CCI Approved Acquisition by Tau Investment, Lightstone Fund S.A and Carlyle Group’s Comfort Investments II

On August 26, 2020 The Competition Commission of India (CCI) has approved the following proposals:

Acquisition of up to 64.90% of share capital of J B Chemicals & Pharmaceuticals Ltd by Tau Investment

CCI approved the acquisition of up to 64.90% of share capital of J B Chemicals & Pharmaceuticals Limited by Tau Investment Holdings Pte. Ltd. (Tau Investment).

Acquisition of Lightstone Fund S.A., for and on behalf of Lightstone Global Fund (LGT) 

Under Section 31(1) of the Competition Act, 2002, CCI has approved the acquisition by Lightstone Fund S.A., for and on behalf of Lightstone Global Fund (LGT) of certain equity stakes in the following:

• 91Streets Media Technologies Pvt. Ltd. (91Streets), Ascent Health and Wellness Solutions Pvt. Ltd. (Ascent).
• API Holdings Pvt. Ltd. (API), Aahaan Commercials Pvt. Ltd. (Aahaan) and Lokprakash Vidhya Pvt. Ltd. (Lokprakash).

Acquisition of Nxtra Data Ltd by Carlyle Group’s Comfort Investments II

i.CCI gave a nod to the acquisition of compulsorily convertible preference shares and few equity shares of  Nxtra Data Limited(Airtel’s data centre business), by Carlyle Group’s Comfort Investments II. 

 ii.The Carlyle Group in July, 2020  stated that it  will acquire about 25% stake in Nxtra Data Ltd for USD 235 million (about Rs 1,780 crore).

iii.This will fix the enterprise valuation of Nxtra Data at USD 1.2 billion, which is more than Rs 9,084 crore.

iv.After the deal is completed, Carlyle will hold about 25% stake in the business, while Airtel will continue to hold the remaining stake of about 75%.

Key Info about the Companies

Tau Investment

• Tau Investment incorporated in Singapore, is an indirect wholly owned subsidiary of KKR Asian Fund III L.P.  
• It is a subsidiary  of funds, vehicles and/or entities managed and/or advised by Kohlberg Kravis Roberts & Co. L.P., which is an indirect subsidiary of KKR & Co. Inc.

J B Chemicals & Pharmaceuticals Ltd

It is an Indian pharmaceutical company, headquartered in Mumbai, Maharashtra. 

Lightstone Fund S.A

• Lightstone Fund S.A. is structured as a reserved alternative investment fund. It was set up as an umbrella fund structure with initially one sub-fund(Lightstone Global Fund).
• It is managed by LGT Capital Partners (Ireland) Limited, its Alternative Investment Fund Manager.

91Streets & Ascent

91Streets owns technology and intellectual property among others. Ascent is engaged in the online & offline wholesale B2B(Business to Business) sale and distribution of pharmaceuticals among others.

Both the companies are incorporated in India and operate on a pan-India basis directly and through its subsidiaries.

API and  Aahaan & Lokprakash

API is incorporated in India and is not engaged in any business. Aahaan & Lokprakash will not execute any business activities and have no subsidiaries.

Nxtra Data Ltd 

It is a  fully-owned subsidiary of Bharti Airtel Ltd. Through its 10 data centres that are located in India, it provides data centre colocation services.

Recent Related News:

i.CCI has approved the proposed combination which involves Eros International Plc(Eros Plc), STX Filmworks Inc(STX) and Marco Alliance Limited (Marco).

ii.CCI approved the acquisition of 9.09% equity stake in Escorts Limited(Escorts) by Kubota Corporation(Kubota) and of 40% in Kubota Agricultural Machinery India Private Limited(KAI) by Escorts under Section 31(1) of the Competition Act, 2002.

About CCI:
Headquarters– New Delhi, India
Chairman– Ashok Kumar Gupta