27.12.2014 Views

Strategic Thought Transformation - The IIPM Think Tank

Strategic Thought Transformation - The IIPM Think Tank

Strategic Thought Transformation - The IIPM Think Tank

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

and United Kingdom. Unilever reasoned out the sale claiming that other areas under its portfolio needed considerable attention and that<br />

the frozen food sales had dipped by 4.5% last year. <strong>The</strong> Spanish frozen-food unit of Unilever was sold about two months ago. However,<br />

the frozen food business in Italy, which falls under the brand name Findus, will continue to remain with Unilever. <strong>The</strong> company has also<br />

refused to part with its ice cream division, whose brands include Magnum.<br />

Permira faced stiff competition from bidders including Capvest and a consortium of Blackstone, JP Morgan Partners & Kerry Foods for the<br />

frozen foods business. <strong>The</strong> divestment of the division is expected to be complete by the end of this year. However, the deal’s conclusion<br />

now rests on regulatory approval and a green signal from employee works councils. <strong>The</strong> company is hoping for an after-tax profit exceeding<br />

$1.28 billion. <strong>The</strong> frozen foods division reported revenues worth $1.59 billion last year and was put up for sale in February this year.<br />

Apple burns while Sony moans<br />

After Dell, it’s Apple that has rung the alarm bells on defective laptop batteries. Following Dell’s recall of 4.1 million lithiumion<br />

batteries made by Sony for its laptops, Apple has also started recalling 1.1 million batteries sold in the US and another 700,000 batteries<br />

from across the world. Just like in the case of Dell, these batteries have also been made by Sony Corp. Although, Sony has assured<br />

its assistance to Apple in the entire recall process, the episode will surely dampen Apple’s efforts of soon introducing a new range of<br />

products supported by Intel Microprocessors.<br />

Selling equity, eroding liability<br />

<strong>The</strong> world’s leading mobile telecommunications company, Vodafone Group traded 25% of its stake to Belgium’s prevailing<br />

telecom group, Belgacom for $2.55 billion in Proximus. <strong>The</strong> company found the deal lucrative enough to utilise the sale<br />

proceeds in order to lighten its debt burden. <strong>The</strong> deal will make Belgacom the sole controller of the company’s operations.<br />

Earlier this year, Vodafone had also sold part of its besieged Japanese business for $11.36 billion. <strong>The</strong> company is, however,<br />

suppressing demands from its investors to sell-off its stake in Verizon Wireless. <strong>The</strong> group serves about 186.8 million customers<br />

at present. (Refer B&E Stratagem International)<br />

BIL plays a winning hand<br />

BIL Gaming Operations UK Ltd., the wholly owned subsidiary of Bill International Ltd. (BIL), has struck an all cash deal worth<br />

$58.54 million to acquire one of London’s elite casinos – <strong>The</strong> Clermont Club. BIL is an investment company primarily listed on<br />

the Singapore Stock Exchange and enjoys secondary listings on the London and New Zealand Stock Exchanges. <strong>The</strong> company<br />

is known to have made several casino applications in the city of London along with other destinations in the UK. <strong>The</strong> casino<br />

was earlier acquired by <strong>The</strong> Rank Group Plc (a subsidiary of Grosvenor Casinos Ltd.) in 1990. Rank’s departure, however, has<br />

been marked by the need to lay greater focus on mainstream gaming market.<br />

Rite Aid acquires to aid its drug stores<br />

America’s third largest drugstore chain, Rite Aid Corp. is planning to acquire the US operations of Canadian firm, the Jean<br />

Coutu Group Inc. <strong>The</strong> deal, which is a combination of cash, debt and equity, involves $1.45 billion to be paid in cash and $1.18<br />

billion for 250 million shares. Rite Aid will also undertake a debt of $850 million. This deal will help the third ranker inch closer<br />

to its rivals Walgreens and CVS. Rite Aid, which already operates 3,323 chains of its own, will also get hold of 1,858 Eckerd<br />

and Brooks drug stores as part of the deal.<br />

GE Money takeovers Thai bank<br />

Ten years after setting shop in the Thai market and attaining the number one position among the credit card providers in the<br />

country, GE Money has acquired a 25.4% stake in Thailand’s Bank of Ayudhya PCL. <strong>The</strong> $600 million transaction between<br />

General Electric Co.’s consumer finance wing and the bank is subject to shareholder approval. <strong>The</strong> Bank of Ayudhya started<br />

operations in 1945 and at present is the sixth largest bank in Thailand with a network of 500 branches. <strong>The</strong> two companies<br />

had earlier entered into a joint venture in 2001.<br />

An <strong>IIPM</strong> Intelligence Unit Publication STRATEGIC INNOVATORS 103

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!