Business Merger and Acquisition, Myntra, InLogg - General awareness questions on current affairs

1)   Apollo Global Management LLC has agreed to acquire which cloud services provider?

a. Rackspace
b. DigiSpace
c. TechnoSpace
d. None of the above
Answer  Explanation 

ANSWER: Rackspace

Explanation:
Cloud services provider Rackspace Hosting Inc said it would be acquired by Apollo Global Management LLC in a deal valued at USD 4.3 billion. The PE firm will boost investments in the technology sector.

  • Rackspace’s shares went up 4.3 percent at USD 31.50 in early trading on 25th August.
  • Offer represents a premium of 38.2 percent to Backspace’s closing price on August 3, the day prior to reports that the company was in advanced talks with PE firms for a go private deal.
  • Rackspace had been reported to earlier be in talks with Apollo
  • As part of the deal closing in the 4th quarter, PE firm Searchlight Capital Partners will also make an investment in Backspace
  • Apollo with USD 186 billion in assets have been stepping up investments in technology
  • Affiliates of the firm in July agreed to acquire Outerwall Inc, the owner of Redox video rental kiosks private in a deal valued at USD 1.6 billion
  • Rackspace leases server space and helps corporations store and access data in cloud.
  • It has focused on growing its cloud business in the face of rising competition from established players such as IBM Corp, Microsoft and startups in the field
  • Citigroup, Deutsche Bank, RBC Capital Markets LLC and Barclays were financial advisors while Goldman Sachs and Co advised Backspace.
  • Financing for the deal is being provided by CItigroup, Deutsch Bank, Barclays, Royal Bank of Canada are providing financing for the deal
  • Paul, Weiss Rifkind and Wharton & Garrison LLP are legal advisers to Apollo while Wilson Sonsini Goodrich & Rosati is Rackspace’s Legal Adviser.


2)   Oculus has acquired which eye tracking technology startup?

a. The Eye Tribe
b. Eye Sight
c. Eye Power
d. None of the above
Answer  Explanation 

ANSWER: The Eye Tribe

Explanation:
Facebook’s virtual reality-focused Oculus division has acquired eye-tracking technology startup The Eye Tribe based in Denmark for an undisclosed amount.

The Eye Tribe startup was founded in 2011 by four students from the IT University of Copenhagen. It develops software that enables eye control on mobile devices and computers, allowing hands-free navigation.

The acquisition will benefit Facebook’s Oculus to integrate eye-tracking software to its Rift VR (virtual reality) headset, allowing users to control actions by moving their eyes.

Oculus, a virtual reality company, was acquired by Facebook in 2014 for 2 billion dollars. It had rolled out two new features - Parties and Rooms - for Samsung Gear VR.

Oculus

CEO: Brendan Iribe

Founded: 2012, Irvine, California, United States

Headquarters: Menlo Park

Acquisition date: March 25, 2014

Founders: Jack McCauley, Brendan Iribe, Palmer Luckey

Head organization: Facebook, Inc.


3)   Russia’s Rosneft Oil Company and its partners on 15th Oct 2016 acquired India’s second biggest private oil firm. Which corporate group does the unit belong to?

a. Reliance
b. Essar
c. Shell
d. None of the above
Answer  Explanation 

ANSWER: Essar

Explanation:
Russia’s Rosneft Oil Company along with its partners on 15th Oct 2016 acquired India’s second biggest private oil firm Essar Oil in an all cash deal valued at USD 13 billion

