Top M&A deals of the week

24 Sep 2010 , 06:02 PM

Top Story

 

Sun Pharma acquires controlling stake in Taro  

Sun Pharmaceutical Industries Ltd. on Tuesday announced that it has completed the acquisition of a controlling stake in Taro Pharmaceutical Industries Ltd. pursuant to the Option Agreement entered into in 2007 with Taro’s controlling shareholders led by Taro’s Chairman, Dr. Barrie Levitt. As a result of the closing, Sun’s subsidiaries have increased their economic interest in Taro to 48.7% and their voting rights to 65.8%.

In connection with the closing of the Option Agreement, the parties to the transactions, as well as Taro’s directors, have settled all outstanding litigation among themselves. The stock closed at Rs1924, dips Rs1.90 from the last close. The stock hit a high of Rs1,984.70 and a low of Rs1913.90 during the day. The stock opened at Rs1961.

Taro has an established franchise in dermatology and topical products in the US, in addition to generic product offerings in cardiovascular, neuro-psychiatric and anti-inflammatory therapeutic categories.  Taro has strategic sales and marketing operations in Israel and Canada. Read More…

 

Delta Corp stock up on preferential sale plan

A group of investors, including Mumbai-based high-networth investors Rakesh Jhunjhunwala and Radhakrishna Damani picked up an 11% stake in Delta Corporation Ltd. for Rs2bn. The investors will get equity for Rs1.2bn and will further subscribe to Rs80mn of warrants that can later be converted into stock. Jhunjhunwala will join the Delta Corp. board. India’s leading corporate lawyer Zia Mody of AZB Partners Ltd. and her husband Jayadev Mody will invest Rs700mn as part of the promoters’ contribution. Both together own 48.40% in the Mumbai-based real estate and hospitality firm.

 

Shares of Delta Corp rose after the Board approved the preferential allotment of equity shares and warrants at Rs51 per share to the identified investors aggregating to Rs2.85bn. The proceeds are based on assumption that warrants will be converted in full. The stock closed at Rs76, up Rs3.95 from the last close. The Board also approved the issue of additional securities worth up to Rs394.5mn, subject to ICICI Venture exercising the pre-emptive right.

 

In focus

 

Wilshire Park VC survey reveals improved valuations

The Second Quarter 2010 survey analyzed the valuations and terms of venture financings for 236 technology and life science companies that reported raising capital in the second quarter of 2010.

 

During the second quarter of 2010, up rounds exceeded down rounds 55%to 27%with 18%flat. This was an improvement over the first quarter of 2010, when up rounds exceeded down rounds 49%to 32% , with 19%flat, and the fourth consecutive quarter in which up rounds exceeded down rounds.

 

An up round is one in which the price per share at which a company sells its stock has increased since its prior financing round. Conversely, a down round is one in which the price per share has declined since a company’s prior financing round.

 

The Wilshire Park Venture Capital Measurements – which measures the change in share price of companies funded during the quarter compared with the share price of their previous financing round – showed a 30%average price increase for the quarter, compared to 21%in the first quarter of 2010.

 

The best performing industries in the quarter from a valuation perspective were software, internet, digital media and cleantech. With the continued improvement in venture valuations in the second quarter, and reported improvements in the amount of venture capital invested and liquidity for venture-backed companies in the quarter, there is reason to believe that the venture environment is improving.

 

Domestic News

 

CRISIL to buy Pipal Research from Firstsource  

CRISIL announced that it has entered into an agreement to acquire the business of Pipal Research Corp., a leading player in the Knowledge Process Outsourcing (KPO) space for US$12.75mn. CRISIL already operates a KPO division called Irevna. Pipal has three research centres in India at Gurgaon, Noida and Bangalore. It is headquartered out of Chicago, USA.  Majority-owned by India’s Firstsource Solutions Ltd., Pipal reported revenue of US$8.1mn in the financial year ended March 31, 2010 Read More…

 

Redington acquires 49.4% stake in Arena

Redington International Holdings Ltd, one of the overseas subsidiaries of Redington (India) Ltd has signed a share purchase agreement with the existing promoters of Arena Biligisavar  to acquire 49.4% stake in that Company for a value of US$42.464mn (approximately Rs1.94bn at the current exchange rate).

Arena is a leading distributor of Information Technology products in Turkey with a turnover of USD 451 Million for last financial year and is listed In the Istanbul Stock Exchange.

The acquisition transaction will get consummated on satisfaction of all the conditions including but not limited to all legal permits that are required. 

The Company is hopeful that this acquisition will enhance the Company’s overseas business and will be value accretive for the Company’s shareholders.

