ASIAN TRANSPORT &

LOGISTICS NEWSLETTER September 2014, ISSUE 80 A quarterly newsletter of developments in the transport & logistics sector in Asia

Welcome to the Asian Transport & Logistics

Newsletter. This publication was initiated to CONTENTS address the growth of opportunities in the 1 growing and consolidating Asian logistics CHINA 2 market. We hope you find it informative. 2

KOREA 2

investment banking firm specializing in 3

executing cross-border transactions involving SINGAPORE 3 Asia, including acquisitions, divestments, 3 JVs, capital raising, and restructuring. We have offices and professional staff 3 throughout Asia, the Middle East, Europe,

and the US.

Mark Webster Managing Director [email protected]

Australia

Catalyst Direct Capital Management, an Australian PE firm, OPTrust Private Logistics Sector Stock Indices (12 months ending 23Sep14) Markets, a Canadian PE firm and the management of BTI, acquired BTI in a management buyout transaction for approximately US$47m. BTI operates as an airport shuttle company under the name SkyBus. Post transaction, Catalyst and OPTrust will hold a majority stake in the company. September 3, 2014

Linfox Armaguard, an Australian currency management company offering cash logistics, currency management, and precious cargo services, acquired the cash logistics services of Brinks Australia, an Australian provider of armored car, air courier, coin wrapping and currency processing services, for an undisclosed amount. The acquisition

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stake in Hebei Airlines, a Chinese airline operating company, from Jizhong Energy Group, a Chinese conglomerate for an undisclosed amount. Hebei Airlines was founded in 2010 and owns and operates 16 aircraft. July 17, 2014

India

Mahindra Logistics, a leading Indian third party logistics services provider acquired a majority stake in Lords Freight, an international freight forwarding company specializing in customs brokerage, transportation and warehousing for an undisclosed consideration. August 20, 2014 includes Brinks Australia's Cash in transportation company which also transit services which include provides low temperature logistics banknotes, coins and other items of services for US$8m. September 2, 2014 The Singaporean operations of SBS

value from one location to another, Logistics, a leading Japanese third Shenzhen Maoye Trade Building, a including bank branches, ATMs, large party logistics provider acquired a 32% Chinese real estate company and retailers and other premises holding stake in Transpole Logistics, an Indian subsidiary of Maoye, a listed Chinese cash. June 3, 2014 provider of FCL and LCL services, from operator of department stores, acquired Everstone Capital Management, a a 99.9% stake in Liaoning Logistics, a Qube Logistics, an Australian provider leading Indian PE firm for US$73m. Chinese provider of logistics services, of integrated port logistics services July 7, 2014 acquired CRT Group, an Australian from Shenyang Commercial City, a logistics services provider to end listed Chinese real estate developer for US$47m. June 26, 2014 markets such as specialty chemicals, industrials and food from , an Australian listed rail freight operator for an estimated EV of US$37m. Warburg Pincus invested an additional Korea August 14, 2014 US$50m in ANE Logistics, a Chinese logistics and courier services provider A consortium led by Orix Corp, the Japanese financial group acquired a based in Hangzhou. The PE firm invested an undisclosed amount in the majority stake in Hyundai Logistics, company earlier this year. ANE Logistics one of the largest logistics companies China aims to be the largest player in the LTL in Korea offering third party logistics transport segment. and freight forwarding for US$580m. Zhisin Group, a Chinese July 3, 2014 July 18,2014 public transportation company acquired Korean Air Lines, a listed Korean airline Shanghai Jin Jiang Pacific Passenger Xiamen Airlines, a Chinese airline acquired a 30.2% stake in Hanjin Services, another Chinese passenger operating company, acquired a 99% Shipping, a listed marine

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transportation business. The implied EV of the transaction is US$1.29bn. June 10, 2014

National Pension Service, a Korean pension fund manager acquired a 17% stake in SK Shipping, a leading Korean marine transport services provider from Headland Capital Partners, a -based PE firm for US$108m. August 23, 2014