  • Rosneft’s partners include Rosneft Oil Company, United Capital Partners and Trafigura
  • The acquisition was announced during the 8th BRICS Summit in Goa
  • Rosneft will have a 49 percent stake in the refinery, port and petrol pumps of Essar Oil
  • The remaining partners will split the 49 percent equity equally
  • Remaining 2 percent will be held by minority shareholders after the delisting of Essar Oil
  • Deal includes USD 10.9 billion for Essar’s Vadinar refinery and USD 2 billion for the port terminal that feeds the refinery
  • It also includes Essar Oil’s debt of USD 4.5 billion and USD 2 billion debt with the port company and power plant
  • Rosneft now becomes the third international player after after Royal Dutch and Shell and British Petroleum to enter the Indian fuel retailing market
  • Essar Oil a subsidiary of Essar Group is a fully integrated oil & gas company and is among the largest single site refineries in Vainer, Gujarat with the capacity of 20 MT
  • Essar Oil has a portfolio of offshore and onshore oil and gas blocks with around 1.7 billion barrels of oil equivalent in reserves and resources
  • The company was established in 1969
  • Essar Group is led by Shashi Ruia and Ravi Ruia


4)   Virtual merger has taken place in which corporate group?

a. TATA
b. Birla
c. Godrej
d. Reliance
Answer  Explanation 

ANSWER: Reliance

Explanation:
Reliance Communications (RCom) and Reliance Jio (RJio) are working together through a “virtual merger” of their infrastructure such as spectrum and towers and the two companies are reaping the synergies, according to RCom president Anil Ambani.

  • “What we have accomplished is a virtual merger between Rcom and RJio. Our spectrum is shared, our network is shared, our towers are shared, our fibre shared, our voice is shared and every effort to reap synergies, every effort to lower our costs, to be capital light has been achieved,”- he said in an official statement.
  • RCom has a full 4G LTE long term evolution network on a pan Indian basis without capital expenditure on the balance sheet
  • Assets shared and traded with Rjio have ensured RCom does not shell out entire capital expenditure
  • RCom is also unlikely to bid at the upcoming spectrum auction given that RJio has deposited Rs.6,500 crore as earnest money deposit,
  • The proposed merger with Aircel will create wealth for shareholders
  • RCom expects a deal soon for its tower business, he said.


5)   Sony Pictures Networks India has entered into an agreement with ZEE to acquire which Sports network?

a. EPSN
b. TEN Sports
c. Zee Sports
d. None of the above
Answer  Explanation 

ANSWER: TEN Sports

Explanation:
Sony Pictures Networks India has entered into an agreement to acquire TEN Sports Network from Zee Entertainment Enterprises Ltd and subsidiaries for USD 385 million subject to regulatory approval.

  • Acquisition will add South Asia’s leading sports network to SPN’s portfolio of channels
  • TEN Sports holds cricket rights in South Africa, Pakistan, Sri Lanka, West Indies and Zimbabwe
  • Holding rights for major wrestling, football, tennis, gold, athletics and motor and cycling including Tour De France, it will diversify SPN’s interests
  • Sony Entertainment Television and SAB TV are the main brands of SPNI although it owns many other brands and companies under the umbrella Sony brand.
  • On 3 November 2015, MSM was renamed Sony Pictures Networks India Private Limited after 21 years.


6)   ABNL will merge with which company to unlock shareholder value and create a USD 9 billion enterprise?

a. Grasim
b. Birla Infosoft
c. Jaypee
d. Jaycee
Answer  Explanation 

ANSWER: Grasim

Explanation:
Aditya Birla Nuvo Ltd will merge with Grasim Industries Ltd to unlock shareholder value and create a USD 9 billion or INR 59,766 crore enterprise.

