Ppt on Merger

8/3/2019 Ppt on Merger

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INTRODUCTION

HDFC was incorporated in 1977 with theprimary objective of meeting a social

Need that of promoting home ownership byproviding long-term finance to households

for their housing needs. HDFC was promotedwith an initial share capital of Rs. 100 million


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Theprimary objective of HDFC is to enhance residential housing stock in theCountry through the

provision of housing finance in a systematicand professionalManner, and to promote homeownership. Another objective is to increase theflow of resources to the housing sector by

integrating the housing finance sector withtheoverall domestic financial market


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The Housing Development Finance CorporationLimited (HDFC) was amongst the first to receivean 'in principle' approval from the Reserve Bank ofIndia (RBI) to setup a bank in the private sector, as

part of the RBI's liberalization of the IndianBanking Industry in 1994. The bank wasincorporated in August 1994 in the nameof 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced

operations As a Scheduled Commercial Bank on16th January 1995. In the year 1998 HDFC Bankhad tied up with the Ahmadabad Stock Exchange(ASE)to act as its clearing bank


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The Centurion Bank ofPunjab (formerly Centurion Bank) wasan Indian private sector bank that provided

retail and corporate banking services. Itoperated on a strong nationwide franchise of403 branches and had over 5,000 employees.The Bank's shares were listed on the majorIndian stock exchanges and on theLuxembourg Stock Exchange.

On 23 May 2008 HDFC Bank acquiredCenturion Bank of Punjab


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1994 Centurion Bank was incorporated on 30 June 1994 and received itscertificate of Commencement of Business on 20 July. It was a joint venturebetween 20th Century Finance Corporation and its associates and KeppelGroup of Singapore through Kephinance Investment (Mauritius).Centurion had a network of ten branches, which grew to 29 branches thenext year.

1995 Centurion Bank amalgamated 20th Century Finance Corporation. 2005 On 29 June 2005, the Boards of Directors of Centurion Bank

and Bank of Punjab agreed to a merger of the two banks. The combinedbank took as its name Centurion Bank of Punjab. Bank of Punjab hadbeen founded in 1995.

2006 Centurion Bank of Punjab acquired Kochi-based Lord Krishna Bank.Lord Krishna Bank had been established at Kodungallur in Thrissur

District, Kerala in 1940. During the 1960s, Lord Krishna acquired threecommercial banks: They Bank, Josna Bank and Kerala Union Bank. 2008 HDFC Bank acquired Centurion Bank of Punjab.


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It's official now. HDFC Bank and Centurion

Bank of Punjab (CBoP) will be merged to forma bigger bank. The announcement of mergerwill be made after both the banks' boardmeeting on Saturday.

Banking sources said both banks have agreedto merge as it fits into their growth prospects


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. For around 25 shares of Re 1 of CBoP, aninvestor will get one share of Rs 10 of HDFCBank. In last two days, share price of CBoP

moved from Rs 49.85 on Wednesday to Rs56.40 on Friday. However, it seems, investorsof HDFC Bank did not like the development.The share price of HDFC Bank on Thursdaymoved up from Rs 1,534.50 to Rs 1,543. But onFriday, it fell sharply to Rs 1,475. Prior to this,in August 2007, CBoP was merged with LordKrishna Bank.


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A senior banker said according to terms and conditions,Rana Talwar, the present chairman of CBoP, will be thechairman, and present MD of HDFC Bank Aditya Puri willbe MD of the merged bank. At present, CMD of HDFC LtdDeepak Parekh is the chairman of HDFC Bank. A senior

official of HDFC Ltd denied any such arrangement wherethe chairmanship of the combined entity will go to RanaTalwar.

At present HDFC Ltd owns 23.28% of equity capital inHDFC Bank After the merger, its holding in the combinedentity will come down to 19.20%. Rana Talwar, who owns

2.45% in CBoP through Sabre Capital, will be reduced to amarginal shareholder in the combined company. However,Bank of Muscat, which owns 14.02% in CBoP will getaround 2.45% share in the combined entity.


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Total branches of the combined entity will be around 1,100in over 400 cities and towns. A senior bank official said themerger will help HDFC Bank to penetrate rural areas. LordKrishna Bank merger gave CBoP an access to rural network.The total depsoits of the new merged entity will be around

Rs 1.35 lakh crore. As on March 2007, HDFC Bank haddeposits of Rs 99,400 crore and that of CBoP was Rs 14,863crore.

Analysts feel the merger will affect profitability of HDFCBank. Net non performing assets of CBoP is higher at 1.13%than 0.4% of HDFC Bank. Besides, HDFC Bank has a much

stronger stream of income from fees and commission, In2006-07, it had earned around Rs 1,300 from fees andcommission. Similar income of CBoP is much smaller.


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Zain is the pioneer of mobile telecommunications inthe Middle East.

We began life in 1983 in Kuwait as the regions first

mobile operator, and since the initiation ofour expansion strategy in 2003, we have expandedrapidly.

Today, we are a leading mobile and dataservices operator with a commercial

footprint in7

Middle Eastern and African countrieswith a workforce of 6,000 providing a comprehensiverange of mobile voice and data services to over 41.4million** active individual and business customers(September 30, 2011).


