Monthly M&A Insider

A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY EDITION MONTHLY M&A INSIDER OCTOBER 2012 CONTENTS

GLOBAL OVERVIEW 01 AMERICAS: L A TIN AMERICA 09 N ORTH AMERICA 18 ASIA-PACIFIC 29 EUROPE 41 MIDDLE EAST & AFRICA 52 ABOUT MERRILL CORPORATION 62

MERGERMARKET MONTHLY M&A INSIDER

Part of The Mergermarket Group www.mergermarket.com

80 Strand 11 West 19th Street Suite 2401-3 London, WC2R 0RL 2nd ﬂ. Grand Millennium Plaza United Kingdom New York, NY 10011 181 Queen’s Road, Central USA Hong Kong t: +44 (0)20 7059 6100 t: +1 212 686-5606 t: +852 2158 9700 f: +44 (0)20 7059 6101 f: +1 212 686-2664 f: +852 2158 9701 [email protected] [email protected] [email protected] GLOBAL OVERVIEW

GLOBAL M&A ACTIVITY DISAPPOINTED IN Q3 WITH DEAL VOLUME FALLING BY 16% FROM 3,203 IN GLOB Q3 2011 TO 2,679 IN Q3 2012. DEAL VALUE PAINTS A SIMILAR PICTURE, DROPPING BY A FIFTH FROM

A US$579BN TO US$461BN OVER THE SAME PERIOD. L OVERVIE

Robust deal values in North America a Singapore-based conglomerate with extensive food and W brewing operations. In a related transaction, Dutch brewer Casting a look to regional activity, North America stands out Heineken moved to acquire a majority stake in Asia-Pacific as a global bright spot: while Q3 has seen a decline in overall Breweries (APB) for US$6.6bn in July – indeed, as F&N holds M&A, aggregate deal value climbed to the highest level a 40% stake in APB, Heineken’s move may well have made since the first quarter of last year at US$235.7bn. Even in F&N a more attractive target for TCC. the private equity arena – a space hard hit by the slowdown of the past year – buyout and exit values witnessed healthy Turning to deals in the pipeline, Richard Schulze, who owns year-on-year increases. It appears that fewer, higher-value a 20.3% stake of Best Buy Co Inc, voiced his plans to take the deals are boosting dealmaking among both financial and company private – a move with a projected value of US$6.2bn. strategic investors.

Certainly, this recent trend is evident in the consumer sector – Outlook particularly in relation to North American Kraft Foods’ spinoff Traditionally, after the seasonal slowdown in the summer of its snacks business. The deal, valued at US$26bn, ranks holiday period, M&A activity picks up in the ﬁnal quarter of as the largest North American transaction in the quarter and the year, with a particularly strong showing in December. forms part of a string of spinoffs by international food groups Admittedly, the early weeks of the fourth quarter have not over the past year. inspired much conﬁdence. It was widely expected that the In the consumer sector itself, the spinoff comprised 74% US$45bn merger of BAE Systems and EADS – the defence of North American consumer deal value, and contributed sector’s biggest deal in a decade – would trigger a rush of heavily to the sector’s eight-fold increase in deal value deal-making in the industry. But with the deal failing, these between Q3 2011 and Q3 2012. With 16.6% of global M&A hopes have been dashed. value, the consumer sector outstripped a number of other Yet with corporate reorganisation taking place among some industries to become Q3’s second biggest in North America of the world’s largest consumer groups and other strategic – in comparison, the space accounted for just 2% of global investors expanding into emerging markets to seize new deal value in Q3 2011. opportunities through M&A, it shows that despite the climate of slowed deal-making and general economic malaise, there A growing appetite for Consumer deals remain opportunities for growth. While the Kraft demerger accounts for the bulk of consumer activity in North America, there are a number of other recent, high-value consumer deals that have come to market across the globe. For instance, TCC Assets announced in September its US$10bn acquisition of Fraser & Neave (F&N),

Head of Research: Elias Latsis Global overview: Kristina Thompson and Fabio Lopes Editor: Gwen Ceton Latin America: Jennifer Ruiz For advertising opportunities contact: North America: Urna Chakraborty and Ashley Klepach Erik Wickman Asia-Paciﬁc: Raza Hussain Tel: + (1) 212 686-3329 Europe: Peter Kruk & Kirsty Wilson [email protected] Middle East & Africa: Darragh Riordan & Silvia Paparello

Monthly M&A Insider 01 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – GLOBAL GLOB VALUE A

L OVERVIE Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 1 Goldman Sachs 377,755 220 467,150 -19.1% W 2 3 Morgan Stanley 331,661 188 357,517 -7.2% 3 2 JPMorgan 295,608 161 372,174 -20.6% 4 9 Deutsche Bank 256,118 139 213,890 19.7% 5 6 Barclays 254,610 137 249,164 2.2% 6 7 Citigroup 233,166 118 243,254 -4.1% 7 4 Credit Suisse 226,178 131 299,405 -24.5% 8 5 Bank of America Merrill Lynch 178,746 116 250,474 -28.6% 9 12 Rothschild 144,412 166 108,572 33.0% 10 14 Nomura Holdings 135,877 91 72,644 87.0% 11 10 UBS Investment Bank 117,619 110 170,795 -31.1% 12 8 Lazard 113,179 135 216,762 -47.8% 13 13 BNP Paribas 86,908 44 72,823 19.3% 14 18 RBC Capital Markets 79,913 105 54,139 47.6% 15 11 HSBC 46,764 45 111,492 -58.1% 16 20 Jefferies & Company 41,425 78 38,353 8.0% 17 40 BMO Capital Markets 41,190 32 22,882 80.0% 18 58 Greenhill & Co 40,773 31 12,087 237.3% 19 15 Evercore Partners 37,510 59 66,624 -43.7% 20 16 SG 37,299 40 60,181 -38.0% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – GLOBAL VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 1 Goldman Sachs 377,755 220 251 -31 2 3 Morgan Stanley 331,661 188 198 -10 3 6 Rothschild 144,412 166 173 -7 4 5 JPMorgan 295,608 161 183 -22 5 13 Deutsche Bank 256,118 139 143 -4 6 15 Barclays 254,610 137 108 29 7 4 PwC 13,529 136 194 -58 8 12 Lazard 113,179 135 145 -10 9 8 Credit Suisse 226,178 131 165 -34 10 11 Deloitte 11,156 130 147 -17 11 2 KPMG 14,278 122 207 -85 12 14 Citigroup 233,166 118 124 -6 13 7 Bank of America Merrill Lynch 178,746 116 170 -54 14 9 UBS Investment Bank 117,619 110 163 -53 15 18 RBC Capital Markets 79,913 105 84 21 16 17 Nomura Holdings 135,877 91 89 2 17 10 Ernst & Young 11,441 90 163 -73 18 16 Jefferies & Company 41,425 78 94 -16 19 19 M&A International 1,378 75 80 -5 20 24 Houlihan Lokey 13,164 69 64 5 Source: mergermarket

The ﬁnancial adviser league tables by value and volume have been run from 01-Jan-12 to 30-Sep-12. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Global. Monthly M&A Insider 02 LEAGUE TABLES

TOP 20 LEGAL ADVISERS – GLOBAL GLOB VALUE A

L OVERVIE Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 16 Clifford Chance 219,543 152 96,240 128.1% W 2 7 Freshﬁelds Bruckhaus Deringer 205,564 131 204,391 0.6% 3 3 Skadden Arps Slate Meagher & Flom 190,993 143 233,530 -18.2% 4 5 Linklaters 151,048 166 213,931 -29.4% 5 9 Latham & Watkins 126,483 192 195,603 -35.3% 6 1 Sullivan & Cromwell 126,419 87 318,424 -60.3% 7 11 Cleary Gottlieb Steen & Hamilton 120,576 77 166,396 -27.5% 8 14 Davis Polk & Wardwell 104,111 75 116,746 -10.8% 9 2 Simpson Thacher & Bartlett 103,593 83 295,246 -64.9% 10 13 Weil Gotshal & Manges 98,470 118 116,904 -15.8% 11 23 White & Case 95,043 122 67,604 40.6% 12 66 King & Wood Mallesons 91,176 61 24,487 272.3% 13 20 Kirkland & Ellis 90,859 186 74,507 21.9% 14 4 Wachtell, Lipton, Rosen & Katz 87,526 43 225,418 -61.2% 15 17 Jones Day 87,333 204 93,855 -6.9% 16 12 Allen & Overy 76,250 137 161,672 -52.8% 17 10 Cravath Swaine & Moore 74,670 34 167,170 -55.3% 18 19 Blake, Cassels & Graydon 72,479 76 79,845 -9.2% 19 8 Shearman & Sterling 66,622 74 199,800 -66.7% 20 21 Baker & McKenzie 53,283 149 72,206 -26.2% Source: mergermarket

TOP 20 LEGAL ADVISERS – GLOBAL VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 1 DLA Piper 34,041 206 259 -53 2 3 Jones Day 87,333 204 229 -25 3 2 Latham & Watkins 126,483 192 232 -40 4 8 Kirkland & Ellis 90,859 186 196 -10 5 4 Linklaters 151,048 166 205 -39 6 7 Clifford Chance 219,543 152 196 -44 7 5 Baker & McKenzie 53,283 149 198 -49 8 10 Skadden Arps Slate Meagher & Flom 190,993 143 169 -26 9 9 Allen & Overy 76,250 137 189 -52 10 6 Freshﬁelds Bruckhaus Deringer 205,564 131 196 -65 11 15 White & Case 95,043 122 115 7 12 13 Weil Gotshal & Manges 98,470 118 133 -15 13 11 CMS 9,174 110 161 -51 14 12 Hogan Lovells 46,225 101 152 -51 15 18 Sullivan & Cromwell 126,419 87 106 -19 16 17 Ashurst 31,911 86 107 -21 17 14 Simpson Thacher & Bartlett 103,593 83 116 -33 18 26 Paul Hastings 13,932 78 87 -9 19 21 Cleary Gottlieb Steen & Hamilton 120,576 77 97 -20 20 32 Stikeman Elliott 51,063 77 75 2 Source: mergermarket

The legal adviser league tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Global. Monthly M&A Insider 03 LEAGUE TABLES

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL BUYOUTS GLOB VALUE VOLUME A

L OVERVIE Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 The Carlyle Group 15,495 20 1 The Carlyle Group 15,495 20

W 2 BC Partners 10,721 4 2 Blackstone Group 8,741 14 3 Blackstone Group 8,741 14 3 AXA Private Equity 1,816 12 4 Apollo Global Management 7,924 3 4 Kohlberg Kravis Roberts & Co 2,858 11 5 Access Industries 7,482 2 5 The Riverside Company 0 10 6 Riverstone Holdings 7,350 2 6 Lloyds TSB Development Capital 396 9 7 Arcus Infrastructure Partners 5,633 1 7 HIG Capital 47 8 8 GS Capital Partners 4,754 5 8 EQT Partners 3,414 7 9 Advent International 4,649 5 9 Vista Equity Partners 2,501 7 10 Global Infrastructure Partners 4,489 3 10 Warburg Pincus 1,638 7 11 Macquarie Group 4,435 4 11 Oaktree Capital Group 572 7 12 CVC Capital Partners 4,174 6 12 CVC Capital Partners 4,174 6 13 Bain Capital 4,141 6 13 Bain Capital 4,141 6 14 EQT Partners 3,414 7 14 Partners Group Holding 1,690 6 15 Thomas H Lee Partners 3,090 2 15 Sun Capital Partners 585 6 Source: mergermarket Source: mergermarket

The private equity buyout activity tables by value and volume are based on private equity ﬁrms advising the bidder on buyout deals where the dominant geography of the target company is Global. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL EXITS VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 GS Capital Partners 9,890 4 1 Intel Capital 1,531 12 2 Hellman & Friedman 8,000 4 2 Draper Fisher Jurvetson 1,948 11 3 Kohlberg Kravis Roberts & Co 7,903 4 3 3i Group 1,122 11 4 Oaktree Capital Group 7,199 4 4 Battery Ventures 830 9 5 General Atlantic 7,107 4 5 The Riverside Company 70 9 6 Macquarie Group 6,971 8 6 Macquarie Group 6,971 8 7 The Carlyle Group 6,653 8 7 The Carlyle Group 6,653 8 8 Quadrangle Group 6,579 1 8 Sun Capital Partners 98 8 9 CVC Capital Partners 6,448 4 9 Benchmark Capital 1,619 6 10 Permira 5,889 2 10 Atlas Venture 1,571 6 11 Novator Partners 5,806 1 11 Softbank Capital Partners 869 6 12 Weston Presidio Capital 5,290 2 12 TA Associates 738 6 13 Madison Dearborn Partners 4,728 2 13 Kleiner, Perkins, Cauﬁeld & Byers 3,679 5 14 EnCap Investments 3,850 2 14 Polaris Venture Partners 1,514 5 15 Apollo Global Management 3,776 4 15 Bessemer Venture Partners 873 5 Source: mergermarket Source: mergermarket

The private equity exit activity tables by value and volume are based on private equity ﬁrms advising the vendor on exit deals where the dominant geography of the target company is Global. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

Monthly M&A Insider 04 TREND GRAPHS

GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND GLOB A 400 900 L OVERVIE 1,400 4,500

4,000 350 800 1,200

3,500 700 300 Number of deals Number of deals W 1,000 3,000 600 250

800 2,500 500 200 alue (US$bn) alue (US$bn) 400 2,000 V V 600 150 1,500 300 400 100 1,000 200

200 50 500 100

0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12* 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND

4000 18,000 900 3,500

3,500 16,000 800 3,000

14,000 700 3,000 Number of deals 2,500 Number of deals 12,000 600 2,500

10,000 500 2,000 2,000 alue (US$bn) 8,000 alue (US$bn) 400 V V 1,500 1,500 6,000 300 1,000 1,000 4,000 200

500 500 2,000 100

0 0 0 0 2006 2007 2008 2009 2010 2011 YTD 2012* 2006 2007 2008 2009 2010 2011 YTD 2012*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

Monthly M&A Insider 05 TREND GRAPHS

GLOBAL GEOGRAPHIC BREAKDOWN Q3 2012 GLOB

A VALUE VOLUME L OVERVIE

1.8% 2.7% 2.4% 4.2%

W 22.3% Asia-Pacific 21.5% Asia-Pacific

Europe Europe

North America North America

Middle East & Africa Middle East & Africa

Central & South America Central & South America 33.3%

51.4%

21.8%

38.5%

GLOBAL M&A SECTOR BREAKDOWN Q3 2012

VALUE VOLUME 0.1% 1.6% 1.7% 2.9% 1.8% 1.0% 1.0% 0.3% 1.7% 16.5% 3.4% Industrials & Chemicals 3.7% Industrials & Chemicals 20.3% 3.8% TMT 8.0% TMT Consumer Consumer 7.2%

16.2% Business Services Business Services 7.6% Energy, Mining & Utilities Energy, Mining & Utilities 8.0% Financial Services Financial Services

Pharma, Medical & Biotech 15.1% Pharma, Medical & Biotech

Leisure Leisure

Construction 10.2% Construction 16.6% 20.0% Transportation Transportation 13.1% Real Estate 12.5% Real Estate 5.9% Agriculture Agriculture

Defence Defence

Monthly M&A Insider 06 TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN GLOB

A VALUE VOLUME L OVERVIE

0.7% 0.7% 0.6% 0.5% 0.4% 0.5% 0.5% 100 100 0.9% 1.0% 1.1% 1.1% 1.1% 1.2% 1.3%

W 90 98 27.3% 29.8% 28.5% 3.9% 3.8% 4.7% 4.7% 5.0% 80 39.8% 42.0% 40.6% 96 5.0% 42.3% 5.5%

70 94 3.9% 20.6% 4.6% 19.3% 19.3% 60 92 4.5% 4.8% entage entage 4.7% 5.3% 16.9% 16.5% rc rc 15.3% 5.1% 50 16.8% 90 Pe Pe

40 88 27.6% 26.2% 28.0% 23.0% 19.3% 20.5% 20.8% 30 86 90.9% 90.1% 88.3% 89.2% 88.8% 88.1% 20 8.9% 7.9% 9.5% 10.2% 10.8% 84 87.4% 7.5% 7.9%

10 82 12.6% 12.5% 14.5% 14.5% 14.9% 14.5% 13.5%

0 80 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

US$251m-US$500m US$251m-US$500m

US$501m-US$2,000m US$501m-US$2,000m

US$2,001m-US$5,000m US$2,001m-US$5,000m

>US$5,001m >US$5,001m

SECTOR ANALYSIS

GLOBAL SECTOR ANALYSIS

Sector Q3 2012 Q3 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count value volume Energy, Mining & Utilities 92,020 19.9% 272 112,348 19.4% 288 -18% -6% Industrials & Chemicals 76,058 16.5% 544 105,397 18.2% 660 -28% -18% Consumer 76,565 16.6% 350 50,769 8.8% 423 51% -17% Financial Services 34,951 7.6% 213 76,005 13.1% 292 -54% -27% Pharma, Medical & Biotech 36,672 7.9% 194 60,182 10.4% 243 -39% -20% Technology 57,735 12.5% 308 36,456 6.3% 328 58% -6% Business Services 27,316 5.9% 334 31,627 5.5% 400 -14% -17% Media 16,966 3.7% 96 6,495 1.1% 112 161% -14% Transportation 13,277 2.9% 90 12,511 2.2% 96 6% -6% Real Estate 8,303 1.8% 42 23,326 4.0% 63 -64% -33% Leisure 7,914 1.7% 101 8,649 1.5% 104 -8% -3% Telecommunications 506 0.1% 100 47,682 8.2% 36 -99% 178% Defence 4,803 1.0% 9 115 0.0% 8 4077% 13% Construction 7,920 1.7% 100 6,304 1.1% 119 26% -16% Agriculture 506 0.1% 26 1,558 0.3% 32 -68% -19% Total 461,512 2,779 579,424 3,204 -20% -13%

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M E R R I L L D A T A S I T E ®

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deal value. During the comparable period last year it was was it year last period comparable the During value. deal American Latin the dominated that Telecommunications 32% a or US$32.6bn, at valued deals 11 with market, M&A for values year’s last to Similarly value. deal by share market few a to attributed be mainly can which Telecommunications, unusually had has sector Consumer the deals, large extremely year. this far thus investments high was year-to-date the in sector this in deal largest The mentioned acquisition of the already in stake 41.6% a of acquisition the was deal largest second Republic Dominican the Dominicana, Nacional Cerveceria based Brazil the Bebidas, Brasil Ambev by company, beverage for beverages, alcoholic and drinks soft of manufacturer acquisition the be to happened deal largest third The US$1bn. Embotelladoras Chile-based company, beverage another of Cola Coca market 23.6% a attained sector Utilities & Mining Energy, The valued deals 74 with year-to-date, the in value deal by share the was sector the in transaction largest The US$19bn. at in Cia de acquisition of a 60.1% stake e Industria SA Cosan by company, energy Brazil-based the US$2.6bn. for Comercio Consumer was the most active sector in sector active Consumer was the most by Energy, followed the year-to-date, Mining & Utilities sector, Consumer the year, the of quarters three ﬁrst the In active most the was US$29.1bn, worth deals 27 saw which by share market 36.3% a with America Latin in sector B E E K NFRASTRUCTURE H I DEALS T , DISTRIBUTI STA

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L ERAT W MER BERTIS ATIN T CO OP ACQUISITI A I SINCE the year-to-date. the year-to-date. Corporacion Nacional del Cobre de Chile’s acquisition of a de Chile’s Nacional del Cobre Corporacion mining and Sur SA, a copper American in Anglo 24.5% stake in in Chile US$1.7bn was the largest for smelting company, US$20.1bn, took place at the very end of June 2012. at the very place US$20.1bn, took with 38 deals and a US$7.1bn deal in third came Chile in the region. share an 8.8% market representing value combined deal value was mainly due to the acquisition of the acquisition due to was mainly deal value combined in a 49.7% stake at which was valued by Anheuser-Busch. This transaction, Mexico was the second most active Latin American country country Latin American active most was the second Mexico a 29.2% share attaining of the year, quarters three in the ﬁrst US$23.4bn. Such a large with 40 deals worth of deal value Unibanco for a deal value of US$5.2bn. The transaction was of US$5.2bn. The transaction a deal value for Unibanco 2012. in February announced the region. The largest deal in the year-to-date for Brazil Brazil for deal in the year-to-date The largest the region. a in Redecard, the acquisition of a 44.4% stake remains by Itau services, payment processing card of credit provider As expected, Brazil, with 247 deals worth US$37.9bn in the with 247 deals worth Brazil, As expected, of share of 2012, or a 47.3% market quarters three ﬁrst in country active the most M&A, was the Latin American Brazil, Mexico, and Chile with the largest with the and Chile Mexico, Brazil, share market L

A LATIN AMERICA LATIN

LATIN AMERICA DEAL OF THE QUARTER

Deal summary LATIN AMERICA

Announced: 06-Aug-12 Deal Value: US$2,763m

Brookﬁeld Infrastructure Partners LP and Abertis POST DEAL DETAILS: Infraestructuras, SA has agreed to acquire a 60% stake in • Brookﬁeld and Abertis will launch a tender offer to Obrascon Huarte Lain Brasil SA from OHL Concesiones SA. acquire the remaining 40% stake in OHL Brazil.

