MERGERS AND ACQUISITIONS

A Presentation By:
Ashutosh Athavale
Yash Thakkar

Rushal Mangalvedekar
Mokshit Salian

MERGER

ACQUISITION

Mahindra & Mahindra Ltd.

One of the largest vehicle manufacturers by production
in India.
The company was founded in 1945 by K.C. Mahindra,
J.C. Mahindra and Malik Ghulam Mohammed.
The company changed its name to Mahindra &
Mahindra in 1948.
It is ranked 21 in the list of top companies.

SSANGYONG MOTOR CO. LTD.

SsangYong Motor Company or SsangYong Motor was

the fourth largest South Korea-based automobile
manufacturer.
Founded in 1954, it has been manufacturing
automobiles for more than five decades.
A 70% share of SsangYong was acquired by Mahindra
& Mahindra Limited, in February 2011.

Why the Acquisitions?

Outbreak of Labor crisis in South Korea.
SsangYong- A loss making Unit.
Sound background of M&M.
An opportunity for SsangYong to grow in global
markets.
An opportunity for M&M to launch a new portfolio of
SUVs in India.

Terms of the acquisition

SYMC will continue to function as an independent entity with
primarily a Korean management.
The acquisition will offer financial stability to SYMC
The two companies will work to further strengthen
SsangYongs product portfolio across the globe.
The labor union of SYMC, M&M have also signed a Tripartite
Agreement which contains provisions for employment
protection, long-term investment and commitment for no labor
dispute.

Deal in Monetary Terms.

Total cost of acquisition of US$ 463 million with US$ 378 million
in new stocks and US$ 85 million in corporate bonds
Exchange Rate Used: US $ I = KRW 1129
Mahindra will acquire 70% stake
Deal expected to be concluded by March 2011

Mahindra And Mahindra

Balance Sheet

Mahindra And Mahindra

Balance Sheet(Continued)

SSANGYONG MOTORs Balance Sheet

Currency in Millions of
South Korean Wons.

Dec 31,
2009

Dec 31,
2010

Dec 31,
2011

Dec 31,
2012

13,305.4
13,305.4
77,371.7
21,803.0
2322.8
216,903.0
2,752.4
59,215.0

85,157.7
85,157.7
156,607.2
19,294.1
220,360.6
3,034.1
81,047.6

208,521.6
208,521.6
135,575.4
28,582.0
262,699.0
2,765.8
13,099.6

203,666.5
203,666.5
187,457.0
20,586.0
269,034.1
2,622.9
27,906.4

393,673.3
803,813.2

565,501.3
1,030,655.4

651,243.4
1,038,957.0

711,272.8
1,051,401.8

34,639.5
3,160.5
27,660.2

560.0
5,127.7
38,851.2

560.0
5,726.7
38,182.6

566.0
8,618.7
30,539.2

1,379,434.2

1,724,739.0

1,793,567.0

1,850,490.4

As of:

ASSETS
Cash and Equivalents
Total Cash and short term Investments
Accounts Receivable
Other Receivables
Notes Receivable
Inventory
Prepaid Expenses
Other Current Assets

Total Current Assets

Net property plant and equipment
Long-Term Investments
Other Intangibles
Other Long-Term Assets

TOTAL ASSETS

SSANGYONG MOTORs Balance Sheet

(Continued)
LIABILITIES AND EQUITY
Accounts Payable

65,993.7

364,034.7

382,731.6

380,259.5

Accrued Expenses

29,180.6

71,648.1

16,599.6

33,222.0

Short-Term Borrowings

80,030.5

40,567.7

30,000.0

356,920.8

156,850.4

116,571.8

74,746.4

238,168.4

332,055.1

909,175.4

518,733.1

688,821.3

Long-Term Debt

403,847.6

95,404.8

95,404.8

Other Liabilities, Total

349,800.2

203,814.9

273,366.5

265,601.6

TOTAL LIABILITIES

1,085,702.9

1,112,990.3

887,504.4

1,049,827.7

Common Stock

542,052.2

182,688.0

609,809.2

613,373.2

Additional Paid In Capital

473,604.8

34,654.2

5,145.4

122,585.0

Retained Earnings

-729,517.8

-411,720.4

169,663.3

44,842.3

7,592.2

806,126.8

121,444.7

19,862.2

TOTAL COMMON EQUITY

293,731.4

611,748.7

906,062.6

800,662.7

TOTAL EQUITY

293,731.4

611,748.7

906,062.6

800,662.7

1,379,434.2

1,724,739.0

1,793,567.0

1,850,490.4

Current Portion Of Long-Term Debt/Capital Lease

Other Current Liabilities

TOTAL CURRENT LIABILITIES

Comprehensive Income And Other

TOTAL LIABILITIES AND EQUITY

RATIOS OF SSANGYONG MOTORS CO. LTD.

Ratios

2012

2011

2010

P/E Ratios(TTM)

13.80

15.32

P/E High- Last 5 Years

22.98

32.70

P/E Low- Last 5 Years.

6.99

9.11

Quick Ratio

0.74

1.12

1.41

Current Ratio

1.06

1.34

1.74

LT Debt To Equity

11.52

45.76

34.96

Total Debt To Equity

19.80

85.98

65.20

0.85

12.70

8.99

9.87

-14.95

10.44

9.49

15.12

15.27

-24.40

17.78

15.42

20.58

18.68

-44.28

22.46

18.50

Valuation Ratios:

Financial Ratios:

Interest Coverage

Effectiveness Ratios:
Return On Asset
Return On Asset- 5 Year Avg.
Return On Investment
Return On Investment- 5 Year Avg.
Return On Equity
Return On Equity- 5 Year Avg.

RATIOS OF MAHINDRA & MAHINDRA LTD.

Ratios

2012

2011

2010

2009

Financial Ratios:
Current Ratio

0.95

0.86

1.11

0.90

Quick Ratio

0.66

0.61

0.86

0.83

Debt- Equity Ratio

0.26

0.23

0.37

0.77

LT Debt Equity Ratio

0.26

0.32

0.46

0.83

Efficiency Ratios:
Inventory Turnover Ratio

14.99

15.64

17.91

14.56

Debtors Turnover Ratio

19.05

17.97

16.09

12.77

Investment Turnover Ratio

14.99

15.64

17.91

14.56

Fixed Assets Turnover Ratio

4.32

4.08

3.85

2.84

Total Assets Turnover Ratio

2.19

1.86

1.74

1.42

Asset Turnover Ratio

2.27

2.00

1.85

1.61

Acknowledgement

We would like to thank Bhagyeshree Maam to

give us this wonderful opportunity to expose our
minds to the vast knowledge of the real workings
of the world