QUA E D RTERLY ITION
A mergermarket report on global M&a activity MONTHLY M&A INSIDER January 2013 Inside:
Global Overview
Latin America
North America
Asia-Pacific
Europe
Middle East & Africa
About Merrill Corporation
Monthly M&A Insider | January global overview
The year’s end brought about a much-needed reprieve from 2012’s overall gloomy M&A climate. A slew of bulge-bracket deals were announced in the last three months of the year, with eight valued at US$10bn or more. Accompanying this boost, the second half of the year saw impressive gains in value, increasing 16% year-on-year (YoY). Deal numbers have struggled to rebound as quickly, falling by 2% over the period.
Private equity Defence After quarters of sluggish activity, private equity has perked When comparing H2 2012 with H2 2011, defence has up somewhat. Although buyout volume and value remains experienced the largest YoY gains out of any sector, and grew by depressed YoY in H2 2012, there were patches and periods of 30% in volume to 26 deals, and by 453% in value, or US$7.2bn, positive buyout activity. In the USA, for instance, there were even with EADS and BAE’s failed merger, which was expected to six more buyouts in H2 2012 than H2 2011, and buyout value prompt a wave of consolidation in the sector. The majority of H2 increased by 20%, or US$11.2bn, to US$67bn. 2012’s sizeable deals were a fraction of the size of the ill-fated tie-up, and were often aimed at more modest changes, or to More exciting has been the improving exit climate. In H2 2012, take advantage of the cheap financing market in the months exit value increased by 17%, to US$135bn, even with volume leading up to the fiscal cliff in the US. One of the most notable dropping by 9%. Many of the investments made in the boom defense deals of H2 2012, Carlyle Partners and BC Partners’ days of 2006 and 2007 have yet to exit, long past normal holding US$3.5bn buyout of Hamilton Sundstrand, reflects both of these periods. Yet, it does appear that those portfolio companies that trends. The buyout is slated to give the US-based aerospace and do exit are now fetching higher price-tags: the top ten biggest industrial producer a wider geographical footprint and to further exits of H2 2012 have a combined value of US$25.5bn, while its development capabilities. BC Partners has eagerly scooped those in the same period of 2011 have a value of US$20.1bn. up American businesses, with the European additions to its portfolio of a much smaller value in 2012. One confidence-inspiring exit, and the second biggest of H2 2012, was the US$4.4bn sale of Avio’s aviation arm to General Electric from PE house Cinven and Italy-based Finmeccanica, Outlook one of the world’s largest industrials conglomerates. Avio had The moderately positive numbers at the year’s end may partially been PE-owned since 2006, and was looking for a buyer for some be due to changing tax regimes and political worries, with time, as an IPO was considered to be too risky. The deal valued dealmakers hurrying through deals in the last few weeks of Avio at around double Cinven’s initial investment and was rushed 2012, but there may be other forces at play. With higher-value through in the last days of 2012 largely because Mario Monti, the deals being completed, there is gradually returning optimism pro-foreign investment Italian prime minister, had announced surrounding the M&A climate. More corporates may view the plans to step down in early 2013, with many concerned that his coming months as the right time to put themselves on the replacement may be less business-friendly. For its part, GE was market in the wake of the year end’s positive findings. looking to secure its supply chain, since it has used Avio as a supplier of jet engine parts for nearly 30 years.
Head of Research: Elias Latsis Global overview: Kristina Thompson
Editor: Laura Resetar Latin America: Ashley Klepach and Fabio Lopes North America: Dan Kim and Urna Chakraborty For advertising opportunities contact: Asia-Pacific: Susie Xiao and Brandon Taylor Erik Wickman Tel: + (1) 212 686 3329 Europe: Peter Kruk and Alicia Molina [email protected] Middle East & Africa: Silvia Paparello and Rika Niekzad
Monthly M&A Insider | January | 01 LEAGUE TABLES
TOP 20 GLOBAL FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 1 Goldman Sachs 315,263 167 288,531 9.3% 2 2 Morgan Stanley 286,159 141 217,038 31.8% 3 5 Citi 264,014 105 150,670 75.2% 4 3 JPMorgan 250,784 116 204,579 22.6% 5 4 Barclays 192,569 106 174,636 10.3% 6 6 Bank of America Merrill Lynch 186,064 105 142,999 30.1% 7 8 UBS Investment Bank 178,367 82 117,404 51.9% 8 10 Deutsche Bank 175,626 83 90,842 93.3% 9 7 Credit Suisse 174,645 104 135,417 29.0% 10 13 Rothschild 136,256 123 53,103 157% 11 12 Evercore Partners 100,196 44 54,714 83.1% 12 9 Lazard 65,840 104 92,973 -29.2% 13 45 VTB Capital 63,573 11 11,118 472% 14 14 RBC Capital Markets 61,195 69 42,599 43.7% 15 17 Mizuho Financial Group 53,391 22 36,051 48.1% 16 41 Greenhill & Co 51,592 28 12,312 319% 17 25 Jefferies & Company 51,559 70 26,726 92.9% 18 18 Nomura Holdings 43,092 55 35,827 20.3% 19 34 Centerview Partners 39,446 7 17,024 131.7% 20 11 HSBC 38,972 31 59,931 -35.0% Source: mergermarket
TOP 20 GLOBAL FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 Goldman Sachs 315,263 167 140 27 2 3 PwC 13,268 148 124 24 3 4 Morgan Stanley 286,159 141 122 19 4 10 Rothschild 136,256 123 93 30 5 5 JPMorgan 250,784 116 117 -1 6 12 Barclays 192,569 106 87 19 7 2 KPMG 11,662 106 129 -23 8 13 Citi 264,014 105 87 18 9 11 Bank of America Merrill Lynch 186,064 105 91 14 10 9 Credit Suisse 174,645 104 96 8 11 6 Lazard 65,840 104 105 -1 12 14 Deutsche Bank 175,626 83 86 -3 13 8 UBS Investment Bank 178,367 82 98 -16 14 15 Deloitte 5,566 73 77 -4 15 18 Jefferies & Company 51,559 70 52 18 16 16 RBC Capital Markets 61,195 69 63 6 17 7 Ernst & Young 5,885 61 103 -42 18 17 Nomura Holdings 43,092 55 58 -3 19 24 Houlihan Lokey 12,135 53 43 10 20 22 Lincoln International 1,294 51 48 3 Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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.
GLOBAL OVERVIEW Monthly M&A Insider | January | 02 LEAGUE TABLES
TOP 20 GLOBAL LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 2 Skadden Arps Slate Meagher & Flom 183,001 102 142,294 28.6% 2 9 Cleary Gottlieb Steen & Hamilton 161,176 59 86,746 85.8% 3 6 Cravath, Swaine & Moore 148,214 27 105,339 40.7% 4 14 Weil Gotshal & Manges 115,403 90 65,699 75.7% 5 11 Linklaters 114,114 121 75,660 50.8% 6 7 Latham & Watkins 113,279 146 99,325 14.0% 7 1 Sullivan & Cromwell 103,735 61 181,994 -43.0% 8 12 Freshfields Bruckhaus Deringer 102,983 113 75,612 36.2% 9 29 Baker & McKenzie 98,444 95 35,937 174% 10 46 Morrison & Foerster 96,663 44 18,581 420% 11 31 White & Case 93,506 105 31,889 193% 12 4 Wachtell, Lipton, Rosen & Katz 93,437 42 123,471 -24.3% 13 23 Davis Polk & Wardwell 91,317 48 42,450 115.1% 14 45 Paul Weiss Rifkind Wharton & Garrison 90,074 41 18,812 379% 15 19 Clifford Chance 88,843 100 54,977 61.6% 16 5 Shearman & Sterling 70,956 62 108,079 -34.3% 17 20 Mori Hamada & Matsumoto 61,246 26 50,555 21.1% 18 26 Kirkland & Ellis 60,835 153 39,745 53.1% 19 40 Blake, Cassels & Graydon 55,849 60 21,093 165% 20 3 Simpson Thacher & Bartlett 55,711 63 136,801 -59.3% Source: mergermarket
TOP 20 GLOBAL LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 DLA Piper 19,483 190 206 -16 2 2 Jones Day 52,885 161 151 10 3 4 Kirkland & Ellis 60,835 153 136 17 4 3 Latham & Watkins 113,279 146 144 2 5 9 Linklaters 114,114 121 98 23 6 6 Freshfields Bruckhaus Deringer 102,983 113 112 1 7 13 White & Case 93,506 105 75 30 8 11 Skadden Arps Slate Meagher & Flom 183,001 102 91 11 9 7 Clifford Chance 88,843 100 108 -8 10 5 Baker & McKenzie 98,444 95 125 -30 11 8 Allen & Overy 36,323 95 99 -4 12 14 Weil Gotshal & Manges 115,403 90 71 19 13 10 CMS 24,812 76 94 -18 14 12 Hogan Lovells 41,296 67 76 -9 15 16 Norton Rose 15,983 66 66 0 16 18 Simpson Thacher & Bartlett 55,711 63 59 4 17 15 Shearman & Sterling 70,956 62 70 -8 18 30 Sullivan & Cromwell 103,735 61 45 16 19 39 Blake, Cassels & Graydon 55,849 60 40 20 20 20 Cleary Gottlieb Steen & Hamilton 161,176 59 57 2 Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Global.