• Brookﬁeld Infrastructure expects to initially invest TERMS: approximately US$250m in OHL Brazil. • Abertis will issue 81.48m shares, representing a 10% of • OHL Brasil will own a 15% stake in Abertis. its total outstanding shares, as an equity consideration to OHL Brazil. EXPECTED COMPLETION: • An assumed concessions liability of ¤504.1m of OHL. • The transaction is expected to close in the fourth quarter • A cash consideration of ¤10.7m (US$13.3m). of 2012. • The implied equity value of the transaction is approximately ¤2,197.6m. CONDITIONS: • The offer provides a discount of 7.8% based on OHL • Subject to customary closing conditions. Brazil closing share price of BRL17.6 (US$8.58) on • Subject to approval from regulatory authorities. 07-Aug-12. • Subject to third party consents. • The offer provides a discount of 10.9% based on OHL Brazil closing share price of BRL16.22 (US$8.88) on • Subject to Obrascon Huarte Lain Brasil SA 06-Jul-12. shareholders’ approval.

RATIONALE: BACKGROUND: • The acquisition is in line with Abertis’ expansion strategy. • On 06-Aug-12, a joint venture was formed between Brookfield and Abertis to acquire a 60% • The acquisition will increase the concessions portfolio stake in OHL Brazil. managed by Abertis and Brookfield. • Brookfield Infrastructure and its institutional partners • The acquisition will enable Brookfield to generate stable would own 49% of the joint venture and Abertis would cash flow. own the remaining 51% in the joint venture.

• Earlier OHL Brazil held a 5% stake in Abertis.

Monthly M&A Insider 10 DEAL OF THE QUARTER

Exit multiples – Y/E 31-Dec-11 Premium analysis LATIN AMERICA Multiples Value (US$m) Offer price per share (US$) -

Revenue 2.6x 18,655 1 day before -7.79% EBITDA 7.1x 3,324 1 month before -10.87% EBIT 8.9x 2,960 1 day after -7.32% Earnings 2.5x 1,839 Pre-rumour -5.66%

Advisers Target/Seller Bidder Financial Banco BTG Pactual Financial SG JPMorgan Legal Clifford Chance (Advising JPMorgan); Legal Freshﬁelds Bruckhaus Deringer; Lefosse Advogados; Machado Meyer Sandacz e Opice Linklaters

Bidder Abertis Infraestructure Partners SA Headquarters: Avinguda del Parc Logistic 12-20 Barcelona 08040 Spain Sector: Construction

Description: Spain based company engaged in the management of mobility and telecommunications infrastructures

Brookﬁeld Infrastructure Partners LP

Headquarters: Canada

Sector: Construction

Description: Canada based operator of infrastructure assets

Target Obrascon Huarte Lain Brasil SA Headquarters: Rua Joaquim Floriano, 913 - 6 Floor Itaim Bibi Sao Paulo Brazil Sector: Construction

Description: Brazil based company engaged highway operator and construction

Monthly M&A Insider 11 TOP DEALS

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF Q3 2012 LATIN AMERICA

Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal sector Revenue EBITDA P/E 1-day value before (US$m) 6-Aug-12 Abertis Infraestructuras Obrascon Huarte Lain Construction OHL Concesiones SA 2.6 7.1 2.5 -7.8% 2,763 SA; and Brookﬁeld Brasil SA (60% stake) Infrastructure Partners LP 24-Jul-12 Corporacion Financiera Promigas SA ESP Energy, Mining 20.2 39.1 19.3 -13.5% 1,908 Colombiana SA (75.03% stake) & Utilities 23-Aug-12 Corporacion Nacional del Anglo American Sur SA Energy, Mining Anglo American Plc - - - - 1,700 Cobre de Chile (24.5% stake) & Utilities 23-Aug-12 Mitsui & Co Ltd; and Anglo American Sur SA Energy, Mining Anglo American - - - - 1,100 Corporacion Nacional del (5% stake) & Utilities Plc; and Mitsubishi Cobre de Chile Corporation 02-Jul-12 Public Sector Pension Isolux Infrastructure SA Construction Grupo Isolux Corsan SA - - - - 630 Investment Board (undisclosed stake) 08-Aug-12 Royal DSM NV Tortuga Companhia Pharma, - - - - 575 Zootecnica Agraria Medical & Biotech 19-Jul-12 Consortium led by Repsol Butano Chile Industrials Repsol SA - - - - 540 LarrainVial SA & Chemicals 05-Jul-12 STR Projetos e STR Projetos e Energy, Mining Banco BTG Pactual SA - - - - 367 Participacoes Ltda Participacoes em & Utilities Recursos Naturais SA (9% stake) 11-Jul-12 Australia Acquisition Corp Ferrous Resources Leisure Harbinger Capital - - - - 350 do Brasil Ltda (9.7% Partners Stake); and Asian Coast Development (Canada) Limited (65.4% Stake) 13-Sep-12 The Carlyle Group LLC Tok & Stok Ltda Consumer 1.2 - - - 345 (60% stake) Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target company being Latin America Data correct as of 09-Oct-12

Monthly M&A Insider 12 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – LATIN AMERICA LATIN AMERICA VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$m) (US$bn) (%) 1 12 JPMorgan 36,158 13 9,630 275% 2 17 Lazard 30,177 11 7,035 329% 3 19 Deutsche Bank 27,725 10 5,172 436% 4 10 Barclays 26,604 4 14,780 80.0% 5 15 Bank of America Merrill Lynch 25,039 10 7,573 231% 6 8 Morgan Stanley 23,244 6 15,235 52.6% 7 2 Banco Itau BBA 21,361 29 26,761 -20.2% 8 1 Banco BTG Pactual 18,826 31 35,751 -47.3% 9 6 Goldman Sachs 17,652 17 19,470 -9.3% 10 7 Citigroup 15,121 9 15,735 -3.9% 11 3 Banco Bradesco BBI 14,126 16 24,973 -43.4% 12 5 Rothschild 12,657 16 20,391 -37.9% 13 4 Credit Suisse 11,095 19 23,178 -52.1% 14 11 Santander Global Banking and Markets 6,068 8 14,170 -57.2% 15 16 Banco Espirito Santo de Investimento 5,783 5 7,192 -19.6% 16 42 BR Partners 5,700 8 509 1019% 17 14 UBS Investment Bank 4,022 8 7,950 -49.4% 18 - ABN AMRO Bank 3,456 1 - - 19 - SG 2,763 1 - - 20 13 HSBC 2,115 4 8,916 -76.3% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – LATIN AMERICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 Banco BTG Pactual 18,826 31 26 5 2 2 Banco Itau BBA 21,361 29 25 4 3 3 Credit Suisse 11,095 19 22 -3 4 4 Goldman Sachs 17,652 17 19 -2 5 5 Banco Bradesco BBI 14,126 16 17 -1 6 9 Rothschild 12,657 16 11 5 7 14 JPMorgan 36,158 13 7 6 8 19 Lazard 30,177 11 5 6 9 25 Deutsche Bank 27,725 10 4 6 10 17 Bank of America Merrill Lynch 25,039 10 6 4 11 8 Citigroup 15,121 9 13 -4 12 7 Santander Global Banking and Markets 6,068 8 14 -6 13 10 BR Partners 5,700 8 11 -3 14 16 UBS Investment Bank 4,022 8 6 2 15 20 Vinci Partners 153 7 5 2 16 6 Morgan Stanley 23,244 6 14 -8 17 11 Banco Espirito Santo de Investimento 5,783 5 10 -5 18 18 Barclays 26,604 4 5 -1 19 23 HSBC 2,115 4 4 0 20 - Ernst & Young 57 4 - - Source: mergermarket

TOP 20 LEGAL ADVISERS – LATIN AMERICA LATIN AMERICA VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$m) (US$bn) (%) 1 3 Skadden Arps Slate Meagher & Flom 31,122 10 17,783 75.0% 2 6 Clifford Chance 27,741 10 14,430 92.2% 3 54 Freshﬁelds Bruckhaus Deringer 25,517 3 884 2787% 4 4 Sullivan & Cromwell 24,161 8 17,452 38.4% 5 - Alston & Bird 20,805 3 - - 6 55 Creel, Garcia-Cuellar, Aiza y Enriquez 20,466 4 844 2325% 7 155 Greenberg Traurig 20,120 5 39 51490% 8 56 Mijares, Angoitia, Cortes y Fuentes 20,100 3 819 2354% 9 17 Cravath Swaine & Moore 20,100 1 6,535 208% 10 19 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 17,020 21 6,458 164% 11 14 Shearman & Sterling 10,069 7 7,887 27.7% 12 5 Machado Meyer Sendacz e Opice 9,740 41 16,222 -40.0% 13 31 Lefosse Advogados 8,102 15 2,503 224% 14 9 Souza, Cescon, Barrieu & Flesch Advogados 7,194 24 10,922 -34.1% 15 11 Cleary Gottlieb Steen & Hamilton 7,022 5 9,819 -28.5% 16 47 Linklaters 6,547 12 1,092 500% 17 40 Uria Menendez 6,368 8 1,414 350% 18 8 Simpson Thacher & Bartlett 6,097 4 11,621 -47.5% 19 69 Jones Day 5,819 10 658 784% 20 - Bredin Prat 5,427 1 - - Source: mergermarket

TOP 20 LEGAL ADVISERS – LATIN AMERICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 2 Machado Meyer Sendacz e Opice 9,740 41 34 7 2 1 Pinheiro Neto Advogados 3,339 32 39 -7 3 6 Souza, Cescon, Barrieu & Flesch Advogados 7,194 24 19 5 4 3 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 17,020 21 27 -6 5 4 Barbosa, Mussnich & Aragao 4,644 20 25 -5 6 21 Lefosse Advogados 8,102 15 9 6 7 20 Veirano Advogados 873 15 10 5 8 30 Azevedo Sette Advogados 1,466 14 5 9 9 44 Linklaters 6,547 12 3 9 10 16 Gomez-Pinzon Zuleta 1,055 12 11 1 11 5 Tozzini Freire Teixeira e Silva Advogados 937 12 21 -9 12 7 Baker & McKenzie 2,553 11 17 -6 13 12 Estudio Muniz, Ramirez, Perez-Taiman & Olaya Abogados 1,104 11 13 -2 14 17 Skadden Arps Slate Meagher & Flom 31,122 10 10 0 15 8 Clifford Chance 27,741 10 14 -4 16 23 Jones Day 5,819 10 7 3 17 19 Prieto & Carrizosa 1,047 9 10 -1 18 10 Rodrigo Elias & Medrano 732 9 13 -4 19 18 Sullivan & Cromwell 24,161 8 10 -2 20 57 Uria Menendez 6,368 8 2 6 Source: mergermarket

LATIN AMERICAN M&A QUARTERLY TREND LATIN AMERICAN M&A QUARTERLY PRIVATE LATIN AMERICA EQUITY TREND

70 180 4,500 18

160 4,000 16 60

140 3,500 14 Number of deals 50 Number of deals 120 3,000 12

40 100 2,500 10 alue (US$m) alue (US$bn)

80 V 2,000 8 V 30

60 1,500 6 20 40 1,000 4

10 20 500 2

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

180 700 8,000 50

45 160 7,000 600 40 140 6,000 Number of deals Number of deals 500 35 120 5,000 30 100 400 4,000 25 alue (US$m) alue (US$bn)

80 V V 300 20 3,000 60 200 15 2,000 40 10 100 1,000 20 5

0 0 0 0 2006 2007 2008 2009 2010 2011 YTD 2012* 2006 2007 2008 2009 2010 2011 YTD 2012*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

Monthly M&A Insider 15 TREND GRAPHS

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN Q3 2012 LATIN AMERICA

VALUE VOLUME 1.1% 2.1% 0.9% 1.8% 0.9% 4.3% 4.5% Brazil Brazil 7.1% Chile Chile 0.9% 15.6% Colombia Colombia

Mexico Ecuador 14.3% Argentina Mexico 48.0% 47.3% Paraguay Paraguay

Peru Peru 1.8% Uruguay

Argentina 9.8% 27.7% Bolivia

11.6%

LATIN AMERICAN M&A SECTOR BREAKDOWN Q3 2012

VALUE VOLUME

1.5% 0.9% 1.9% 0.1% 1.8% 0.9% 0.8% 7.6% 2.7% Consumer 3.6% 17.9% Consumer

Energy, Mining & Utilities 4.5% Energy, Mining & Utilities

25.6% Industrials & Chemicals Industrials & Chemicals 5.4% Business Services Business Services

Pharma, Medical & Biotech 5.4% Pharma, Medical & Biotech

Financial Services Financial Services 17.0% Leisure 7.1% Leisure 42.3% Construction Construction 5.3% Agriculture Technology 8.0% 3.8% Media Agriculture

4.7% Real Estate 15.2% Media 1.4% 4.9% 9.8% Telecommunications Real Estate

Telecommunications

Transportation

Monthly M&A Insider 16 TREND GRAPHS

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN LATIN AMERICA

VALUE VOLUME

1.0% 0.2% 0.6% 0.3% 1.2% 0.8% 0.5% 1.0% 0.7% 1.2% 1.8% 2.0% 1.1% 0.3% 100 100 12.7% 9.4% 5.4% 5.5% 4.7% 6.9% 14.6% 14.5% 14.0% 6.9% 6.0% 14.8% 8.1% 90 25.2% 6.2% 5.3% 6.9% 90 7.4% 5.4% 5.8% 7.7% 10.3% 10.0% 6.3% 80 10.1% 10.7% 14.1% 80 24.9% 70 21.8% 15.6% 24.5% 27.5% 70 60 36.6% 32.3% entage entage 8.3% rc rc 50 19.2% 60 Pe Pe 32.4% 87.5% 88.2% 86.3% 84.6% 20.3% 85.1% 85.7% 40 18.4% 82.3% 3.5% 50

30 29.3% 40 46.9% 10.7% 20 39.6% 36.1% 30.6% 28.9% 30 10 16.2% 9.2% 0 20 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

US$251m-US$500m US$251m-US$500m

US$501m-US$2,000m US$501m-US$2,000m

US$2,001m-US$5,000m US$2,001m-US$5,000m

>US$5,001m >US$5,001m

SECTOR ANALYSIS

LATIN AMERICAN SECTOR ANALYSIS

Sector Q3 2012 Q3 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 5,696 42.3% 19 4,133 9.3% 15 38% 27% Industrials & Chemicals 659 4.9% 17 1,166 2.6% 28 -43% -39% Consumer 1,020 7.6% 20 6,160 13.8% 31 -83% -35% Financial Services 516 3.8% 8 6,199 13.9% 11 -92% -27% Pharma, Medical & Biotech 626 4.7% 9 891 2.0% 10 -30% -10% Technology 5 0.0% 5 811 1.8% 9 -99% -44% Business Services 192 1.4% 11 1,483 3.3% 18 -87% -39% Media 250 1.9% 3 0 0.0% 2 0% 50% Transportation 0 0.0% 1 836 1.9% 4 -100% -75% Real Estate 202 1.5% 2 874 2.0% 7 -77% -71% Leisure 711 5.3% 6 134 0.3% 4 431% 50% Telecommunications 12 0.1% 1 21,010 47.1% 5 0% 100% Defence 0 0.0% 0 0 0.0% 0 100% 0% Construction 3,447 25.6% 6 165 0.4% 4 100% 50% Agriculture 114 0.8% 4 774 1.7% 8 -85% -50% Total 13,450 112 44,636 156 -70% -28%

Monthly M&A Insider 17 18

EST EST E TE. TE. A H H ND

G A 10.8% 10.8% N T HI I A Monthly M&A Insider Monthly achs climbed to to climbed achs E S H R-TO-D A RTER A his represented an 18.7% 18.7% an represented his T E YE U oldman Q G H RTER BY 15.2% N T NG I A I $235.7BN, T U Q US $223bn, &A T M US ST A A N E L LUE FROM Q3 2011, BUT ICA A H LUED achs tops ﬁnancial advisers achs tops A S EST PERFORM N V I H AMER G SE H VELY V VELY HI A I T E ith 136 deals worth ith 136 deals worth oldman

C RE ORT G league tables W ﬁnancial for tables league mergermarket’s on spot top the and volume. in both value advisers bank. investment the for value in increase C TH N N L I A OLLE LS). C A oods oods LS F 12.7% A roup Inc, Inc, roup A NCE Q1 2011 G I S raft 985 DE A K N VOLUME FOR Q3 FROM T FOR N VOLUME ICA I H oods

T I 879 DE F S W $17.6bn, which which $17.6bn, H RTER S SED T exen Inc by China China by Inc exen I A raft THI US A N K U Q tilities represented 24.5% 24.5% represented tilities RE his growth brought the the brought growth his U C T td for td for ue to the large value of deals deals of value large the to ue NG L D $209.2BN W NOTE W NOTE MER MI $26.3bn spin-off of $263BN). H oods. TS DE US I F G US tilities dominated top deals deals top dominated tilities US $5bn. ining and tilities sector secured three of the the of three secured sector tilities HI U

M &A by value. value. by &A raft U US A K &A REPORT ON REPORT &A M ND EX M il Corporation il Corporation H A A O VELY. nergy, nergy, I E T TE, Q3 2012, REPRESENTS 39.7% OF TOT TE, Q3 2012, REPRESENTS N VOLUME ( N VOLUME RKET RKET C ining and E Q1 2011 ( I he largest deal for this quarter was also in the the in also was quarter this for deal largest he A A C GHEST PERFOR M T I ffshore ffshore N SE I O A

orth American orth American orth American grocery business, business, grocery orth American BUYOUTS BUYOUTS nergy, nergy, N N RE H eptember R-TO-D E

C S $35.3bn. LUE S A OT onsumer sector sees strong growth sees strong onsumer sector nergy, Mining and nergy, ational A he or the last month of the quarter, the Consumer sector sector Consumer the quarter, the of month last the or for the third quarter E B 8.9% RESPE DE YE V for this quarter, of all Consumer sector’s market share in the year-to-date to 15% by by 15% to year-to-date the in share market sector’s Consumer year. last period comparable the from increase 13% a value, Consumer sector, with the Consumer sector, Inc’s to the shareholders of F worth deals 78 with 2011 Q3 from 717% of increase an saw US C in N other two and month, the of deal largest second the was over worth acquisitions T top 10 deal spots with the acquisition of Q3 2012 H Q3 2012 ENDED ON

A MERGERM NORT

NORTH AMERICA DEAL OF THE QUARTER

Deal summary NORTH AMERICA

Announced: 14-Aug-12 Deal Value: US$26,294m

Kraft Foods Inc has agreed to spin off its North American EXPECTED COMPLETION: grocery business, Kraft Foods Group Inc, to the shareholders • Kraft Foods Group is expected to commence trading of Kraft Foods. on 02-Oct-12.

