Types of Mergers

There are five commonly-referred to types of business combinations known as mergers:

conglomerate merger, horizontal merger, market extension merger, vertical merger and product
extension merger. The term chosen to describe the merger depends on the economic function,
purpose of the business transaction and relationship between the merging companies.

Conglomerate

A merger between firms that are involved in totally unrelated business activities. There are
two types of conglomerate mergers: pure and mixed. Pure conglomerate mergers involve firms
with nothing in common, while mixed conglomerate mergers involve firms that are looking for
product extensions or market extensions.

Example: A leading manufacturer of athletic shoes, merges with a soft drink firm. The resulting
company is faced with the same competition in each of its two markets after the merger as the
individual firms were before the merger. One example of a conglomerate merger was the merger
between the Walt Disney Company and the American Broadcasting Company.

Horizontal Merger

A merger occurring between companies in the same industry. Horizontal merger is a

business consolidation that occurs between firms who operate in the same space, often as
competitors offering the same good or service. Horizontal mergers are common in industries with
fewer firms, as competition tends to be higher and the synergies and potential gains in market
share are much greater for merging firms in such an industry.

Example: A merger between Coca-Cola and the Pepsi beverage division, for example, would be
horizontal in nature. The goal of a horizontal merger is to create a new, larger organization with
more market share. Because the merging companies' business operations may be very similar,
there may be opportunities to join certain operations, such as manufacturing, and reduce costs.

Market Extension Mergers

A market extension merger takes place between two companies that deal in the same products
but in separate markets. The main purpose of the market extension merger is to make sure that the
merging companies can get access to a bigger market and that ensures a bigger client base.

Example: A very good example of market extension merger is the acquisition of Eagle Bancshares Inc by
the RBC Centura. Eagle Bancshares is headquartered at Atlanta, Georgia and has 283 workers. It has
almost 90,000 accounts and looks after assets worth US $1.1 billion.

Eagle Bancshares also holds the Tucker Federal Bank, which is one of the ten biggest banks in the
metropolitan Atlanta region as far as deposit market share is concerned. One of the major benefits of this
acquisition is that this acquisition enables the RBC to go ahead with its growth operations in the North
American market.
With the help of this acquisition RBC has got a chance to deal in the financial market of Atlanta , which is
among the leading upcoming financial markets in the USA. This move would allow RBC to diversify its base
of operations.

Product Extension Mergers

A product extension merger takes place between two business organizations that deal in products
that are related to each other and operate in the same market. The product extension merger allows the
merging companies to group together their products and get access to a bigger set of consumers. This
ensures that they earn higher profits.

Example: The acquisition of Mobilink Telecom Inc. by Broadcom is a proper example of product extension
merger. Broadcom deals in the manufacturing Bluetooth personal area network hardware systems and
chips for IEEE 802.11b wireless LAN.

Mobilink Telecom Inc. deals in the manufacturing of product designs meant for handsets that are
equipped with the Global System for Mobile Communications technology. It is also in the process of being
certified to produce wireless networking chips that have high speed and General Packet Radio Service
technology. It is expected that the products of Mobilink Telecom Inc. would be complementing the
wireless products of Broadcom.

Vertical Merger

A merger between two companies producing different goods or services for one specific finished
product. A vertical merger occurs when two or more firms, operating at different levels within an
industry's supply chain, merge operations. Most often the logic behind the merger is to increase synergies
created by merging firms that would be more efficient operating as one.

Example: A vertical merger joins two companies that may not compete with each other, but exist in the
same supply chain. An automobile company joining with a parts supplier would be an example of a vertical
merger. Such a deal would allow the automobile division to obtain better pricing on parts and have better
control over the manufacturing process. The parts division, in turn, would be guaranteed a steady stream
of business.

Synergy, the idea that the value and performance of two companies combined will be greater than the
sum of the separate individual parts is one of the reasons companies merger.

What Is the Rationale for Corporate Mergers?

Some companies pursue a merger as a one-time opportunity that arises, whereas others make it an
ongoing strategy they utilize to grow their business. Corporate mergers are also referred to as mergers
and acquisitions because many times one of the companies involved purchases a majority control of the
other and assumes a dominant role from a managerial standpoint after the deal is closed.
Combined Strength

Creating a larger company gives the combined entity more strength in the marketplace. Volume
purchasing is one advantage. The larger entity purchases more of a given item than each company did by
itself, so manufacturers give the combined company volume discounts.

