Pfizer to Buy Wyeth for $68 Billion, Listed Indian Subsidiaries to Merge Soon – Pfizer is buying rival drug maker Wyeth in a $68 billion cash and stock deal. The deal is expected to increase pfizer’s revenues by 50% and solidify its No. 1 rank in the industry. The deal would also help Pfizer emerge as a broadly diversified healthcare giant from being a pure pharmaceutical company. The deal is expected to be followed by a merger of the listed Indian subsidiaries of both US multinationals soon. The merger will be complimentary in nature as it will give Pfizer India an opportunity to enter the vaccines market. The combined entity will generate about Rs 1,500 crore revenues and will be one of the top 10 drug firms in the domestic market. (The Economic Times)
Relinace Money to Enter into JV with Singapore Based CWT Commodities – Reliance Money, part of the Reliance ADA Group is planning to enter into a joint venture with Singapore based warehousing company CWT Commodities to widen its bouquet of services to manage goods stored in warehouses. The 50:50 joint venture will issue warehouse receipts that guarantee the quality and quantity of goods stored in its godowns, besides providing grading and sorting services. The new Indian JV firm, Reliance CWT Commodities, will have equal representation on the board from both Reliance ADAG and CWT Commodities. The head of the new company is yet to be appointed. (The Economic Times)
United Brewries Pledges 81% Stake in United Spirits to Fund Kingfisher Airlines – United Breweries Holdings (UBHL), Vijay Mallya’s investment arm has given about 81% of its stake in whisky maker United Spirits (USL) as corporate guarantee to help loss-making group firm Kingfisher Airlines raise money for expansion plans. Out of the 34% stake held by Mallya in USL through UBHL, around 27.8% has been provided as guarantee to lenders such as IDFC, IL&FS, Citigroup and ICICI Bank. USL has also pledged about 17.2% of its shares to raise money for the acquisition of Shaw Wallace & Co and the UK-based Whyte & Mackay. Of this, 12.7% comprises treasury stock, which resulted from the merger of McDowell & Co and Herbertsons and is being held in a trust. (The Economic Times)
Quest Software Eyes $50 Million – $200 Million Acquisition – Quest Software Inc, the enterprise systems management supplier, is looking at acquiring a product company in the target range of $50 million – $200 million. Quest is looking at acquiring a company with good IPs, which specialise in either traditional systems development or the virtualisation realm. Quest had recently acquired the technology assets of US-based storage resource management startup MonoSphere Inc for an undisclosed sum. Quest currently has a presence in Mumbai and Bangalore, with plans to open operations in New Delhi by the second quarter of 2009. (Business Standard)
Shahnaz Husain Group to Raise Rs 100 Crore – Shahnaz Husain Group (SHG) is in talks with Private equity (PE) firms to raise Rs 100 crore, by diluting about 10-15% stake. The company is in advanced stages of discussion with PE firms and the deal is expected to close in the next three months. The company is looking at forming a separate company to sell its latest range of mass market products in India. SHG will launch a range of hair and skincare products under the Shahnaz Forever brand by June end. The company is also in talks with the US retail chain Wal-Mart and UK’s Sainsbury’s fro a distribution tie up. (The Economic Times)
Bosch to Own 100% in Four Indian Subsidiaries – German auto part maker, Bosch is planning to turn its four subsidiary Indian operations into 100% owned entities. This would involve buying back the public holding in the flagship Bosch Ltd and delisting the company. Bosch has already increased its stake in its other India subsidiaries to over 90%. (The Economic Times)
Dholakia Group to Invest Rs 200 Crore to Launch 12 Hotels – Mumbai-based Dholakia group plans to invest Rs 200 crore to launch 12 new business class hotels over next three years. The group, which already operates two hotels in Mumbai under the brand ‘Orritel’, will have operations in the rest of Maharashtra, Gujarat and Karnataka over the next three years. The firm is looking at Ahmedabad, Mumbai, Pune and few other locations in Bangalore to set up new hotels. (Business Standard)
Sanraa Media Signs Rs 16 Crore Deal with Endemol – Chennai-based media technology company Sanraa Media Limited has signed a co- production deal with UK-based Endemol for the production of animated series – The 99. The total value of the deal is around 2 million pounds (around Rs 16 crore). Under the agreement, the entire production for the 3D animated series comprising 26 episodes will be done by Sanraa Media while Endemol would look after the development and day-to-day production. The co-production deal also give distribution rights to Sanraa in the territories of India, Indonesia, Malaysia, Pakistan, Sri Lanka and Thailand. (Business Standard)
Finmin Seeks 10% Cap on Singapore Govt. Owned Temasek and GIC – The finance ministry has proposed that a key agreement between India and Singapore be amended to prevent two Singapore government owned investment entities, Temasek and GIC, from together holding more than 10% equity stake in any publicly traded Indian company. As per SEBI regulations, different FIIs owned by a common entity are classified as an ‘FII group’ and are subject to the 10% cap. GIC and nine wholly-owned subsidiaries of Temasek are registered separately with the market regulator as FIIs, and as they have a common owner, they should have been categorised as an ‘FII group’, according to a note prepared by the ministry. However, the Comprehensive Economic Co-operation Agreement (CECA) signed between the two countries in 2005 treats GIC and Temasek as ‘unrelated and independent’ entities. It gave Temasek and GIC the right to hold 10% individually in a single company thereby allowing them the option to together increase their shareholding to up to 20% in a company. (The Economic Times)
France Telecom Applies for ISP Licence in India – France Telecom (FT) has applied to the Department of Telecommunications for an internet service licence as it recently got an approval from the Foreign Investment Promotion Board (FIPB) to apply for a new ISP licence. Equant Network Services, the joint venture between Emery Technologies and FT has applied for it. Equant is a 74:26 per cent JV between FT and Emery. (Business Standard)
Leave Your Comment
5 years ago
The world’s largest drug maker Pfizer is consolidating two public listed arms...
9 years ago
Nikko Defers JV Plans with Ambit – Nikko, the Japanese financial services...
9 years ago
This is what the M&A scorecard for 2009 looks like. The most talked about...