TERMS: CONDITIONS: • Kraft Foods’ shareholders will receive one share of Kraft • Customary closing conditions. Foods Group for every three shares of Kraft Foods held.

• The distribution will be made in book-entry form, and no BACKGROUND: physical share certiﬁcates will be issued. • Kraft Foods’ Board of Directors has approved • In addition, no fractional Kraft Foods Group shares will the transaction. be issued. All fractional shares will be aggregated and sold in the open market. The cash proceeds from such UPDATE 01-OCT-12: sales will be distributed to the shareholders who would have otherwise received fractional shares. Such cash • Kraft Foods have completed the spin-off of its North distributions, unlike the distribution of shares, will American grocery business. Kraft Foods has changed be taxable. its name to Mondelez International. Kraft Foods Group shares will begin trading on NASDAQ on 02-Oct-12, under the ticker symbol “KRFT”. POST DEAL DETAILS: • Kraft Foods Group will be listed on NASDAQ Global Select UPDATE 02-OCT-12: Market, under the symbol “KRFT”. • Kraft Foods Group has started trading on NASDAQ at the • Kraft Foods will change its name to Mondelez opening price of US$44.45. International Inc and its ticker symbol to “MDLZ”.

Monthly M&A Insider 19 DEAL OF THE QUARTER

Exit multiples – Y/E 31-Dec-11 Premium analysis NORTH AMERICA Multiples Value (US$m) Offer price per share (US$) -

Revenue 1.9x 18,655 1 day before - EBITDA 10.9x 3,324 1 month before - EBIT 12.2x 2,960 1 day after - Earnings 14.3x 1,839 Pre-rumour -

Advisers Target/Seller Bidder Financial Centerview Partners; Financial - Evercore Partners; Goldman Sachs Legal Clifford Chance; Legal - Cravath Swaine & Moore PR Brunswick Group PR -

mergermarket/dealReporter Intelligence 14-Aug-12 Kraft Foods board approves spin-off of North American grocery business

Bidder Kraft Foods Inc (shareholders) Headquarters: Three Lakes Drive Northﬁeld, IL USA Sector: Consumer

Description: The shareholders of Kraft Foods Inc, the listed US based company engaged in the production of packaged food and beverages

Target Kraft Foods Group Inc Headquarters: Three Lakes Drive Northﬁeld, IL USA Sector: Consumer

Description: US based manufacturer of consumer packaged food and beverages

Monthly M&A Insider 20 TOP DEALS & EXPECTED DEALS

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF Q3 2012 NORTH AMERICA

Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal value sector Revenue EBITDA P/E 1-day (US$m) before 14-Aug-12 Kraft Foods Inc Kraft Foods Group Inc Consumer Mondelez 1.9 10.9 14.3 - 26,294 (shareholders) International Inc 23-Jul-12 China National Offshore Nexen Inc Energy, Mining & 2.7 4.5 22.2 61.2% 17,654 Oil Corporation Ltd Utilities 18-Jul-12 BC Partners Limited; Suddenlink Telecommunications GS Capital 3.4 8.9 - - 6,579 and Canada Pension Communications Partners; Oaktree Plan Investment Board Capital Group; and Quadrangle Group 06-Aug-12 Kinder Morgan Energy El Paso Natural Gas Energy, Mining & Kinder Morgan Inc - - - - 6,220 Partners LP Company (50% stake); Utilities and Tennessee Gas Pipeline Company LLC 20-Aug-12 Aetna Inc Coventry Health Care Inc Pharma, Medical & 0.5 5.7 11.4 20.3% 5,702 Biotech 10-Sep-12 Plains Exploration & BP plc (Outer Energy, Mining & BP Plc - - - - 5,550 Production Company Continental Shelf of the Utilities Gulf of Mexico assets) 30-Aug-12 The Carlyle Group LLC DuPont Performance Industrials & E I du Pont de 1.1 - - - 4,900 Coatings Chemicals Nemours and Company 09-Jul-12 WellPoint Inc Amerigroup Corporation Pharma, Medical & 0.7 8.6 24.1 43.0% 4,558 Biotech 30-Jul-12 Chicago Bridge & Iron The Shaw Group Inc Industrials & - - - 72.3% 4,249 Company NV Chemicals 01-Jul-12 Linde AG Lincare Holdings Inc Pharma, Medical & 2.3 9.4 21.5 22.0% 4,245 Biotech Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target company being North America (US + Canada) Data correct as of 08-Oct-12

Monthly M&A Insider 21 TOP DEALS & EXPECTED DEALS

PIPELINE OF NORTH AMERICAN EXPECTED DEALS NORTH AMERICA Situation Target company Sector Potential bidder Financial adviser to Seller Market cap/ Comments company bidder (B); target (T); company est. value seller (S) (US$m) Expected Deal Best Buy Co Inc Consumer Richard Goldman Sachs (B) 6,286 Richard Schulze, the 20.3% Schulze shareholder of Best Buy Co Inc, the listed US based retailer of electronics, has announced that he plans to take the company private for US$24 to US$26 per share. On 24-Jul-12, Best Buy engaged Goldman Sachs to explore defensive measures. Expected Deal Monster Worldwide Inc Technology Undisclosed Stone Key Partners 986 On 01-Mar-12, Monster Worldwide bidder (T); Bank of Inc, the listed US based provider of American Merrill employment services, announced Lynch (T) that its Board of Directors was reviewing strategic alternatives for the company. Monster Worldwide has retained Stone Key Partners and Bank of American Merrill Lynch as financial advisors for the review. Expected Deal Digital Generation Business Undisclosed Goldman Sachs (T) 318 On 16-Jul-12, Digital Generation Systems Inc Services bidder Systems Inc, the listed US based provider of digital technology services, announced that its Board of Directors was looking into strategic alternatives for the company. The company has engaged Goldman Sachs in connection with the matter. Expected Deal Winnebago Industries Inc Industrials & North Street 263 On 18-May-12, Winnebago Industries Chemicals Capital Inc, the listed US based manufacturer of recreation vehicles, received an unsolicited proposal from North Street Capital, the US based private equity firm. As a part of the offer, North Street Capital would acquire Winnebago Industries for US$11.00 per share. Expected deals based on confirmed announcements by companies involved Data correct as of 08-Oct-12

Monthly M&A Insider 22 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – NORTH AMERICA NORTH AMERICA VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 2 Goldman Sachs 222,999 136 187,886 18.7% 2 1 JPMorgan 135,918 96 190,897 -28.8% 3 6 Barclays 122,790 100 125,356 -2.0% 4 3 Morgan Stanley 122,663 94 161,290 -23.9% 5 5 Bank of America Merrill Lynch 121,341 83 129,695 -6.4% 6 4 Credit Suisse 116,980 77 138,082 -15.3% 7 9 Deutsche Bank 108,119 73 80,038 35.1% 8 8 Citigroup 103,662 67 83,065 24.8% 9 12 RBC Capital Markets 71,696 92 29,223 145.3% 10 11 Evercore Partners 61,431 49 51,916 18.3% 11 17 Centerview Partners 53,318 12 17,887 198.1% 12 7 Lazard 47,875 76 108,334 -55.8% 13 10 UBS Investment Bank 47,202 50 78,495 -39.9% 14 19 BMO Capital Markets 41,260 32 17,591 134.6% 15 13 Jefferies & Company 39,962 67 28,744 39.0% 16 18 Rothschild 38,839 48 17,745 118.9% 17 41 Greenhill & Co 34,122 22 5,328 540.4% 18 16 Wells Fargo Securities 24,712 39 19,703 25.4% 19 22 Nomura Holdings 23,994 14 15,248 57.4% 20 62 Rabobank 23,516 9 1,874 1154.9% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – NORTH AMERICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 1 Goldman Sachs 222,999 136 109 27 2 9 Barclays 122,790 100 54 46 3 4 JPMorgan 135,918 96 78 18 4 3 Morgan Stanley 122,663 94 82 12 5 11 RBC Capital Markets 71,696 92 48 44 6 2 Bank of America Merrill Lynch 121,341 83 89 -6 7 6 Credit Suisse 116,980 77 65 12 8 12 Lazard 47,875 76 44 32 9 10 Deutsche Bank 108,119 73 48 25 10 8 Citigroup 103,662 67 59 8 11 7 Jefferies & Company 39,962 67 61 6 12 13 Houlihan Lokey 8,311 63 41 22 13 5 UBS Investment Bank 47,202 50 66 -16 14 20 Evercore Partners 61,431 49 25 24 15 14 Rothschild 38,839 48 37 11 16 16 Raymond James & Associates 3,073 44 29 15 17 23 Moelis & Company 18,721 43 22 21 18 26 William Blair & Company 4,593 41 22 19 19 33 Wells Fargo Securities 24,712 39 15 24 20 27 Keefe, Bruyette & Woods 2,343 38 21 17 Source: mergermarket

TOP 20 LEGAL ADVISERS – NORTH AMERICA NORTH AMERICA VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 7 Skadden Arps Slate Meagher & Flom 134,122 104 115,283 16.3% 2 4 Latham & Watkins 111,664 157 131,978 -15.4% 3 12 Davis Polk & Wardwell 98,135 64 75,350 30.2% 4 2 Simpson Thacher & Bartlett 94,466 76 178,911 -47.2% 5 20 Kirkland & Ellis 86,729 177 49,541 75.1% 6 3 Wachtell, Lipton, Rosen & Katz 86,583 42 156,351 -44.6% 7 9 Cleary Gottlieb Steen & Hamilton 81,526 43 104,675 -22.1% 8 10 Weil Gotshal & Manges 77,727 95 89,044 -12.7% 9 1 Sullivan & Cromwell 76,036 70 181,584 -58.1% 10 44 Clifford Chance 72,109 38 21,116 241.5% 11 19 Jones Day 71,304 167 58,209 22% 12 15 Blake, Cassels & Graydon 64,013 69 61,351 4.3% 13 35 White & Case 57,489 62 24,688 132.9% 14 8 Cravath Swaine & Moore 53,633 30 107,070 -49.9% 15 6 Shearman & Sterling 50,636 49 117,439 -56.9% 16 117 Bracewell & Giuliani 50,099 27 3,598 1292.4% 17 25 Stikeman Elliott 48,289 72 29,699 62.6% 18 33 Vinson & Elkins 46,945 73 25,269 85.8% 19 16 Freshﬁelds Bruckhaus Deringer 45,261 46 61,106 -25.9% 20 28 Gibson Dunn & Crutcher 43,114 45 28,223 52.8% Source: mergermarket

TOP 20 LEGAL ADVISERS – NORTH AMERICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 2 Kirkland & Ellis 86,729 177 119 58 2 3 Jones Day 71,304 167 104 63 3 1 Latham & Watkins 111,664 157 122 35 4 5 DLA Piper 25,394 122 83 39 5 4 Skadden Arps Slate Meagher & Flom 134,122 104 85 19 6 8 Weil Gotshal & Manges 77,727 95 69 26 7 6 Simpson Thacher & Bartlett 94,466 76 79 -3 8 41 Vinson & Elkins 46,945 73 33 40 9 17 Stikeman Elliott 48,289 72 50 22 10 7 Sullivan & Cromwell 76,036 70 69 1 11 12 Blake, Cassels & Graydon 64,013 69 57 12 12 21 Morgan Lewis & Bockius 9,823 68 45 23 13 13 Davis Polk & Wardwell 98,135 64 53 11 14 60 White & Case 57,489 62 23 39 15 42 Morrison & Foerster 40,264 62 32 30 16 19 Baker & McKenzie 23,771 61 46 15 17 22 Greenberg Traurig 18,799 59 44 15 18 32 Paul Hastings 10,954 57 39 18 19 11 Hogan Lovells 16,087 52 58 -6 20 9 Wilson Sonsini Goodrich & Rosati 11,035 52 65 -13 Source: mergermarket

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN BUYOUTS NORTH AMERICA VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 The Carlyle Group 15,495 20 1 The Carlyle Group 15,495 20 2 GS Capital Partners 11,333 6 2 Blackstone Group 8,980 15 3 BC Partners 10,039 2 3 The Riverside Company 0 13 4 Blackstone Group 8,980 15 4 Kohlberg Kravis Roberts & Co 2,858 11 5 Apollo Global Management 7,924 2 5 Sun Capital Partners 569 10 6 Access Industries 7,482 2 6 Oaktree Capital Group 7,151 8 7 Riverstone Holdings 7,350 2 7 Warburg Pincus 2,313 8 8 Advent International 7,339 6 8 Audax Private Equity Group 124 8 9 Oaktree Capital Group 7,151 8 9 H.I.G. Capital 47 8 10 Quadrangle Group 6,579 1 10 TPG Capital 4,370 7 11 Hellman & Friedman 6,027 4 11 Vista Equity Partners 2,501 7 12 Madison Dearborn Partners 5,146 5 12 GS Capital Partners 11,333 6 13 TPG Capital 4,370 7 13 Advent International 7,339 6 14 Bain Capital 4,141 5 14 Wynnchurch Capital 169 6 15 Global Infrastructure Partners 3,188 2 15 Arsenal Capital Partners 161 6 Source: mergermarket Source: mergermarket

The private equity buyout activity tables by value and volume are based on private equity ﬁrms advising the bidder on buyout deals where the dominant geography of the target company is US or Canadian. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN EXITS VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 GS Capital Partners 10,620 7 1 Draper Fisher Jurvetson 1,948 12 2 The Carlyle Group 10,195 10 2 The Carlyle Group 10,195 10 3 Kohlberg Kravis Roberts & Co 10,114 9 3 Battery Ventures 830 10 4 Hellman & Friedman 9,727 5 4 Kohlberg Kravis Roberts & Co 10,114 9 5 CVC Capital Partners 7,448 5 5 Intel Capital 1,127 9 6 Oaktree Capital Group 6,579 5 6 Audax Private Equity Group 124 9 7 BC Partners 6,579 1 7 Sun Capital Partners 98 9 8 Quadrangle Group 6,579 1 8 Kleiner, Perkins, Cauﬁeld & Byers 3,962 8 9 General Atlantic 6,567 7 9 TA Associates 931 8 10 Madison Dearborn Partners 6,191 5 10 The Riverside Company 70 8 11 Advent International 6,166 5 11 GS Capital Partners 10,620 7 12 Bain Capital 6,075 7 12 General Atlantic 6,567 7 13 Permira 5,500 2 13 Bain Capital 6,075 7 14 Weston Presidio Capital 5,290 2 14 Benchmark Capital 1,619 6 15 TPG Capital 4,218 5 15 Bessemer Venture Partners 1,056 6 Source: mergermarket Source: mergermarket

The private equity exit activity tables by value and volume are based on private equity ﬁrms advising the vendor on exit deals where the dominant geography of the target company is US or Canadian. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

Monthly M&A Insider 25 TREND GRAPHS

NORTH AMERICAN M&A QUARTERLY TREND NORTH AMERICAN M&A QUARTERLY PRIVATE NORTH AMERICA EQUITY TREND

600 1,600 250 350

1,400 300 500 200 1,200 Number of deals 250 Number of deals 400 1,000 150 200

300 800 alue (US$bn) alue (US$bn) V V 150 100 600 200 100 400 50 100 50 200

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND

1,800 6,000 500 1,200

1,600 450 5,000 1,000 400 1,400 Number of deals Number of deals 350 1,200 4,000 800 300 1,000 3,000 250 600

alue (US$bn) 800 alue (US$bn) V V 200 600 2,000 400 150

400 100 1,000 200 200 50

0 0 0 0 2006 2007 2008 2009 2010 2011 YTD 2012* 2006 2007 2008 2009 2010 2011 YTD 2012*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

Monthly M&A Insider 26 TREND GRAPHS

NORTH AMERICAN M&A SECTOR BREAKDOWN Q3 2012 NORTH AMERICA VALUE VOLUME

1.6% 0.7% 1.9% 2.6% 0.5% 2.0% 0.9% 2.3% 0.7% 2.2% 1.9% 13.6% Industrials & Chemicals 0.9% 17.5% Industrials & Chemicals 3.4% 4.6% 4.7% Financial Services Financial Services 6.5% Energy, Mining & Utilities Energy, Mining & Utilities 5.1% Consumer Consumer 9.1% Pharma, Medical & Biotech 14.2% Pharma, Medical & Biotech

6.8% Technology Technology

Business Services Business Services

Media Media 10.8% 12.2% 24.5% Telecommunications Telecommunications 13.0% Defence Defence 8.9% Real Estate Real Estate 15.0% 11.9% Transportation Transportation

Leisure Leisure

Construction Construction

Agriculture

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN

VALUE VOLUME

0.7% 0.7% 0.6% 0.7% 0.6%

100 100 1.1% 1.1% 0.9% 1.0% 1.1% 1.4% 1.6% 1.5% 1.8% 90 24.3% 3.7% 3.4% 32.0% 5.6% 4.9% 80 43.5% 36.9% 95 5.3% 6.4% 6.2% 52.8% 49.1% 4.1% 3.8% 70 58.8% 25.1% 5.3% 5.3% 60 18.0% 90 5.3% 5.5% entage entage 21.4% 5.3% rc rc 50 18.8% Pe Pe 14.0% 14.7% 40 85 29.9% 13.3% 27.7% 21.0% 90.6% 91.0% 30 21.5% 17.4% 16.8% 87.4% 87.6% 86.9% 85.9% 13.2% 85.6% 20 80 7.3% 9.7% 8.9% 9.3% 6.2% 6.5% 5.5% 10 9.5% 9.6% 12.2% 9.2% 12.6% 11.8% 11.4% 0 75 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