Customer Acquisition

Merging allows a company to acquire customers quickly rather than taking the time and spending the
money to get established in a new market. The strategic decision to expand across a region or even into
another country is one reason mergers and acquisitions take place. Bank mergers are often motivated by
a strategy of geographic expansion.

Retirement of Owner

Many acquisitions take place because the owner wants to retire and reap the rewards of all of his years
of hard work building the company by selling it to another, larger company. He may also elect to sell only
a portion of his shares and keep the rest if he believes the company making the acquisition will further
build the value of the business in the ensuing years.

Vertical Integration

From the stage of purchasing raw materials all the way to the finished product appearing on retail store
shelves, a chain of transactions happens in which several companies play a role in creating the finished
product and moving it through the distribution system. Along the way, each company earns a profit. A
company may decide it will be more efficient and profitable to control the steps in the process itself. An
oil refining company may decide to develop the capacity to drill for oil rather than purchasing the oil from
a supplier. One way to quickly develop this capacity is to acquire a company that already has drilling rights,
production equipment and a transportation infrastructure to deliver the oil to refineries.

Synergies

Just like individuals, companies have different relative strengths. When they join together, each can take
advantage of the other's core competency. One company may have achieved excellent brand recognition
in the marketplace but have products near the end of their life cycles with limited opportunity for sales
growth. The other might be a newer company with an exciting and innovative product line ready to
introduce, but limited marketing or distribution channels in place. Combined, they can quickly build the
second company's sales by taking advantage of the first company's marketing strengths.

Pull Together a Fragmented Industry

Some industries are characterized as being fragmented, meaning there are a number of smaller
companies all vying for market leadership. Individually, they may not have the brand strength or financial
resources to achieve a position of dominance. A strategy of merging two or three of these smaller
companies can create a more profitable combined entity because duplicated staff functions can be
eliminated and production capacity can be shared. For example, one customer service staff can handle all
of the volume for the combined entity that formerly required two or three separate customer service
groups.

Mergers and Acquisitions – Synergies through Consolidation

Synergy implies a situation where the combined firm is more valuable than the sum of the individual
combining firms. It is defined as ‘two plus two equal to five’ (2+2>4) phenomenon. Synergy refers to
benefits other than those related to economies of scale. Operating economies are one form of synergy
benefits. But apart from operating economies, synergy may also arise from enhanced managerial
capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarily of
resources and skills and a widened horizon of opportunities.

Financial synergy:

Financial synergy refers to increase in the value of the firm that accrues to the combined firm from
financial factors. There are many ways in which a merger can result into financial synergy and benefit. A
merger may help in:

• Eliminating financial constraint

• Deployment surplus cash
• Enhancing debt capacity
• Lowering the financial costs
• Better credit worthiness

Financial Constraint: A company may be constrained to grow through internal development due to
shortage of funds. The company can grow externally by acquiring another company by the exchange of
shares and thus, release the financing constraint.

Deployment of surplus cash: A different situation may be faced by a cash rich company. It may not have
enough internal opportunities to invest its surplus cash. It may either distribute its surplus cash to its
shareholders or use it to acquire some other company. The shareholders may not really benefit much if
surplus cash is returned to them since they would have to pay tax at ordinary income tax rate. Their wealth
may increase through an increase in the market value of their shares if surplus cash is used to acquire
another company. If they sell their shares, they would pay tax at a lower, capital gains tax rate. The
company would also be enabled to keep surplus funds and grow through acquisition.

Debt Capacity: A merger of two companies, with fluctuating, but negatively correlated, cash flows, can
bring stability of cash flows of the combined company. The stability of cash flows reduces the risk of
insolvency and enhances the capacity of the new entity to service a larger amount of debt. The increased
borrowing allows a higher interest tax shield which adds to the shareholders wealth.
Financing Cost: The enhanced debt capacity of the merged firm reduces its cost of capital. Since the
probability of insolvency is reduced due to financial stability and increased protection to lenders, the
merged firm should be able to borrow at a lower rate of interest. This advantage may, however, be taken
off partially or completely by increase in the shareholders risk on account of providing better protection
to lenders. Another aspect of the financing costs is issue costs. A merged firm is able to realize economies
of scale in flotation and transaction costs related to an issue of capital. Issue costs are saved when the
merged firm makes a larger security issue.

