Assignment 1

Corporate Valuation, Merger &

Acquisition

Submitted to:

Submitted by:

Prof. Pushkal Pandey

Vivek Mishra
0131PG008

Mention 10 examples of mergers, acquisitions explaining in brief the

purpose of the deal & the payment terms.
1. Asian Paints- Ess Ess Bathroom Products (acquisition):
Asian paints signed a deal with Ess Ess Bathroom products Pvt Ltd to acquire its front end
sales business for an undisclosed sum in May, 2014. The company on May 14, 2014 has
entered into a binding agreement with Ess Ess Bathroom Products Pvt. Ltd and its promoters
to acquire its entire front-end sales business including brands, network and sales
infrastructure, Asian Paints said in a filing to the BSE on Wednesday.
Ess Ess produces high end products in bath and wash segment in India and taking them over
led to a 3.3% rise in share price for Asian paints. Indias largest paints company Asian Paints
Ltd has entered into an agreement with Punjab-based Ess Bathroom Products Pvt Ltd (Ess
Ess) to acquire its entire front-end sales business, as per a stock market disclosure. The
financial details of the deal are not disclosed.

2. Yahoo- Bookpad (acquisition):

The search engine giant, Yahoo, acquired the one year old Bangalore based startup Bookpad
for a little under $15 million, though the exact amount has not been disclosed by either of the
two parties concerned. While the deal value is relatively small, this was the first acquisition
made by Yahoo, and was much talked about and hence finds a mention in our list. Bookpad
was founded by three IIT Guwahati pass outs and allows users to view, edit and annotate
documents within a website or an app.

3. Facebook acquired whatsapp (acquisition):

Facebook says it has wrapped up its landmark $19 billion acquisition of WhatsApp.
WhatsApp has continued to run its operation completely independently since then, but the
closing of the deal marks the start of a gradual integration as Facebook gives the worlds
biggest mobile messaging service legal and administrative support.
Facebook will now award 177.8 million shares of its Class A common stock and $4.59 billion
in cash to WhatsApps shareholders, it said in an SEC filing over the weekend, plus 45.9
million shares (restricted stock units) to WhatsApps employees to complete the deal.
4. The Fortis Healthcare (merger):
In September 2011, Indias second largest hospital chain, Fortis Healthcare (India) Ltd,
announced that it will merge with Fortis Healthcare International Pte Ltd., the promoters
privately held company. This will make Fortis Asias top healthcare provider with the
approximate total revenue pegged at Rs. 4,800 crore. Fortis India will buy the entire stake of
the Singapore based Fortis International. This company is currently held by the Delhi-based
Singh brothers (Malvinder Singh and Shivinder Singh).

5. Lenovo completed acquisition of Motorola Mobility (acquisition):

Who: Chinese PC maker Lenovo
What: completed the acquisition of Motorola Mobility
When: 30 October 2014

