Merging all India businesses into listed entity: A first by an MNC Schaeffler Group announced merger of its unlisted subsidiaries i.e. INA Bearings (INA) and Luk India (LuK) into the listed subsidiary Schaeffler India (SCHFL), to form a single India wide entity. The consideration will be paid through share swap, resulting in an increase in parent company's holding to 74.1% (vs 51.3%).The transaction value is pegged at INR 62bn, valuing the combined entity at PE of 48x CY16 (32% premium to SCHFL) and EVE of 23x CY16 (8% premium to SCHFL). We believe its first time an MNC is consolidating all its business under the listed entity and the premium paid over Schaeffer India is justified as a)...