Deal street

Oct 23 2012, 00:54 IST
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SummaryMonday marked a flurry of acquisitions and a greenfield plant by Indian companies. The big one was a 702 million euro acquisition of a Belgian firm Rain Commodities Ltd. Dr Reddy’s Labs and L&T Finance Holdings also figured in the M&A announcements.

Rain Commodities to acquire Rutgers

Rain CII Carbon LLC, a wholly owned step-down subsidiary of Hyderabad-based Rain Commodities Ltd, has agreed to acquire Rutgers NV, a Belgium-headquartered coal tar pitch manufacturer. Coal tar pitch is used chiefly as road tar, in water proofing roofs and other structures, and to make electrodes.

Rain executed a share purchase agreement with Triton — an investment firm focussed on mid-sized European businesses — to acquire 100 per cent stake in Rutgers for gross enterprise value of 702 million euros.

The announcement said Rain CII planned to fund the transaction through a mix of internal accruals and issue proceeds of 533 million euro long-term bonds. The transaction is expected to close in the first quarter of 2013, subject to regulatory approvals and customary closing conditions.

Dr Reddy’s to acquire OctoPlus

Dr Reddy’s Laboratories Ltd together with its subsidiaries today announced its intent to buy Dutch firm OctoPlus for an offer price of 27.39 million euros. In a statement the Hyderabad-based pharma major disclosed the intended public offer to acquire the issued and outstanding shares of OctoPlus NV.

OctoPlus is a service based specialty pharmaceutical company. Dr Reddy’s offer price of 27.39 million euros (cum-dividend) in cash, represents 100 per cent of the issued and outstanding ordinary shares. The offer price represents a premium of 30 per cent over the closing price of OctoPlus as of October 19.

GV Prasad vice-chairman and CEO of Dr Reddy’s said, “As we globalise our R&D efforts, we are looking forward to build a research base in Leiden (The Netherlands).”

L&T Finance Holdings to buy FamilyCredit

L&T Finance Holdings said it had signed an agreement with Societe Generale Consumer Finance to buy FamilyCredit Ltd. The acquisition would consolidate L&T Finance Holdings’ presence in the auto finance business in India. An L&T Finance Holdings’ announcement to the stock exchanges said FamilyCredit had a loan book size of Rs 1,287 crore as of June 30, 2012, of which two-wheeler financing constituted 53 per cent and car financing 35 per cent.

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