GLOBAL OVERVIEW Monthly M&A Insider | January | 03 LEAGUE TABLES
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL BUYOUTS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1The Carlyle Group 18,536 20 1The Carlyle Group 18,536 20 2 BC Partners 10,634 3 2Blackstone Group 5,528 14 3Blackstone Group 5,528 14 3 Kohlberg Kravis Roberts & Co 1,837 9 4Terra Firma Capital Partners 5,091 1 4AXA Private Equity 1,338 7 5Advent International 4,620 6 5Macquarie Group 999 7 6 KingSett Capital 3,968 1 6Advent International 4,620 6 7Bain Capital 3,950 4 7EQT Partners 1,394 6 8Onex Partners 3,113 2 8H.I.G. Capital 211 6 9Clayton, Dubilier & Rice 3,032 3 9The Riverside Company - 6 10 Sheridan Production Partners 2,600 1 10 TPG Capital 1,696 5 11 Apollo Global Management 2,398 2 11 Sun Capital Partners 459 5 12 Permira 2,310 2 12 AEA Investors 379 5 13 Platinum Equity 2,044 3 13 Oaktree Capital Group 252 5 14 Berkshire Partners 2,000 1 14 The Gores Group 175 5 15 FountainVest Partners 1,936 2 15 Teachers Private Capital 153 5 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Global. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL EXITS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1GS Capital Partners 11,262 5 1The Riverside Company - 8 2Oaktree Capital Group 8,479 4 2GS Capital Partners 11,262 5 3Hellman & Friedman 7,000 2 3Macquarie Group 6,971 5 4Macquarie Group 6,971 5 4Oaktree Capital Group 8,479 4 5= Charterhouse Equity Partners 6,579 1 5 Providence Equity Partners 1,670 4 5= Quadrangle Group 6,579 1 6The Carlyle Group 1,666 4 7Cinven 4,369 1 7Felicis Ventures 1,450 4 8EQT Partners 3,983 3 8Warburg Pincus 1,269 4 9Investor 3,983 1 9Apax Partners 1,031 4 10 Madison Dearborn Partners 3,584 3 10 HitecVision 729 4 11 ABRY Partners 3,360 3 11 3i Group 610 4 12= AMP Capital Investors 3,030 1 12 Marlin Equity Partners 577 4 12= Industry Funds Management 3,030 1 13 Polaris Venture Partners 447 4 14 Ridgemont Equity Partners 3,000 3 14 Barclays Ventures 210 4 15 Caisse de Depot et Placement du Quebec 2,939 2 15 Intel Capital 187 4 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Global. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
GLOBAL OVERVIEW Monthly M&A Insider | January | 04 TREND GRAPHS
GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND
1,400 4,500 400 900
4,000 800 1,200 350
3,500 700 300 1,000 Number of deals 3,000 600 Number of deals 250 800 2,500 500 200 600 2,000 400 Value (US$bn) Value Value (US$bn) Value 150 1,500 300 400 100 1,000 200
200 500 50 100
0 0 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND
4,000 18,000 900 3,500
16,000 800 3,500 3,000
14,000 700 3,000 2,500 Number of deals 12,000 Number of deals 600 2,500 10,000 500 2,000 2,000 8,000 400 1,500 Value (US$bn) Value Value (US$bn) Value 1,500 6,000 300 1,000 1,000 4,000 200
500 500 2,000 100
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
GLOBAL OVERVIEW Monthly M&A Insider | January | 05 TREND GRAPHS
GLOBAL M&A GEOGRAPHIC BREAKDOWN H2 2012
VALUE VOLUME
2.3% 3.9% 2.3% 4.3% 19.0% Asia-Pacific 21.1% Asia-Pacific Europe Europe North America North America Middle East & Africa Middle East & Africa Central & South America Central & South America 33.9%
48.0%
26.8%
38.3%
GLOBAL M&A SECTOR BREAKDOWN H2 2012
VALUE VOLUME
1.5% 0.5% 1.8% 1.3% 1.7% 4.4% 13.5% 3.6% Industrials & Chemicals Industrials & Chemicals 2.6% 3.6% 20.1% 3.2% Consumer 3.7% Consumer Business Services Business Services 3.8% Energy, Mining & Utilities Energy, Mining & Utilities 10.5% 13.2% Technology Technology 7.9% Financial Services Financial Services
Pharma, Medical & Biotech 13.1% Pharma, Medical & Biotech Media Media 4.4% Transportation 8.5% Transportation 13.4% Construction Construction Leisure Leisure
Real Estate 10.2% 11.2% Real Estate 5.6% 25.5% Agriculture Agriculture 11.1%
GLOBAL OVERVIEW Monthly M&A Insider | January | 06 TREND GRAPHS
GLOBAL M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0.7% 0.7% 0.6% 0.5% 0.4% 0.5% 0.4% 100 100 1.1% 1.2% 1.2% 1.3% 0.9% 1.0% 1.1% 90 98 27.4% 29.4% 30.1% 3.8% 3.7% 4.7% 4.8% 80 42.2% 39.7% 40.5% 96 5.0% 42.0% 5.0% 5.5% 70 94 3.9% 20.5% 4.6% 20.5% 60 19.1% 92 4.5% 4.8% 4.8% 17.0% 4.7% 50 16.9% 15.3% 16.5% 90 5.1% Percentage Percentage 40 88 27.5% 26.2% 27.3% 19.3% 20.5% 30 20.8% 22.9% 86 90.9% 90.1% 89.2% 88.8% 20 8.9% 7.9% 9.7% 10.1% 84 88.4% 87.5% 88.6% 7.5% 7.9% 9.5% 10 82 12.6% 12.5% 14.5% 14.5% 15.0% 14.5% 13.4% 0 80 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
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SECTOR ANALYSIS
GLOBAL SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 285,567 23.5% 686 277,841 26.4% 594 3% 15% Industrials & Chemicals 151,282 12.4% 1,240 161,574 15.4% 1,352 -6% -8% Consumer 148,001 12.2% 805 88,287 8.4% 843 68% -5% Financial Services 150,033 12.3% 523 131,324 12.5% 561 14% -7% Pharma, Medical & Biotech 118,061 9.7% 488 93,363 8.9% 466 26% 5% Technology 63,202 5.2% 629 72,774 6.9% 649 -13% -3% Business Services 48,816 4.0% 689 41,169 3.9% 764 19% -10% Media 35,613 2.9% 234 15,382 1.5% 222 132% 5% Transportation 29,277 2.4% 230 26,109 2.5% 183 12% 26% Real Estate 49,577 4.1% 113 43,047 4.1% 121 15% -7% Leisure 16,700 1.4% 219 25,620 2.4% 230 -35% -5% Telecommunications 89,664 7.4% 60 56,613 5.4% 73 58% -18% Defence 7,173 0.6% 26 1,296 0.1% 20 453% 30% Construction 18,607 1.5% 224 10,705 1.0% 216 74% 4% Agriculture 5,622 0.5% 80 5,604 0.5% 79 0% 1% Total 1,217,195 6,246 1,050,708 6,373 16% -2%
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datasite.com a mergermarket M&A report on Latin america
Latin American M&A in H2 2012 (US$46.9bn, 267 deals) was down by 35.9% by deal value from H2 2011 (US$73.2bn, 316 deals). It also did not fare too well compared to H1 2012, which saw 346 deals valued at US$68.8bn. While aggregate M&A deal value in the last quarter of the year (US$32.9bn, 125 deals) increased compared to Q3 2012 (US$14bn, 142 deals) and Q4 2011 (US$28.6bn, 157 deals), the volume of deals was the lowest since Q1 2010 (104 transactions). Overall, fuelled by global economic uncertainty, the number of deals in the region in 2012 was down for the first time since 2009, after two consecutive years of increasing pace.
With yet another year of unimpressive GDP growth rate (2%), Deals were significantly smaller, however, averaging US$71m Brazil, responsible for 42.9% of the deal value in Latin America compared to US$125m in 2011. At the same time, exit volumes in H2 2012, was the main culprit behind the lackluster Latin in 2012 (US$2bn, 15 deals) were slightly lower than in 2011 American performance. Brazil accounted for 129 deals worth (US$2.2bn, 16 deals). US$20.1bn in the second half of 2012. New regulations on utility concessions are discouraging investors from buying into the In H2 2012, the Energy, Mining & Utilities sector, which saw 35 sector; and the main concern is that such regulatory frenzy will deals worth US$11.6bn, was the most active sector in Latin spread to other sectors as well, hampering economic growth America with a 24.8% market share by deal value. The Financial and making investors overly cautious. Services sector (US$8.3bn, 27 deals) was the second most active, accounting for 17.8% of all deals. By volume, the Consumer Nonetheless, 2013 is expected to see large deals in the sector dominated in H2 2012 yet again, with 61 deals or a 24% construction and infrastructure sector in Brazil, with little more market share. Industrials & Chemicals was the second most than a year and a half remaining until the 2014 World Cup and active sector by volume with 42 deals or a 15.8% market share. only about half of the stadiums completed.
While overall M&A performance in the region was not impressive in 2012, the private equity industry saw surprisingly high volumes. In fact, the number of buyouts involving a Latin America target (52 deals in 2012) increased by 23.8% from 2011 (42 transactions), the highest on mergermarket record.
Monthly M&A Insider | January | 09 DEAL OF THE HALF YEAR
Deal summary Announced: 07-Dec-12 Deal value: US$3,590m
Enersis SA has agreed to acquire the Conosur electricity assets CONDITIONS: of Endesa SA. ì (QHUVLVVKDUHKROGHUDSSURYDO Enersis, the listed Chile based company headquartered in Santiago, is engaged in the distribution and sale of electricity. BACKGROUND: Endesa, the listed Spain based company headquartered in Madrid, is a utility company engaged in the generation, ì 7KHWRWDOFDSLWDOLQFUHDVHZLOOLQFOXGHWKHLVVXDQFHRI transmission, and distribution of electricity. 16,441,606,297 Enersis shares valued at an offer price of CLP173 (US$0.36) per share, for a total consideration of CLP2.844trn (US$4,920.894m). TERMS: ì (QHUVLVåUHPDLQLQJVKDUHKROGHUVPD\VXEVFULEHWRD ì RIWKH&RQRVXUHOHFWULFLW\DVVHWVLQH[FKDQJHIRU maximum of 6,473,976,239 Enersis shares valued at an offer 9,967,630,058 Enersis shares valued at an offer price price of CLP173 (US$0.36) per share. of CLP173 (US$0.36) per share for a consideration of US$3,589.508m. ì (QGHVDKROGVDVWDNHLQ(QHUVLV
ì 7KHFDSLWDOLQFUHDVHZLOOPDNH(QHUVLVWKHOHDGLQJ EXPECTED COMPLETION: private electricity company in Latin America and the ì 7KHWUDQVDFWLRQLVH[SHFWHGWRFORVHLQWKHILUVWTXDUWHU only regional operator. of 2013. ì (QHUVLVZLOOEHFRPH(QHO(QGHVDåVVROHLQYHVWPHQWYHKLFOH in Latin America in the power generation, distribution and sales business.
