Daily Bulletin (2nd July, 2019)

There are no current notifications of our companies on this date

1. Scrip code : 535755
Name : Aditya Birla Fashion and Retail Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Dear Sir/ Madam, This is further to our letter dated June 10, 2019 wherein we had informed that the Board of Directors of the Company, at its meeting held on the same day, had approved entering into a Share Purchase Agreement (‘SPA’) with the existing shareholders of :- 1) Jaypore, a B2B entity which sells ethnic fashion merchandise under its own brand ‘Jaypore’ and of other third-party brands; and 2) TG Apparel, a B2C entity which retails ethnic fashion, both online and offline. The above acquisition was subject to receipt of closing conditions under the said SPA (signed on June 10, 2019). This is to update that the Board of the Company has today approved completion of acquisition of the business undertakings of Jaypore and TG Apparel as per the details given below, post completion of the Conditions Precedent under the SPAs. Pursuant to the above acquisition, Jaypore and TG Apparel have become wholly owned subsidiaries of the Company with immediate effect.

2. Scrip code : 522287
Name : Kalpataru Power Transmission Ltd.
Subject : Announcement under Regulation 30 (LODR)-Acquisition
Purchase of equity shares of Shree Shubham Logistics Limited

3. Scrip code : 500510
Name : Larsen & Toubro Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Dear Sir, Further to our letter dated March 18, 2019 informing about acquisition of shares of Mindtree Limited (Target Company), we wish to inform you that Larsen & Toubro Limited (‘the Company’) has today (i.e. on 2nd July, 2019) made payment of consideration to the shareholders of the Target Company who have tendered their shares in the Open Offer, in respect of the equity shares which have been accepted in the Open Offer and returned the equity shares which have not been accepted in the Open Offer to the demat accounts of the respective shareholders. The Offer opened on June 17, 2019 and closed on June 28, 2019. Consequent to the completion of the Open Offer, the shareholding of the Company in the Target Company, including the shares acquired under the Share Purchase Agreement and the Purchase Order, stands at 60.06% of the total paid-up equity share capital of the Target Company. Please take the same on record.

4. Scrip code : 533179
Name : Persistent Systems Limited
Subject : Announcement under Regulation 30 (LODR)-Updates on Acquisition
Ref: (i) Our earlier intimation regarding acquisition of Youperience GmbH, Germany vide letter no. NSE & BSE / 2019-20 / 28 dated June 25, 2019 (ii) Our earlier intimation regarding acquisition of Youperience Ltd., UK vide letter no. NSE & BSE / 2019-20 / 33 dated June 27, 2019 Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the ‘Regulations’) and further to our above referred intimations, we wish to inform you that the necessary customary closing conditions in the above 2 (Two) acquisitions have been met by Persistent Systems Germany GmbH and Youperience GmbH, respectively on July 2, 2019. Consequently, we wish to confirm that the above 2 (Two) acquisitions have been completed and these transactions have been closed. Please acknowledge the receipt.

5. Scrip code : 503162
Name : Reliance Chemotex Industries Ltd.
Subject : Corporate Action-Intimation of Right issue Sub: Corporate update- Right Issue.
Ref: Reliance Chemotex Industries Limited, Scrip Code: 503162, Case no. 96184 Dear Sir/ Madam, With reference to the above subject we are hereby enclosing the Composite Application Forms , along with SEBI Approval Letter WRO/AKD/BJK/1366/1/2019 Dated 19 June, 2019 of Proposed Right Issue of Equity Shares of 38,16,818 of Face Value of Rs. 10/- each of Reliance Chemotex Industries Limited. You are requested to take the same on your records.

6. Scrip code : 540767
Name : Reliance Nippon Life Asset Management Limited
Subject : Open Offer
Morgan Stanley India Company Private Limited (“Manager to Open Offer”) has submitted to BSE a copy of announcement in terms of regulation 18(5) of the securities and exchange board of india (substantial acquisition of shares and takeovers) regulations, 2011, as amended, to the public shareholders of Reliance Nippon Life Asset Management Ltd (“Target Company”) This announcement (“Announcement”) is being issued by Morgan Stanley India Company Private Limited, the manager to the Open Offer (“Manager to the Offer”), for and on behalf of Nippon Life Insurance Company (“Acquirer”) in respect of the mandatory open offer (“Open Offer” or “Offer”) to acquire up to 13,82,35,223 (thirteen crores eighty two lakhs thirty five thousand two hundred and twenty three only) fully paid up equity shares of face value of INR 10 (Indian Rupees ten only) each (“Equity Shares”), representing 22.49% of the Expanded Voting Share Capital of Reliance Nippon Life Asset Management Limited (“Target Company”) at a price of INR 230 (Indian Rupees two hundred and thirty only) per equity share from the Public Shareholders, in terms of the Securities And Exchange Board of India (Substantial Acquisition Of Shares And Takeovers) Regulations, 2011 (“SEBI (SAST) Regulations”), as amended.