Chinese PC maker Lenovo completed the acquisition of Motorola Mobility from Google on
30 October 2014. The deal, valued at 2.91 billion US dollars, was announced in February
2014. Google had acquired Motorola Mobility a couple of years ago. Following the
acquisition, the Motorola will become a wholly owned subsidiary of Lenovo but will remain
headquartered in Chicago's Merchandise Mart. The completion of acquisition by Lenovo will
bring global scale, a diverse product portfolio and a track record of seizing strategic
opportunities for the Motorola.
6. Tata Power- PT Arutmin Indonesia (acquisition):
Indias largest private power producer, Tata Power, purchased 30% stake in Indonesian coal
manufacturing firm for Rs 47.4 billion. Earlier this year, they sold off 5% of its stake in PT
Arutmin Indonesia (Arutmin) and PT Kaltim Prima Coal (KPC) for Rs. 250 billion due to
falling coal prices globally. It plans to sell the remaining 25% stake for $ 1 billion soon too.
KPC will also continue to be a part of the supply chain for Tata Power Groups coal off-take
requirements. Tata Power, through its wholly-owned subsidiaries, has signed an agreement to
sell its 30% stake in Arutmin and associated companies in coal trading and infrastructure, to a
Bakrie Group entity. The aggregate consideration for Tata Powers 30% stake is
approximately USD 500 million. Purpose: "We invested not for the purpose of investment
but for securitization of coal and to get the fuel at a discounted price.
7. Apollo Hospitals and Saarum Innovations (joint venture):
Apollo Hospitals and health science firm Saarum Innovations formed a joint venture for
establishment of Sapien Biosciences, the first commercial bio bank of India. Sapien
Biosciences was launched on 23 September 2013. The aim of the joint venture between
Apollo Hospitals and Saarum Innovations was creation of a sophisticated bio bank as well as
a personalised medicine company.
Shobana Kamineni, the ED, New Initiatives, Apollo Hospitals and Sreevatsa Natarajan, CEO,
Sapien Biosciences announced the details about this bio bank. Sapien Biosciences consists of
collections of high quality and systematically archived human samples which can be used for
new clinical and research and development applications
8. Mahindra & Mahindra acquires SsangYong (acquisition):
In March 2011, Mahindra acquired a 70 percent stake in ailing South Korean auto maker
Ssangyong Motor Company Limited (SYMC) at a total of 463 million dollars. This
acquisition will see the Korean companys flagship SUV models, the Rexton II and the
Korando C foray into the Indian market.

For Mahindra, the biggest benefit from this partnership will be the opportunity to harness
synergies between the two companies, while protecting their respective brand identities and
ensuring quality. Towards this end, a Synergy Council comprising of senior management
from both companies will be established to ensure focus and delivery of synergies between
the two companies. The Council will focus on various aspects such as global procurement,
new car development and business strategy to penetrate international markets.
9. Tata Starbuck Opened its First Store in India (joint venture):
Tata Starbucks, a joint venture between Tata Global Beverages (TGBL) and Starbucks
Coffee Company, on 19 October 2012 opened its first store in India which is located in
Horniman Circle of South Mumbai. The company is going to open two more stores next
week in Mumbai one at Oberoi Mall in suburban Mumbai and another at the Taj Mahal
Palace hotel in South Mumbai. Also in Early 2013 the company will open its first store in
Delhi.
It was earlier in January 2012 that the company announced its joint venture with Tata Global
Beverages Ltd. Starbucks Company runs 18,000 stores in 60 countries worldwide running
over 700 outlets in China, 1000 outlets in Japan and 8000 outlets in the U.S. The Tata
Starbucks joint venture aiming on sourcing products from India and sells them in Starbucks
stores globally. It is first time ever in 40-year history where the US coffee chain major
Starbucks enters into India and is sourcing and roasting its coffee locally.
The organized food market which includes fine dining, quick service restaurants, and cafe
chains is a perishable market and spreading very rapidly in India. There are around dozen
coffee shop brands, with 1,700 cafes in India and at least another 10 coffee retail firms
looking at setting up here in coming future. This high growth and ever growing demand is
attracting many firms from the US, Australia, Thailand and Hong Kong.
10. Singapore & Tata airlines (joint venture):
The Tata Sons-Singapore Airlines joint venture announced the new brand name of its new
airline 'Vistara'. The Delhi-based airline has already decided to lease 20 Airbus A-320s,
including seven A-320 Neo series planes which have the latest technology on board. The
airline plans to have a 20-aircraft fleet in five years. Tata Sons holds a 51 per cent stake in
TSAL while the remaining 49 per cent is owned by Singapore Airlines.
Singapore Airlines planning to invest $49 million and the Tatas providing the rest of the total
$100 million investment. The results of the deal expect to begin services in five cities and go
up to 11 within a year of launch with 87 weekly flights. These would link Delhi with
Mumbai, Bangalore, Goa, Hyderabad, Ahmedabad, Jammu, Srinagar, Patna and Chandigarh.