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1) Apollo Tyres is acquiring Cooper Tire, a NYSE-listed company, for $2.5 billion, making it the largest M&A deal this year involving an Indian company. 2) Twilight Litika is selling its manufacturing unit in Himachal Pradesh to Herbalife International for $3.5 million as part of plans to reduce debt by selling non-core assets. 3) The Securities and Exchange Board of India is seeking details from Infosys about a board meeting where N.R. Narayana Murthy was reappointed as executive chairman, but Infosys did not disclose the nature of the information sought.
Weekly newsletter
- 1. 1 Top Headlines Apollo Tyres to buy NYSE-listed Cooper Tire for $2.5B in year's largest M&A deal. Twilight Litika to sell manufacturing unit to Herbalife for $3.5M. SEBI seeks details on board meet which brought Narayana Murthy back as Infy chairman. Aditya Birla Group, Coal India among suitors for $3.2B Rio Tinto's coal assets. GMR Airports acquires 17.03% stake in Delhi Duty Free Services. Norwest Venture Partners to invest $10.4M in cold chain logistics firm Snowman. Eredene sells 6.8% stake in port management firm Ocean Sparkle to Infrastructure India Holdings Fund for $12.9M. US-based OpenTable acquires mobile payments startup JustChalo for $11M. Inflation eases to 4.7% in May but rate cut could be elusive. HDFC plans to raise $173M via commercial paper. Inside The Story Apollo Tyres to buy NYSE-listed Cooper Tire for $2.5B in year's largest M&A deal. Apollo Tyres Ltd has said it will acquire New York Stock Exchange-listed Cooper Tire & Rubber Company for $2.5 billion (Rs 14,500 crore) in an all-cash deal. In what is apparently the company's most ambitious move, Apollo Tyres is going to buy a firm over three times its size in terms of market capitalisation and more than double in terms of sales.The transaction will be this year’s largest merger & acquisition deal involving an Indian company, after Mylan acquired Strides Arcolab’s generic injectables unit Agila for $1.6 billion in February
- 2. 2 Twilight Litika to sell manufacturing unit to Herbalife for $3.5M. Twilight Litaka Pharma Ltd (TLP) is looking to sell its manufacturing unit located at Baddi in Solan district in Himachal Pradesh, to Herbalife International India Pvt Ltd, a subsidiary of US-based Herbalife International, for Rs 20 crore ($3.45 million).Herbalife is a nutrition and weight-management company which is operating in 66 countries through a network of over 1.8 million distributors.The firm has also sought approval for either selling or jointly developing real estate assets in Pune for at least Rs 27 crore. The deals are part of the company's plans to cut debt through sale of non-core assets. SEBI seeks details on board meet which brought Narayana Murthy back as Infy chairman. The Securities and Exchange Board of India (SEBI) has sought details from Infosys, India's No. 2 software services exporter, about a board meeting held on the day founder N.R. Narayana Murthy was re-appointed to an executive role in the company.Infosys did not disclose the nature of the information sought by the SEBI.Market regulator SEBI routinely seeks clarifications from listed companies without citing reasons, and the requests for information are not necessarily an indication of an official investigation. Aditya Birla Group, Coal India among suitors for $3.2B Rio Tinto's coal assets. Aditya Birla Group, Coal India Ltd and China's state-owned Shenhua Group Corp Ltd are among companies considering bids for some of Rio Tinto Ltd's Australian coal assets, valued at an estimated $3.2 billion, people familiar with the matter told Reuters.Rio Tinto, led by new chief executive Sam Walsh, is offloading a string of assets to help cut its $26 billion in debt and protect its single-A credit rating. It is also looking to cut its exposure to the coal industry, which has been squeezed by surging costs and a 30 per cent slump in prices since early 2012.This has given potential suitors the opportunity to bulk up on good quality coal assets and secure supply agreements. GMR Airports acquires 17.03% stake in Delhi Duty Free Services. GMR Airports Ltd, a subsidiary of GMR Infrastructure Ltd, has acquired a 17.03 per cent stake in Delhi Duty Free Services Pvt Ltd for an undisclosed amount, as per a stock market disclosure.Delhi Duty Free Services operates, maintains and manages duty free outlets at Indira Gandhi International Airport (IGI Airport), New Delhi, under concession from Delhi International Airport Pvt Ltd (DIAL) which holds 49.9 per cent in the
- 3. 3 company; 33.07 per cent stake is held by Yalorvin Ltd, a subsidiary of Aer Rianta International cpt (ARI). Norwest Venture Partners to invest $10.4M in cold chain logistics firm Snowman. Venture and growth capital investor Norwest Venture Partners is picking up 14 per cent stake in the cold chain services firm Snowman Logistics Ltd for Rs 60 crore ($10.4 million) through a fresh issue of shares. The investment is a play on the domestic consumption story for Norwest, a Silicon Valley-headquartered multi-stage investment firm that manages more than $3.7 billion in capital.The deal is expected to value Snowman, a subsidiary of the BSE-listed Gateway Distriparks Ltd, at Rs 420-430 crore. Shares of Gateway Distriparks closed at Rs 116.5, up 0.43 per cent on the BSE on Friday. Eredene sells 6.8% stake in port management firm Ocean Sparkle to Infrastructure India Holdings Fund for $12.9M. AIM-listed investor Eredene Capital Plc has exited its investment in port operations and marine services provider Ocean Sparkle Ltd (OSL) for £8.2 million ($12.9 million or Rs 75 crore), as per a company statement.The stake was acquired by Mauritius-based Infrastructure India Holdings Fund LLC, a fund managed by Kris Fund Management. Kaup Capital was the advisor to Kris Fund Management. Eredene is expected to sell its stake at around Rs 75 crore and by June, the deal is expected to be closed with an existing investor in the company. Earlier, it was also in talks with another existing investor, Standard Chartered Private Equity, for the transaction. US-based OpenTable acquires mobile payments startup JustChalo for $11M The US-based online restaurant reservations firm OpenTable Inc has acquired Mumbai and Silicon Valley-based mobile payments startup JustChalo, run by JustChalo Technologies and JustChalo Inc, for around $11 million.“Mobile is increasingly important to our business and the JustChalo team’s expertise will help accelerate our development efforts in this area. We are looking forward to integrating JustChalo’s engineers into our team and continuing to enhance the mobile experience for diners and our restaurant customers,” said Joseph Essas, CTO of OpenTable in a statement.In the first quarter of 2013, reservations booked on mobile devices accounted for 36 per cent of the 34 million diners OpenTable seated in North America, as per its statement.
- 4. 4 Inflation eases to 4.7% in May but rate cut could be elusive. The headline inflation slowed for a fourth straight month in May to 4.7 per cent from a year earlier, but a slump in the rupee is likely to prevent the RBI from lowering policy rates on Monday despite the economy slowing to a decade-low level.May's reading, the lowest in more than three years, was less than the 4.87 per cent estimated by analysts in a Reuters poll. The wholesale price index, India's main inflation measure, rose an annual 4.89 per cent in April.The reading for March was revised to 5.65 per cent from 5.96 per cent, data released by the Ministry of Commerce and Industry on Friday showed. HDFC plans to raise $173M via commercial paper. Housing Development Finance Corp. is planning to raise Rs 10 billion ($173.10 million) through 364-day commercial papers yielding 8.80%.The firm has directly placed the papers with mutual funds, said the sources