Bharti Airtel completes merger of Tata Tele’s consumer mobile businesses

Experts believe the move will lead to better network utilization, as spectrum will now be with Bharti Airtel along with enhanced customer base

Bharti Airtel and Bharti Hexacom on Monday announced the merger of the consumer mobile businesses (CMB) of Tata Teleservices (TTSL) and Tata Teleservices (Maharashtra) (TTML) with the two Bharti Group companies. This move spells better synergies and increased customer base for the country’s third-largest mobile service provider.

“Following the Telecom Disputes Settlement and Appellate Tribunal’s order directing the Department of Telecommunications to take the merger on record and approval of the schemes of arrangement by the National Company Law Tribunal (NCLT)-Delhi and NCLT-Mumbai, we are pleased to announce that the schemes of arrangement have become effective today i.e., July 1, 2019,” Bharti Airtel said in a joint statement with TTSL.

Consequently, all customers, assets, spectrum, and agreed liabilities of the consumer mobile businesses of TTSL and TTML now stand merged with Airtel.Experts believe the move will lead to better network utilization, as spectrum will now be with Bharti Airtel along with enhanced customer base.

As part of the merger, Airtel will absorb TTSL’s CMB operations in 19 telecom circles — 17 under TTSL and two under TTML. It also agreed to take over a small portion of the unpaid spectrum liability of TTSL.

The merger will bolster Airtel’s spectrum pool with significant additional 178.5 megahertz (MHz) spectrum in 1,800, 2,100, and 850 MHz bands, widely used for 4G.

The merger includes transfer of all customers and assets of TTSL CMB to Airtel.

Bharti Airtel is a leading global telecommunications company, with operations in 18 countries across Asia and Africa. In India, the company’s product offerings include 2G, 3G, and 4G wireless services, mobile commerce, fixed line services, high-speed home broadband, direct-to-home, and enterprise services, including national and international long-distance services to carriers.

In the rest of the geographies, it offers 2G, 3G, 4G wireless services, and mobile commerce. Bharti Airtel had over 403 million customers across its operations at the end of March 2019.

TTSL is a growing market leader in the enterprise space and offers a comprehensive portfolio of voice, data, and managed services to small, medium, and large enterprises.


Domestic PV sales continue to skid in June; Maruti, Hyundai see decline

Sales of utility vehicles, including Gypsy, Ertiga, Vitara Brezza, S-Cross, were at 17,797 units in June as compared to 19,321 units in the year-ago month

Major automobile manufacturers Maruti Suzuki, Hyundai, Tata Motors and Toyota Monday reported a decline in domestic passenger vehicle sales in June, continuing the prolonged slump in market due to poor consumer sentiments.

Mahindra & Mahindra, however, reported a 4 per cent growth in its domestic passenger vehicles (PV) sales last month.

Market leader Maruti Suzuki India (MSI) said its domestic sales during the month were down 15.3 per cent at 1,14,861 units last month compared to 1,35,662 units in June last year.

Mini segment, comprising Alto and old WagonR, saw a slide of 36.2 per cent to 18,733 units as against 29,381 per cent in the year-ago month.

The compact segment, which includes models such as New WagonR, Celerio, Ignis, Swift, Baleno and Dzire, clocked 62,897 units last month as compared to 71,570 units in the same month last year, down 12.1 per cent, it said.

Sales of utility vehicles, including Gypsy, Ertiga, Vitara Brezza, S-Cross, were at 17,797 units in June as compared to 19,321 units in the year-ago month, down 7.9 per cent, the company said.

Rival Hyundai Motor India Ltd (HMIL) reported domestic sales of 42,007 units last month as against 45,314 units in June 2018, down 7.3 per cent.

Homegrown utility vehicle major Mahindra & Mahindra’s passenger vehicles sales were at 18,826 vehicles in June this year as compared to 18,137 vehicles in the same month last year, an increase of 4 per cent.

“The market sentiment continued to remain subdued, especially in the passenger vehicles segment. At Mahindra, we are happy to register a growth of 4 per cent in the segment and 8 per cent in the utility vehicles segment, on the back of our three recent product launches,” M&M President (Automotive Sector) Rajan Wadhera said in a statement.

On the other hand, Tata Motors said its passenger vehicle sales in domestic market during the month dropped by 27 per cent at 13,351 units as compared to 18,213 units sold in June 2018 due to low customer sentiments due to liquidity crunch.

“Industry continued to remain stressed. However, the market is expected to bounce back soon,” it added.

Toyota Kirloskar Motor (TKM) also reported 19 per cent decline in domestic sales at 10,603 units last month as compared to 13,088 units in June 2018.

Commenting on the sales performance, Toyota Kirloskar Motor Deputy Managing Director N Raja, said, “The industry has been witnessing a continuous decline in domestic sales owing to several factors that have contributed to the weak consumer sentiment.”

The prevailing economic uncertainty, uncertainty on monsoon, high interest costs, tight liquidity and also the underlying apprehensions surrounding BS-VI introduction in few months have steered the slowdown, he added.