Bidder Enersis SA Headquarters Avenida Santa Rosa 76 Santiago Chile Sector Energy, Mining & Utilities Description Chile based company engaged in the distribution and sale of electricity
Target Endesa Spain (Conosur Electricity assets) Headquarters Chile Sector Energy, Mining & Utilities Description Chile based electricity asset of Endesa SA
Vendor Endesa SA Headquarters Ribera del Loira 60 Madrid Spain Sector Energy, Mining & Utilities Description Spain based utility group engaged in the generation, transmission, and distribution of electricity
LATIN AMERICA Monthly M&A Insider | January | 10 TOP DEALS
TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF H2 2012
Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal sector 1-day value Revenue EBITDA P/E before (US$m)
8-Oct-12 UnitedHealth Group Inc Amil Participacoes SA Pharma, Medical & 1.1 24.8 58.3 21.3% 4,922 (90% stake) Biotech
7-Dec-12 Enersis SA Endesa Spain (Conosur Energy, Mining & Endesa SA --- - 3,590 electricity assets) Utilities
6-Aug-12 Abertis Infraestructuras SA; Obrascon Huarte Lain Construction OHL Concesiones SA 2.6 7.1 2.5 -7.8% 2,763 and Brookfield Infrastructure Brasil SA (60% stake) Partners LP
18-Oct-12 Cencosud SA Carrefour SA (Colombian Consumer Carrefour SA 1.2 -- - 2,621 operations)
12-Nov-12 The Sherwin Williams Consorcio Comex SA Industrials & 1.7 -- - 2,340 Company de CV Chemicals
24-Jul-12 Corporacion Financiera Promigas SA ESP Energy, Mining & 20.2 39.0 19.3 - 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
27-Nov-12 Grupo Financiero Banorte Administradora de Financial Services Banco Bilbao Vizcaya QD QD - - 1,600 SA de CV; and Mexican Social Fondos para el Retiro Argentaria SA Security Institute Bancomer SA de CV
20-Dec-12 Cimpor Cimentos de InterCement Austria Construction InterCement Austria --- - 1,587 Portugal SGPS SA Holding GmbH (17 Plants Holding GmbH In Brazil, Argentina, Paraguay and Angola)
8-Oct-12 Principal Financial Group Inc Administradora de Financial Services Empresas Penta QD QD - 52.7% 1,513 Fondos de Pensiones SA; and Inversiones Cuprum SA Banpenta Limitada
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 07-Jan-13
LATIN AMERICA Monthly M&A Insider | January | 11 LEAGUE TABLES
TOP 20 LATIN AMERICAN FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 10 Goldman Sachs 15,647 16 11,737 33.3% 2 13 JPMorgan 12,918 8 6,319 104.4% 3 3 Credit Suisse 10,941 11 19,807 -44.8% 4 12 Bank of America Merrill Lynch 7,772 7 8,261 -5.9% 5 20 Lazard 6,275 7 3,318 89.1% 6 11 Morgan Stanley 4,836 4 10,354 -53.3% 7 7 Rothschild 4,733 9 14,495 -67.3% 8 1 Banco BTG Pactual 4,680 15 25,145 -81.4% 9 2 UBS Investment Bank 3,997 6 20,550 -80.5% 10 9 Citi 3,673 5 12,485 -70.6% 11 17 Societe Generale 3,030 2 4,800 -36.9% 12 6 BNP Paribas 2,888 6 14,935 -80.7% 13 5 Banco Bradesco BBI 2,724 9 16,372 -83.4% 14 40 HSBC 2,627 5 477 451% 15 - Brunswick Group 2,621 1 - - 16 4 Banco Itau BBA 2,157 26 19,457 -88.9% 17 - Corporacion Financiera Colombiana 1,908 1 - - 18 50 Asset Chile 1,700 1 122 1293% 19 41 Inverlink 1,278 1 426 200% 20 32 Santander Global Banking and Markets 812 6 621 30.8% Source: mergermarket
TOP 20 LATIN AMERICAN FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 2 Banco Itau BBA 2,157 26 19 7 2 11 Goldman Sachs 15,647 16 7 9 3 1 Banco BTG Pactual 4,680 15 24 -9 4 3 Credit Suisse 10,941 11 18 -7 5 14 Rothschild 4,733 9 5 4 6 4 Banco Bradesco BBI 2,724 9 13 -4 7 17 JPMorgan 12,918 8 4 4 8 13 Bank of America Merrill Lynch 7,772 7 6 1 9 16 Lazard 6,275 7 5 2 10 6 UBS Investment Bank 3,997 6 10 -4 11 8 BNP Paribas 2,888 6 9 -3 12 24 Santander Global Banking and Markets 812 6 3 3 13 7 Citi 3,673 5 10 -5 14 19 HSBC 2,627 5 4 1 15 5 Morgan Stanley 4,836 4 11 -7 16 18 Banco Bilbao Vizcaya Argentaria 530 3 4 -1 17 26 Ernst & Young 159 3 3 0 18 9 BR Partners 78 3 9 -6 19 - Lincoln International 24 3 - - 20 10 PwC 12 3 8 -5 Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Latin American.
LATIN AMERICA Monthly M&A Insider | January | 12 LEAGUE TABLES
TOP 20 LATIN AMERICAN LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 14 Lefosse Advogados 10,846 13 5,712 89.9% 2 37 Linklaters 10,292 9 1,150 795% 3 15 Sullivan & Cromwell 9,110 8 5,140 77.2% 4 17 Pinheiro Neto Advogados 7,296 14 4,282 70.4% 5 31 Simpson Thacher & Bartlett 6,870 4 1,248 450% 6 - De Brauw Blackstone Westbroek 5,344 3 - - 7 2 Shearman & Sterling 4,478 6 12,907 -65.3% 8 35 Posse, Herrera & Ruiz 4,461 4 1,155 286% 9 49 Jones Day 4,116 5 873 371% 10 7 Cleary Gottlieb Steen & Hamilton 3,989 3 7,931 -49.7% 11 20 Baker & McKenzie 3,958 6 2,996 32.1% 12 3 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,895 12 10,202 -61.8% 13 8 Clifford Chance 3,853 6 6,899 -44.2% 14 57 Souza, Cescon, Barrieu & Flesch Advogados 3,718 7 614 506% 15 66 White & Case 3,715 7 491 657% 16 4 Machado Meyer Sendacz e Opice 3,493 13 9,918 -64.8% 17 81 Philippi, Yrarrazaval, Pulido & Brunner 3,161 2 320 888% 18 32 Freshfields Bruckhaus Deringer 3,030 2 1,238 145% 19 130 Hogan Lovells 2,913 2 45 6373% 20 75 Debevoise & Plimpton 2,796 3 400 599% Source: mergermarket
TOP 20 LATIN AMERICAN LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 2 Pinheiro Neto Advogados 7,296 14 24 -10 2 12 Lefosse Advogados 10,846 13 7 6 3 1 Machado Meyer Sendacz e Opice 3,493 13 28 -15 4 3 Mattos Filho, Veiga Filho, Marrey Jr. e Quiroga Advogados 3,895 12 23 -11 5 17 Veirano Advogados 1,210 10 6 4 6 22 Linklaters 10,292 9 4 5 7 26 Sullivan & Cromwell 9,110 8 3 5 8 7 Souza, Cescon, Barrieu & Flesch Advogados 3,718 7 11 -4 9 49 White & Case 3,715 7 2 5 10 13 Rodrigo Elias & Medrano 116 7 7 0 11 11 Shearman & Sterling 4,478 6 7 -1 12 14 Baker & McKenzie 3,958 6 7 -1 13 19 Clifford Chance 3,853 6 5 1 14 24 Carey y Cia 2,428 6 4 2 15 71 Uria Menendez 1,485 6 1 5 16 21 Jones Day 4,116 5 5 0 17 15 Brigard & Urrutia 945 5 7 -2 18 4 Barbosa, Mussnich & Aragao 748 5 18 -13 19 30 Simpson Thacher & Bartlett 6,870 4 3 1 20 70 Posse, Herrera & Ruiz 4,461 4 1 3 Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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 Latin American.