US$251m-US$500m US$251m-US$500m

US$501m-US$2,000m US$501m-US$2,000m

US$2,001m-US$5,000m US$2,001m-US$5,000m

>US$5,001m >US$5,001m

Monthly M&A Insider 27 SECTOR ANALYSIS

NORTH AMERICAN SECTOR ANALYSIS NORTH AMERICA

Sector Q3 2012 Q3 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 57,785 24.5% 95 36,363 17.4% 85 59% 12% Industrials & Chemicals 32,085 13.6% 154 47,517 22.7% 188 -32% -18% Consumer 35,331 15.0% 78 4,325 2.1% 90 717% -13% Financial Services 15,381 6.5% 80 9,843 4.7% 114 56% -30% Pharma, Medical & Biotech 28,711 12.2% 105 53,277 25.5% 112 -46% -6% Technology 15,985 6.8% 114 17,106 8.2% 149 -7% -23% Business Services 11,975 5.1% 125 17,271 8.3% 131 -31% -5% Media 11,166 4.7% 40 2,552 1.2% 32 338% 25% Transportation 4,497 1.9% 23 1,653 0.8% 15 172% 53% Real Estate 4,543 1.9% 8 927 0.4% 5 390% 60% Leisure 3,731 1.6% 20 1,693 0.8% 22 120% -9% Telecommunications 8,070 3.4% 8 15,947 7.6% 13 -49% -38% Defence 4,803 2.0% 6 86 0.0% 4 5485% 50% Construction 1,621 0.7% 19 670 0.3% 23 142% -17% Agriculture 0 0.0% 4 0 0.0% 2 - 100% Total 235,684 879 209,230 985 13% -11%

Monthly M&A Insider 28 29 , hina D C TO TO O Y his is is his I D

T ’s bid bid ’s aciﬁc hina’s hina’s A UL ER ER

P C RE H D A PER E CNOOC SS EEN J HIS he timing of of timing he Monthly M&A Insider Monthly roup he snapped snapped he roup T W G TNE ET hina at a time when when time a at hina NG T I C B ME COMP WI R hinese outbound activity activity outbound hinese OOK FOR OT OOK FOR R C LU L ON A DU I T

hina and the US. State-owned State-owned US. the and hina hus, making such a large bid bid large a such making hus, U D C his mind-boggling ﬁgure T Y VO T E YE B ON. ON. H I E REG NCE H U ER haroen Sirivadhanabhakdi may set orthumbrian Water orthumbrian Water OOMY O W in 2007. C N L N T O C I I ore striking, however, was however, striking, ore

E REG L NNO hina have been loath to make big forays in in forays big make to loath been have hina C M D H A E G C

E exen. It represented the largest ever bid for for bid ever largest the represented It exen. H he desire to secure high, stable yields will will yields stable high, secure to desire he RTER OF T D N T N T 10% I UA WAS D

TY NG T N S Q I I V A D hai billionaire hai billionaire I T ER R ON E I CT T HI hinese state-owned enterprises are being scrutinised by by scrutinised being are enterprises state-owned hinese he consumer sector notched up US$29.1bn-worth of deals A SID and Japan continue to amass substantial resources, which they will use to deter competitors from encroaching on their turf and making inroads in other fast-growing parts markets. In this respect, this tug-of-war between Heineken and the template for future interactions between firms from developed and emerging economies who have their sights on the same targets. Consumer sector regaining favour? favour? regaining sector Consumer T this quarter, the highest quarterly haul ever for the region record. on mergermarket’s Asia- bids for of competing courtesy was attained Breweries. Heineken’s determination to acquire the target came in the wake of attempts to expand its footprint in one of the fastest growing consumer regions in the world. It also underscored the fiscal clout of Asian bidders vis-a-vis their counterparts in more developed economies. As the region continues to develop, Asian corporations from outside the US government and regulatory bodies. and regulatory the US government before comes it as significant, more even is acquisition the leadership transitions in both corporations in investment US$3bn disastrous the of light in markets foreign by in Blackstone reflects uncertainties and economic amid political at all costs. growth high economic maintain to desire that by the fact credence also lent total a post to decline of quarters successive three reversed 2004. since tally quarterly highest the US$28.1bn, of British utilities continued after he sought to add Wales & Wales add to sought he after continued utilities British West Utilities to the year. up last for world developed the scour to bidders Asian prompt utility providers. for oil major from emerge to corporation a foreign C ALU ERE RECOR E T UISI &A W H Y V M B CON N CQ

A B D LL RE NG T he he I E T U NT R T W A NGE U Y C DU I HA F I orridor. orridor. ABL US$102.6 ON I NC C H GN U RK SI A Y ORT C NGER OF F C REG I W I

a Shing’s tryst with with tryst Shing’s a BI F REM UALL I K FT OF R D aciﬁc region, however, C A F ALS RT P I I E HA RE PA - D A E Y V umbai Industrial umbai Industrial H ising incomes, along with M C SIA T F R ALL he Asia- E T T T BU E A A RTER. A R B A &A REPORT ON REPORT &A OF 566 H Y E, M UA A AL ER, AS N T Q I M B H his increased assertiveness on the part of of part the on assertiveness increased his US RKET RKET TY C T I A O I V &A activity in the near future. ECRE I . A TOT S M D WHI

CT T A ON H SEPTEM I G D ALS E PREV &A E N H rowing economic uncertainties, coupled with a general hinese bidders accounted for two of the largest outbound outbound largest the of two for accounted bidders hinese rivate equity buyout and exit deal values have also grown his is also borne out by phenomenal growth in overseas overseas in growth phenomenal by out borne also is his D T REG A M SLI deals to emanate from the region. Li the region. from emanate deals to Chinese outbound activity C year and have attained 82% of that level during the first three three first the during level that of 82% attained have and year 2012. of quarters economies as they grapple with a mature home market. market. home mature a with grapple they as economies T last high all-time an hit which firms, Japanese by acquisitions Japanese bidders. Japanese corporations have embarked on on embarked have corporations Japanese bidders. Japanese counterparts profile high stable, up snap to drive relentless a emerging other in headway gain and countries developed in government. government. of three that fact the by underscored also is bidders Japanese involved companies Asian featuring deals largest 10 top the US$4.5bn stake in the Delhi US$4.5bn stake on low- heavily US$90bn, will rely cost to slated project, Japanese the from assistance technical and loans interest Unabated Japanese outbound activity Unabated arm the in shot big a received sector Infrastructure India’s a of acquisition government’s Japanese the of shape the in of global of global have placed in the region. in the region. placed have favourable demographics and sluggish growth in other regions likely toare cement status Asia’s as the focal point vote of confidence in growth prospects.Asia’s While fears of a slowdown in export-orientedthe region’s economies continue to linger, these rises attest to the faith acquirers successive years to hit 25.6%, the highest sincelevel 2008. P for the past two quarters, which may be interpreted as a deals across the globe. the globe. deals across has bucked the downward trend. Deals worth over US$5bn have grown as a proportion of total deal value for two Asia regaining its sheen? Asia regaining G slowdown in economic growth have put the brakes on large A MERGERM ASIA-P

ASIA-PACIFIC DEAL OF THE QUARTER

Deal summary ASIA-PA

Announced: 23-Jul-12 Deal value: US$17,654m C I F I C Nexen Inc(NXY), an Alberta corporation, has signed a POST DEAL DETAILS definitive agreement to be acquired by CNOOC (883), • CNOOC Limited plans to establish Calgary as the head a Beijing corporation. The board of directors of both office of its North and Central American operations. This companies have approved the merger. head office will be responsible for operating and growing Nexen’s assets in North and South America, Europe and TERMS: West Africa and CNOOC Limited’s portfolio in Canada, the • The offer provides a premium of 62% based on NXY’s US and Central America. closing share price on 20-Jul-12 of US$17.06. • CNOOC Limited intends to retain Nexen’s current • The implied equity value of the transaction is management team and employees. approx. US$14,556.74m. • CNOOC Limited intends to list its common shares on • If approved by the holders of preferred shares in a the TSX. separate class vote, CNOOC Limited will acquire the outstanding preferred shares of Nexen for a purchase EXPECTED COMPLETION price of CAD26.00 (US$27.5) per share in cash, plus any • The transaction is expected to close in the fourth quarter dividends accrued but unpaid at the time of closing. of 2012. • If a superior offer were to emerge for NXY, the company would be required to give CNOOC at least four business CONDITIONS days to make adjustments to its current offer before • HSR (USA). NXY’s board of directors could effect a change of recommendation of the deal. • CA (Canada).

• ICA (Canada). FINANCING • CFIUS (USA). • The transaction will be funded by CNOOC Limited’s existing cash resources and external ﬁnancing. • EU (Europe). • MOFCOM (China).

TERMINATION/INDUCEMENT FEE • NDRC (China).

• US$425m, or 3% based on the implied equity value of the • SASAC (China). deal. The per-share increase required to cover this fee in a superior offer would be US$0.8. A Reverse Termination • OFT (UK). Fee of US$425m will be payable by CNOOC to NXY in the • Competition Commission (UK). event the Arrangement Agreement is terminated solely as • NXY EGM (Two thirds of afﬁrmative vote required a result of the PRC Approvals having not been obtained. to approve).

RATIONALE UPDATE: • The acquisition of Nexen enhances CNOOC Limited’s • Awaits update. presence in Canada, Nigeria and the Gulf of Mexico, adds a signiﬁcant presence in the UK North Sea and diversiﬁes CNOOC Limited’s growth platform.

Monthly M&A Insider 30 DEAL OF THE QUARTER

Exit multiples – Y/E 31-Mar-12 Premium analysis ASIA-PA Multiples Value (US$m) Offer price per share (US$) 27.5

Revenue 2.7 6,469 1 day before 17.06 C I

F EBITDA 4.5 3,940 1 month before 15.83 I C EBIT 8.7 2,027 1 day after 26 Earnings 22.2 697 Pre-rumour -

Advisers Target/Seller Bidder Financial Goldman Sachs; RBC Capital Markets; Financial BMO Capital Markets; Sumitomo Mitsui Financial Group Citigroup Legal Blake, Cassels & Graydon; Osler Hoskin & Harcourt; Legal Cleary Gottlieb Steen & Hamilton; Davis Polk & Paul Weiss Rifkind Wharton & Garrison Wardwell; Herbert Smith; Morrison & Foerster; Stikeman Elliott PR - PR Pelham Bell Pottinger

mergermarket/dealReporter Intelligence 23-Jul-12 Nexen to be acquired by CNOOC for US$15.1bn

24-Jul-12 Nexen/CNOOC deal subject to review under Investment Canada Act, Minister Paradis conﬁrms

24-Jul-12 CNOOC has no plan to spin-off overseas assets into separate listing

24-Jul-12 CNOOC does not see regulatory hurdles in US for Nexen deal

25-Jul-12 Nexen: CNOOC considering bond offering to fund its offer

29-Jul-12 CNOOC may borrow billions of US dollars in 2013 to fund Nexen’s bid

31-Jul-12 CNOOC merger with Nexen faces opposition from US lawmaker Ed Markey over royalties

02-Aug-12 CNOOC to raise bridge and long-term loans from overseas lenders to back Nexen bid

07-Aug-12 CNOOC to pay LIBOR +150bp on bridge loan to support Nexen bid

10-Aug-12 CNOOC to delay dispatch of circular in relation to Nexen bid to a date on or before 13 December

24-Aug-12 Govt of Canada will weigh issues such as public sentiment, reciprocity as it considers whether or not to allow CNOOC to buy Nexen

03-Sep-12 CNOOC to raise US$10bn via bank loans and bonds to ﬁnance Nexen deal

11-Sep-12 CNOOC secures US$5bn - US$6bn one-year loan for Nexen bid

12-Sep-12 CNOOC submits formal application with Committee of Foreign Investment to review Nexen takeover bid

19-Sep-12 Govt of Canada's junior ﬁnance minister receives lots of negative feedback over CNOOC's bid for Nexen

21-Sep-12 Nexen shareholders approve plan of arrangement with CNOOC Limited and CNOOC Canada Holding Ltd

26-Sep-12 Top oil sector execs largely support CNOOC-Nexen deal but still want govt to implement rules to protect Canadian ownership of large oil sands entities 27-Sep-12 U.S. Congress members want Obama administration to force CNOOC to divest ﬁve Gulf of Mexico leases before getting approval to buy Nexen

10-Oct-12 New Democratic Party of Canada formally rejects CNOOC's bid for Nexen

Monthly M&A Insider 31 DEAL OF THE QUARTER

Bidder ASIA-PA China National Offshore Oil Corporation Ltd Headquarters: No 25 Chaoyangmenbei Main Street Dongcheng District C

I Beijing, China F I C Sector: Energy

Description: China based company engaged in the exploration, development, production and sales of crude oil and natural gas and other petroleum products

Target Nexen Inc Headquarters: 801 7th Avenue S W Calgary T2P 3P7 Alberta, Canada Sector: Energy; Chemicals and materials

Description: Canada based energy company engaged in oil and gas, Syncrude, energy marketing and chemicals business

Monthly M&A Insider 32 TOP DEALS & EXPECTED DEALS

TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF Q3 2012 ASIA-PA Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal value sector Revenue EBITDA P/E 1-day before (US$m)

C 23-Jul-12 Nexen Inc China National Energy, Mining 2.7 4.5 22.2 61.2% 17,654 I

F Offshore Oil & Utilities I C Corporation Ltd 22-Aug-12 China China Telecom Telecom China 4.6 8.9 (loss) n/a 13,307 Telecommunication Corporation Limited Telecommunications Corporation (certain Corporation CDMA Network assets) 13-Sep-12 Fraser & Neave Limited TCC Group Consumer 2.7 13.4 21.5 4.3% 10,134 (69.64% stake) 20-Jul-12 Asia Paciﬁc Breweries Heineken NV Consumer 4.9 21.3 46.8 27.4% 6,593 Limited (58.1% stake) 23-Aug-12 Delhi Mumbai Industrial Government of Japan; Transportation - - - n/a 4,500 Corridor Development and Japan Bank Corporation Limited for International (26% stake) Cooperation 12-Jul-12 Aegis Group Plc Dentsu Inc Media 2.9 15.2 36.9 48.0% 4,345 20-Jul-12 Hebei Shougang Qian'an Beijing Shougang Industrial and Shougang Group 0.9 9.9 23.5 n/a 4,168 Iron and Steel Co Ltd Co Ltd Chemicals Corporation 29-Aug-12 Goodman Global Inc Daikin Industries Ltd Industrial and Hellman & Friedman LLC 1.8 - - n/a 3,700 Chemicals 26-Jul-12 CFAO SA (29.8% stake) Toyota Tsusho Business PPR SA 0.8 8.5 19.0 -0.8% 3,189 Corporation Services 25-Jul-12 Wales & West Utilities Cheung Kong Energy, Mining Industry Funds 5.6 14.3 (loss) n/a 3,030 Limited Infrastructure Holdings & Utilities Management Pty Ltd; Limited; Power Assets Canada Pension Plan Holdings Limited ; Investment Board; Li Ka Shing Foundation Macquarie Group Limited; Limited; and Cheung AMP Capital Investors Kong (Holdings) Limited; and Codan Trust Limited Company Limited Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target company being Asia-Paciﬁc Data correct as of 09-Oct-12

Monthly M&A Insider 33 TOP DEALS & EXPECTED DEALS

PIPELINE OF ASIA PACIFIC EXPECTED DEALS ASIA-PA Situation Target company Sector Potential bidder company Financial adviser to Seller Market cap/ Comments bidder (B); target (T); company est. value seller (S) (US$m) C

I Expected deal 7 Days Group Leisure The Carlyle Group LLC; 590 7 Days Group Holdings F I

C Holdings Limited Sequoia Capital China; Limited received an offer and Mr Boquan He from the consortium led by (Private Investor) Carlyle Group and Sequoia Capital China estimated to US$4.233 per share and US$12.7 per ADS in Sep 2012. Expected deal Focus Media Holding Ltd Media FaountainVest Partners; JP Morgan (T) 3,122 Focus Media Holding Ltd The Carlyle Group LLC; received an offer from CITIC Capital Partners; the consortium led by its CDH Investments; and management team and China Everbright Limited Carlyle Group estimated to US$5.40 per share or US$27 per ADS in August 2012. Expected deal Fraser & Neave Consumer TCC Group United Overseas 2,181 Fraser & Neave Holdings Bhd Holdings Bhd Bank (B); DBS Bank received an offer from TCC (B); Morgan Stanley Group in Sep 2012 to acquire (B); JP Morgan (T) the remaining 70% stake. Terms are not disclosed. Expected deals based on conﬁrmed announcements by companies involved Data correct as of 09-Oct-12

Monthly M&A Insider 34 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – ASIA-PACIFIC ASIA-PA VALUE

C Ranking Q1-Q3 2012 Q1-Q3 2011 I F Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change I C (US$m) (US$m) (%) 1 1 Goldman Sachs 76,303 40 96,693 -21.1% 2 7 Citigroup 65,280 36 36,413 79.3% 3 11 Credit Suisse 48,056 25 25,857 85.9% 4 2 Morgan Stanley 46,666 32 66,275 -29.6% 5 4 UBS Investment Bank 44,245 29 44,102 0.3% 6 3 JPMorgan 33,305 24 48,401 -31.2% 7 10 Deutsche Bank 28,000 23 29,451 -4.9% 8 20 RBC Capital Markets 26,519 11 13,883 91.0% 9 39 BMO Capital Markets 24,089 6 5,015 380.3% 10 8 Bank of America Merrill Lynch 21,238 9 33,585 -36.8% 11 54 DBS Bank 18,718 10 2,555 632.6% 12 6 HSBC 17,372 16 36,638 -52.6% 13 22 China International Capital Corporation 16,837 5 11,692 44.0% 14 33 Rothschild 14,418 22 6,726 114.4% 15 17 Macquarie Group 13,697 25 14,832 -7.7% 16 27 CITIC Securities 12,089 9 8,694 39.0% 17 - United Overseas Bank 10,164 2 - - 18 38 Standard Chartered 8,750 14 5,594 56.4% 19 71 Allen & Company 8,110 2 1,684 381.6% 20 60 ING 7,444 5 2,092 255.8% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – ASIA-PACIFIC VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 Goldman Sachs 76,303 40 56 -16 2 11 Citigroup 65,280 36 32 4 3 7 Morgan Stanley 46,666 32 38 -6 4 3 UBS Investment Bank 44,245 29 48 -19 5 4 KPMG 4,460 29 47 -18 6 2 Ernst & Young 5,289 27 49 -22 7 5 PwC 2,371 27 44 -17 8 9 Credit Suisse 48,056 25 34 -9 9 10 Macquarie Group 13,697 25 33 -8 10 6 Deloitte 1,146 25 39 -14 11 13 JPMorgan 33,305 24 27 -3 12 12 Deutsche Bank 28,000 23 32 -9 13 17 Rothschild 14,418 22 22 - 14 16 HSBC 17,372 16 25 -9 15 29 Standard Chartered 8,750 14 11 3 16 24 Lazard 2,678 14 13 1 17 32 Maybank Investment Bank 4,956 13 9 4 18 8 CIMB Group 2,346 13 35 -22 19 22 Barclays 7,343 12 13 -1 20 40 RBC Capital Markets 26,519 11 7 4 Source: mergermarket

