MERGER & ACQUISITION

OF EMAMI
SAMEER BELOSHE02
RONAK CHOUBE06
SAKET DEKATE07
ABHISHEK
DONGRE-10

MEANING AND TYPES OF PURCHASE

CONSIDERATION
Purchase consideration is the amount
which is paid by the transferee
company for the purchase of the
business of the transferor company.
Purchase consideration =shares &
other securities issued + Cash Payment
+other assets by the transferee
company to the shareholders of the
transferor company.

Mergers & Acquisitions Can Take

Place:

By
By
By
By

Purchasing Assets
Purchasing Common Shares
Exchange Of Shares For Assets
Exchanging Shares For Shares

TYPES OF PURCHASE
CONSIDERATION
1)Net asset method:under this method the
net asset value is calculated by deducting all the
liabilities taken over by the transferee company
from the entire asset taken by the transferee
company. The value of the assets and liabilities is
not that appear in the balance sheet but it is that
which is decided between the two companies.
2)Net payment method:in this case purchase
consideration is calculated by adding all the
payments made by the transferee company to the
shareholders of the transferor company. Payment
can be in the form of cash, shares or debentures.

CON..
3)Lump sum method:this is the case
when Transferee Company agrees to pay
Transferor Company a fixed sum of money.
Like xyz limitedagrees to pay abc ltd 25
lakh. This is lump sum method.
4)Intrinsic value or share exchange
method:in this method to calculate
purchase consideration following method is
used= Net asset available to the equity
shareholders/ number of equity shares.

INTRODUCTION OF
COMPANY
Kolkata-basedemami Ltd has made its third
acquisition in buying a controlling stake
(66.67%) in Fravin Pty Ltd, an Australian
organic personal care products maker.
Emami did not disclose the size of the deal,
but said that the acquisition would give it a
foothold in the natural and organic personal
care market, pegged globally at nearly Rs
47,000 crore

Emami
Consolidated Balance Sheet

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS
EquityShareCapital
Total Share Capital
ReservesandSurplus
Total Reserves and Surplus
Total Shareholders Funds
MinorityInterest
NON-CURRENT LIABILITIES
LongTermBorrowings
DeferredTaxLiabilities[Net]
OtherLongTermLiabilities
LongTermProvisions
Total Non-Current Liabilities
CURRENT LIABILITIES
ShortTermBorrowings
TradePayables
OtherCurrentLiabilities
ShortTermProvisions
Total Current Liabilities
Total Capital And Liabilities

------------------- in Rs. Cr. ------------------Mar 16

Mar-15
Mar-14
Mar-13

Mar-12

12mths

12mths

12mths

12mths

12mths

22.7
22.7
1,380.44
1,380.44
1,403.14
4.12

22.7
22.7
1,207.94
1,207.94
1,230.64
4.56

22.7
22.7
909.42
909.42
932.12
0.01

15.13
15.13
762.34
762.34
777.47
0.05

15.13
15.13
691.5
691.5
706.63
0.12

300
0
14.68
29.87
344.55

1.71
12.05
16.3
24.53
54.59

17.45
4.79
11.86
17.13
51.22

28.17
13.68
8.84
7.37
58.06

52.68
14.5
7.57
3.89
78.65

371.44
246.45
64.56
230.29
912.74
2,664.55

17.7
193.23
63.86
111.74
386.53
1,676.32

4.37
142.97
50.45
121.14
318.93
1,302.29

57.56
102
56.34
164.69
380.58
1,216.17

55.55
108.23
69.92
158.24
391.94
1,177.34

ASSETS
NON-CURRENT ASSETS
TangibleAssets
IntangibleAssets
CapitalWork-In-Progress
IntangibleAssetsUnderDevelopment
Fixed Assets
Non-CurrentInvestments
DeferredTaxAssets[Net]
LongTermLoansAndAdvances
OtherNon-CurrentAssets
Total Non-Current Assets
CURRENT ASSETS
CurrentInvestments
Inventories
TradeReceivables
CashAndCashEquivalents
ShortTermLoansAndAdvances
OtherCurrentAssets
Total Current Assets
Total Assets
OTHER ADDITIONAL INFORMATION
CONTINGENT LIABILITIES, COMMITMENTS
ContingentLiabilities
BONUS DETAILS
BonusEquityShareCapital
NON-CURRENT INVESTMENTS
Non-CurrentInvestmentsQuotedMarketValue
Non-CurrentInvestmentsUnquotedBookValue
CURRENT INVESTMENTS
CurrentInvestmentsUnquotedBookValue

470.61
1,500.21
61.64
5.45
2,037.92
6.61
0.92
110.34
0.74
2,160.60

416.04
32.78
26.47
2.29
477.59
6.61
0
43.67
0.01
531.96

388.07
7.79
11.74
0.17
407.77
6.62
0
42.18
0.01
456.58

325.16
67.03
47.26
0.2
439.64
6.78
0
34.13
0.01
485.17

236.61
166.91
76.81
0
480.34
6.77
0
27.91
0.12
519.31

11.92
150.54
130.14
108.43
102.92
0
503.95
2,664.55

494.65
126.65
102.67
354.11
66.27
0
1,144.36
1,676.32

289.22
141.15
79.29
269.96
66.08
0
845.71
1,302.29

156.34
113.98
112.22
281.71
66.74
0
730.99
1,216.17

73.56
112.2
100.54
275.94
95.24
0.55
658.03
1,177.34

139.51

118.22

108.87

94.79

30.69

13.18

13.18

13.18

5.62

5.62

32.54
2.92

34.17
2.92

20.78
2.92

19.04
3.08

24.6
3.08

12.02

494.7

296.9

156.34

Amount in Rs'000

Particulars

Note No.

EQUITY AND LIABILITIES

Shareholders funds

Sharecapital

2.1

Reservesandsurplus

2.2

Current liabilities

As at 31.03.2015

1,87,564
-59,823
1,27,740

Short-termborrowings

2.3

7,581

Tradepayables

2.4

3,907

Othercurrentliabilities

2.5

273

ShortTermProvision

2.6

1,108

12,868

1,40,609

ASSETS

Non-current assets

Fixedassets

2.7

Fixedassets

23,490

IntangibleAssets

60

Non-currentinvestments

2.8

23,550
0.21

Net asset method

Net asset method: total asset total
liabilities
Total assets=(non current
asset+current assets)=1,40,609
Total liabilities= outsider
liabilities=12,868
1,40,609-12,868=1,27,741
Purchase consideration=1,27,741

Net payment method

Emami has taken over 67% of Fravin
pty ltd stake under his control
Purchase Consideration= 67% of Its
Stake
Total share capital =1,87,564
187564*67%=1,25,668
Hence purchase consideration
=1,25,668