Gati clarifies on Coffee Day acquisition reports  
Gati Ltd has clarified that the news item published in financial daily is a rumour / speculation and is absolutely baseless and the Company deny the same. With reference to the news item appearing in a leading financial daily titled “Coffee Day may acquire logistics co”.

Sahara India Pariwar in talks to acquire MGM: report

Khaitan Chemicals completes transaction of Jairam Phosphates

Orient Ceramics announces open offer for Bell Ceramics

KEC Intnl completes acquisition of two companies

Orient Ceramics to acquire majority stake in Bell Ceramics

Nitin Fire acquires stake in Dubai company

Mitsui to acquire 5% of Arch Pharma: report

Cognizant in talks to acquire Genpact: report

Idea says evaluating investment proposals

Royal DSM acquires Microbia: report

APL Apollo Tubes to acquire Lloyds Line Pipes

3i Group sells stake in Welspun Corp: report

Northgate Technologies to acquire 51% stake in Green Fire

Micromax sells 5% stake to 3 private equity firms: report

Delta Corp to acquire stake in Advani Hotels

Orchid Chemicals clarifies on stake sale news

Alara Resources plans to acquire 70% stake in Daris Copper Project: report

Sujana Universal completes acquisition of EBC Bearings

Bharat Rasayan acquires remaining 60% of Siris Crop

ZTE Corp, Huawei and Ericsson to manage Sistema networks in India: report

CORE Projects acquires two education business in USA

 

Global News

 

IBM to acquire Netezza 

IBM and Netezza Corporation announced they have entered into a definitive agreement for IBM to acquire Netezza, a publicly held company based in Marlborough, Mass., in a cash transaction at a price of US$27 per share or at a net price of approximately US$1.7bn, after adjusting for cash. Netezza will expand IBM’s business analytics initiatives to help clients gain faster insights into their business information, with increased performance at a lower cost.

 

The acquisition, which is subject to Netezza shareholder approval, applicable regulatory clearances and other customary closing conditions, is expected to close in the fourth quarter of 2010.

 

Netezza is a leading provider of high-performance analytics in a data warehousing appliance that can be up and running in a matter of hours, handling complex analytic queries 10 to 100 times faster than traditional systems. The simplicity, speed and ease of deploying Netezza appliances brings analytics directly into the hands of business users within every department of an organization such as sales, marketing, product development and human resources. Read More…

 

Potash sues to prevent BHP’s US$38.6-billion bid: report

Potash Corp., of Saskatchewan Inc. has reportedly sued BHP Billiton Ltd., in an effort to prevent BHP’s US$38.6bn takeover of the company.  

According to reports, Potash is claiming BHP used “false and misleading statements and omissions” in its offer and is asking for the bid to be put on hold until changes are made to the document. BHP, responded by saying, “the lawsuit is entirely without merit and we will contest it vigorously, adds report.

 

Brocade shares jump on IBM buyout rumor 

Shares of Brocade Communications jumped more than 10% after reports stated that  IBM Corp may be making a bid to buy the networking gear maker.

The report stated that Brocade has been a subject of takeover speculation in the past.

HP completes acquisition of Fortify Software

HP today announced it has completed its acquisition of Fortify Software. The combination bridges static and dynamic security analysis across the application life cycle to help clients proactively reduce business risk against malicious attacks. With Fortify Software’s expertise and offerings, HP will offer a best-in-class solution that allows clients to properly address application security from development through operations, and scale to a Center of Excellence program.

 

The acquisition of Fortify enhances HP’s application life cycle strategy and enriches the HP Secure Advantage portfolio by adding a complete application security offering. With this addition, HP will deliver one of the most comprehensive security capabilities for securing mission-critical applications in heterogeneous environments.

 

L-1 to sell intelligence-services unit to BAE

 

BHP Billiton extends Potash offer to Nov. 18

SumTotal Systems acquires Softscape

AppliedMicro completes TPACK acquisition

Sharp Corporation to acquire Recurrent Energy for up to US$305mn

General Cable acquires BICC Egypt

LinkedIn acquires ChoiceVendor

Quantum acquires Elk Creek Carbonatite Project

General Cable acquires BICC Egypt

Eleonore South JV project drill program underway

Move acquires Threewide Corp: report

James Monroe Capital acquires SHN Holdings shares: report

US Republic Core Fund acquires 74,403 sq ft Village Shoppes: report

L-3 acquires 3Di Technologies

Spectral Capital acquires interest in Mineral Properties

ANZ Group’s due diligence is pending for stake in Korea Exchange Bank: report

McNally Industries acquires Pac Aero