The ﬁnancial adviser league tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan. Monthly M&A Insider 35 LEAGUE TABLES

TOP 20 LEGAL ADVISERS – ASIA-PACIFIC ASIA-PA VALUE

C Ranking Q1-Q3 2012 Q1-Q3 2011 I F Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change I C (US$m) (US$m) (%) 1 6 Freshﬁelds Bruckhaus Deringer 29,213 16 27,765 5.2% 2 16 Skadden Arps Slate Meagher & Flom 23,295 20 20,026 16.3% 3 51 WongPartnership 22,916 21 6,130 273.8% 4 85 Paul Weiss Rifkind Wharton & Garrison 21,606 11 2,964 628.9% 5 - Herbert Smith 21,502 13 - - 6 138 Stikeman Elliott 21,334 9 1,100 1839.5% 7 - King & Wood Mallesons 21,306 57 - - 8 31 Davis Polk & Wardwell 20,814 8 10,060 106.9% 9 30 Cleary Gottlieb Steen & Hamilton 20,772 11 10,286 101.9% 10 37 Blake, Cassels & Graydon 20,268 10 8,490 138.7% 11 65 Osler, Hoskin & Harcourt 18,837 4 4,635 306.4% 12 104 Stamford Law Corporation 18,686 9 2,045 813.7% 13 112 Morrison & Foerster 18,252 5 1,797 915.7% 14 10 Sullivan & Cromwell 18,161 8 23,355 -22.2% 15 5 Linklaters 18,114 29 27,808 -34.9% 16 47 Weil Gotshal & Manges 17,747 16 6,887 157.7% 17 7 Baker & McKenzie 17,205 48 27,338 -37.1% 18 71 Amarchand & Mangaldas & Suresh A Shroff & Co 15,612 26 4,311 262.1% 19 4 Freehills 14,609 40 36,832 -60.3% 20 32 Allen & Gledhill 13,515 23 10,018 34.9% Source: mergermarket

TOP 20 LEGAL ADVISERS – ASIA-PACIFIC VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 - King & Wood Mallesons 21,306 57 - 57 2 1 Baker & McKenzie 17,205 48 66 -18 3 3 Freehills 14,609 40 58 -18 4 8 Kim & Chang 7,454 40 41 -1 5 28 Gilbert + Tobin 9,274 37 19 18 6 7 Clifford Chance 12,592 36 41 -5 7 4 Allen & Overy 12,590 34 48 -14 8 2 Minter Ellison 3,066 31 62 -31 9 9 Lee & Ko 5,018 30 39 -9 10 10 Linklaters 18,114 29 38 -9 11 13 Desai & Diwanji 934 29 36 -7 12 6 Allens 8,016 28 44 -16 13 18 Norton Rose 7,952 28 31 -3 14 24 Khaitan & Co 1,367 28 25 3 15 15 Clayton Utz 7,217 27 33 -6 16 32 Amarchand & Mangaldas & Suresh A Shroff & Co 15,612 26 18 8 17 12 DLA Piper 1,131 26 36 -10 18 46 Ashurst 9,896 24 12 12 19 17 Allen & Gledhill 13,515 23 32 -9 20 21 WongPartnership 22,916 21 27 -6 Source: mergermarket

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON ASIA-PACIFIC BUYOUTS ASIA-PA VALUE VOLUME Rank Rank C

I Q1-Q3 2012 Company name Value Deal F Q1-Q3 2012 Company name Value Deal

I (US$m) count C (US$m) count 1 Bain Capital 2,244 3 1 Bain Capital 2,244 3 2 CITIC Capital Partners 1,839 2 2 TPG Capital 1,413 3 3 TPG Capital 1,413 3 3 Quadrant Private Equity 826 3 4 China Africa Development Fund 1,250 2 4 CVC Capital Partners 751 3 5= Afﬁnity Equity Partners 1,062 1 5 Kohlberg Kravis Roberts & Co 627 3 5= Baring Private Equity Asia 1,062 1 6 Warburg Pincus 368 3 5= IMM Private Equity 1,062 1 7 L Capital Asia 228 3 8 MBK Partners 1,055 1 8 STIC Investments 182 3 9 Paciﬁc Equity Partners 1,021 2 9 Standard Chartered Private Equity 106 3 10 Permira 1,000 1 10 Jacob Ballas Capital India 103 3 Source: mergermarket Source: mergermarket

The Private Equity buyout activity tables by value and volume are based on private equity ﬁrms advising the bidder on buyout deals where the dominant geography of the target company is Asia-Paciﬁc. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON ASIA-PACIFIC EXITS VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 H&Q Asia Paciﬁc 1,757 1 1 Macquarie Group 911 4 2 Verny Capital JSC 1,395 1 2 Navis Capital Partners 26 4 3 Hony Capital 1,158 1 3 MBK Partners 388 3 4 Standard Chartered Private Equity 1,090 2 4 Standard Chartered Private Equity 1,090 2 5= General Atlantic 1,004 1 5 Unison Capital 1,000 2 5= Oak Hill Capital Partners 1,004 1 6 The Carlyle Group 443 2 7 Unison Capital 1,000 2 7 Mizuho Capital Partners 206 2 8 Macquarie Group 911 4 8 H&Q Asia Paciﬁc 1,757 1 9 CVC Capital Partners 850 1 9 Verny Capital JSC 1,395 1 10 GS Capital Partners 685 1 10 Hony Capital 1,158 1 Source: mergermarket Source: mergermarket

The Private Equity exit activity tables by value and volume are based on private equity ﬁrms advising the vendor on exit deals where the dominant geography of the target company is Asia-Paciﬁc. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals

Monthly M&A Insider 37 TREND GRAPHS

ASIA-PACIFIC M&A QUARTERLY TREND ASIA-PACIFIC M&A QUARTERLY PRIVATE ASIA-PA EQUITY TREND C 180 900 25 100 I F I C 160 800 90

20 80 140 700 Number of deals Number of deals 70 120 600

15 60 100 500 50 alue (US$bn) 80 400 alue (US$bn) V V 10 40 60 300 30

40 200 5 20

20 100 10

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

ASIA-PACIFIC M&A ANNUAL TREND ASIA PACIFIC M&A ANNUAL PRIVATE EQUITY TREND

500 3,000 70 350

450 60 300 2,500 400 Number of deals Number of deals 350 50 250 2,000 300 40 200

250 1,500 alue (US$bn) alue (US$bn) V V 30 150 200 1,000 150 20 100

100 500 10 50 50

0 0 0 0 2006 2007 2008 2009 2010 2011 YTD 2012* 2006 2007 2008 2009 2010 2011 YTD 2012*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

Monthly M&A Insider 38 TREND GRAPHS

ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN Q3 2012 ASIA-PA VALUE VOLUME C I F I

C 2.2% 3.2% 1.2% 3.4% 10.0% China China 3.9% 1.0% 24.9% Japan Japan 4.0% 2.9% 34.0% Australia 3.2% Australia 4.8% India India 4.6% South Korea South Korea 5.4% Singapore Singapore 9.2% Indonesia Indonesia

9.0% Hong Kong Hong Kong 17.0% Malaysia Malaysia

Taiwan 10.8% Taiwan 11.9% 18.3% Other Other 15.1%

ASIA-PACIFIC M&A SECTOR BREAKDOWN Q3 2012

VALUE VOLUME

1.5% 1.2% 2.3% 0.2% 0.1% 4.2% 10.9% 2.7% 4.4% 2.9% Energy, Mining & Utilities Energy, Mining & Utilities 3.1% 24.8% 4.6% Financial Services Financial Services 7.8% 4.4% Industrials & Chemicals 4.0% Industrials & Chemicals

Consumer Consumer 5.7% 5.9% Technology Technology

Telecommunications Telecommunications 9.5% Business Services Business Services 10.6% Pharma, Medical & Biotech 23.0% Pharma, Medical & Biotech 17.1% Real Estate Real Estate 0.8% 9.8% Transportation Transportation 8.6% Construction Construction 14.6% 11.0% Leisure Leisure

Agriculture Agriculture

Defence

Monthly M&A Insider 39 TREND GRAPHS

ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN ASIA-PA

VALUE VOLUME C I F 0.3% 0.3% 0.4% 0.4% 0.3% 0.4% 0.5% I C 100 100 1.2% 0.9% 0.9% 1.0% 1.5% 0.8% 1.1% 15.5% 13.5% 17.6% 90 19.8% 24.5% 26.8% 4.8% 5.1% 4.5% 4.8% 29.5% 5.5% 4.4% 5.5% 80 95 17.0% 27.3% 16.9% 70 22.8% 13.8% 5.8% 19.0% 4.9% 5.4% 5.1% 15.8% 5.3% 6.0% 5.9% 60 90 entage entage 30.4% rc rc 50 30.7% 27.3% 26.4% 30.1% Pe Pe 22.2% 24.5% 40 85

12.7% 30 88.9% 11.2% 12.0% 11.2% 11.1% 88.3% 88.5% 88.7% 87.7% 11.9% 10.9% 87.8% 87.3% 20 80 24.4% 21.1% 20.5% 21.4% 21.7% 10 19.7% 18.7%

0 75 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

US$251m-US$500m US$251m-US$500m

US$501m-US$2,000m US$501m-US$2,000m

US$2,001m-US$5,000m US$2,001m-US$5,000m

>US$5,001m >US$5,001m

SECTOR ANALYSIS

ASIA-PACIFIC SECTOR ANALYSIS

Sector Q3 2012 Q3 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Consumer 29,066 28.3% 83 25,798 17.3% 82 12.7% 1 Industrials & Chemicals 16,264 15.9% 123 33,300 22.4% 137 -51.2% -14 Telecom 13,976 13.6% 3 6,429 4.3% 3 117.4% 0 Energy, Mining & Utilities 12,183 11.9% 69 23,527 15.8% 72 -48.2% -3 Technology 6,090 5.9% 58 3,502 2.4% 57 73.9% 1 Transportation 5,945 5.8% 19 5,760 3.9% 24 3.2% -5 Financial Services 5,389 5.3% 38 21,547 14.5% 49 -75.0% -11 Business Services 4,468 4.4% 55 3,008 2.0% 53 48.5% 2 Pharma, Medical & Biotech 2,738 2.7% 34 1,172 0.8% 33 133.6% 1 Construction 2,146 2.1% 18 3,121 2.1% 30 -31.2% -12 Leisure 1,774 1.7% 26 2,063 1.4% 32 -14.0% -6 Real Estate 1,533 1.5% 19 18,052 12.1% 23 -91.5% -4 Media 989 1.0% 17 1,055 0.7% 18 -6.3% -1 Agriculture 25 0.0% 4 413 0.3% 9 -93.9% -5 Defence 0 0.0% 0 0 0.0% 1 - -1 Total 102,586 100.0% 566 148,747 100.0% 623 -31.0% -57

Monthly M&A Insider 40 A MERGERMARKET M&A REPORT ON EUROPE

SCEPTICISM OF THE DIRECTION EUROPE IS HEADING IN THE CRISIS FACILITATED THE LOWEST DEAL VALUE EUROPE SINCE Q3 2009 (¤55BN) WITH ¤80.9BN CREATING A 42.8% DECLINE ON LAST QUARTER (¤141.4BN). FITTINGLY, GERMANY, FRANCE AND THE UK ARE THE TOP THREE COUNTRIES FOR DEAL VALUES IN Q3 AND ALSO KEY DECISION MAKERS ON THE EU CRISIS – THEY’RE UNDER PRESSURE TO CLOSE DEALS AND PROVIDE A MORE ATTRACTIVE SETTLEMENT FOR INVESTORS IN EUROPE.

Contenders propping up Europe Germany, home to BASF as one of the largest global chemical companies, is a well known hub for European Germany, France and the UK are known for their tumultuous activity for the Industrials and Chemicals sector where it relationships in the bid for power. Proof of the repeated is the most active out of all other sectors in the region. It struggle was them trying to find an agreement over share also features in the top deal this quarter from July when percentages for the now lapsed mega-merger between BAE- Volkswagen acquired Dr. Ing. h.c. F. Porsche for €11.4bn. EADS. It was Germany’s Chancellor Angela Merkel, the cog in any EU deal making at the moment, who vetoed the deal In Q3 2012 the German Industrials & Chemicals sector that would have added €16.1bn to UKs value count according accounted for deals worth €14.5bn, 76.7% of the total German to Mergermarket’s DealReporter. M&A Activity of €18.9bn. Forward looking deal making opportunities in Germany are within the regionally fragmented The UK continues its title as the most active country in car and truck parts distribution market where consolidation is Europe for deal value in Q3 for value, €19.5bn and deal expected “to save on logistical costs and expand their regional volume (210) which is in part down to the shadow of footprint,” according to mergermarket intelligence. indecisiveness over the Glencore-Xstrata arrangements. It has been a focus this summer after a series of special events consumed the country boosting regional economy. Deflated quarter for private equity The short term effects are surrounded by doubt though Since the beginning of 2012 European buyouts have had a because of its deficit and consequent IMF warnings which gradual decline every quarter but -39.3% from Q2 (€18.5bn) means there are still many guarded investors out there. to Q3 (€11.2bn) is the largest yet and the biggest dip from Q2 to Q3 since 2009 (59.9%). The low deal volume is sustained Attempts to improve Italian business by the lack of deals for the quarter (65) and also the lowest average deal size of €65m since Q4 2011 (€64m). Cross Italy is the fifth weakest country for deal value (€6.6bn) border deals with targets in Europe dwindle, especially in the compared to the other consolidated mergermarket regions. infamous Euro affected areas where trust in the recovery lies The Italian government is trying to be more constructive dormant, and this is pulling buyout values with it. in its attempt to re-structure the country’s economy and encourage international expansion of Italian businesses. European exits for Q3 are worth €15.6bn. After an active Cassa depositi e Prestiti acquiring Siminvest and Grupp Sace Q2 (€29.1bn), Q3 experiences a slow down as seen in from the Italian Ministry for the Economy and Finance was Q1 (€14.5bn) with deals worth €15.6bn making a -46.4% one of the top deals in September worth €3.8bn. quarterly difference. Deals are slow to come to fruition and investors’ concern about exiting too early is likely to persist. Industrials and Chemicals at the centre of Europe A buoyant Industrials and Chemicals sector is the most active in Europe on the whole with deals worth €21.2bn (239 deals) and a 26% market share that puts deal value up 33.8% on Q3 2011 (€15.9bn).

Monthly M&A Insider 41 DEAL OF THE QUARTER

Deal summmary: EUROPE

Announced: 24-Sep-12 Deal Value: ¤1,057.6m

Advent International and Mediq have reached a conditional IRREVOCABLE UNDERTAKINGS agreement on a recommended full public offer by Advent to • Major shareholders in Mediq, Templeton Investment acuire Mediq. Counsel and Silchester International Investors have agreed to an irrevocable undertaking to support TERMS: and accept the intended Offer, subject to customary • Cum Dividend offer price of ¤13.25 per share. conditions. This accounts for 20.2% of the issued and outstanding ordinary shares in Mediq. The individual • This values the outstanding issued share capital board members holding Mediq ordinary shares have at ¤775m. also agreed to an irrevocable undertaking to tender their • This represents a premium of 53% over the closing price shares under the offer. of Mediq on 21-Sep-12.

• This represents a premium of 47% to Mediq’s average POST-DEAL DETAILS closing price for the three months up to and including • Head ofﬁce of Mediq in Utrecht, the Netherlands, 21-Sep-12. maintained.

• Advent maintains Mediq’s key brands. RATIONALE • Mediq will maintain its mitigated large company regime. • The strategic review Mediq conducted in the second half of 2011 led to the preferred long term scenario of • Existing employee rights, including pension rights, will delisting the Company and continuing in a private setting. be respected and current employee consultation structure The public interest of healthcare requires Mediq to be will be maintained. There will be no redundancies as a very prudent in the way Mediq deals with the challenging direct consequence of the offer. market conditions. This necessitates a long-term approach, which is not always aligned with the focus of the public capital markets. In addition, the volatile climate CONDITIONS of the stock exchange might limit Mediq’s potential to ﬁnancing acquisitions. • 95% acceptances. • Regulatory antitrust approvals.

FINANCING • Mediq’s shareholders approval. • Advent will ﬁnance the offer through a combination of • Advent can waive the offer condition of 95% acceptance of debt and equity. the Mediq ordinary shares, unless the acceptance level is below 66.66% in which latter event prior approval of Mediq is required.