LATIN AMERICA Monthly M&A Insider | January | 13 TREND GRAPHS
LATIN AMERICAN M&A QUARTERLY TREND LATIN AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND
70 250 4,500 18
4,000 16 60 200 3,500 14 50 Number of deals 3,000 12 Number of deals 150 40 2,500 10
30 2,000 8 Value (US$m) Value Value (US$bn) Value 100 1,500 6 20 1,000 4 50 10 500 2
0 0 0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 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 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 12
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATE EQUITY TREND
180 700 8,000 60
160 600 7,000 50 140 6,000 500 Number of deals 120 40 Number of deals 5,000 100 400 4,000 30 80 300 Value (US$m) Value Value (US$bn) Value 3,000 60 20 200 2,000 40 10 100 20 1,000
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
LATIN AMERICA Monthly M&A Insider | January | 14 TREND GRAPHS
LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN H2 2012
VALUE VOLUME
0.9% 0.4% 0.5% 0.9% 0.7% 1.1% 5.2% Brazil 1.9% Brazil 14.7% Chile 6.4% Chile 0.7% Colombia Colombia 0.5% 1.5% Costa Rica Costa Rica 0.3% 42.9% 0.4% Ecuador Dominican Republic Guatemala 12.0% Ecuador 48.3% Mexico Guatemala 15.8% Panama 0.4% Mexico Paraguay 1.9% Panama Peru 0.4% Paraguay 0.4% Uruguay 8.6% Peru Argentina Uruguay Argentina 21.6% 11.6% Bolivia
LATIN AMERICAN M&A SECTOR BREAKDOWN H2 2012
VALUE VOLUME
&#'% 1.2% 0.5% 0.4% 0.9% !#!% &#&% 0.6% 1.0% !#+% 1.8% 11.7% Consumer !#+% ,-./0123 !"#$% 11.7% Industrials & Chemicals )#"% 4.50/63789/:;:,<217=89/ Energy, Mining & Utilities >.23?@A:B7.7.?:;:C6797672/ 10.3% )#"% Financial Services D7.8.=789:E23F7=2/ "#'% Business Services G0/7.2//:E23F7=2/ Pharma, Medical & Biotech H<8318A:B257=89:;:G7-62=< 13.7% Construction +#(% ,-./630=67-. Leisure I27/032 Agriculture J?37=096032 Technology *#+% &'#(% K2=<.-9-?@ 3.4% 24.8% Transportation K38./L-36867-. Media B2578 &$#&% 17.8% Telecommunications K292=-110.7=867-./ &)#'% Real Estate M289:>/6862
LATIN AMERICA Monthly M&A Insider | January | 15 TREND GRAPHS
LATIN AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
1.0% 0.2% 0.6% 0.3% 1.2% 0.8% 0.3% 1.0% 0.7% 1.2% 1.8% 2.0% 1.1% 1.0% 100 100 9.2% 5.5% 5.4% 4.7% 6.9% 6.0% 6.5% 16.2% 8.1% 90 21.9% 90 6.2% 5.3% 5.7% 30.6% 29.0% 7.4% 5.3% 7.0% 6.5% 80 10.7% 39.5% 46.9% 29.3% 80 70 16.3% 18.4% 70 20.3% 60 32.4% 19.1% 50 8.3% 60 36.6% 33.6% 87.5% 88.3% Percentage Percentage 85.1% 85.8% 86.5% 85.2% 40 82.2% 24.5% 27.5% 50 21.8% 15.6% 30 24.9% 40 13.2% 10.1% 10.4% 20 10.3% 10.0% 25.2% 7.2% 30 10 14.6% 14.8% 14.7% 15.0% 12.7% 9.4% 0 20 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
!"#%7&&5' >!"#%7&&5'
SECTOR ANALYSIS
LATIN AMERICAN SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 11,652 24.8% 36 16,624 22.7% 35 -30% 3% Industrials & Chemicals 4,835 10.3% 42 6,460 8.8% 60 -25% -30% Consumer 5,488 11.7% 64 10,785 14.7% 61 -49% 5% Financial Services 8,336 17.8% 27 8,822 12.0% 22 -6% 23% Pharma, Medical & Biotech 6,447 13.7% 18 1,124 1.5% 18 474% 0% Technology 180 0.4% 7 823 1.1% 13 -78% -46% Business Services 1,612 3.4% 23 2,301 3.1% 31 -30% -26% Media 255 0.5% 6 169 0.2% 6 0% 0% Transportation 585 1.2% 7 1,582 2.2% 14 -63% -50% Real Estate 289 0.6% 3 1,200 1.6% 12 -76% -75% Leisure 862 1.8% 9 288 0.4% 8 199% 13% Telecommunications 437 0.9% 4 21,071 28.8% 7 0% 100% Defence 0 0.0% 0 0 0.0% 0 100% 0% Construction 5,509 11.7% 12 412 0.6% 9 100% 33% Agriculture 452 1.0% 9 1,566 2.1% 20 -71% -55% Total 46,939 267 73,227 316 -36% -16%
LATIN AMERICA Return to contents Monthly M&A Insider | January | 16 a mergermarket M&A report on north america
Although M&A activity was off to a slow start in the first half of 2012, North American deals ended strong during H2 2012 with 2,089 deals worth US$576.4bn. By aggregate deal value, M&A increased by 38.3% compared to H2 2011 (US$416.9bn). Due to the initial slump in H1 2012 (2,071 deals worth US$363.2bn), 2012 wrapped up with 4,160 deals worth US$939.6bn corresponding to an increase of only 5% by deal value over 2011 (US$894.6bn). Still, aggregate North American M&A by value has seen a consistent increase in activity for the past three years.
Similarly, North American buyouts have also seen increases The largest Energy, Mining & Utilities transaction was Beijing- in activity by deal value for H2 2012 with 363 deals worth based China National Offshore Oil Corporation Ltd’s (CNOOC) US$72.1bn, a 26% increase from H1 2012 by value (US$57.2bn). US$17.7bn acquisition of Canada-based Nexen Inc announced in 2012 buyouts saw 758 deals worth US$126.5bn; a slight Q3 2012. The transaction was funded by CNOOC’s existing cash decrease in deal count but an increase by deal value compared resources and external financing and was expected to close at to 2011 (772 deals worth US$117.2bn). the end of 2012.
All sectors see increase in activity from Goldman Sachs tops League Table by volume H2 2011 and value in H2 2012 Almost every sector saw an increase by deal value from the The investment banking giant topped the financial league tables comparable period last year. Real estate saw the largest with 98 deals in H2 2012 worth US$185.2bn. This represents upward swing with a 441% increase from H2 2011 (16 deals a 16.9% increase in value from their performance in the worth US$5.3bn) to this period (22 deals worth US$28.5bn). The comparable period last year (US$158.5bn). Skadden obtained Energy, Mining & Utilities sector dominated M&A activity against the top spot in legal league tables by value with 80 deals worth other sectors, with 265 deals worth US$126.5bn, representing US$144.3bn, up one spot from H2 2011 (US$124.7bn), an 21.9% of all sectors by value. increase of 15.8%. Meanwhile, Kirkland & Ellis topped the legal league tables by volume, having worked on 144 deals in H2 2012 This sector, along with Telecommunications, was most active in collectively valued at US$56.9bn. the top deals table for North America in H2 2012, with five of the top ten deals taking place in the Energy, Mining & Utilities and Telecommunications sectors. In Q4 2012, Japan-based Softbank Corporation agreed to acquire a 70% stake in Kansas-based Sprint Nextel Corp in the top Telecommunications transaction of the year worth US$35.5bn. The transaction is expected to close by mid-2013.
Monthly M&A Insider | January | 17 deal of the half year
Deal summary Announced: 28-Nov-12 Deal value: US$54,376m
Abbott Laboratories has agreed to spin off its research-based • Mr. William Chase, the vice president of licensing and pharmaceutical business, AbbVie Inc. acquisitions at Abbott will be the CFO of AbbVie.
• Mr. Carlos Alban and Ms. Laura Schumacher will be Terms: employed by Abbvie in the same roles of senior vice • 1,580,667,737 AbbVie common shares will be distributed to president of pharma products and global ops and general Abbott’s shareholders as a part of the transaction. counsel, respectively.
• AbbVie will be listed on the New York Stock Exchange, and • Mr. Timothy Richmond will be employed in the role of chief Abbott’s shareholders will own 100% stake in AbbVie. human resources officer at AbbVie.
• The distribution will be made in book-entry form, and physical share certificates will be issued on request of the Conditions: shareholders. • Customary closing conditions.
Post Deal Details: UPDATE 02-Jan-13: • Mr. Richard A. Gonzalez, currently executive vice president of • The transaction has been completed. The target has global pharmaceuticals at Abbott, will become Chairman and commenced trading on 02-Jan-13 on the NYSE at the CEO of AbbVie. opening price of US$34.40 per share.
• Mr. John Leonard, currently head of pharma R&D at Abbott, will be retained at AbbVie.
Exit multiples – Y/E 31-Dec-11 Premium analysis Multiples Value (US$m) Offer price per share (US$) 34.40 Revenue 3.7 17,443.8 1 day before - EBITDA 13.2 4,892.9 1 month before - EBIT 17.9 3,620.7 1 day after -1.2% Earnings 15.8 3,433.1 Pre-rumour -
Advisers Target/Seller Bidder Financial JPMorgan Financial - Morgan Stanley Legal Baker & McKenzie Legal - Matheson PR - PR -
North AMERICA Monthly M&A Insider | January | 18 DEAL OF THE HALF YEAR
mergermarket/dealReporter intelligence 02-Jan-13 Abbott completes separation of research-based pharmaceuticals business 29-Nov-12 Abbott board approves separation of AbbVie, declares special dividend distribution of AbbVie stock
Target AbbVie Inc Headquarters 1 North Waukegan Road Chicago, IL USA Sector Pharma, Medical & Biotech Description US based company engaged in pharmaceutical research
Seller Abbott Laboratories Headquarters 100 Abbott Park Road Abbott Park, IL USA Sector Pharma, Medical & Biotech Description US based healthcare company that discovers, develops, manufactures and markets pharmaceuticals and medical products, including nutritional products, medical devices, and laboratory diagnostics
NORTH AMERICA Monthly M&A Insider | January | 19 TOP DEALS & EXPECTED DEALS
TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF H2 2012
Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal sector 1-day value Revenue EBITDAP/E before (US$m)
28-Nov-12 Abbott Laboratories AbbVie Inc Pharma, Medical & Abbott Laboratories 3.7 13.2 15.8 - 54,376 (shareholders) Biotech
15-Oct-12 Softbank Corporation Sprint Nextel Corp Telecommunications 1.1 7.5 - 27.4% 35,544 (70% stake)
14-Aug-12 Kraft Foods Inc .UDIW)RRGV*URXS,QF Consumer 0RQGHOH],QWHUQDWLRQDO,QF 1.9 10.9 14.3 - 26,294 (shareholders)
23-Jul-12 China National Offshore Nexen Inc Energy, Mining & 2.7 4.5 22.2 61.2% 17,654 Oil Corporation Ltd Utilities
26-Nov-12 Equity Residential; and Archstone-Smith Trust Real Estate Lehman Brothers --- - 16,306 Avalonbay Communities Holdings Inc Inc
'HF Freeport-McMoRan Plains Exploration & Energy, Mining & 5.5 8.6 34.7 38.7% 10,750 &RSSHU *ROG,QF Production Company Utilities
'HF Intercontinental 1<6((XURQH[W Financial Services 2.2 9.0 14.2 37.7% 10,207 Exchange Inc
03-Oct-12 T-Mobile USA Inc MetroPCS Telecommunications 1.6 6.1 16.5 - 7,845 Communications Inc
27-Nov-12 ConAgra Foods Inc Ralcorp Holdings Inc Consumer 1.6 13.4 87.4 28.2% 6,740
18-Jul-12 BC Partners Limited; Suddenlink Telecommunications *6&DSLWDO3DUWQHUV 3.4 8.9 - - 6,579 and Canada Pension Communications Charterhouse Equity Plan Investment Board Partners LLC; Oaktree &DSLWDO*URXS//& DQG 4XDGUDQJOH*URXS//&
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) 'DWDFRUUHFWDVRI-DQ
NORTH AMERICA Monthly M&A Insider | January | 20 TOP DEALS & EXPECTED DEALS
PIPELINE OF NORTH AMERICAN 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) (US$m)
([SHFWHG'HDO Best Buy Co Inc Consumer 5LFKDUG6FKXO]H *ROGPDQ6DFKV 7 4,150 5LFKDUG6FKXO]HWKH Credit Suisse (B) shareholder of Best BuyCo Inc, the listed US based retailer of electronics, announced that he planned to take the company private for US$24 to US$26 per share. On 24-Jul-12, Best Buy HQJDJHG*ROGPDQ6DFKVWRH[SORUH defensive measures.
