The Global Economic Impact of Private Equity Report 2008 - World ...

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Exhibit 5A: Bharti’s corporate structure in December 2000Bharti Telecom20%SingTel Warburg Pincus & others65% 14% 21%Bharti Tele-Ventures (BTVL)BTVL - 15% BTVL - 81% BTVL - 44% BTVL - 40.5%Others: Others: Others: Others:British Telecom - 44% Telecom Italia - 19% Telia MillicomTelecom Italia - 2% AIF BellSouthNew York Life - 3%Bharti Cellular Bharti Telnet Bharti Mobinet Bharti MobileDelhi operation Madhaya Pradesh Karnataka & Andhra Pradesh Chennai cellular operation(launched 1995) fixed‐line operation (1988) cellular operations (acquired in 2000)Himachal Pradesh (acquired in 1999)cellular operation (1996)Exhibit 5B: Bharti’s corporate structure in August 2003Bharti Telecom SingTel Warburg Pincus • New York Life Public shareholders• Asian Infrastructure Group20%• International Finance Corp.46% 16% 19% 9% 10%Bharti Cellular LtdMobile operationsin 15 circlesBharti Tele‐Ventures (BTVL)100% 100%Bharti Infotel Ltd• Fixed‐line operations in six circles• National long distance• International long distance• Group data and broadband• Landing station at Chennai (51% BTVL; 49% SingTel)Source: Company documents.160 Case studies: Warburg Pincus and Bharti Tele‐VenturesThe Global Economic Impact of Private Equity Report 2008
Exhibit 6: Summary of Bharti’s financial and operational performance 1999 – 2001 (pre-IPO)Any discrepancies in any table between totals and the sums of the amounts listed are due to rounding off.Year Year Year Six months Year Six monthsended ended ended ended ended ended(In millions, except ratios 31 March 31 March 31 March 30 Sep 31 March 30 Sepand per share data) 1999 2000 2001 2001 2001 2001(Restated) (Restated) (Restated) (Unaudited) (Restated) (Unaudited)Consolidated income statement dataRevenueCellular Rs.2,195 Rs.3,837 Rs.7,370 Rs.5,302 $154 $111Fixed-line 97 506 1,092 755 23 16Broadband – – – 171 – 4Equipment sale 157 138 20 19 – 1Total revenue 2,449 4,481 8,481 6,248 177 131YoY (%) – 83% 89%Performance revenue (1) 1,891 3,681 7,232 5,240 151 109Y0Y (%) – 95% 96%Total operating expenses excludinglicence fees and pre-operating costs 1,711 2,808 5,634 3,891 118 81Licence fees 703 817 917 681 19 14Adjusted EBITDA 35 856 1,930 1,676 40 35YoY (%) – 2,346% 125%Earnings (loss) before taxation (562) (797) (1,102) 181 (23) 4Income-tax (expense) 105 80 46 (156) 1 (3)Net profit (loss) (322) (550) (1,208) (158) (25.0) (3)Ratios and other financial data:Adjusted EBTIDA margin onproforma revenue (%)(1) 1.9% 23.3% 26.7% 32.0% 26.7% 32.0%Adjusted EBTIDA margin on total revenue (%) 1.4% 19.1% 22.8% 26.8% 22.8% 26.8%Net profit (loss) per common share (0.21) (0.35) (0.74) (0.10) (0.016) (0.002)(1) Performa revenues are calculated as service revenues less access and interconnection costs incurred for our cellular business and are unaudited.Service revenues exclude revenues from equipment sales. We believe that proforma revenues, calculated in this manner, are more representative ofour revenue stream for the cellular business, as a significant part of the access and interconnection costs, which we collect from our customers forinterconnecting with fixed-line network are passed on to BSNL or MTNL, in accordance with our interconnection arrangements. Until 25 January2001, we passed on the entire charges collected from our customers, while subsequently we have been passing on 95% of call charges collectedfrom our customers, in accordance with a notification issued by the DoT. Any change in the interconnection arrangements regarding sharing ofrevenues from calls will have an impact on the proforma revenues and may result in us calculating adjusted EBTIDA margins only on the basis oftotal revenues, which includes access charges and revenue from equipment sales, if any.For the financial For the financialyear ended year ended(in millions) 30 Sep 2000 31 March 2001 Six months ended 30 Sep 2001(Restated) (Restated) (Unaudited)Consolidated balance sheet dataCurrent assets Rs.3,945 Rs.7,967 Rs.9,289 $194Net property, plant and equipment(incl. capital work-in-progress) 8,189 13,493 19,244 402Goodwill 3,725 12,014 26,041 544Total assets 16,764 35,642 63,641 1,329Represented byLong-term debt, net of current portion 7,119 7,210 9,893 207Short-term borrowings 1,229 1,007 3,130 65Total shareholders’ equity 4,222 18,955 41,540 867Six months For the financial Six monthsFor the financial year ended 31 March ended year ended ended30 Sep 31 March 30 Sep(in millions) 1999 2000 2001 2001 2001 2001Consolidated cash flow dataNet cash provided/(used) by/in operating activites Rs.1,059 Rs.(1,905) Rs.1,190 Rs.(4,116) $25 $(86)Net cash provided/(used) by/in investing activities (3,656) (3,599) (10,866) (20,455) (227) (427)Net cash provided/(used) by/in financing activities 2,594 5,528 9,860 24,823 206 518Net increase/(decrease) in cash and cash equivalents (4) 24 184 252 4 5Source: 7 February 2002. Bharti Prospectus.The Global Economic Impact of Private Equity Report 2008 Case studies: Warburg Pincus and Bharti Tele‐Ventures 161
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The Globalization of Alternative In
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ContributorsCo-editorsAnuradha Guru
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PrefaceKevin SteinbergChief Operati
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Letter on behalf of the Advisory Bo
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Executive summaryJosh lernerHarvard
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• Private equity-backed companies
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C. Indian casesThe two India cases,
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Part 1Large-sample studiesThe Globa
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The new demography of private equit
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among US publicly traded firms, it
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should be fairly complete. While th
