/discussions
Announcement
Valuation
Synergies claimed
Steps subsequent to announcement of the deal
Structuring of the deal
Financing of the deal
Closure of the deal
Subsequent performance
Advisors to the Buyer and Seller