Better credit worthiness: This helps the company to purchase the goods on credit, obtain bank loan and
raise capital in the market easily.

RP Goenka’s ceat tyres sold off its type cord division to Shriram Fibers Ltd. in 1996 and also transfer’s its
fiber glass division to FGL Ltd., another group company to achieve financial synergies.

Managerial synergy

One of the potential gains of merger is an increase in managerial effectiveness. This may occur if the
existing management team, which is performing poorly, is replaced by a more effective management
team. Often a firm, plagued with managerial inadequacies, can gain immensely from the superior
management that is likely to emerge as a sequel to the merger. Another allied benefit of a merger may
be in the form of greater congruence between the interests of the managers and the shareholders.

A common argument for creating a favorable environment for mergers is that it imposes a certain
discipline on the management. If lackluster performance renders a firm more vulnerable to potential
acquisition, existing managers will strive continually to improve their performance.

Tender Offer
A tender offer is an offer to purchase some or all of shareholders' shares in a corporation. The
price offered is usually at a premium to the market price. Securities and Exchange Commission (SEC) laws
require any corporation or individual acquiring 5% of a company to disclose information to the SEC, the
target company, and the exchange.

Examples of a Tender Offer

A publicly traded company issues a tender offer to buy back its own outstanding securities. A privately or
publicly traded company executes a tender offer directly to shareholders without the board of directors’
(BOD) consent, resulting in a hostile takeover.

Acquirers include hedge funds, private equity firms, management-led investor groups, and other
companies. The day after the announcement, a target company’s shares trade below or at a discount to
the offer price, which is attributed to the uncertainty of and time needed for the offer. As the closing date
nears and issues are resolved, the spread typically narrows.
Advantages of a Tender Offer
Tender offers provide several advantages to investors. For example, investors are not obligated
to buy shares until a set number are tendered, which eliminates large upfront cash outlays and prevents
investors from liquidating stock positions if offers fail. Acquirers can also include escape clauses, releasing
liability for buying shares. For example, if the government rejects a proposed acquisition citing anti-trust
violations, the acquirer can refuse to buy tendered shares.

In many instances, investors gain control of target companies in less than one month if shareholders
accept their offers; they also generally earn more than normal investments in the stock market.

Disadvantages of a Tender Offer

Although tender offers provide many benefits, there are some noted disadvantages. A tender
offer is an expensive way to complete a hostile takeover as investors pay SEC filing fees, attorney costs,
and other fees for specialized services. It can be a time-consuming process as depository banks verify
tendered shares and issue payments on behalf of the investor. Also, if other investors become involved in
a hostile takeover, the offer price increases, and because there are no guarantees, the investor may lose
money on the deal.

Sell-Off

A sell-off is the rapid selling of securities such as stocks, bonds, ETFs, commodities or currencies. A sell-off
may occur for many reasons, such as the sell-off of a company's stock after a disappointing earnings
report, the departure of a important executive or the failure of an important product. Markets and stock
indexes can also sell-off when interest rates rise or oil prices surge, causing increased fear about the
energy costs that companies will face. Sell-offs can also be caused by political events, or terrorist acts.

A sell-off may be caused by an event within the company, like a report of lower than expected earnings.
A sell-off can also be caused by external forces. For example, a spike in grain prices may trigger a sell-off
in food stocks because of the increases in raw materials costs.

Divestiture

A divestiture is the partial or full disposal of a business unit through sale, exchange, closure or bankruptcy.
A divestiture most commonly results from a management decision to cease operating a business unit
because it is not part of a core competency. However, it may also occur if a business unit is deemed to be
redundant after a merger or acquisition, if the disposal of a unit increases the resale value of the firm, or
if a court requires the sale of a business unit to improve market competition.

Examples of Divestitures

Divestitures can come about in many different forms. However, the most common is the sale of a business
unit to improve financial performance. For example, Thomson Reuters Corporation, a multinational mass
media and information company based in Canada, sold its intellectual property and sciences (IP&S)
division on July 14, 2016. Thomas Reuters initiated the divestiture because it wanted to reduce the
amount of leverage on its balance sheet.