Sources of funding

Equity provider Amount (¤m) Stake Debt provider Terms Advent International n/a - - -

Monthly M&A Insider 42 DEAL OF THE QUARTER

Exit multiples – Y/E 31-Dec-12 Premium Analysis EUROPE Multiples Value (¤m) Offer price per share (¤) 13.25 Revenue 0.4 x 2,657.71 1 day before 53.13% EBITDA 7.1 x 149.02 1 month before 50.06% EBIT 9.5 x 111.08 1 day after 3.11% Earnings 10.5 x 73.42 Pre-rumour -

Advisers Target/Seller Bidder Financial ING (Bart de Klerk, Maurits Duynstee, Romano Herrie, Financial BNP Paribas SA; Deutsche Bank AG; Rabobank NV Wieger Jansen, Floris Pot, Robert Specken); ABN AMRO (Istvan Csejtei, Paul Huizinga, Oscar Nettl, Roeland Bank NV (Martijn Arlman, Diny de Jong, Frederik Gorter Peeters, Walter Smidts, Pieter Stor) de Vries, Maurice Laudy, Maarten Meurs, Marco Seller, Rutger van Nouhuijs, Machiel van Oostveen, Dennis van Zijl) Legal Allen & Overy LLP Legal Freshﬁelds Bruckhaus Deringer LLP (James Clarke, Shawn der Kinderen, Alexander Doorman, Thijs Flokstra, Marike Kuin, Hanneke Rothbarth, Harald Spruit)

PR Citigate First Financial BV PR FTI Consulting (Fergus Wheeler, Sophia Winﬁeld)

mergermarket/dealReporter Intelligence 05-Oct-12 Mediq/Advent break fee negotiated at low end of 'bracket' for ¤775m deal 03-Oct-12 Mediq not being eyed by 3i backed Onemed 24-Sep-12 Mediq and Advent reach agreement on ¤775m take-private offer; debt ﬁnancing secured 24-Sep-12 Mediq 14% shareholder says Advent bid is ‘not a done deal’ 24-Sep-12 Mediq/Advent's lack of irrevocables not 'negative'; no auction held – CEO 24-Sep-12 Advent intends to make ¤775m public offer for Mediq

Bidder Advent International Corporation Headquarters: 75 State Street 02109, Boston, MA USA Sector: Financial Services

Description: US based venture capital and private equity ﬁrm specialising in growth buyout, acquisitions, mid and upper mid market buyouts, management buyouts, turnaround, buyins, company succession, international expansion, strategic repositioning with investments between ¤100m and ¤500m in companies with enterprise value up to ¤2bn or US$2bn and revenues between ¤200m and ¤2bn

Target Mediq NV Headquarters: Hertogswetering 159 3543, Utrecht Netherlands Sector: Pharma, Medical & Biotech

Description: Netherlands based international retail and distribution company for pharmaceuticals and medical supplies

Monthly M&A Insider 43 TOP DEALS & EXPECTED DEALS

TOP 10 EUROPEAN ANNOUNCED DEALS OF Q3 2012 EUROPE Announced Bidder company Target company Target dominated Seller company Exit multiples (x) Bid premia Deal sector Revenue EBITDA P/E 1-day value before (¤m) 04-Jul-12 Volkswagen AG Dr. Ing. h.c. F. Industrials & Porsche Automobil 1.4 5.4 6.1 - 11,353 Porsche AG Chemicals Holding SE (50.1% stake) 27-Sep-12 Cassa depositi e prestiti spa Simest SpA Financial Services Italian Ministry for n/a n/a - - 3,800 (76% stake); and the Economy and Gruppo Sace Spa Finance; and Italian Ministry of Economic Development 12-Jul-12 Dentsu Inc Aegis Group Plc Technology 2.9 15.2 36.9 48.0% 3,562 15-Aug-12 Altimo VimpelCom Ltd Telecommunication Weather Investments 2.1 5.5 32.8 25.8% 2,930 (14.8% stake) II Sarl 26-Jul-12 Toyota Tsusho Corporation CFAO SA Business Services PPR SA 0.8 8.5 19.0 -0.8% 2,597 (29.8% stake) 09-Jul-12 Intel Corporation ASML Holding NV Technology 2.6 8.0 11.7 -1.4% 2,513 (15% Stake) 25-Jul-12 Cheung Kong Infrastructure Wales & West Energy, Mining & Industry Funds 5.6 14.3 - - 2,499 Holdings Limited; Power Utilities Limited Utilities Management Pty Ltd; Assets Holdings Limited; Canada Pension Plan Li Ka Shing Foundation Investment Board; Limited; and Cheung Kong Macquarie Group (Holdings) Limited Limited; AMP Capital Investors Limited; and Codan Trust Company Limited 03-Jul-12 Hellman & Friedman LLC Wood Mackenzie Business Services Charterhouse Capital - 15.7 - - 1,369 Limited Partners LLP 23-Jul-12 Sinopec International Talisman Energy (UK) Energy, Mining & Talisman Energy Inc 2.9 4.5 2.3 - 1,236 Petroleum Exploration and Ltd (49% stake) Utilities Production Corporation 24-Sep-12 CGGVeritas Fugro Geotechnique Business Services Fugro NV 1.5 9.6 - - 1,200 SA Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target company being Europe Data correct as of 09-Oct-12

Monthly M&A Insider 44 TOP DEALS & EXPECTED DEALS

EUROPE PIPELINE OF EUROPEAN EXPECTED DEALS

Situation Target company Sector Potential bidder Financial adviser to Seller company Market cap/ Comments company bidder (B); target (T); est. value seller (S) (¤m) Potential TNK-BP Energy, Rosneft Oil Company Rothschild (B) BP Plc 11,447 BP's 50% stake in the oil and stake International Mining & OJSC; Alfa Group gas company TNK-BP is facing acquisition Limited Utilities Consortium; Renova various acquisition proposals Group of Companies; from the industry competitiors. and Access Industries Sources say the main bidder, the AAR Consortium consitisting of Alfa Group Consortium; Renova Group of Companies; and Access Industries, is expected to place a bid in October 2012. Some rumours also say BP will exit the stake via an IPO. Rumoured Acromas Holdings Financial Unknown UBS Investment Bank Permira; 9,900 Acromas Holdings, the private Takeover Services (T); Ernst & Young (S) Charterhouse equity backed insurance Capital Partners company, is expected to be LLP; and CVC diposed as a whole, or in parts to Capital Partners strategic investors or via an IPO. Limited Potential ScottishPower Energy, Industry Funds Iberdrola SA 1,250 Several bidders are participating stake Power Systems Ltd Mining & Management Pty Ltd; in an auction for the sale of a acquisition (PowerSystems) Utilities Ontario Teachers' stake in ScottishPower Power Pension Plan; Systems Ltd. The reports say the Canada Pension deal value may reach ¤1,250m. Plan; and Borealis Infrastructure Management Inc Potential Sportingbet Plc Leisure William Hill Plc; and Canaccord Genuity 439 William Hill is approaching Takeover Gaming VC Limited (T); Lazard (T); Sportingbet's board of director Citibank International with a takeover offer of ¤439m. Plc (B); Investec The parties are reported to Plc (B) be in negotiations, although Sportingbet is reported to expect an improved offer. Rumoured Berco SpA Industrials One Equity Partners ThyssenKrupp - ThyssenKrupp is reported to Takeover & be in talks with One Equity Chemicals Partners on the disposal of the Italy based Berco, a company manufacturing caterpilla vehicle undercarriages. Expected deals based on conﬁrmed announcements by companies involved Data correct as of 09-Oct-12

Monthly M&A Insider 45 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – EUROPEAN EUROPE VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (¤m) (¤m) (%) 1 2 Morgan Stanley 164.7 90 109.2 50.9% 2 1 Goldman Sachs 164.2 100 156.3 5.1% 3 3 Deutsche Bank 142.5 76 96.2 48.1% 4 6 Barclays 125.8 60 74.7 68.5% 5 5 JPMorgan 121.5 72 85.3 42.4% 6 8 Rothschild 99.2 144 61.1 62.3% 7 7 Citigroup 88.6 45 67.5 31.2% 8 10 Bank of America Merrill Lynch 80.0 52 50.9 57.3% 9 4 Credit Suisse 73.2 48 88.8 -17.6% 10 11 Lazard 69.2 72 46.3 49.6% 11 14 BNP Paribas 64.2 37 40.2 59.6% 12 17 Nomura Holdings 63.7 29 24.4 161.1% 13 12 UBS Investment Bank 45.8 62 44.7 2.5% 14 13 SG 27.8 39 42.7 -35.0% 15 9 HSBC 24.9 29 60.7 -59.0% 16 45 Rabobank 21.4 28 4.6 363.9% 17 25 RBC Capital Markets 18.6 21 10.5 76.2% 18 33 Centerview Partners 18.1 3 8.5 113.2% 19 49 Banco BTG Pactual 11.9 11 4.1 192.5% 20 32 Leonardo & Co 11.8 34 8.6 36.7% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – EUROPEAN VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (¤m) change 1 2 Rothschild 99.2 144 147 -3 2 4 Goldman Sachs 164.2 100 105 -5 3 3 PwC 6.1 99 141 -42 4 6 Deloitte 5.8 93 96 -3 5 8 Morgan Stanley 164.7 90 82 8 6 1 KPMG 7.0 89 148 -59 7 10 Deutsche Bank 142.5 76 78 -2 8 9 JPMorgan 121.5 72 81 -9 9 7 Lazard 69.2 72 90 -18 10 12 UBS Investment Bank 45.8 62 76 -14 11 5 Ernst & Young 3.6 61 105 -44 12 19 Barclays 125.8 60 50 10 13 13 Bank of America Merrill Lynch 80.0 52 65 -13 14 11 Credit Suisse 73.2 48 77 -29 15 15 Citigroup 88.6 45 56 -11 16 20 M&A International 0.4 41 49 -8 17 17 SG 27.8 39 52 -13 18 14 BNP Paribas 64.2 37 64 -27 19 16 Leonardo & Co 11.8 34 53 -19 20 22 DC Advisory 2.3 33 41 -8 Source: mergermarket

TOP 20 LEGAL ADVISERS – EUROPEAN EUROPE VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (¤m) (¤m) (%) 1 6 Clifford Chance 139.8 121 58.0 141.0% 2 1 Freshﬁelds Bruckhaus Deringer 135.4 115 137.2 -1.3% 3 2 Linklaters 106.7 149 122.8 -13.1% 4 13 Skadden Arps Slate Meagher & Flom 67.5 56 35.9 87.8% 5 7 Cleary Gottlieb Steen & Hamilton 58.5 42 56.8 2.9% 6 128 King & Wood Mallesons 54.1 9 2.6 1966.5% 7 4 Allen & Overy 50.7 105 79.7 -36.3% 8 3 Sullivan & Cromwell 45.1 25 91.1 -50.4% 9 10 White & Case 40.9 73 42.7 -4.1% 10 15 Weil Gotshal & Manges 39.6 40 35.0 13.2% 11 11 Latham & Watkins 39.3 64 38.7 1.7% 12 8 Simpson Thacher & Bartlett 34.7 20 56.7 -38.9% 13 22 Hengeler Mueller 31.6 43 29.0 8.8% 14 9 Wachtell, Lipton, Rosen & Katz 30.9 11 54.5 -43.2% 15 23 Hogan Lovells 30.0 66 28.7 4.6% 16 35 Davis Polk & Wardwell 28.5 17 16.6 71.9% 17 45 Kirkland & Ellis 26.0 31 13.8 89.1% 18 21 Slaughter and May 25.6 29 29.9 -14.4% 19 26 Baker & McKenzie 25.6 84 26.6 -4.0% 20 67 A&L Goodbody 25.4 15 8.1 214.0% Source: mergermarket

TOP 20 LEGAL ADVISERS – EUROPEAN VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (¤m) change 1 2 Linklaters 106.7 149 176 -27 2 3 Clifford Chance 139.8 121 159 -38 3 5 DLA Piper 18.9 116 152 -36 4 1 Freshﬁelds Bruckhaus Deringer 135.4 115 178 -63 5 4 CMS 6.9 109 159 -50 6 6 Allen & Overy 50.7 105 145 -40 7 7 Baker & McKenzie 25.6 84 128 -44 8 11 Jones Day 18.1 74 90 -16 9 10 White & Case 40.9 73 90 -17 10 8 Hogan Lovells 30.0 66 98 -32 11 9 Latham & Watkins 39.3 64 93 -29 12 13 Eversheds 10.2 64 78 -14 13 20 Skadden Arps Slate Meagher & Flom 67.5 56 54 2 14 15 Ashurst 13.1 56 65 -9 15 17 SJ Berwin 3.5 49 62 -13 16 19 Pinsent Masons 1.2 49 55 -6 17 83 Bech-Bruun 5.8 48 20 28 18 16 Loyens & Loeff 14.6 46 65 -19 19 22 Mannheimer Swartling 2.0 44 52 -8 20 34 Hengeler Mueller 31.6 43 39 4 Source: mergermarket

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON EUROPEAN BUYOUTS EUROPE VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (¤m) count (¤m) count 1 Arcus Infrastructure Partners 4,222 1 1 AXA Private Equity 1,440 12 2 Macquarie Group 3,370 2 2 Lloyds TSB Development Capital 306 9 3 EQT Partners 2,657 6 3 EQT Partners 2,657 6 4 Cinven 2,032 4 4 Naxicap Partners 235 6 5 CVC Capital Partners 1,800 1 5 Oaktree Capital Group 437 5 6 Vista Equity Partners 1,700 2 6 Nordic Capital 262 5 7 Blackstone Group 1,692 2 7 Equistone Partners Europe 174 5 8= Infracapital Partners 1,541 1 8 Edmond de Rothschild 29 5 8= Morgan Stanley Infrastructure 1,541 1 Investment Partners 10 AXA Private Equity 1,440 12 9= BNP Paribas Developpement - 5 11 Hellman & Friedman 1,369 1 9= Ciclad - 5 12 Terra Firma Capital Partners 1,342 2 9= mutares - 5 13 Kohlberg Kravis Roberts & Co 1,163 2 9= Polaris Management - 5 14 Partners Group Holding 1,100 2 9= Valedo Partners - 5 15 Montagu Private Equity 1,013 4 14 Cinven 2,032 4 Source: mergermarket 15 Montagu Private Equity 1,013 4 Source: mergermarket

The private equity buyout activity tables by value and volume are based on private equity ﬁrms advising the bidder on buyout deals where the dominant geography of the target company is European. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON EUROPEAN EXITS VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (¤m) count (¤m) count 1 Kohlberg Kravis Roberts & Co 5,270 1 1 3i Group 869 10 2 Macquarie Group 4,997 2 2 Equistone Partners Europe 1,295 4 3 Permira 4,552 2 3 Capvis Equity Partners 1,283 4 4 CVC Capital Partners 4,302 3 4 Gimv 225 4 5= AMP Capital Investors 2,499 1 5 Argos Soditic 185 4 5= Industry Funds Management 2,499 1 6= Barclays Ventures 128 4 7 Charterhouse Capital Partners 2,169 2 6= Omnes Capital 128 4 8= Cinven 1,800 1 8 CapMan 59 4 8= GS Capital Partners 1,800 1 9 CVC Capital Partners 4,302 3 8= Montagu Private Equity 1,800 1 10 EQT Partners 1,730 3 11 EQT Partners 1,730 3 11 Bridgepoint Capital 1,434 3 12 Bridgepoint Capital 1,434 3 12 Electra Partners 1,375 3 13 Electra Partners 1,375 3 13 HgCapital 1,316 3 14 Mid Europa Partners 1,370 2 14 AAC Capital Partners 346 3 15 HgCapital 1,316 3 15 Intel Capital 306 3 Source: mergermarket Source: mergermarket

The private equity exit activity tables by value and volume are based on private equity ﬁrms advising the vendor on exit deals where the dominant geography of the target company is European. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

Monthly M&A Insider 48 49 Number of deals Number of deals D 450 400 350 300 250 200 150 100 50 0 1,200 1,000 800 600 400 200 0 1,600 1,400 N Q3 12* E 12 Q2 12 Q1 Exit volume Exit volume YTD 2012* 11 Q4 TY TR 11 Q3 I 11

Q2 U 2011 E 11 Q1 Monthly M&A Insider Monthly T EQ 10 Q4

A E 10 Q3 V I Buyout volume Buyout volume T 10 Q2 A 2010 10 Q1 V I 09 Q4 09 Q3 RLY PR RLY 09 Q2 L PR 2009 Exit value Exit value E 09 Q1 A 08 Q4 RT 08 A Q3 U 08 Q2 2008 Q 08 Q1 Buyout value Buyout value 07 Q4 D 07 Q3 N 07 Q2 2007 M&A M&A ANNU E 07 Q1 N N 06 Q4 EA EA 06 Q3 2006 06 Q2 TY TR I 06 Q1 U 0 0

90 80 70 60 50 40 30 20 10

50 UROP UROP

140 130 120 110 100 300 250 200 150 100

€ bn) ( alue V € bn) ( alue EQ V E E

Number of deals Number of deals 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Q3 12* 12 Q2 et volume et volume 12 Q1 YTD 2012* 11 Q4 11 Q3 HS Mid-mark Mid-mark 11 Q2 2011 11 Q1 D P 10 Q4 N 10 E Q3 D 10 Q2 A N 2010 tal volume tal volume 10 Q1 E To To 09 Q4 TR

09 Q3 RLY TR RLY e e L 09 E Q2 2009 A 09 Q1 et valu et valu RT 08 Q4 GR A 08 Q3 U NNU 08 Q2 2008 Q Mid-mark Mid-mark D 08 Q1 07 Q4 e e

07 Q3 07 Q2 2007 tal valu tal valu N M&A A N M&A 07 Q1 To To

06 Q4 EA EA

06 Q3 2006 06 Q2 REN

06 Q1 UROP UROP 0 0

E T

100 200 400 300 500 200 400 800 600

€ € alue alue V bn) ( V bn) ( 1,000 alue 1,200

EUROPE 50 s al es es al & Biotech ations e x s s Servic ogy ce e e dic y, Mining & Utilities y E ommunic an c rg enc UK Nor Germany Fr Benelu Ital Other CE Iberia le ansportation echnol Real Estate Leisur Construction Agricultur Def Media Pharma, Medic Tr Industrials & Chemic Ene Financial Servic Busines Consumer T Te Monthly M&A Insider Monthly 15.3% 7.5% 7.3% 20.1% 22.8% 14.6% 12.9% 0.3% 0.9% 3.9% 5.2% 12.5% 15.4% 4.5% 10.3% ME ME 1.0% 4.4% LU LU 4.0% 9.1% 8.4% 3.2% O O 0.7% 10.1% 5.8% V V s al es es al & Biotech ations e x s s Servic ogy ce e dic y, Mining & Utilities y E ommunic OWN Q3 2012 an c rg Ital Other CE Iberia UK Nor Germany Fr Benelu le ansportation echnol Media Pharma, Medic Tr Real Estate Leisur Construction Agricultur Consumer T Te Industrials & Chemic Ene Financial Servic Busines OWN Q3 2012 EAKD R 5.7% B 14.1% EAKD IC 24.2% 26.3% R B PH 23.3% A HS P TOR 11.6% OGR A E EC G 0.3% 3.6% 0.5% GR 1.7%

D 1.9% 2.7% N M&A S N M&A 5.6% 10.7% 11.6% 4.5% EA EA

E E 6.3% 4.6%

9.9%

4.7% REN 8.1% 6.6% 11.6% VALU EUROP

EUROP VALU T

EUROPE 51 e 0.1% 0.7% 2.9% 2.9% 2012* 93.3% osed valu 0% 7% 0% -8% -6% olume -23% -31% -64% -17% -23% -21% -46% -45% -51% -28% -30% V

5,000m € 500m 2,000m € € - - 2011 0.2% 0.7% 3.1% 3.1% 92.9% 250m or undiscl 5,001m 251m 501m 2,001m- Monthly M&A Insider Monthly <€ € € € >€ 2010 0.7% 3.2% 2.7% 0.2% 93.2% % change alue 6% 0.2% 2009 0.6% 2.1% 2.3% -9% 94.8% 34% 36% 83% 27% V -31% -20% -37% -60% -74% -16% -63% -47% -64%

-100% 2008 0.6% 2.7% 3.2% 0.4% 93.2% 3 13 28 44 59 49 13 60 86 288 102 106 105 205 194 2007 0.9% 4.0% 3.9% 0.4% 1,355 90.8% Deal count count Deal 2006 0.4% 0.9% 3.8% 3.5% ME 91.4% 0.2% 0.0% 2.1% 2.9% 1.4% 2.9% 2.2% 8.6% 2.4% 1.7% 7.6% 5.8% 13.6% 26.2% 22.3% Q3 2011 LU

Mrk share 88 98 96 94 92 90

100

entage rc O Pe V m) ¤ 20 259 2,415 3,375 1,633 3,420 2,630 2,798 2,035 8,850 6,812 15,883 30,699 26,103 10,020 alue ( 116,952 e V 2012* 22.8% 22.9% 26.8% 10.8% 16.7% osed valu 9 3 7 10 47 54 79 76 33 42 46 239 106 161 135 1,047 5,000m € 500m 2,000m Deal count count Deal € € - - 2011 30.9% 11.5% 18.7% 17.1% 21.8% 250m or undiscl 5,001m OWN 251m 501m 2,001m- <€ € € € >€ 0.2% 0.1% 2.6% 2.1% 1.7% 5.2% 5.0% 5.0% 4.4% 3.1% 5.4% 26.0% 15.3% 13.2% 10.7% 2010 9.4% 29.5% 17.6% 22.6% 20.9% Q3 2012 Mrk share EAKD BR m) SIS ¤ E 2009 9.2% 24.1% 20.3% 26.4% 20.0% 0 Z LY 208 431 HS 1,517 1,342 9,364 5,311 3,811 3,718 3,617 2,214 8,631 8,013 80,854 21,249 11,428 A alue ( SI V N P L ALYSIS A 2008 9.1% A 14.8% 20.2% 17.1% 38.8% N DEA TOR A GR 2007 8.3% 13.7% 16.6% 22.3% 39.1% SEC