Malaysia

Ekuiti Nasional Berhad, a government backed investment firm acquired a 95% stake in Orkim, a Malaysian company offering ship management services and ship brokerage from GMV-Orkim, a cranes and other heavy equipment for Malaysian company operating various Vietnam US$17m. July 7, 2014 ship brokerage and ship management

services companies, for US$110m. The Suttons Group, an international DB Schenker acquired the remaining transaction should allow Ekuinas to chemical, logistics, and supply chain 49% of the shares in Schenker Gemadept Logistics from Gemadept expand its oil and gas portfolio specialist acquired IS Logistics Group, Logistics for an undisclosed amount. companies and strengthen its presence a provider of logistics and supply chain in the petroleum transportation services to the chemical manufacturing The JV was initially formed in 2007 to provide logistics and supply chain industry. Orkim reported revenues of industry for an undisclosed amount. The services, geared towards customers US$42m in revenues for the fiscal year acquisition is i strategy of continually expanding in operating in Electronics, Retail and 2013. August 21, 2014 logistics hubs and petrochemical Consumer Goods. August 7, 2014 manufacturing zones globally. Singapore September 1, 2014

Alibaba, the leading Chinese e- commerce company acquired a 10% Thailand stake in Singapore Post, a Singaporean

mail, logistics and retail solutions Nok Airlines, a Thai airline, together provider for US$249m. Post transaction, with Scoot, a Singaporean airline, Alibaba will become the second largest acquired Pete Air Co, a Thai airline, for shareholder in the company. June 1, 2014 US$64m in order to extend its reach

across Thailand. Upon completion of Hup Hin Capital, a Singaporean funds the transaction, Pete Air will operate as management company acquired a 70% NokScoot Airlines. June 19, 2014 stake in Hup Hin Transport, a

Singaporean heavy transport service solutions provider from Tat Hong

Holdings, a Singaporean supplier of

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Asian Transport & Logistics Transactions with Multiples (12 months ending 23Sep14)

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Business Development Asia is an NEW YORK LONDON Euan Rellie, [email protected] Andrew Huntley, [email protected] investment banking firm that Business Development Asia LLC Business Development Asia Ltd advises on cross-border mergers 1270 Avenue of the Americas, Suite 2310 33 Cavendish Square and acquisitions, distressed New York, NY 10020, USA London W1G 0PW, United Kingdom situations, capital raisings and T (1) 212-265-5300 T (44) 20-7182-4518 F (1) 212-265-4300 F (44) 20-7182-4100 restructurings. Our focus is on transactions with an Asian angle or SHANGHAI HONG KONG story, including the Middle East, Jeffrey Wang, [email protected] Paul DiGiacomo, [email protected] Business Development Asia Co Ltd Business Development Asia (HK) Ltd with enterprise values of up to The Center, #1602, 989 Changle Road Suite 905, ICBC Tower US$1bn. BDA has ten offices and Shanghai, 200031, China 3 Garden Road, Hong Kong over 85 professional staff T (86) 21-5407-5580 T (852) 2537-9565 throughout Asia, the U.S. and F (86) 21-5407-5680 F (852) 2537-4406

Europe. For further information on BEIJING TOKYO Charles Maynard, [email protected] Jeff Acton, [email protected] articles in this newsletter, please Business Development Asia (HK) Ltd Business Development Asia K.K. contact the offices listed. Beijing Branch Office 17F Atago Green Hills Mori Tower Unit 1108, Level 11, China World Office 1 2-5-1 Atago, Minato-ku

1 Jianguomenwai Avenue Tokyo, 105-6021, Japan Mark Webster Chaoyang District T (81) 3-3433-5800 Beijing, 100020, China Managing Director F (81) 5404-8181 T (86) 10-5737-9029 [email protected]

SEOUL BAHRAIN www.bdallc.com Heejun Yang, [email protected] Ahmed Al Balooshi, [email protected] Business Development Asia Business Development Asia [email protected] 21 Floor, S-Tower Meral Building #2572, Road #2833 116 Sinmunno 1-Ga, Jongno-Gu 4th Floor, Office #42, Block #428 Seoul, 110-061, Korea PO Box 30295, Seef District T (82) 2767-2730 Kingdom of Bahrain F (82) 2757-2702 T (973) 1758-1336

MUMBAI HO CHI MINH CITY Sumit Ganguly, [email protected] Business Development Asia (HK) Ltd Business Development Asia (HK) Ltd HCMC Rep Office India Branch Office #1337 Kumho Plaza 302 Vibgyor Towers, C-62, G Block, District 1, Ho Chi Minh City Bandra Kurla Complex, Bandra (East), Vietnam Mumbai 400051, India Tel (84) 8-62-888-755 Tel (91) 22-6140-3800 Fax (91) 22-6140-3820