The division was purchased by Onex and Baring Private Equity for $3.55 billion in cash. The IP&S division
booked sales of $1.01 billion in 2015, and 80% of those sales are recurring, making it an attractive
investment for the private equity firm. The divestiture represented one-fourth of Thomas Reuters'
business in terms of divisions, but it is not expected to alter the company's overall valuation.

Divestitures can also come about due to necessity. One of the most famous cases of court-ordered
divestiture involves the breakup of the Bell System in 1982. The U.S. government determined that Bell
controlled too large a portion of the nation's telephone service and brought anti-trust charges in 1974.
The divestiture created several new telephone companies, including AT&T and the so-called Baby Bells,
as well as new equipment manufacturers.

Spinoff

A spinoff is the creation of an independent company through the sale or distribution of new shares of an
existing business or division of a parent company. A spinoff is a type of divestiture. The spun-off
companies are expected to be worth more as independent entities than as parts of a larger business.
A spinoff is also known as a spin out or starbust.

Equity carve-out

Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate
reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining
management control. Only part of the shares are offered to the public, so the parent company retains an
equity stake in the subsidiary. Typically, up to 20% of subsidiary shares is offered to the public.

Joint Venture - JV

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources
for the purpose of accomplishing a specific task. This task can be a new project or any other business
activity. In a joint venture (JV), each of the participants is responsible for profits, losses and costs
associated with it. However, the venture is its own entity, separate from the participants' other business
interests.

JV Agreement

Regardless of the legal structure used for the JV, the most important document will be the JV agreement
that sets out all of the partners' rights and obligations. The objectives of the JV, the initial contributions
of the partners, the day-to-day operations, and the right to the profits and/or the responsibility for losses
of the JV are all set out in this document. It is important to draft it with care, to avoid litigation down the
road.
What a Joint Venture May Look Like

The key elements to a joint venture may include (but are not limited to):

• The number of parties involved

• The scope in which the JV will operate (geography, product, technology)
• What and how much each party will contribute to the JV
• The structure of the JV itself
• Initial contributions and ownership split of each party
• The kind of arrangements to be made once the deal is complete
• How the JV is controlled and managed
• How the JV will be staffed

Employee Stock Ownership Plan - ESOP

An employee stock ownership plan is a qualified defined-contribution employee benefit plan designed to
invest primarily in the sponsoring employer's stock. ESOPs are qualified in the sense that the ESOP's
sponsoring company, the selling shareholder and participants receive various tax benefits. Companies
often use ESOPs as a corporate-finance strategy and to align the interests of their employees with those
of their shareholders.

Leveraged Buyout - LBO

A leveraged buyout (LBO) is the acquisition of another company using a significant amount of borrowed
money to meet the cost of acquisition. The assets of the company being acquired are often used as
collateral for the loans, along with the assets of the acquiring company. The purpose of leveraged buyouts
is to allow companies to make large acquisitions without having to commit a lot of capital.

Reasons for LBOs

LBOs are conducted for three main reasons. The first is to take a public company private; the second is to
spin-off a portion of an existing business by selling it; and the third is to transfer private property, as is the
case with a change in small business ownership. However, it is usually a requirement that the acquired
company or entity, in each scenario, is profitable and growing.
Cross Border Mergers and Acquisitions

Cross border Mergers and Acquisitions or M&A are deals between foreign companies and domestic firms
in the target country. The trend of increasing cross border M&A has accelerated with the globalization of
the world economy. Indeed, the 1990s were a “golden decade” for cross border M&A with a nearly 200
percent jump in the volume of such deals in the Asia Pacific region. This region was favored for cross
border M&A as most countries in this region were opening up their economies and liberalizing their
policies, which provided the much, needed boost to such deals. Of course, it is another matter that in
recent years, Latin America and Africa are attracting more cross border M&A. This due to a combination
of political gridlock in countries like India that are unable to make up their minds on whether the country
needs more foreign investment, the saturation of China, and the rapid emergence of Africa as an
investment destination. Further, the fact that Latin America is being favored is mainly due to the rapid
growth rates of the economies of the region.