D N M&A N edical & Biotech edical TOR EA EA

ining & Utilities

2006 8.5% M

15.9% 17.6% 23.4% 34.6% E M C state E

10 40 30 20 60 50 90 80 70

REN 100

edia eal entage rc Pe harma, nergy, nergy, UROP otal ransportation echnology elecommunications T Defence Agriculture Industrials & Chemicals Industrials Sector R Leisure Construction E M P T T T Financial Services Business Services Business Consumer

VALU SE

E T EUROP

EUROPE A MERGERMARKET M&A REPORT ON THE MIDDLE EAST & AFRICA

THE MIDDLE EAST & AFRICA COULD NOT ESCAPE THE GLOBAL SLOWDOWN IN M&A ACTIVITY, WITH MIDDLE DEALS TOTALLING US$31.2BN FOR THE PERIOD Q1-Q3 2012, DOWN 12.8% ON THE SAME PERIOD LAST YEAR (US$35.8BN). ALONGSIDE AN 8.3% DROP IN DEAL COUNT, THE FIRST NINE MONTHS HAS BEEN THE

E WORST SUCH PERIOD FOR M&A IN THE REGION SINCE 2009 (US$24.7BN) AND THE SECOND WORST SINCE AST & 2005 (US$23BN). A FRICA Whilst the first two quarters of this year brought successive Aided this deal, Kuwait was the most active country by deal growth, Q3 marked a 37% decline in deal values on Q2, value with a 25.9% share of the market (US$2.2bn). Egypt, dropping from US$13.5bn to US$8.5bn. However, it is notable with US$1.1bn worth of deals for 12.4%, and Nigeria, US$1bn that average deal sizes in the mid-market in Q3 reached for 12.3%, also performed strongly. In terms of the number of US$83.5m. Since 2004, this figure has been surpassed only transactions, traditional powerhouses South Africa and Israel once (US$92m in Q4 2010), perhaps providing a glimmer of led the way, making up 46.9% of all activity between them. hope for dealmakers. Elsewhere, the most notable story was the emergence of Energy, Mining & Utilities was the most active sector of Q3 Iraq, which posted its joint highest quarter by volume ever on 2012, its US$3.3bn worth of deals accounting for 38.3% of Mergermarket record, shared with Q2 of this year. It grabbed the market. Despite this position, and with five of the top ten a 7.9% share of the market by value with US$596m worth of deals, it posted a 36.5% drop on its performance in Q3 2011 deals, helping make 2012 the most active year for Iraqi M&A (US$5.2bn). The top deal in the sector was UAE-based Shelf activity on Mergermarket record by some distance already. Drilling Holdings purchase of 38 shallow water drilling rigs All three of Q3’s deals in the region concerned oil, the largest from Transocean for US$1.1bn. of which being Turkey-based Genel Energy’s US$240m acquisition of a 21% stake in the Bina Bawi Exploration Block. Telecommunications, with just one US$ 2.2bn buy constituting a 25.9% market share, was ousted from its position as Q2 Activity in the space looks set to continue. There are plans sector leader (US$ 6.1bn, 41%). Although deal flow has afoot for a new oil and gas pipeline between Iraq and Turkey, slowed, sizeable opportunities of significant scale appear and Genel is reported to have a further US$1bn available to to have remained in the sector. European interest in the invest. Additionally, an auction for the Nassiriya Oil Field, with market was demonstrated in the spring by France Telecom’s proven crude oil reserves of 4.4bn barrels, is likely to take US$3.3bn acquisition of a stake in OCMS, the top deal of the place later this year, according to a senior Iraqi official. year so far. However, the largest transaction of Q3 suggests A mergermarket analysis piece in July suggested that, despite that there may be competition from within the region, as Qatar ongoing tensions with Baghdad, the outlook for M&A activity Telecom bid US$2.2bn for the 47.5% shares it does not already in involving oil in the Kurdistan region remains buoyant. own in Kuwait’s Wataniya Telecom. Several projects in Kurdistan are at the exploration and drilling The completion of this deal was far from certain. Local reports stage and require capital injections through operational in September suggested that the Kuwait Investment Authority, and strategic investors to proceed. Smaller firms are more which held a 23.54% stake, may look to drive a higher price inclined to go directly to the region to avoid bureaucratic out of the suitor. In a Mergermarket follow-up shortly after, it complexities in Baghdad, but national oil companies from was discovered that Qatar Telecom had no intention of revising Japan and Korea could also be attracted, and would have its offer. A source close to the transaction said that the bid more pull with the central government, the report said. With represented a 25.7% premium on the average closing price an International Energy Agency report suggesting its oil output over the past twelve months and was “a onetime offer that could double by 2020, Iraq looks on course to become an M&A is not going to be increased”. On October 7th, Mergermarket hotspot in the ME&A region. revealed that the offer had been accepted in its original terms and KIA made a complete exit.

Monthly M&A Insider 52 DEAL OF THE QUARTER

Deal summary MIDDLE

Announced: 16-Aug-12 Deal Value: US$2,206m E AST &

A Qatar Telecom (QTel) Q.S.C. has launched a mandatory RATIONALE: FRICA tender offer to acquire 47.5% stake in National Mobile • The transaction is in line with Qatar Telecom’s strategy to Telecommunications Company KSC. simplify group structure and enhance growth potential, National Mobile Telecommunications Company KSC efﬁciency and operational effectiveness of its subsidiaries. (Wataniya Telecom), the Kuwait based company • The transaction will also enable shareholders of Wataniya headquartered in Safat, is engaged in the provision of Telecoms to maximise their investments. mobile telecommunications and internet services.

Qatar Telecom (QTel) Q.S.C., the Qatar based company POST-DEAL DETAILS: headquartered in Doha, is engaged in providing • Upon completion, Wataniya Telecom will operate as wholly telecommunications services. owned subsidiary of Qatar Telecom.

TERMS: BACKGROUND: • 239,391,053 shares, representing 47.5% stake of Wataniya, • Qatar Telecom has received the approval from the Kuwait will be acquired at an offer price of KWD2.6 (US$9.21) Capital Markets Authority regarding the mandatory valuing the transaction at KWD622.42m (US$2,205.98m). tender offer. • The implied equity value of the transaction is • Prior to transaction, Qatar Telecom and Kuwait approximately KWD1310.49m (US$4,644.64m). Investment Authority held 52.5% and 23.34% stakes • The offer price represents a premium of 25.6% over the respectively in Wataniya Telecom. Wataniya Telecom’s estimated volume weighted average • Prior to the transaction, in 2007, Qatar Telecom acquired closing share price of KWD2.07 (US$7.34) for two weeks 51% stake in Wataniya Telecom, for a total consideration ended 21-Jun-12; of US$3,700m. • It also provides a premium of 20.8% over the Wataniya Telecom’s estimated volume weighted average closing CONDITIONS share price of KWD2.151 (US$7.62) for the six month period ended 21-Jun-12; • Board of directors of Wataniya Telecom approval.

• It provides a premium of 25.7% over the Wataniya Telecom’s estimated volume weighted average closing UPDATE 03-OCT-12: share price of KWD2.069 (US$7.33) for the 12 month • Kuwait Investment Authority has agreed to sell its 23.34% period ended 21-Jun-12; stake in Wataniya Telecom as part of the mandatory • And it represents a premium of 22.6% over the tender offer. Wataniya Telecom’s closing share price of KWD2.12 (US$7.51) as of 21-Jun-12 , the last trading day prior to the announcement.

Monthly M&A Insider 53 DEAL OF THE QUARTER

Exit multiples – Y/E 31-Dec-11 Premium analysis MIDDLE Multiples Value (US$m) Offer price per share (US$) 9.21

Revenue 1.8 x 2,606 1 day before -

E EBITDA 4.8 x 969 1 month before - AST & EBIT 8.9 x 522 1 day after - Earnings 3.5 x 1,173 Pre-rumour - A FRICA

Advisers Target/Seller Bidder Financial - Financial Barclays; NBK Capital Legal - Legal The Law Ofﬁce of Bader Saud Al Bader and Partners

PR - PR FTI Consulting

mergermarket/dealReporter Intelligence 30-Aug-12 Qtel launches USD 2.2bn offer for Wataniya Telecom shares

28-Jun-12 Wataniya Telecom: Qtel concludes talks to buy KIA’s 23.54% stake – report

26-Jun-12 Wataniya Telecom: Qtel submits an offer to CMA to acquire remaining shares

Bidder Qatar Telecom (QTel) Q.S.C. Headquarters: Doha, Qatar

Sector: TMT

Description: Qatar based company engaged in providing telecommunications services

Target National Mobile Telecommunications Company KSC Headquarters: Safat, Kuwait

Sector: TMT

Description: Kuwait based company engaged in the provision of mobile telecommunications and internet services

Monthly M&A Insider 54 TOP DEALS

TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF Q3 2012 MIDDLE

Announced Bidder company Target company Target dominated Seller company Exit multiples (x) Bid premia Deal value sector Revenue EBITDA P/E 1-day (US$m) before

E 16-Aug-12 Qatar Telecom (QTel) QSC National Mobile Telecommunications 1.8 4.8 3.5 - 2,206 AST & Telecommunications Company KSC (47.5% stake) A

FRICA 10-Sep-12 Shelf Drilling Transocean Ltd Energy, Mining & Transocean Ltd - 1,050 International Holdings Ltd (38 Shallow Water Utilities Drilling Rigs) 06-Sep-12 Shlomo Eliahu (private Migdal Insurance and Financial Services Assicurazioni 496.6 17.0 - 891 investor) Financial Holdings Ltd Generali SpA (69.13% stake) 02-Jul-12 Heritage Oil Plc; and Oil Mining Lease 30 Energy, Mining & The Shell Petroleum - 850 Shoreline Power (45% stake) Utilities Development Company Limited Company of Nigeria Limited; Total E&P Nigeria Limited; and Nigerian Agip Oil Company Limited 24-Jul-12 Anglo American Plc Minas de Revuboe Energy, Mining & Talbots Estate - 553 (58.9% stake) Utilities Agents 06-Aug-12 Genel Energy plc Bina Bawi Exploration Energy, Mining & Hawler Energy Ltd - 240 Block (21% stake) Utilities 19-Jul-12 Chevron Corporation Reliance Industries Energy, Mining & Reliance Exploration - 200 Limited (Sarta and Utilities and Production Rovi onland blocks) DMCC (80% stake) 27-Aug-12 Medi-Clinic Corporation Emirates Healthcare Pharma, Medical & Varkey Group 1.8 - 197 Ltd Holdings Limited Biotech Limited (44.39% stake) 24-Jul-12 Fawaz Abdulaziz Al NESK Group Of Consumer Al-Jedaie Group - 195 Hokair Company Trading Projects LLC 25-Sep-12 Tiger Brands Limited Dangote Flour Mills Consumer The Dangote Group 0.7 6.5 0.0 - 193 PLC (63.35% stake) Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target being Middle East or Africa Data correct as of 08-Oct-12

Monthly M&A Insider 55 LEAGUE TABLES

TOP 20 FINANCIAL ADVISERS – MIDDLE EAST & AFRICA MIDDLE VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 E

AST & Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 1 Goldman Sachs 7.5 10 18.0 -58.2%

A 2 17 HSBC 6.7 7 2.6 157.2% FRICA 3 - Barclays 5.1 8 - - 4 26 Lazard 4.5 3 1.6 180.6% 5 4 Deutsche Bank 4.0 2 10.4 -61.8% 6 11 Citigroup 3.7 4 4.8 -24.2% 7 12 Rothschild 3.5 6 3.8 -6.8% 8 2 Bank of America Merrill Lynch 3.4 5 11.9 -71.6% 9 8 Standard Bank Group 3.3 9 6.0 -44.2% 10 - SG 3.3 1 - - 11 61 Nomura Holdings 3.3 2 0.2 2076.0% 12 34 UBS Investment Bank 3.0 4 0.9 229.7% 13 5 Credit Suisse 2.9 2 9.1 -67.8% 14 51 PwC 2.7 9 0.3 948.0% 15 35 RBC Capital Markets 2.6 6 0.6 347.5% 16 6 JPMorgan 2.6 7 8.2 -68.5% 17 - NBK Capital 2.2 1 - - 18 - Kuwait Finance and Investment Co 2.1 1 - - 19 n/a Banco Itau BBA 2.0 1 - - 20 25 Jefferies & Company 1.5 5 1.6 -9.3% Source: mergermarket

TOP 20 FINANCIAL ADVISERS – MIDDLE EAST & AFRICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 1 Goldman Sachs 7.5 10 15 -5 2 2 Rand Merchant Bank 1.5 10 14 -4 3 5 Ernst & Young 1.2 9 12 -3 4 22 PwC 2.7 9 4 5 5 4 Standard Bank Group 3.3 9 12 -3 6 - Barclays 5.1 8 - - 7 13 HSBC 6.7 7 5 2 8 6 JPMorgan 2.6 7 10 -3 9 30 RBC Capital Markets 2.6 6 2 4 10 12 Rothschild 3.5 6 5 1 11 7 Bank of America Merrill Lynch 3.4 5 9 -4 12 9 Investec 0.9 5 9 -4 13 19 Jefferies & Company 1.5 5 4 1 14 - BDO 0.3 4 - - 15 15 Citigroup 3.7 4 4 0 16 26 M&A International 0.1 4 3 1 17 25 UBS Investment Bank 3.0 4 3 1 18 - Canaccord Genuity 0.6 3 - - 19 20 Lazard 4.5 3 4 -1 20 - UniCredit Group 1.3 3 - - Source: mergermarket

TOP 20 LEGAL ADVISERS – MIDDLE EAST & AFRICA MIDDLE VALUE

Ranking Q1-Q3 2012 Q1-Q3 2011 E

AST & Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 2 Freshﬁelds Bruckhaus Deringer 6.1 13 13.0 -52.9%

A 2 1 Linklaters 5.0 12 13.2 -62.2% FRICA 3 9 Allen & Overy 4.6 15 6.3 -27.3% 4 - Dechert 3.5 3 - - 5 12 Edward Nathan Sonnenbergs 3.5 17 4.4 -20.9% 6 69 Cleary Gottlieb Steen & Hamilton 3.3 1 0.5 551.0% 7 52 Shearman & Sterling 2.9 7 0.7 300.4% 8 14 Clifford Chance 2.5 12 3.5 -29.0% 9 3 Skadden Arps Slate Meagher & Flom 2.5 6 10.1 -75.1% 10 7 Dewey & LeBoeuf 2.5 3 7.2 -65.3% 11 94 Yigal Arnon & Co 2.4 3 0.3 812.8% 12 58 Jones Day 2.3 5 0.6 286.8% 13 157 Davis Polk & Wardwell 2.3 2 - - 14 32 Sullivan & Cromwell 2.3 1 1.5 51.1% 15 - The Law Ofﬁce of Bader Saud Al Bader and Partners 2.2 1 - - 16 27 Fasken Martineau Dumoulin 2.2 5 1.8 20.4% 17= - Lefosse Advogados 2.0 1 - - 17= - Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 2.0 1 - - 17= - Souza, Cescon, Barrieu & Flesch Advogados 2.0 1 - - 20= - Epstein Rosenblum Maoz 2.0 2 - - 20= - Rosenram 2.0 2 - - Source: mergermarket TOP 20 LEGAL ADVISERS – MIDDLE EAST & AFRICA VOLUME

Ranking Q1-Q3 2012 Q1-Q3 2011 Q1-Q3 2012 Q1-Q3 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 5 Edward Nathan Sonnenbergs 6.1 13 13 0 2 14 Allen & Overy 5.0 12 7 5 3 1 DLA Cliffe Dekker Hofmeyr 4.6 15 25 -10 4 11 Freshfields Bruckhaus Deringer 3.5 3 9 -6 5 6 Linklaters 3.5 17 12 5 6 9 Clifford Chance 3.3 1 11 -10 7 4 Herzog, Fox and Neeman 2.9 7 15 -8 8 7 Webber Wentzel 2.5 12 12 0 9 3 Bowman Gilfillan 2.5 6 17 -11 10 52 Shearman & Sterling 2.5 3 2 1 11 10 Meitar Liquornik Geva & Leshem Brandwein 2.4 3 10 -7 12 2 Werksmans 2.3 5 23 -18 13 16 Gibson Dunn & Crutcher 2.3 2 6 -4 14 19 Skadden Arps Slate Meagher & Flom 2.3 1 5 -4 15 55 Jones Day 2.2 1 2 -1 16 44 Fasken Martineau Dumoulin 2.2 5 2 3 17= 20 GKH Law Offices 2.0 1 5 -4 17= 24 Latham & Watkins 2.0 1 4 -3 17= 41 Mayer Brown 2.0 1 3 -2 20 31 Baker & McKenzie 2.0 2 3 -1 Source: mergermarket

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON MIDDLE EASTERN & AFRICAN BUYOUTS MIDDLE VALUE VOLUME Rank Rank

E Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal AST & (US$m) count (US$m) count 1= Castle Harlan 1,050 1 1 Abraaj Capital Holdings 127 2

A 1= CHAMP Private Equity Pte 1,050 1 2 Ethos Private Equity 109 2 FRICA 1= Lime Rock Partners 1,050 1 3 First Israel Mezzanine Investors 100 2 4 EFG Hermes 991 1 4 Capitalworks 39 2 5 Access Industries 332 1 5 Gulf Capital 27 2 6 Abraaj Capital Holdings 127 2 6= RMB Corvest (Pty) 21 2 7 Duet Group 118 1 6= Shalamuka Capital Proprietary 21 2 8 Ethos Private Equity 109 2 8= Castle Harlan 1,050 1 9 First Israel Mezzanine Investors 100 2 8= CHAMP Private Equity Pte 1,050 1 10= Citi Venture Capital International 100 1 8= Lime Rock Partners 1,050 1 10= Levant Capital 100 1 11 EFG Hermes 991 1 12= Aureos Capital 55 1 12 Access Industries 332 1 12= Swedfund International 55 1 13 Duet Group 118 1 12= Tuninvest 55 1 14= Citi Venture Capital International 100 1 15 Zico Capital 46 1 14= Levant Capital 100 1 Source: mergermarket Source: mergermarket

The private equity buyout activity tables by value and volume are based on private equity ﬁrms advising the bidder on buyout deals where the dominant geography of the target company is Middle East & Africa including Israel. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON MIDDLE EASTERN & AFRICAN EXITS VALUE VOLUME Rank Rank Q1-Q3 2012 Company name Value Deal Q1-Q3 2012 Company name Value Deal (US$m) count (US$m) count 1 Battery Ventures 820 2 1 Battery Ventures 820 2 2= Giza Venture Capital 430 1 2 StageOne Ventures 151 2 2= Jerusalem Venture Partners (JVP) 430 1 3 Carmel Ventures 141 2 2= Lightspeed Venture Partners 430 1 4= Giza Venture Capital 430 1 5= Intel Capital 390 1 4= Jerusalem Venture Partners (JVP) 430 1 5= Pitango Venture Capital 390 1 4= Lightspeed Venture Partners 430 1 7 Prime Natural Resources 240 1 7= Intel Capital 390 1 8 StageOne Ventures 151 2 7= Pitango Venture Capital 390 1 9 Carmel Ventures 141 2 9 Prime Natural Resources 240 1 10 NBK Capital 140 1 10 NBK Capital 140 1 11= Bessemer Venture Partners 130 1 11= Bessemer Venture Partners 130 1 11= Shaked Ventures 130 1 11= Shaked Ventures 130 1 13= Magma Venture Partners 120 1 13= Magma Venture Partners 120 1 13= Motorola Ventures 120 1 13= Motorola Ventures 120 1 13= Plenus 120 1 13= Plenus 120 1 Source: mergermarket Source: mergermarket

The private equity exit activity tables by value and volume are based on private equity ﬁrms advising the vendor on exit deals where the dominant geography of the target company is Middle East & Africa including Israel. The tables by value and volume have been run from 01-Jan-12 to 30-Sep-12 and exclude lapsed and withdrawn deals.