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according to Moody’s (Hamilton et
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draining public markets of firms. I
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FIguresFigure 1A: LBO transactions
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TablesTable 1: Capital IQ 1980s cov
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Table 2: Magnitude and growth of LB
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Table 4: Exits of individual LBO tr
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Table 6: Determinants of exit succe
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Table 7: Ultimate staying power of
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Appendix 1: Imputed enterprise valu
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Private equity and long-run investm
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alternative names associated with t
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4. Finally, we explore whether firm
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When we estimate these regressions,
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cutting back on the number of filin
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Table 1: Summary statisticsPanel D:
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Table 4: Relative citation intensit
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figuresFigure 1: Number of private
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Private equity and employment*steve
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Especially when taken together, our
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centred on the transaction year ide
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and Vartia 1985.) Aggregate employm
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sectors. In Retail Trade, the cumul
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employment-weighted acquisition rat
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FIguresFigure 1: Matches of private
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Figure 6:Figure 6A: Comparison of n
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Figure 8:Figure 8A: Comparison of j
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Figure 11: Variation in impact in e
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Figure 12: Differences in impact on
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Private equity and corporate govern
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et al (2007) track the evolution of
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groups aim to improve firm performa
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distribution of the LBO sponsors, m
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the most difficult cases. This stor
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to see whether these changes of CEO
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Figure 3:This figure represents the
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TablesTable 1: Company size descrip
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Table 5: Changes in the board size,
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Table 7: Board turnoverPanel A: Siz
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Part 2Case studiesThe Global Econom
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European private equity cases: intr
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Exhibit 1: Private equity fund size
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Messer Griesheimann-kristin achleit
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ealized it was not possible to grow
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The deal with Allianz Capital partn
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the deal, the private equity invest
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Exhibit 1: The Messer Griesheim dea
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Exhibit 5: Post buyout structureMes
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New Lookann-kristin achleitnerTechn
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feet. This restricted store space w
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institutional investors why this in
Page 127 and 128: Although a public listing did not a
Page 129 and 130: Exhibit 5: Employment development a
Page 131 and 132: Chinese private equity cases: intro
Page 133 and 134: Hony Capital and China Glass Holdin
Page 135 and 136: Hony’s Chinese name means ambitio
Page 137 and 138: Establishing early agreement on pos
Page 139 and 140: Executing the IPOEach of the initia
Page 141 and 142: Exhibit 1A: Summary of Hony Capital
Page 143 and 144: Exhibit 4: Members of the China Gla
Page 145 and 146: Exhibit 6A: China Glass post‐acqu
Page 147 and 148: Exhibit 8: China Glass stock price
Page 149 and 150: 3i Group plc and Little Sheep*Lily
Page 151 and 152: y an aggressive franchise strategy,
Page 153 and 154: soul” of the business. But there
Page 155 and 156: Exhibit 1: Summary information on 3
Page 157 and 158: Exhibit 6: An excerpt from the 180-
Page 159 and 160: Indian private equity cases: introd
Page 161 and 162: ICICI Venture and Subhiksha *Lily F
Page 163 and 164: investment,” recalled Deshpande.
Page 165 and 166: 2005 - 2007: Moderator, protector a
Page 167 and 168: Exhibit 3: Subhiksha’s board comp
Page 169 and 170: Warburg Pincus and Bharti Tele‐Ve
Page 171 and 172: founded two companies at this time
Page 173 and 174: By 2003 this restructuring task was
Page 175 and 176: Exhibit 1C: Private equity investme
Page 177: Exhibit 4B: Bharti cellular footpri
Page 181 and 182: Exhibit 7: Bharti’s board structu
Page 183 and 184: In the 1993‐94 academic year, he
Page 185 and 186: consumer products. She was also a R
Page 187 and 188: AcknowledgementsJosh LernerHarvard
Page 189: The World Economic Forum is an inde
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