Last month, passenger vehicle wholesales in India witnessed the steepest decline in nearly 18 years, dropping by over 20 per cent in May, as continued weakness in retail offtake forced manufacturers to cut production in order to adjust to market demand.

Barring October last year, when sales were up 1.55 per cent, up until May PV offtake has been in the negative in the ten months off the last 11 months.

In two-wheeler segment, Bajaj Auto posted 1 per cent decline in domestic motorcycle sales at 1,99,340 units in June as against 2,00,949 units in the same month a year ago.

Chennai-based TVS Motor Co said its domestic two-wheeler sales stood at 2,26,279 units last month as compared to 2,46,176 units in June 2018, a decline of 8 per cent.

In contrast, Suzuki Motorcycle India Pvt Ltd (SMIPL) registered domestic sales of at 57,023 units in June as against 46,717 units in the year-ago month, a growth of 22 per cent.


Lemon Tree to buy Keys Hotels for Rs 471 cr, deal likely in two months

To fund buyout, its subsidiary will raise capital from a Dutch pension fund, an existing investor, and parent Lemon Tree by issuing compulsorily convertible preference shares worth Rs 421 cr

Mid-range hotel chain Lemon Tree Hotels is acquiring Keys Hotels for Rs 471 crore in a bid to expand its portfolio.

In a stock exchange notification, the New Delhi-based company said it would buy out Berggruen Hotels, the parent of Keys Hotels, at an enterprise valuation of Rs 605 crore ($87.6 million). The Warburg Pincus-backed hospitality company is making the acquisition through Fleur Hotels, its wholly-owned subsidiary. With this, Berggruen Hotels will become an indirect subsidiary of Lemon Tree. The company expects to complete the transaction within two months.

To fund the buyout, Fleur Hotels will raise the capital from Dutch pension fund APG Asset Management NV, an existing investor, and parent Lemon Tree by issuing compulsorily convertible preference shares worth Rs 421 crore. While APG’s strategic real estate pool will contribute Rs 360 crore, the remaining Rs 61 crore will come from Lemon Tree.

In March, Lemon Tree had announced a pact to acquire Keys Hotels, saying this would help it expand its operating portfolio to 75 hotels with 7,322 rooms in 44 cities. It had a pipeline of 33 hotels with 3,389 rooms in 26 cities that it aimed to open by 2020-21 financial year. Lemon Tree Hotels are located in metros such as Delhi-NCR, Bengaluru, Hyderabad, and Chennai, as well as tier-I and tier-II cities. Founded in 2006, Keys Hotels operates 21 hotels under Keys Prima, Keys Select, and Keys Lite brands across 19 locations in India, with 1,911 rooms.


Liberty Steel acquires ArcelorMittal assets in Europe for Rs 5,782 crore

The seven sites employ over 14,000 people

Liberty Steel on Monday said it has acquired seven steel making units and five service centres from L N Mittal’s ArcelorMittal in Europe for 740 million euros (around Rs 5,782 crore), according to a company statement.

Indian-origin metals tycoon Sanjeev Gupta-owned company has acquired the major integrated steel works at Ostrava in the Czech Republic and Galati in Romania as well as rolling mills at Skopje (North Macedonia), Piombino (Italy), Dudelange (Luxembourg) and two plants near Liege in Belgium, it said.

These seven sites employ over 14,000 people.

The five service centres which market the products are based in France and Italy.

These operations, with a combined rolling capacity of over ten million tonne per annum supply steel to multiple sectors across Europe’s industrial heartlands, including construction and infrastructure products, automotive, aerospace, energy, industrial equipment, consumer products and yellow goods.

“Liberty Steel today (Monday) completed acquisition of seven major steelworks and five service centres across seven European countries from ArcelorMittal.

“The 740 million euros deal makes Liberty Steel one of the top ten producers globally, excluding China, with a total rolling capacity in excess of 18 million tonne covering a wide range of finished products,” the company, which is part of London-based GFG Alliance, said.

It said this is the largest single transaction undertaken by GFG and brings the Alliance’s worldwide workforce to nearly 30,000 across 30 counties.

Liberty Steel said it aims to boost sales from these sites by around 50 per cent over the next three years.

With Monday’s announcement Liberty Steel will now work with local management, trade unions, customers and suppliers and complete a comprehensive analysis of the businesses to explore investment opportunities.

In the medium term, Liberty will explore opportunities to produce higher-quality steels with a more flexible production profile.

“These businesses will form a key part of our global steel strategy, of building a sustainable steel business, with a fully integrated value chain, from raw materials to high-value finished products that are distributed in high quality markets,” Sanjeev Gupta, GFG executive chairman, said.

Earlier this month, Liberty Steel acquired Johnstown Wire Technologies (JWT), North America’s largest producer of value-added carbon and alloy wire.

The company, however, did not provide the financial details of the transaction. GFG Alliance is a global group of energy, mining, metals, engineering and financial services businesses.