Sisecam, Europe’s largest glass manufacturer, is about to complete the ground work to consolidate its divisions under one umbrella/one brand. The project will delist four subsidiaries whose shares are publicly listed.

Fortis Healthcare Ltd India shareholders have approved IHH's takeover of Fortis. The deal is now awaiting regulatory approvals. The Fortis investment is a big challenge for IHH and it may take several years before this investment becomes earnings accretive. IHH is also postponing expansion plans in Turkey.

IHH reported decent sales growth across regions. The margins are somewhat weaker due to investments. RM2.3B in December quarter revenues registering 18% growth. EBITDA reads RM614.3M (+5%). Earnings posted 74% YoY growth to RM415.8B on several one-off items and exceptional gains. Full fiscal year 2015 revenues and EBITDA grew by 15% and 10% YoY to RM8.5B and RM2.1B, respectively. Investments are broadly on track to meet targets.

India is a bright spot in emerging markets attracting interest from global healthcare providers. IHH Healthcare Berhad and Life Healthcare are among the most prolific investors in India. The industry should post 20%+ sales CAGR to 2019. We discuss how acquisitions are changing the industry and prospects for future capex. 

2015 was a busy year both with consolidation and capacity investments led by IHH and South African providers. Capex should slow down to allow demand to mature in 2016 but the backlog of investments remains rich. There is little change in industry margins despite investments. Recap of investments, M&A valuations in India, Myanmar and UAE are in the main text.  

Outflows continue with some shuffling. We are not out of the woods by any stretch of imagination; and it is too early to say the worst is over. EM investors will be compelled to trade stocks.