([SHFWHG'HDO *DUGQHU'HQYHU,QF Industrials & Undisclosed bidder 3,395 2Q2FW*DUGQHU'HQYHU,QFWKH Chemicals listed US based manufacturer of highly engineered products, confirmed that LWV%RDUGRI'LUHFWRUVZHUHH[SORULQJ strategic alternatives to enhance shareholder value through a possible sale or merger of the company.
([SHFWHG'HDO 6DXHU'DQIRVV,QF Industrials & 'DQIRVV$6 /D]DUG 7 2,584 2Q1RY'DQIRVV$6WKH Chemicals 'HQPDUNEDVHGPDQXIDFWXUHURI mechanical and electronic components and solutions, made an unsolicited SURSRVDOWRWKH%RDUGRI'LUHFWRUVRI 6DXHU'DQIRVV,QFWKHOLVWHG86EDVHG manufacturer of hydraulic, electronic, electric and mechanical components, to acquire the shares it does not currently own at a price of US$49 per share in cash.
([SHFWHG'HDO Compuware Business Elliott Allen & Company (T); 2,292 2Q'HF&RPSXZDUH Corporation Services Management *ROGPDQ6DFKV 7 Corporation, the listed US based Corporation provider of software products, received an unsolicited proposal to be acquired by Elliott Management Corporation, the US based hedge fund sponsor, for US$11 per share. Elliott Management collectively owns 8% of the common stock of Compuware.
([SHFWHG'HDO CreXus Investment Financial Annaly Capital /D]DUG 7 %DQN 949 On 12-Nov-12, Annaly, the listed Corp Services Management of America Merrill US based owner and manager of Lynch (B) a portfolio of mortgage-backed securities, proposed to the Board RI'LUHFWRUVRI&UH;XVWKHOLVWHG US based commercial real estate company, to acquire all of the shares of CreXus it does not already own for US$12.50 per share.
Expected deals based on confirmed announcements by companies involved
NORTH AMERICA Monthly M&A Insider | January | 21 LEAGUE TABLES
TOP 20 NORTH AMERICAN FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 1 Goldman Sachs 185,166 98 158,456 16.9% 2 3 JPMorgan 184,712 68 123,031 50.1% 3 4 Morgan Stanley 172,268 78 108,468 58.8% 4 2 Barclays 149,482 79 130,282 14.7% 5 5 Citi 147,941 67 104,915 41.0% 6 6 Credit Suisse 95,166 59 94,189 1.0% 7 7 Bank of America Merrill Lynch 88,811 79 91,516 -3.0% 8 15 Deutsche Bank 75,007 45 24,585 205% 9 9 UBS Investment Bank 74,837 37 50,856 47.2% 10 10 Evercore Partners 65,349 34 50,341 29.8% 11 22 Rothschild 62,814 44 11,081 467% 12 12 RBC Capital Markets 58,541 60 31,646 85.0% 13 8 Lazard 47,070 58 66,385 -29.1% 14 14 Jefferies & Company 46,606 58 26,377 76.7% 15 28 Greenhill & Co 44,897 17 7,866 471% 16 55 Mizuho Financial Group 40,929 4 2,202 1759% 17 18 Centerview Partners 38,641 6 16,866 129% 18 17 BMO Capital Markets 37,013 26 17,707 109.0% 19 56 Raine Group 35,894 2 2,200 1532% 20 26 Wells Fargo Securities 22,737 25 9,729 134% Source: mergermarket
TOP 20 NORTH AMERICAN FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 Goldman Sachs 185,166 98 80 18 2 4 Barclays 149,482 79 60 19 3 5 Bank of America Merrill Lynch 88,811 79 58 21 4 2 Morgan Stanley 172,268 78 68 10 5 3 JPMorgan 184,712 68 67 1 6 7 Citi 147,941 67 50 17 7 6 RBC Capital Markets 58,541 60 57 3 8 9 Credit Suisse 95,166 59 48 11 9 8 Lazard 47,070 58 49 9 10 10 Jefferies & Company 46,606 58 47 11 11 12 Houlihan Lokey 11,296 48 40 8 12 14 Deutsche Bank 75,007 45 35 10 13 17 Rothschild 62,814 44 26 18 14 11 UBS Investment Bank 74,837 37 43 -6 15 21 Moelis & Company 15,599 36 21 15 16 19 Evercore Partners 65,349 34 25 9 17 13 Lincoln International 1,198 34 37 -3 18 18 William Blair & Company 2,119 30 26 4 19 28 Harris Williams & Co 1,377 28 17 11 20 27 BMO Capital Markets 37,013 26 18 8 Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12. The tables cover all sectors and are based on the geography of either the target, bidder or seller being US or Canadian.
NORTH AMERICA Monthly M&A Insider | January | 22 LEAGUE TABLES
TOP 20 NORTH AMERICAN LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 2 Skadden Arps Slate Meagher & Flom 144,323 80 124,664 15.8% 2 7 Latham & Watkins 100,501 118 88,709 13.3% 3 3 Wachtell, Lipton, Rosen & Katz 93,001 40 121,948 -23.7% 4 39 Paul Weiss Rifkind Wharton & Garrison 89,799 40 16,655 439% 5 17 Davis Polk & Wardwell 89,374 43 34,357 160% 6 35 Morrison & Foerster 85,861 36 18,162 373% 7 9 Weil Gotshal & Manges 82,642 72 59,955 37.8% 8 5 Cravath, Swaine & Moore 82,224 21 96,331 -14.6% 9 14 Cleary Gottlieb Steen & Hamilton 78,256 34 53,803 45.4% 10 1 Sullivan & Cromwell 67,095 42 143,995 -53.4% 11 23 Baker & McKenzie 64,793 46 25,413 155% 12 11 Shearman & Sterling 57,744 43 58,933 -2.0% 13 19 Kirkland & Ellis 56,918 144 34,060 67.1% 14 257 Matheson 54,982 3 316 17299% 15 4 Simpson Thacher & Bartlett 52,054 56 107,065 -51.4% 16 30 Blake, Cassels & Graydon 49,909 59 20,950 138% 17 13 Jones Day 48,550 133 55,345 -12.3% 18 44 Mori Hamada & Matsumoto 42,635 5 10,571 303% 19 78 McCarthy Tetrault 42,236 29 3,753 1025% 20 38 Stikeman Elliott 38,988 51 17,024 129% Source: mergermarket
TOP 20 NORTH AMERICAN LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 1 Kirkland & Ellis 56,918 144 126 18 2 2 Jones Day 48,550 133 109 24 3 3 Latham & Watkins 100,501 118 98 20 4 4 DLA Piper 12,265 107 97 10 5 5 Skadden Arps Slate Meagher & Flom 144,323 80 69 11 6 11 Weil Gotshal & Manges 82,642 72 43 29 7 17 Blake, Cassels & Graydon 49,909 59 39 20 8 7 Simpson Thacher & Bartlett 52,054 56 50 6 9 24 White & Case 36,889 54 34 20 10 16 Stikeman Elliott 38,988 51 41 10 11 22 Paul Hastings 16,373 48 38 10 12 6 Baker & McKenzie 64,793 46 51 -5 13 19 Morgan Lewis & Bockius 15,775 44 38 6 14 14 Davis Polk & Wardwell 89,374 43 41 2 15 9 Shearman & Sterling 57,744 43 45 -2 16 15 Ropes & Gray 10,670 43 41 2 17 42 Mayer Brown 7,924 43 25 18 18 27 Sullivan & Cromwell 67,095 42 32 10 19 21 Goodwin Procter 20,460 42 38 4 20 12 K&L Gates 9,709 42 43 -1 Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being US or Canadian.