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On 14, February 2010 a statement issuedby Zain Ghana, said "the Board of Directors ofKuwait's Zain Group, after its meeting onFebruary 14, 2010, issued a resolution to accept a

proposal received from Bharti Airtel Limited(Bharti) to enter into exclusive discussions until 25March 2010, regarding the sale of its African unit,Zain Africa BV." The offer was for $10.7 billion.The deal would provide Bharti access to 15 more

countries in the region, adding around 40.1 millionsubscribers to its already 125 million-plus userbase. The combined revenue of the two entitieswould be around $12 billion.


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bharti airtel limited is a leading globaltelecommunications company with operationsin 19 countries across Asia and Africa. The

company offers mobile voice & data services,fixed line, high speed broadband, IPTV, DTH,turnkey telecom solutions for enterprises andnational & international long distance servicesto carriers. bharti airtel has been ranked amongthe six best performing technology companiesin the world by business week. bharti airtel had200 million customers across its operations.


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Sunil Bharti Mittal founded the Bharti Group. In1983, Sunil Mittal was into an agreement withGermany's Siemens to manufacture the company'spush-button telephone models for the Indianmarket. In 1986, Sunil Bharti Mittal incorporatedBharti Telecom Limited (BTL) and his companybecame the first in India to offer push-buttontelephones, establishing the basis of Bharti

Enterprises. In 1995, Sunil Mittal incorporated thecellular operations as Bharti Tele-Ventures andlaunched service in Delhi. In 1996, cellular servicewas extended to Himachal Pradesh


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The bid for Zains operations came after BhartiAirtel failed twice to arrive at an

agreementwith MTN Group in South Africa.That plan was rejected by the South Africangovernment,which wanted to maintain MTN'sseparate identity.

Bharti Airtel earlier this week said it had tiedup the entire financing of $8.3 billion neededforthe proposed acquisition of Zain Africa.


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The expansion into Africa, where less than 50percent of the people have mobile phones,presentsa good growth opportunity for Bharti Airtel,according to analysts. The Indianmarket is already

saturated with far too many players, and averagerevenue per user is fallingas a result of a tariff war,they added.

In Africa, Zain offers telecommunications services

in Burkina Faso, Chad, DemocraticRepublic of theCongo, Republic of the Congo, Gabon, Ghana,Kenya, Madagascar, Malawi,Niger, Nigeria, SierraLeone, Tanzania, Uganda and Zambia, accordingto the companysWeb site.


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By expanding its business outside the country,Bharti Airtel will also gain the economiesof scale needed to become more cost-efficient,

Kamlesh Bhatia, a principal research analystatGartner, said in February


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Acquisition of 67% share by Vodafone inHutch-Essar previously held by HutchisonTelecom.Vodafone gets full operational

control.Transaction consideration: US$11.1bn(5.7bn).Implied enterprise value: US$18.8bn(9.6bn).Partnership agreement with Essar.


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According to Hutchison, urban markets in India

had become saturated.Future expansion if anywould have had to be only in the rural areas,which would lead to fallingaverage revenue peruser (ARPU) and consequently lower returns on itsinvestments.HTIL had suffered a loss to the tune of

HK$768 million in 2005.HTIL also wanted to usethe money earned through this deal to fund itsbusinesses in Europe,Vietnam and Indonesia.


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Indian Telecom sector was one of the fastest growingsector between 2002-07 with a CAGR(Compoundedannual growth rate) of 22%.None of Vodafones globalacquisitions at that time, including those of the German

business of Mannesmann, telecom businesses in Japanand Belgium, were performing up to themark.Markets, including the US, were maturingand were not growing in a big way.Stiff competitionamong almost all major players in the industry,

including global telecommajors like BT, O2 of UK,Verizon from the US, Maxis Telecommunications ofMalaysia,Orascom from Egypt, The Hinduja group,Reliance and Bharti Airtel from India.


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Established in 1907, Tata Steel is among the topten global steel companies with an annualcrude steel capacity of over 28 million tonnes

per annum (mtpa). It is now one of the world'smost geographically-diversified steelproducers, with operations in 26 countries anda commercial presence in over 50 countries.


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Tata Steel formerly known as TISCO and

Tata Iron andSteel Company Limited

is the world's sixth largest steel company, withanannual crude steel capacity of 31 milliontonnes. It is the largest privatesector steelcompany in India in terms of domesticproduction. Ranked 258th on Fortune Global500, it is based in

Jamshedpur ,Jharkhand,India.


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To tap European Mature Market. Cost of acquisition is lower than setting up of Green

field plant & marketing and distribution channel. TATA manufactures Low Value ,long and flat steel

products ,while Corus produce High Value Strippedproducts. Helped TATA to feature in Top 10 players in world. Technology Benefit. Economic of scale.

Corus holds number of patents and R&D facilities. The deal would help it achieve global scale : from its

56th position in terms of production to 5th in theworld. This would translate into significant advantagesin terms of price power in the global steel industry.


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To extend its Global reach through TATA.

To get access to Indian Ore reserves, as well asvirgin market for steel.

To get access to low cost materials.

Saturated market of Europe.

Decline in market share and profit.


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TATA Acquired CORUS on 2nd April 2007 . The deal price was US $ 12.11 Billion. On 17 Oct, 2006 TATAs bidded at 455 pence per

share and price per share was 390 pence at that

time. TATA Steel, the winner of the auction for CORUS

declares a bid of 608 Pence per share. TATA Surpassed the final bid from Brazilian steel

maker COMPANHIA SIDERURGICANACIONAL (CSN) of 603 pence per share.

The combined entity has become the worlds fifthlargest steelmaker after the deal.

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Ppt on Merger