Monthly M&A Insider 58 TREND GRAPHS

MIDDLE EASTERN & AFRICAN M&A MIDDLE EASTERN & AFRICAN M&A QUARTERLY MIDDLE QUARTERLY TREND PRIVATE EQUITY TREND

E 40,000 160 7,000 25 AST &

35,000 140 6,000 20 A 30,000 120 Number of deals Number of deals FRICA 5,000

25,000 100 15 4,000

20,000 80 alue (US$m) alue (US$m) V V 3,000 10 15,000 60

2,000 10,000 40 5 1,000 5,000 20

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

MIDDLE EASTERN & AFRICAN M&A MIDDLE EASTERN & AFRICAN M&A ANNUAL ANNUAL TREND PRIVATE EQUITY TREND

100 500 14 70

90 450 12 60 80 400 Number of deals Number of deals 70 350 10 50

60 300 8 40

50 250 alue (US$bn) alue (US$bn)

V V 6 30 40 200

30 150 4 20

20 100 2 10 10 50

0 0 0 0 2006 2007 2008 2009 2010 2011 YTD 2012* 2006 2007 2008 2009 2010 2011 YTD 2012*

Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume

Monthly M&A Insider 59 TREND GRAPHS

MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN Q3 2012 MIDDLE

VALUE VOLUME 0.4%

E 0.3% 1.1% AST & 0.2% 1.1% 1.5% 0.1% 5.2% 1.5% 6.5% South Africa South Africa 24.2% A 1.8% Israel

FRICA 15.9% Israel 2.8% Nigeria Nigeria 3.0% United Arab Emirates United Arab Emirates 3.0% 12.4% Kuwait Kuwait 3.0% Iraq Iraq 12.3% 3.0% Egypt Angola 4.5% 7.0% Saudi Arabia Egypt Morocco Saudi Arabia 5.6% 4.5% 22.7% Mozambique Morocco 7.6% Jordan The Domocratic 25.9% 7.6% Republic of Congo Ghana Mauritius Yemen Tanzania Togo Mozambique Malawi Jordan Namibia Ghana Zambia Yemen

Togo

Malawi

Namibia

Zambia MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN Q3 2012

VALUE VOLUME

1.5% 4.9% 3.0% 3.0% Industrials & Chemicals 4.5% 16.7% Industrials & Chemicals 25.9% Energy, Mining & Utilites Energy, Mining & Utilites 6.1% Financial Services Financial Services

Consumer Consumer 6.1% Business Services Business Services 15.2% 0.2% 38.3% Technology Technology 0.2% 3.0% Construction 7.6% Construction 0.5% 2.0% Agriculture Agriculture 1.0% Pharma, Medical & Biotech Pharma, Medical & Biotech 0.3% 9.5% Media 10.6% 13.6% Media

Real Estate Real Estate 14.1% 12.1% Telecommunications Telecommunications

Monthly M&A Insider 60 TREND GRAPHS

MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN MIDDLE

VALUE VOLUME E AST &

100 100 3.8% 3.4% 6.5% 9.1% 7.2% 6.0% 5.7% 4.0% 10.3% 5.7% 5.2% 90 90 5.6% A 6.2% 13.1% 8.6%

FRICA 11.3% 10.2% 12.5% 80 80 15.4% 47.6% 14.5% 53.2% 16.8% 70 57.5% 58.9% 70 65.6% 67.0% 32.6% 68.0% 36.3% 33.7% 28.9% 60 60 32.5% entage entage 33.9% rc 50 rc 50 Pe 19.0% Pe 40.5% 40 13.2% 40 17.1% 14.5% 30 12.7% 30 11.3% 12.6% 18.0% 19.2% 47.0% 44.4% 47.0% 39.3% 42.9% 20 14.8% 16.0% 20 36.3% 12.7% 13.2% 9.5% 23.7% 10 13.7% 12.9% 10 7.8% 7.5% 8.9% 9.1% 9.5%

0 1.1% 0.9% 1.7% 1.5% 1.0% 1.4% 1.1% 0 2006 2007 2008 2009 2010 2011 2012* 2006 2007 2008 2009 2010 2011 2012*

US$15m-US$100m US$15m-US$100m

US$101m-US$250m US$101m-US$250m

US$251m-US$500m US$251m-US$500m

>US$501m >US$501m

SECTOR ANALYSIS

MIDDLE EASTERN & AFRICAN SECTOR ANALYSIS

Sector Q3 2012 Q3 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 3,259 38.3% 10 5,182 45.5% 13 -37% -23% Telecommunications 2,205 25.9% 1 280 2.5% 2 688% -50% Financial Services 1,201 14.1% 9 1,556 13.7% 13 -23% -31% Consumer 811 9.5% 8 1,967 17.3% 15 -59% -47% Industrials & Chemicals 413 4.9% 11 1,006 8.8% 18 -59% -39% Pharma, Medical & Biotech 258 3.0% 3 14 0.1% 2 1,743% 50% Construction 170 2.0% 4 24 0.2% 3 608% 33% Technology 82 1.0% 5 763 6.7% 7 -89% -29% Agriculture 42 0.5% 4 - - - - Business Services 29 0.3% 7 184 1.6% 4 -84% 75% Media 19 0.2% 2 - - - - Real Estate 18 0.2% 2 - - - - Leisure 0 0.0% 0 5 0.0% 2 -100% -100% Transportation 0 0.0% 0 402 3.5% 3 -100% -100% Defence 0 0.0% 0 - - - - Total 8,507 66 11,383 82 -25% -20%

Monthly M&A Insider 61 ABOUT MERRILL CORPORATION

FOUNDED IN 1968 AND HEADQUARTERED IN ST. PAUL, MINNESOTA, MERRILL CORPORATION IS A BOU A LEADING PROVIDER OF OUTSOURCED SOLUTIONS FOR COMPLEX BUSINESS COMMUNICATION

T AND INFORMATION MANAGEMENT. MERRILL’S SERVICES INCLUDE DOCUMENT AND DATA M

ERRILL MANAGEMENT, LITIGATION SUPPORT, LANGUAGE TRANSLATION SERVICES, FULFILLMENT, IMAGING AND PRINTING. MERRILL SERVES THE CORPORATE, LEGAL, FINANCIAL SERVICES, INSURANCE AND REAL ESTATE MARKETS. WITH MORE THAN 5,000 PEOPLE IN OVER 40 DOMESTIC AND 22

O INTERNATIONAL LOCATIONS, MERRILL EMPOWERS THE COMMUNICATIONS OF THE WORLD’S R

PO LEADING ORGANISATIONS. RATI ON Merrill Transaction and Compliance Services About Merrill DataSite Through a broad range of tools and services, Merrill Revolutionising the due diligence process Corporation streamlines document composition, filing, printing, distribution and electronic access to the transaction Merrill DataSite is designed for rapid deployment and can be and regulatory compliance activities of its clients engaged up and running within two hours of a client’s need. Our team in securities offerings, reorganisations, mergers and can scan, upload and organise thousands of pages of content acquisitions, SEC and other regulatory filings. As a registered, from any source in 24 hours or less. Every aspect of the third-party service provider offering public companies expert process, from document scanning to VDR hosting and project EDGARization and XBRL filing services, Merrill professionals management is delivered by Merrill’s multilingual team, can compose, edit, electronically file, manage and distribute available around the clock worldwide. data in printed or electronic format. With Merrill DataSite, all documents are captured and indexed Merrill Legal Solutions provide both on-demand and on-site to an online database and because all rights are designated litigation support, information management and electronic by the client, security and control are guaranteed. Each user’s and print document management services for law firms, ability to view, print or access source documents is set up corporate legal departments and professional services firms. by the client administrator and can be changed at any time. Merrill DataSite provides useful tools, including full search, Examples of our expertise include the creation of searchable viewer audit capability, Q&A, bulk uploads and detailed user litigation document repositories, management of electronic activity tracking that help clients maintain tighter control and data discovery and the delivery of real-time court reporting have greater insight into reviewer behaviour. and deposition videography services. Merrill DataSite enhances transaction success Merrill’s Marketing and Communication Solutions supply brand identity management, customer communication Merrill DataSite is the industry’s acknowledged leader. More and packaged direct marketing programmes for sales than 61,000 different private and public companies across the professionals in industries such as real estate, mutual funds globe have leveraged Merrill DataSite to increase the value of and insurance. Examples of our services include customisable the following types of transactions: corporate identity materials, direct-mail marketing pieces and • Mergers, acquisitions and divestitures promotional programs supported by web-based technologies. • Private placement transactions Merrill’s Translations Services provide a range of translation • Leveraged buyout transactions options to help clients achieve the most efficient and cost effective approach to their translation projects. Merrill Brink • Bankruptcy and reorganisation transactions offers extensive legal translation services for international • Financial restructuring transactions litigation, intellectual property, patents, contractual matters, antitrust matters, mergers and acquisitions, arbitration • Initial public offerings and dual-track processes and more. • Asset purchases and liquidations

www.datasite.com • Post-merger integration

Monthly M&A Insider 62 ABOUT MERRILL DATASITE

NOW SMARTER, FASTER, EASIER! A BOU PLEASE VISIT OUR WEBSITE: WWW.DATASITE.COM T M ERRILL Merrill DataSite – built with the client in mind Track all activity accurately. Auditing and reporting tools provide a veriﬁable account of each individual’s time spent

DATASITE Merrill DataSite was created to meet its clients’ needs and viewing both documents and specific pages – information that built to their specifications. Since 2002 we have consistently adds negotiating leverage. leveraged the experiences of our clients to add leading-edge functionality to the available toolset. Merrill DataSite allows its Need to work remotely? users and administrators to: No problem. Whether you’re working in Beijing or New York, Examine documents immediately. Patented technology you can view your documents online without having to navigate ensures you never have to wait for a document to be through internal firewalls and email restrictions that often downloaded. Because the data resides on Merrill’s servers, you exist for outside company connections and which delay the due can simultaneously view an unlimited number of documents diligence process. in multiple windows without having to close out or save to your “temp” file. When faced with hundreds of documents to review, Security is our highest priority this feature saves significant time and expense. Merrill has been a trusted provider of secure information to Designate user permissions. Team administrators can control the financial and legal industries for more than 40 years. Our which users will be able to view, print or download specific employees execute letters of confidentiality and we are audited documents, folders or projects – simply and quickly. annually (internal and third-party) to make certain our IT infrastructure and processes remain sound. Search every word in every document. With large document collections, sophisticated search features are key to finding Merrill DataSite was the first virtual data room to receive the critical information and accelerating the due diligence process. ISO 27001 certification for its comprehensive Information Merrill DataSite performs Optical Character Recognition (OCR) Security Management System (ISMS). on each and every letter in each and every document. Our The ISO 27001 standard, developed by the International search capabilities allow users to search tens – if not hundreds Organisation for Standards to establish international – of thousands of pages to find what’s relevant to them. Merrill requirements for information security and certification of DataSite’s search capabilities ensure nothing is missed in any ISMS, is designed to ensure effective protection of information of the posted documents - regardless of where they may be assets in foreign markets, as well as across national and organised within the index (e.g. find every instance of “contract” regional boundaries. and “termination” within 5 words of each other, etc.). Search results are returned much faster and are unlimited in terms of The best tool in the industry document results and hits within a document. Merrill DataSite technology allows for the fastest conversion Using wildcard, fuzzy, proximity, boosting, Boolean and of soft and hard copy documents to the electronic viewing grouping modifiers, you can search and find exact matches and platform. As a result, designated administrators are able to near-matches, including misspelled words. Potential buyers review documents the moment they are available. will enjoy increased confidence knowing they’ve received and Through secure, simultaneous access, full text search seen all materials and documents that are relevant to their capabilities and robust reporting tools, both archival and decision-making. transactional due diligence processes are streamlined. As a Protect confidential information. ”View-only” documents result, Merrill DataSite gives you more insight and control, and are never downloaded. Merrill DataSite, not the computer’s dramatically reduces transaction time and costs. browser, controls the caching process providing unmatched As a leading provider of VDR solutions worldwide, Merrill security levels. Unlike other VDR providers, images are never DataSite has empowered nearly two million unique visitors to viewable on the PC’s cache after the conclusion of a session. perform electronic due diligence on thousands of transactions totalling trillions of dollars in asset value.

Monthly M&A Insider 63 ABOUT MERRILL CORPORATION

EXECUTIVE MANAGEMENT Ari Lee BJ Birtz A Regional Director, North Asia Regional Director, Raleigh BOU Ed Bifulk Tel: +852 9855 3758 Tel: +1 919 996 9117 President T Vincent Lork Paul Kleinkauf M Tel: +1 212 229 6563 Regional Director, South East Asia Regional Director, Southeast ERRILL Paul Hartzell Tel: +65 6248 4602 Tel: +1 404 602 3251 Senior Vice President Chris Robilliard Michail Sidorov Tel: +1 212 367 5950 Regional Director, Australia & New Zealand Regional Director, Ohio & Michigan

C Tel: +612 8667 3064 Tel: +1 216 333 1274 O R

PO EXECUTIVE SALES Manuel Bentosinos Jessie Saini Regional Director, Mexico, Columbia Regional Director, Midwest RATI Chris Beckmann & Caribbean Tel: +1 312-386-2293 Regional Director, Germany, Switzerland Tel: +52 55 9171 2237

ON Scott Haugen & Poland Ana Paula Macêd Távora de Castro Regional Director, Minnesota & Wisconsin Tel: +49 69 25617 110 Regional Director, South America Tel: +1 651 632 4375 Manuel Bianchi Tel: +55 11 9908 0858 Anthony Crosby Regional Director, Europe Luis Felipe Salles Cunha Regional Director, Chicago Tel: +44 (0)207 422 6271 Regional Director, Brazil Tel: +1 312 674 6511 Will Brown Tel: +55 11 3568 2429 Mark Plaehn Regional Director, Life Sciences Carlos Nogueira Regional Director, Chicago Tel: +33 1 40 06 13 02 Regional Director, Brazil Tel: +1 312 674 6527 Francesco Caracuta Tel: +55 11-3895-8572 Kelly-Leigh Keefe Regional Director, Europe Brian Gilbreath Regional Director, Chicago Tel: +44 (0)207 422 6270 Vice President, Midwest & Latin America Tel: +1 312 386 2229 Hakema El-Hadad Tel: +1 404 934 8085 Nicholas Renter Regional Director, France Hank Gregory Regional Director, Texas &Northern Africa SVP, Western Canada & Paciﬁc Northwest Tel: +1 214 754 2100 Tel: +33 (0) 1 40 06 13 10 Tel: + 604 603 4360 Bryan Brighton Alex Gross Ryan MacMillan Regional Director, Austin Regional Director, Eastern Europe Regional Director, Canada Tel: +1 512 551 2986 & Middle East Tel: +1 416 214 2448 Tel: +49 69 7593 7148 Andrew Buonincontro Jason Hedges Regional Director, Bay Area Mike Hinchliffe Regional Director, Canada Tel: +1 650 493 1400 Regional Director, Europe Tel: +1 416-878-3260 Tel: +44 (0)207 422 6256 Erik Sandie Michael Kennedy Regional Director, Bay Area Jonathan Hughes Regional Director, New England Tel: +1 650 493 1400 Account Manager, Europe Tel: +1 207 829 4369 Tel: +44 (0)207 422 6267 Jay Loyola Ross Whittaker Regional Director, Bay Area Shashank Jain Regional Director, New England Tel: +1 949 622 0663 Account Manager, United Arab Emirates Tel: +1 617.535.1516 Tel: +971 (0)50 252 3025 Shelle Martin Jon Lenihan Regional Director, Bay Area Alvaro Ortega Regional Director, Boston Tel: +1 415 357 4355 Regional Director, Southern Europe Tel: +1 617-535-1618 Tel: +34 610 909 353 Dan Phelan Scott Rediker Regional Director, Los Angeles Adam Pang Regional Director, Mid Atlantic Tel: +1 213 253 2139 Account Manager, Europe Tel: +1 443-690-3122 Tel: +44 20 7422 6268 Hans Schumann Forrest R. Doane Regional Director, San Diego Merlin J. Piscitelli Regional Director, New York Tel: +1 760 635 0830 Regional Director, Europe Tel: +1 212 229 6620 Tel: +44 (0)207 422 6266 David Yeary Adam Kuritzky Vice President, DataSite Life Sciences Jérôme Pottier Regional Director, New York Tel: +1 415 307 4414 Regional Director, France Tel: +1 917 232 9569 Tel: +33 (0) 1 40 06 13 12 James Snaza John McElrone Director of Life Sciences Colin Schopbach Regional Director, New York Tel: +1 651 632 4585 Regional Director, Europe Tel: +1 212 229 6656 Tel: +44 (0)207 422 6221 Jon Blue Matthew Mezzancello Vice President, Clean Tech Anna Scott Regional Director, NY, NJ & PA Tel: +1 206 696 9169 Regional Director, U. K. Tel: +1 212 229 6618 Tel: +44 (0)207 422 6263 Mark Finnie Steve Piccone Regional Director, North Asia Vice President, New York Tel: +852 2536 2534 Tel: +1 212 229 6883 Monthly M&A Insider 64 The following notes pertain to data contained in this publication: • Deals are included where the deal value is greater than or equal to ¤5m. • Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to ¤10m. • Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus. • Q3 2012 refers to the period 01-Jul-12 to 30-Sep-12. Q1-Q3 2012 refers to the period 01-Jan-12 to 30-Sep-12. *YTD 2012 refers to the period 01-Jan-12 to 30-Sep-12.

Remark, Part of The Mergermarket Group www.mergermarket.com

80 Strand 11 West 19th Street, Suite 2401-3 London, WC2R 0RL 2nd ﬂ. Grand Millennium Plaza United Kingdom New York, NY 10011 181 Queen’s Road, Central USA Hong Kong t: +44 (0)20 7059 6100 t: +1 212 686-5606 t: +852 2158 9700 f: +44 (0)20 7059 6101 f: +1 212 686-2664 f: +852 2158 9701 [email protected] [email protected] [email protected]

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