NORTH AMERICA Monthly M&A Insider | January | 23 LEAGUE TABLES
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN BUYOUTS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1 The Carlyle Group 15,817 14 1 The Carlyle Group 15,817 14 2 BC Partners 10,039 2 2 Blackstone Group 3,611 7 3 KingSett Capital 3,968 1 3= Audax Private Equity Group - 5 4 Blackstone Group 3,611 7 3= The Riverside Company - 5 5 Onex Partners 3,113 2 5 The Gores Group 175 4 6 Sheridan Production Partners 2,600 1 6 Clearlake Capital Group 145 4 7 Apollo Global Management 2,398 1 7 Kohlberg Kravis Roberts & Co 130 4 8 Clayton, Dubilier & Rice 2,100 2 8 American Industrial Partners 63 4 9 Platinum Equity 2,034 2 9 Sun Capital Partners - 4 10 Berkshire Partners 2,000 1 10 Thoma Bravo 1,148 3 11 Highstar Capital 1,909 1 11 Warburg Pincus 348 3 12 Bain Capital 1,600 2 12 Teachers Private Capital 153 3 13 Apax Partners 1,594 2 13 Madison Dearborn Partners 100 3 14 American Securities 1,570 2 14= Altamont Capital Partners - 3 15 Permira 1,310 1 14= GTCR - 3 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is US or Canadian. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN EXITS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1 GS Capital Partners 10,577 4 1 The Riverside Company - 8 2 Oaktree Capital Group 7,859 3 2 GS Capital Partners 10,577 4 3 Hellman & Friedman 7,000 2 3 Felicis Ventures 1,450 4 4= Charterhouse Equity Partners 6,579 1 4 Canaan Partners 150 4 4= Quadrangle Group 6,579 1 5 Oaktree Capital Group 7,859 3 6 Madison Dearborn Partners 3,584 3 6 Madison Dearborn Partners 3,584 3 7 ABRY Partners 3,360 3 7 ABRY Partners 3,360 3 8 Ridgemont Equity Partners 3,000 3 8 Ridgemont Equity Partners 3,000 3 9 TPG Capital 2,575 3 9 TPG Capital 2,575 3 10 Pamlico Capital 2,430 3 10 Pamlico Capital 2,430 3 11 Global Infrastructure Partners 2,400 1 11 Andreessen Horowitz 1,290 3 12= Goldman Sachs Real Estate Principal 2,000 1 12 Sequoia Capital 1,200 3 Investment Area 13 GTCR 780 3 12= Jupiter Partners 2,000 1 14= Greylock Partners 425 3 12= M/C Partners 2,000 1 14= SoftTech VC 425 3 12= Peterson Partners 2,000 1 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is US or Canadian. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
NORTH AMERICA Monthly M&A Insider | January | 24 TREND GRAPHS
NORTH AMERICAN M&A QUARTERLY TREND NORTH AMERICAN M&A QUARTERLY PRIVATE EQUITY TREND
600 1,600 250 350
1,400 300 500 200 1,200 250 Number of deals 400 Number of deals 1,000 150 200 300 800 150 Value (US$bn) Value Value (US$bn) Value 100 600 200 100 400 50 100 200 50
0 0 0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12 06 06 06 06 07 07 07 07 08 08 08 08 09 09 09 09 10 10 10 10 11 11 11 11 12 12 12 12
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATE EQUITY TREND
1,800 6,000 500 1,200
1,600 450 5,000 1,000 400 1,400
350
1,200 4,000 Number of deals 800 Number of deals 300 1,000 3,000 250 600 800
Value (US$bn) Value (US$bn) Value 200 600 2,000 400 150
400 100 1,000 200 200 50
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
NORTH AMERICA Monthly M&A Insider | January | 25 75(1'*5$3+6
NORTH AMERICAN M&A SECTOR BREAKDOWN H2 2012
VALUE VOLUME
0.9% 1.1% 0.7% 0.9% 2.1% 0.2% 0.6% 9.4% 11.5% 2.2% Industrials & Chemicals 2.2% 18.2% Industrials & Chemicals Technology 4.5% Technology 0.7% 4.9% 6.1% Energy, Mining & Utilities Energy, Mining & Utilities 1.0% Business Services 1.4% Business Services 8.9% 3.7% Pharma, Medical & Biotech Pharma, Medical & Biotech Financial Services Financial Services 12.8% Consumer Consumer 9.6% Media 9.4% Media 21.9% Leisure Leisure Transportation Transportation Construction Construction 9.2% 12.7% Real Estate 11.2% Real Estate 3.6% Telecommunications Telecommunications 12.6% 15.9% Defence Defence Agriculture Agriculture
NORTH AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
1.1% 1.1% 0.7% 0.7% 0.6% 0.7% 0.6% 100 100 0.9% 1.0% 1.1% 1.5% 1.8% 1.4% 1.6% 90 3.7% 3.4% 32.0% 32.3% 5.6% 4.9% 80 43.5% 37.6% 95 5.3% 6.2% 6.3% 52.8% 49.1% 4.1% 3.8% 70 58.8%
5.3% 5.3% 60 18.0% 90 5.3% 22.2% 5.3% 21.2% 5.3% 50 18.8% 14.0% Percentage Percentage 40 14.7% 85 27.7% 13.3% 91.0% 20.7% 26.9% 90.6% 30 17.4% 21.5% 16.8% 86.9% 87.4% 87.6% 13.2% 86.3% 80 85.6% 20 9.7% 7.3% 8.8% 8.2% 6.2% 6.5% 5.5% 10 9.5% 9.6% 12.2% 9.3% 12.6% 11.7% 10.4% 0 75 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
NORTH AMERICA Monthly M&A Insider | January | 26 SECTOR ANALYSIS
NORTH AMERICAN SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 126,457 21.9% 265 129,342 31.0% 193 -2% 37% Industrials & Chemicals 66,349 11.5% 380 65,709 15.8% 372 1% 2% Consumer 55,487 9.6% 185 14,473 3.5% 192 283% -4% Financial Services 53,095 9.2% 196 27,630 6.6% 207 92% -5% Pharma, Medical & Biotech 91,696 15.9% 234 79,996 19.2% 215 15% 9% Technology 34,956 6.1% 267 35,703 8.6% 286 -2% -7% Business Services 20,484 3.6% 264 22,270 5.3% 259 -8% 2% Media 21,608 3.7% 94 7,022 1.7% 68 208% 38% Transportation 5,739 1.0% 46 3,251 0.8% 31 77% 48% Real Estate 28,450 4.9% 22 5,259 1.3% 16 441% 38% Leisure 7,844 1.4% 47 6,506 1.6% 55 21% -15% Telecommunications 54,033 9.4% 18 17,413 4.2% 21 210% -14% Defence 4,983 0.9% 14 929 0.2% 13 436% 8% Construction 4,270 0.7% 44 995 0.2% 45 329% -2% Agriculture 990 0.2% 13 356 0.1% 9 178% 44% Total 576,441 2,089 416,854 1,982 38% 5%
NORTH AMERICA Return to contents Monthly M&A Insider | January | 27 a mergermarket M&A report on asia-pacific
The second half of 2012 saw renewed M&A activity with more than 1,300 deals worth almost US$235bn. This was an 8% increase over the first half of the year and close to an 11% increase over H2 2011. Activity focused in the traditionally deal-heavy Industrials & Chemicals sector in addition to the Consumer and Technology, Media and Telecommunications (TMT) sectors. From a geographic standpoint, China saw the most deal activity by volume and value (357 transactions worth close to US$65bn) followed by Australia, with 227 transactions worth US$21.8bn.
Beverage buying spree Staying connected High-profile, high-cash value M&A buys into the Consumer Buys into TMT totalled just over US$44bn in the second half of sector were geared toward acquisitions of beverage companies 2012, with deal activity centered on China. Highlighting the half across Asia-Pacific. were deals involving China Telecom Corporation’s acquisition of CDMA network assets for US$13.3bn and Japan-based In July, world renowned beer brewer Heineken made an offer Softbank’s purchase of eAccess Limited for US$4.4bn. to buy a controlling stake in Asia Pacific Breweries, owned and operated by Singapore-based Fraser & Neave, for a Buys into TMT have been prevalent in China, and across the consideration of US$6.6bn. The acquisition would give Heineken region, as the industry consolidates amid rising consumer a competitive edge as it looks to expand operations in emerging demand for smartphones and other high-tech handheld devices. markets and compete with local breweries. Particularly in Southeast Asia, a rising middle class is driving demand for consumer goods across the board, presenting Fraser & Neave also made headlines after competing bids for companies with myriad opportunities to break into the relatively the company rose into the billion-dollar range. Earlier in the untapped market. fall, two Asian billionaires started a head-to-head bidding war for the beverage and property conglomerate, according to a Financial Times report. The bidding competition between Thai Buying into China billionaire and owner of ThaiBev Charoen Sirivadhanabhakdi M&A into China remained strong in the second half of 2012, and the Riady family of Indonesia over Fraser & Neave perhaps reinforced by the seemingly smooth political transition illustrates a growing trend of Southeast Asia-based companies within the state’s communist party. making bigger and bolder cross-border forays into more established markets. After taking up the Party’s reigns, Xi Jinping, China’s new leader, was quick to issue calls for further economic reforms The transaction is one of the largest for a Thai-based company and opening up. Whether this will come to fruition remains to and is the second largest in Asia-Pacific this year, following be seen, but investors seem convinced of the Asian country’s Chinese state-owned enterprise CNOOC’s acquisition of ability to drive the world economy. And while China’s economy Canadian oil giant Nexen. is expected to slow, with growth falling to its slowest rate of expansion in ten years, the market nonetheless presents Also looking to establish a foothold in a growing beverage multiple opportunities for foreign corporates to make buys and market, UK-based Diageo bought a controlling stake in India’s establish footholds, according to a Financial Times report. United Spirits Limited. The deal gives Diageo access to one of the world’s largest emerging consumer markets. For the second half, more than 350 acquisitions were made worth almost US$65bn, many within the Consumer and TMT sector.
Monthly M&A Insider | January | 28 DEAL OF THE HALF YEAR
Deal summary Announced: 15-Nov-12 Deal value: US$13,537m
Consortium led by Overseas Union Enterprise Ltd, the SGX POST DEAL DETAILS: listed real estate group, proposed to acquire Fraser & Neave ì 8SRQFRPSOHWLRQRIYROXQWDU\FDVKRIIHU.LULQ+ROGLQJV Ltd, the SGX listed food & beverage and real estate company. will acquire food and beverage business from F&N for a FRQVLGHUDWLRQRI6*EQ 86EQ TERMS: CONDITIONS: ì 6* SHU) 1VKDUHLQFDVK ì 0LQDFFHSWDQFHV ì ,WYDOXHVWKHHQWLUHVKDUHFDSLWDODW6*EQ 86 EQ based on the exchange ratio of SG$1.223 per US$ on ì 28(VKDUHKROGHUVDSSURYDO PLQUHTZLOOEHDSSURYHG 14-Nov-12). DVRZQHGE\*ROGHQ&RQFRUG$VLD/WGDQG28(5HDOW\ will vote in favour). ì 7KHRIIHUWHUPUHSUHVHQWVDGLVFRXQWRIWRWKH FORVLQJSULFHRI6* RQ1RYWKHODVWWUDGLQJGD\ ì ) 1VKDUHKROGHUVDSSURYDO PLQUHTWRJR prior to the announcement. BACKGROUND: ì ,WUHSUHVHQWVDSUHPLXPRIWRWKHLQLWLDORIIHUSURSRVHG by TCC Assets on 13-Sep-12. ì 2Q-XO7KDL%HYDFTXLUHGDQVWDNHLQ) 1IURP 2&%&IRU6*SHUVKDUHDVZHOODVWKHEDQNåVVWDNH FINANCING: LQ$VLD3DFLILF%UHZHULHV/WG $3% IRU6*SHUVKDUH ì 0D[LPXPFDVKFRQVLGHUDWLRQRI6*EQ 86 EQ ì 2Q-XO+HLQHNHQPDGHDQRIIHURI6*SHUVKDUH for F&N’s entire interest in APB to compete for ownership. ì )DUDOORQ&DSLWDO0DQDJHPHQW1RRQGD\*OREDO0DQDJHPHQW The offer also triggered a mandatory offer subsequent to the Ltd and several funds managed by Argyle Street Management stake transfer between F&N and Heineken. have agreed to provide debt financing. Credit Suisse AG Singapore Branch has also agreed to provide debt financing ì 2Q$XJ.LQGHVW3ODFH*URXSV/WGLQGLUHFWO\FRQWUROOHG alongside debt financing from funds. E\7KDL%HYPDGHDQRIIHUIRU) 1åVGLUHFWLQWHUHVWLQ APB for SG$55 per share.