Strategic Alliance

A strategic alliance is an arrangement between two companies that have decided to share resources to
undertake a specific, mutually beneficial project. A strategic alliance is less involved and less binding than
a joint venture, in which two companies typically pool resources to create a separate business entity. In a
strategic alliance, each company maintains its autonomy while gaining a new opportunity.

The Purpose of Strategic Alliances

Strategic alliances allow two organizations, individuals or other entities to work toward common or
correlating goals. The idea is for all parties to benefit in the short term, long term or both. The agreement
may be formal or informal, but each party’s responsibilities must be clear. Further, the agreement may
be in place over the short or long term depending on the needs and goals of the parties involved.

Often, strategic alliances allow involved organizations to pursue opportunities at a faster rate than if the
organizations functioned alone. An alliance provides access to additional knowledge and resources owned
by the other party, which may ease the learning curve for the new pursuit and relieve setup time and
costs.

This strategy provides more flexibility than joint ventures because the involved parties do not need to
merge any assets or funds to proceed. Instead, parties remain autonomous, which can help ease the
functioning of the agreement when the two entities' business practices are highly varied.

The Risks of Strategic Alliances

Although the arrangement is typically clear for both parties, the differences in how the businesses operate
can cause conflict. Further, if the alliance requires informing one party of the other party’s proprietary
information, there must be a high level of trust between the leadership of the alliance entities.
In the case of long-term strategic alliances, the involved parties may become mutually dependent. While
the risk is lower if the dependency is experienced by both parties, the risk can increase significantly if the
dependence becomes one-sided because one party will gain an advantage.

Example of Strategic Alliances

An oil and natural gas company might form a strategic alliance with a research laboratory to develop more
commercially viable recovery processes. A clothing retailer might form a strategic alliance with a single
clothing manufacturer to ensure consistent quality and sizing. A major website could form a strategic
alliance with an analytics company to improve its marketing efforts.

Numerous businesses across multiple sectors have demonstrated the power of strategic alliances, to bring
together complementary capabilities to mutual commercial benefit. Despite a growing body of evidence
that strategic alliances can help to transform business and operating models and deliver attractive
financial outcomes, they continue to suffer from fundamental misperceptions that reduce their
effectiveness. These include:

• A lack of agreement over what constitutes a ‘strategic alliance’, meaning that some alliances are
considered as minor partnerships or, worse still, buyer-supplier relationships.
• An underestimation of how the hidden agendas of different partners can significantly block
collaboration and joint value creation, if they are not uncovered.
• A widespread belief that, once you have found the appropriate partner fit, strategic alliances are
easy to implement and will largely take care of themselves – when in fact they are extremely
difficult to get right.
• A lack of appreciation by CEOs of the huge significance of strategic alliances; these are major, once-
in-a-lifetime transformations that can impact the entire company’s future, but they are rarely
treated with the same importance as large M&As.

The Seven-Step Process: Mergers & Acquisition

A proven process for evaluating and executing mergers and acquisitions includes seven essential activities
that occur as sequential steps.

• Determine Growth Markets/Services:

Leaders start the acquisition evaluation process by identifying growth opportunities in business or
service lines, markets served, or any combination thereof. To determine growth markets and services,
leaders must collect and analyze extensive data, including the following: client origin; demographics
(population, age, employment/unemployment rates, income); employers; other competitors; business,
program, and service mix (performance and profitability by service line); field staff; employees;
utilization/case mix (demand projections); competitive cost/charge position; and consumer preferences/
opinions
Example: ICICI must have seen lot of growth prospects in acquiring Bank of Rajasthan in 2010 as the
amalgamation will substantially enhance ICICI Bank’s branch network, and especially strengthen its
presence in northern and western India. The deal will combine Bank of Rajasthan’s branch franchise with
ICICI Bank’s strong capital base

• Identify Merger and Acquisition Candidates:

The second step of the acquisition process involves the proactive identification of the universe of
potential merger or acquisition candidates that could meet strategic financial growth objectives in
identified markets or service lines. This involves methodically identifying “likely suspects” as well as
“outside the box” possibilities based on management experience, research, the use of consultants, and
other methods.

Example : Enam-Axis merger is a good example, from the Axis perspective and from the Enam perspective,
it was a great deal. For Axis, they were to start investment banking or start broking on their own, it may
have took them a lot of time and lot of effort, a lot of investment but here they have straightaway got a
very good franchise. Enam was an excellent choice.