  • With this merger, Aditya Birla Group will hive off financial services business into a separate entity to be listed later.
  • BoD of Grasim Industries Ltd, ABNL and Aditya Birla Financial Services Ltd at their respective meetings approved the merger of ABNL into Grasim and subsequent demerger and listing of financial services business through a composite arrangement scheme.
  • Transaction which is subject to regulatory approvals will be implemented in 2 phases.
  • ABNL will first merge into Grasim and financial services business would then be demerged resulting in listed financial services company with 57 percent owned by post merger Grasim and the balance being held by post merger Grasim shareholders on a proportionate basis.
  • Following the merger, Grasim with an aggregate turnover of INR 59,766 crore and EBITDA of INR 11,961 crore for March 31, 2016 will become India’s top cement company and will be among the top diversified private NBFCs in India.
  • It will be the third ranked telecom operator besides being among the top four private sector insurance and asset management companies.
  • The proposed transaction will create a combined entity with USD 9 billion revenue, EBITDA of INR 12,000 crore and EBIDTA margins of 19 percent.
  • This is a win-win situation for shareholders of both companies - Grasim shareholders will gain access to high growth businesses of financial services and telecommunications while Nuvo shareholders will get strong cash flow business of cement and VSF
  • ABFSL will be listed by May-June 2017.
  • For each merger of ABNL with Grasim, each ABNL shareholder will get three new equity shares of Grasim for every 10 equity shares held in ABNL which means shareholder holding 100 shares in ABNL will receive 30 shares in Grasim.


7)   Boards of which two life insurance entities approved their merger?


a. HDFC Life, Religare
b. HDFC Life, Max Life Insurance
c. HDFC, TATA AIG
d. None of the above
Answer  Explanation 

ANSWER: HDFC Life, Max Life Insurance

Explanation:
Boards of HDFC Life and Analjit Singh’s Max Group companies on 8th August 2016 approved the merger of two life insurance entities

  • Merger will create the largest private sector life insurance company with assets under management of INR 1.1 lakh crore with 7 million customers
  • Exact value of the deal were not revealed


8)   Chinese consortium Shaghai Giant Network Technology Co Ltd and e-commerce firm Alibaba group have joined hands to acquire which online games unit?

a. Go Pokemon
b. No Man’s Sky
c. Caesars Interactive Entertainment Inc
d. ToysRUs
Answer  Explanation 

ANSWER: Caesars Interactive Entertainment Inc

Explanation:
Chinese consortium including game developer Shanghai Giant Network Technology Co Ltd and e-commerce film Alibaba Group Holding Ltd founder Jack Ma has agreed to acquire Caesars Interactive Entertainment Inc’s online games unit for USD 4.4 billion in cash.

  • Caesars Interactive Entertainment is currently owned by Caesars Acquisition Co and Caesars Entertainment Corp.
  • Sales will help two companies looking for cash as they embark on a complex merger.
  • Caesars Entertainment’s main operating unit, Caesar Entertainment Operating Co Inc is currently involved in a USD 18 billion bankruptcy and is seeking creditor approval for restructuring the plan.
  • Chinese companies are eager to expand beyond their home country which has the world’s largest online gaming market.
  • Chinese’s biggest gaming group agreed to purchase a majority stake in Clash of Clans mobile game maker Supercell from SoftBank Group Corp in an USD 8.6 billion deal.
  • Caesars online games business called Playtime makes games such as Bingo Blitz and Slotomania available on Apple Inc’s App Store.


9)   Mydala dot com has joined hands with which media company for Star Trek Beyond, the third instalment of the Star Trek Reboot series released in India?

a. Viacom 18
b. TV 18
c. Network 18
d. None of the above
Answer  Explanation 

ANSWER: Viacom 18

Explanation:
Mydala dot com, India’s leading local services marketing platform has joined hands with Viacom 18 as the media partner for Star Trek Beyond, third instalment of the iconic Star Trek Reboot series released in India.

  • Mydala is the largest mobile commerce platform in the country with over 6.6 transactions per month and 85 percent of these from mobile platforms.


10)   Dailyhunt has picked up a strategic stake in Greynium Information Technology. What was this app service provider formerly known as?

a. Newshunt
b. Newshound
c. Newssource
d. None of the above
Answer  Explanation 

ANSWER: Newshunt

Explanation:
Dailyhunt (formerly called Newshunt) an app aggregating local language content has picked up strategic stake in Greynium Information Technology which publishes vernacular portal OneIndia.

  • Dailyhunt is backed by Matrix Partners and Sequoia Capital.
  • It will acquire 15 percent in OneIndia for around INR 20 crore according to sources.


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