IRREVOCABLE UNDERTAKINGS: ì 2Q$XJ7KDL%HYFRPSOHWHGLWVVWDNHSXUFKDVH2&%& ì .LULQ+ROGLQJV&RPSDQ\/LPLWHGKDVDJUHHGWRWHQGHUDOO JLYLQJLWRZQHUVKLSRI) 1DQGRZQHUVKLSRI$3% the 212,773,000 Shares in F&N held by Kirin, representing ì 2Q$XJ+HLQHNHQLPSURYHGLWVRIIHUWR6*SHU DSSUR[LPDWHO\VWDNH share and F&N’s Board recommended the revised offer.
TERMINATION/INDUCEMENT FEE: ì 2Q$XJ) 1DQQRXQFHGDFDSLWDOUHGXFWLRQLQ ì ) 1JDYHDQXQGHUWDNLQJWRSD\WKHFRQVRUWLXPDEUHDNIHH conjunction with the proposed disposal of APB: one share out equal to the legal and financial advisers’ and lenders’ fees, RIHYHU\WKUHHVKDUHVKHOGZLOOEHFDQFHOOHGDQG6*ZLOO subject to a maximum amount of SG$50,000,000. be paid per share reduced. ì 2Q 2FW2YHUVHDV8QLRQ(QWHUSULVHDQQRXQFHGWKDWLW RATIONALE: was in discussion with several parties and was exploring all ì $VWKH$3%/'LVSRVDOKDVEHHQFRPSOHWHGWKH2IIHURUYLHZV options for F&N. F&N as one of the leading integrated property companies ì 2Q1RY28(DQQRXQFHGWKDWLWKDGKLUHG&UHGLW in Singapore which is complementary to OUE’s existing Suisse and Merrill Lynch as financial advisors. The Securities property portfolio. Industry Council ruled that OUE had to make clear of its ì &RPELQLQJERWKSRUWIROLRVZLOOIXUWKHUHVWDEOLVK28(DV intention for F&N on or before 15-Nov-12. a leading property player in Singapore and expand OUE’s footprint in Singapore and regionally. UPDATE: ì $ZDLWVXSGDWH
ASIA!PACIFIC Monthly M&A Insider | January | 29 deal of the half year
Exit multiples - Y/E 30-Sep-12 Premium analysis Multiples Value (US$m) Offer price per share (US$) 9.08 Revenue 4.6 3596.10 1 day before 8.93 EBITDA 24.1 688.87 1 month before 9.13 EBIT 30.7 540.78 1 day after 8.90 Earnings 15.6 1010.42 Pre-rumour -
Advisers Target/Seller Bidder Financial JPMorgan; Deutsche Bank Financial Bank of America Merrill Lynch; CIMB Group; Credit Suisse Legal Shook Lin & Bok Singapore; Stamford Law Legal Drew & Napier PR Citigate PR Fleishman-Hillard Debt provider - Debt provider Argyle Street Management; Credit Suisse; Bank of America Merrill Lynch; Farallon Capital Management; Noonday Global Management
mergermarket/dealReporter intelligence 19-Oct-12 Overseas Union Enterprise confirms considering offer for Fraser & Neave 20-Oct-12 Overseas Union Enterprise potential counter offer for Fraser & Neave puts pressure on TCC Assets to increase offer 23-Oct-12 Overseas Union Enterprise may partner with Yeo Hiap Seng, Far East Organization or Auric Pacific for potential counter-offer for Fraser & Neave 24-Oct-12 Overseas Union Enterprises appoints Credit Suisse to assist in arranging loans for Fraser & Neave counterbid 07-Nov-12 Overseas Union Enterprise busily preparing to make possible takeover bid for Fraser & Neave 13-Nov-12 Fraser & Neave: OUE believed to be in discussions with Kirin ahead of possible bid 16-Nov-12 Fraser & Neave receives US$10.7bn acquisition offer from consortium led by Overseas Union Enterprise 19-Nov-12 Bank of America, Credit Suisse to provide around SG$12bn bridge loan backing OUE bid for Fraser & Neave 20-Nov-12 Fraser & Neave: Lippo Group may consider participating in OUE’s voluntary conditional cash offer 07-Dec-12 Overseas Union Enterprise posts takeover offer document for Fraser & Neave 11-Dec-12 Fraser & Neave: TCC not seen reaching out to OUE as shareholders face protracted battle 12-Dec-12 Fraser & Neave appoints JPMorgan to advise on OUE offer 17-Dec-12 Fraser & Neave: OUE taking wait-and-see approach after failed block attempt 18-Dec-12 Overseas Union Enterprise may be willing to meet SG$9.60 per share offer for Fraser and Neave 20-Dec-12 Fraser and Neave financial advisers call OUE takeover offer fair but not compelling 01-Jan-13 Fraser and Neave financial adviser says Kirin Holdings offer to acquire food and beverage business is fair but not reasonable 03-Nov-13 Fraser & Neave: OUE extends offer deadline to 14 January
asia-pacific Monthly M&A Insider | January | 30 DEAL OF THE HALF YEAR
Bidder Overseas Union Enterprise Limited Headquarters 333 Orchard Road 6th Storey, Overseas Union Building 6LQJDSRUH Sector )LQDQFLDO6HUYLFHV /HLVXUH 6HUYLFHV RWKHU 5HDO(VWDWH Description Singapore based company engaged in financial services, properties, hotels management, laundry plant ownership, marketing and communications, and hospitality supplies segments
Bidder Farallon Capital Management LLC Headquarters One Maritime Plaza Suite 2100, San Francisco California, USA Sector Financial Services Description US based company investment management company
Bidder Noonday Global Management Headquarters Burdett House 15-16 Buckingham Street London WC2N 6DU UK Sector Financial Services Description UK based hedge fund company
Target Fraser & Neave Limited Headquarters 21-00 Alexandra Point $OH[DQGUD5RDG 6LQJDSRUH Sector &RQVXPHU )RRGV &RQVXPHU 2WKHU 0DQXIDFWXULQJ RWKHU 0HGLD 5HDO(VWDWH Description Singapore based company engaged in the food and beverage, property, publishing & printing industries
ASIA!PACIFIC Monthly M&A Insider | January | 31 TOP DEALS & EXPECTED DEALS
TOP 10 ASIA!PACIFIC ANNOUNCED DEALS OF H2 2012
Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia Deal 1-day value Revenue EBITDA P/E before (US$m)
15-Nov-12 P Fraser & Neave Limited Consumer Overseas Union 4.6 24.1 15.6 13,537 Enterprise Limited; Farallon Capital Management LLC; and Noonday Global Management Ltd
22-Aug-12 C China Telecom China Telecom China 4.6 - n/a 13,315 Telecommunication Corporation Limited Telecommunications &RUSRUDWLRQ FHUWDLQ Corporation CDMA Network assets)
13-Sep-12 P Fraser & Neave Limited Consumer TCC Group 2.7 13.4 21.5 10,134 VWDNH
05-Dec-12 P Ping An Insurance Financial Charoen Pokphand The Hong Kong and n/a n/a *URXS &RPSDQ\RI Services Group Co Ltd Shanghai Banking &KLQD/WG VWDNH Corporation Limited; and HSBC Insurance Holdings Ltd
20-Jul-12 P Asia Pacific Breweries Consumer Heineken NV Fraser & Neave 21.3 /LPLWHG VWDNH Limited
26-Nov-12 P North Caspian Sea Energy, Mining ONGC Videsh Ltd ConocoPhillips ---n/a 5,000 Production Sharing & Utilities Company $JUHHPHQW VWDNH
23-Aug-12 C Delhi Mumbai Industrial Transportation Government of Japan; ---n/a 4,500 Corridor Development and Japan Bank Corporation Limited for International VWDNH Cooperation
01-Oct-12 C eAccess Limited Telecom Softbank Corporation 1.7 5.6 12.5 4,436
20-Jul-12 P Hebei Shougang Qian'an Industrials & Beijing Shougang Co Ltd Shougang Group 23.5 n/a Iron and Steel Co Ltd Chemicals Corporation
10-Dec-12 P Renesas Electronics Technology Nissan Motor Co 0.4 ORVV &RUSRUDWLRQ VWDNH Ltd; Toyota Motor Corporation; Denso Corporation; Nikon Corporation; Canon Inc; Panasonic Corporation; Yaskawa Electric Corporation; Innovation Network Corporation of Japan; and Keihin Corporation
P=Pending; C=Complete; n/a=not applicable. Source: mergermarket Based on announced deals, including lapsed and withdrawn bids. Based on dominant geography of target company being Asia-Pacific.. Data correct as of 07-Jan-13.
ASIA!PACIFIC Monthly M&A Insider | January | 32 TOP DEALS & EXPECTED DEALS
PIPELINE OF ASIA!PACIFIC EXPECTED DEALS
Situation Target company Sector Potential bidder Financial adviser to Seller company Market cap/ Comments company bidder (B); target (T); est value seller (S) (US$m)
Expected deal 7 Days Group Leisure The Carlyle Group JP Morgan (T) 611 7 Days Group Holdings Limited received Holdings Limited LLC; Sequoia an offer from the consortium led by Capital China; and Carlyle Group and Sequoia Capital China Mr Boquan He estimated to US$4.233 per share and (Private Investor) US$12.7 per ADS in Sep 2012.
Expected deal ASG Group Ltd Technology Undisclosed bidder 121 ASG Group Ltd received an indicative, non-binding proposal from an undisclosed IT services company to acquire the company for AU$1.03 cash per share in Oct 2012. The indicative offer values the company at an implied equity value of AU$212.9m (US$220.1m).