• Assess Strategic Financial Position and Fit:

At this stage following questions shall be answered,
o What are the likely benefits of a transaction with this acquisition target?
o What are the risks?
o How does this target compare to other targeted opportunities?
Financial Position:

A comprehensive evaluation of the financial and credit position of the target and the combined entities is
based on solid utilization and financial forecasts. The assessment focuses on volume, revenue, cost, and
balance sheet considerations.

Example : Patni Computer has been acquired by iGate along with private equity firm Apax Partners. Both
the companies have done their home work for assessing ‘Strategic Financial Position’ and sustainability of
the deal. iGATE expects to finance the purchase consideration of $1.22 billion through a combination of
cash-in-hand, debt and equity financing, including a potential public offering of up to 10 million
shares.Viscaria Limited, a company backed by funds advised by Apax Partners, will make an investment
into iGATE in order to facilitate the acquisition of a majority stake in Patni.

• Make a Go/No-Go Decision:

Corporate leadership must determine the likely benefits and drawbacks of the proposed acquisition
or merger according to the questions discussed earlier and make a high-quality decision.During the
decision-making process, leaders identify whether the strategic value-added case for a combined entity
is compelling enough to proceed (or not).
Example: Satyam-Mahindra deal is good example to explain this decision making step. After the Satyam
fiasco the leadership of Mahindra Group must have faced a lot of dilemma over ‘Go/No-Go Decision’. But
the Mahindra leaders made a brave decision after considering likely benefits and drawbacks of the
proposed acquisition. The leadership must have concluded that the benefits are heavily overweighing the
likely drawbacks.

• Conduct Valuation

The fifth step in the acquisition process involves assessing the value of the target, identifying
alternatives for structuring the merger or acquisition transactions, evaluating these, and selecting the
structure that would best enable the organization to achieve its objectives, and developing an offer.There
are three key valuation methods: discounted cash flow analysis, comparable transaction analysis, and
comparable publicly traded company analysis. To identify a realistic valuation range, corporate leadership
should select best suitable method.

Example: See the deal of Reliance Infratel with GTL Infrastructure in 2010. According to Analysts, the deal
may have been called off on valuations. R-Com, being the larger company, would have been the dominant
driver of valuation. If it found the cash and swap ratio didn’t work out in its favor, it might have decided
to call off the deal. Means it is evident that the companies should not underestimate their value and at
the same time don’t expect un-reasonable returns.

After the decision-making step, the ‘valuation’ is the most important step, as it can ruin your deal if goes
wrong.

• Perform Due Diligence, Negotiate a Definitive Agreement, and Execute Transaction:

Once an offer on the table is accepted, leaders of the acquiring organization must ensure a complete
and comprehensive due diligence review of the target entity in order to fully understand the issues,
opportunities, and risks associated with the transaction.Due diligence involves a review of the target’s
financial, legal, and operational position to ensure an accuracy of information obtained earlier in the
acquisition process and full disclosure of all information relevant to the transaction.After due diligence is
completed, the parties negotiate definitive agreements. Any regulatory approvals necessary for
consummation of the transaction are obtained and the transaction is closedDuring transaction execution,
the acquirer should monitor the acquisition or merger to ensure that the negotiated transaction continues
to meet the goals and objectives established for the transaction at the end of the strategic assessment.

• Implement Transaction and Monitor Ongoing Performance:

The analysis seeks answers to such questions as,
o Will management make the tough operational changes required to achieve the financial benefits?
o What are the HR implications? Is there constituent support (management, board, service
providers, community, and employees)?
o What are the legal and regulatory challenges (Court approvals, SEBI Regulations, Tax implications,
etc)?
o What are the financial, organizational, and community-related risks of failure?
A successful merger or acquisition involves combining two organizations in an expedient manner to
maximize strategic value while minimizing distraction or disruption to existing operations.

This includes having a ready mechanism to deal with any future problem in the implementation of the
deal. For example in latest Enam-Axis deal,

Example: To secure smooth implementation of the deal, Enam Chairman Bhanshali would be on Axis
Bank’s board as an independent director. Manish Chokhani, director of Enam, would be the CEO of Axis
Securities. All these Enam directors’ experience will be certainly helpful in securing smooth
implementation of the deal.