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PRANAV MISHRA
SANDIIPAN DAS
SHIVANK SHARMA
GROWTH
Organic Inorganic
Organic
Asset New
New Market New Technology
Replication Customer
Inorganic
$ 2.8 Billion raised through Debt(UBS, ABN Amro and Bank of America)
Financing AV metals (SPV of Aditya Birla group) infused $3.5 Billion to finance this acquisition
The long term rating of AAA/Stable was revised to Rating Watch with Negative
Implications by CRISIL after the deal
Other facts Short term Implication: Increased coupon rate for bonds
FUNDING STRUCTURE
Tata-Corus Deal
Out of $12.1 B deal, Debt: equity
TATA effectively paid ratio = 7.43
Novelis-Hindalco Deal
$4.1billion Leveraged
Leveraged buyout as buyout was not
existing debt of Corus possible
was pretty low
STRATEGIC RATIONALE FOR ACQUISITION