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June 29, 2021
India may see a flurry of corporate acquisitions ending in delisting if a regulatory proposal to smoothen the process goes through, industry experts said.
A Securities and Exchange Board of India (Sebi) discussion paper released on Friday proposed a seamless process to attempt delisting when one acquires a significant stake under the takeover code. This is expected to usher in so-called ‘take private’ mergers and acquisitions (M&As) by private equity funds and foreign companies.
Currently, any acquirer wishing to delist a firm after takeover has to tackle a bewildering set of rules and procedures, many of which are contradictory. A sub-group of Sebi’s Primary Market Advisory Committee has now recommended sweeping changes, aligning these norms, the discussion paper said.
Synopsis
SsangYong failed to repay the amount to bankers including JPMorgan Chase, BNP Paribas and Bank of America. Mahindra has put SsangYong on the block but has been unable to close a deal with any potential investor.
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SSangyong Korando at the Seoul Motor Show 201
MUMBAI: SsangYong Motor Company (SYMC), the South Korean subsidiary of Mahindra & Mahindra (M&M), is in talks with banks to restructure and extend moratorium of its outstanding loans after the Korean major defaulted on the repayment of loans amounting to Rs 408 crore (Korean won 60 billion).
SsangYong failed to repay the amount to bankers including JPMorgan Chase, BNP Paribas and Bank of America. Mahindra has put SsangYong on the block but has been unable to close a deal with any potential investor. Sources in the know told ET that the defaulted loan could have a negative impact on any new investor walking in at this moment.