Expected deal Hitachi Cable Industrials & Hitachi Metals Ltd Normura Holdings (B) 664 Hitachi Metals and Hitachi Cable Limited Chemicals concluded a basic agreement in Nov 2012 to integrate their businesses through a merger. Currently, Hitachi Ltd own 51.4% and 52.8% of Hitachi Cable and Hitachi Metals respectively.
Expected deal Ningbo Marine Transportation Zhejiang Energy China International 452 Zhejiang Energy Group, the China based Company Limited Group Capital Corporation energy company, has agreed to launch Limited (T) a waterfall bid to acquire the remaining 58.1% in Ningbo Marine Co Ltd, the China listed transportation company in Oct 2012.
Expected deal PCD Stores Consumer Mr. Alfred Chan 497 PCD Stores (Group) Limited confirms (Group) Limited (Private investor) that it was informed by Mr. Alfred Chan, the Chairman, an executive director and controlling shareholder of the Company, that preliminary discussions had taken place between Mr. Alfred Chan and certain other party(ies) in relation to a possible acquisition in the shares of the Company, which may or may not lead to the making of an offer for the shares of the Company in Nov 2012.
Expected deal WHK Group Financial SFG Australia 280 SFG Australia Ltd and WHK Group Ltd Limited Services Limited confirmed to be in discussions in relation to a merger of equals in Oct 2012. SGF Australia has a market cap of AU$368m and WHK Group has a market cap of AU$261m.
Expected deals based on confirmed announcements by companies involved Data correct as of 04-Jan-13
ASIA!PACIFIC Monthly M&A Insider | January | 33 LEAGUE TABLES
TOP 20 ASIA!PACIFIC FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 - Goldman Sachs 58,590 35 2 10 Citi 49,072 26 21,141 3 - JPMorgan 42,561 24 4 Credit Suisse 34,680 22 5 4 UBS Investment Bank 33,842 23 6 HSBC 27,765 13 7 2 Morgan Stanley 25,638 17 47,412 5 Bank of America Merrill Lynch 23,182 32,165 RBC Capital Markets 19,493 5 14,411 10 21 CIMB Group 19,464 13 11 42 BMO Capital Markets 18,721 3 3,755 12 25 China International Capital Corporation 15,339 3 13 14 Deutsche Bank 15,333 21 14 Maybank Investment Bank 12,571 6 6,642 15 13 Macquarie Group 12,252 22 16 DBS Bank 11,623 17 - United Overseas Bank 10,230 2 - - 20 Rothschild 7,117 26 Nomura Holdings 5,997 10 6,742 20 36 PwC 5,588 33 Source: mergermarket
TOP 20 ASIA!PACIFIC FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 2 Goldman Sachs 35 32 3 2 3 PwC 33 31 2 3 4 KPMG 2,172 28 30 -2 4 Citi 26 5 6 JPMorgan 42,561 24 27 -3 6 1 UBS Investment Bank 23 -15 7 10 Credit Suisse 22 23 -1 7 Macquarie Group 12,252 22 26 -4 12 Deutsche Bank 15,333 21 20 1 10 11 Deloitte 765 19 21 -2 11 16 Rothschild 7,117 18 - 12 Morgan Stanley 17 23 -6 13 5 Ernst & Young 17 -11 14 14 HSBC 27,765 13 -5 15 CIMB Group 13 25 -12 16 21 Standard Chartered 5,154 13 10 3 17 Nomura Holdings 10 13 -3 17 Bank of America Merrill Lynch 9 17 23 Lazard 2,055 9 - 20 RHB Investment Bank Berhad 9 1 Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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-Pacific excluding Japan.
ASIA!PACIFIC Monthly M&A Insider | January | 34 LEAGUE TABLES
TOP 20 ASIA!PACIFIC LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$m) (US$m) (%) 1 12 Freshfields Bruckhaus Deringer 33,060 16 17,583 88.0% 2 170 Stamford Law 32,556 13 303 10644.6% 3 187 Herbert Smith Freehills 27,278 24 212 12767.0% 4 37 Blake, Cassels & Graydon 20,120 5 5,583 260.4% 5 64 Paul Weiss Rifkind Wharton & Garrison 19,659 9 2,293 757.3% 6 136 Morrison & Foerster 19,548 6 549 3460.7% 7 10 Cleary Gottlieb Steen & Hamilton 19,485 7 19,014 2.5% 8 100 Stikeman Elliott 18,870 5 1,087 1636.0% 9 20 Linklaters 18,834 18 10,979 71.5% 10 9 Sullivan & Cromwell 18,416 7 19,274 -4.5% 11 40 WongPartnership 18,151 25 5,101 255.8% 12 48 Davis Polk & Wardwell 18,004 4 4,103 338.8% 13 -Osler, Hoskin & Harcourt 17,654 1 - - 14 155 Drew & Napier 15,842 4 380 4068.9% 15 58 Shook Lin & Bok Singapore 15,738 4 2,587 508.3% 16 16 Jingtian & Gongcheng 14,543 6 12,599 15.4% 17 1 Allen & Overy 12,898 24 25,709 -49.8% 18 19 Clifford Chance 9,387 21 11,437 -17.9% 19 7 Allens 8,555 23 19,825 -56.8% 20 5 Slaughter and May 8,486 8 20,670 -58.9% Source: mergermarket
TOP 20 ASIA!PACIFIC LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$m) change 1 - King & Wood Mallesons 8,124 33 - 57 2 7 Baker & McKenzie 8,014 33 26 7 3 3 Minter Ellison 3,526 29 33 -4 4 4 Kim & Chang 5,266 28 31 -3 5 16 Norton Rose 3,431 27 20 7 6 15 WongPartnership 18,151 25 20 5 7 215 Herbert Smith Freehills 27,278 24 1 23 8 5 Allen & Overy 12,898 24 30 -6 9 9 Allens 8,555 23 23 - 10 2 Clayton Utz 6,146 23 34 -11 11 35 Gilbert + Tobin 4,698 23 9 14 12 8 Lee & Ko 4,107 22 26 -4 13 20 Bae Kim & Lee 2,836 22 16 6 14 12 DLA Piper 1,182 22 22 0 15 11 Clifford Chance 9,387 21 22 -1 16 29 Amarchand & Mangaldas & Suresh A Shroff & Co 7,451 21 11 10 17 14 Linklaters 18,834 18 21 -3 18 39 Ashurst 6,324 18 8 10 19 22 Jones Day 2,506 18 15 3 20 13 Corrs Chambers Westgarth 1,802 17 21 -4 Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and include lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Asia-Pacific excluding Japan.
ASIA!PACIFIC Monthly M&A Insider | January | 35 LEAGUE TABLES
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON ASIA!PACIFIC BUYOUTS
VALUE VOLUME
Ranking Ranking H2 2012 House Value Deal H2 2012 House Value Deal (US$m) count (US$m) count 1 The Carlyle Group 2,164 3 1 The Carlyle Group 2,164 3 2 FountainVest Partners 1,936 2 2 TPG Capital 3 3 CITIC Capital Partners 1,786 1 3 Blackstone Group 446 3 4 MBK Partners 1,125 1 4 PT Northstar Pacific Partners 336 3 5= Affinity Equity Partners 1,062 1 5 Standard Chartered Private Equity 106 3 5= AMP Capital Investors 1,062 1 6 FountainVest Partners 2 5= Baring Private Equity Asia 1,062 1 7 Quadrant Private Equity 2 5= IMM Private Equity 1,062 1 CHAMP Private Equity 337 2 Bain Capital 1,004 1 Olympus Capital Holdings Asia 2 10 Permira 1,000 1 10 Accel Partners 2 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON ASIA!PACIFIC EXITS
VALUE VOLUME
Ranking Ranking H2 2012 House Value Deal H2 2012 House Value Deal (US$m) count (US$m) count 1= H&Q Asia Pacific 1,757 1 1 Macquarie Group 4 1= IMM Private Equity 1,757 1 2 Navis Capital Partners 26 3 3 Verny Capital 1,395 1 3 Standard Chartered Private Equity 2 4 Standard Chartered Private Equity 1,090 2 4 Gresham Private Equity 235 2 5= General Atlantic 1,004 1 5 ePlanet Capital 2 5= Oak Hill Capital Partners 1,004 1 6= H&Q Asia Pacific 1,757 1 7 Unison Capital 1,000 1 6= IMM Private Equity 1,757 1 Macquarie Group 911 4 Verny Capital 1 CVC Capital Partners 850 1 General Atlantic 1,004 1 10 GS Capital Partners 685 1 Oak Hill Capital Partners 1,004 1 Source: mergermarket Source: mergermarket
The private equity buyout activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Asia-Pacific. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ASIA!PACIFIC Monthly M&A Insider | January | 36 TREND GRAPHS
ASIA!PACIFIC M&A QUARTERLY TREND ASIA!PACIFIC M&A QUARTERLY PRIVATE EQUITY TREND
180 900 30 100
160 800 90 25 80 140 700
70
120 600 Number of deals 20 Number of deals 60 100 500 15 50 80 400 Value ( ! bn) Value
Value (US$bn) Value 40 60 300 10 30
40 200 20 5 20 100 10
0 0 0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 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 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 12
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
ASIA!PACIFIC M&A ANNUAL TREND ASIA!PACIFIC M&A ANNUAL PRIVATE EQUITY TREND
500 3,000 70 350
60 300 2,500 400
50 250 Number of deals 2,000 Number of deals 300 40 200 1,500 30 150 Value (US$bn) Value Value (US$bn) Value 200 1,000 20 100
100 500 10 50
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
ASIA!PACIFIC Monthly M&A Insider | January | 37 TREND GRAPHS
ASIA!PACIFIC M&A GEOGRAPHIC BREAKDOWN H2 2012
VALUE VOLUME
1.7% 5.4% 10.3% 2.2% China 1.1% China 2.8% 1.8% 27.2% Singapore 26.5% Singapore 3.4% 0.3% Japan 4.1% Japan 3.8% Australia Australia 3.7% India India 4.8% South Korea South Korea Hong Kong 8.3% Hong Kong Malaysia Malaysia 7.2% 4.7% Kazakhstan Kazakhstan Taiwan Taiwan Philippines 9.6% Philippines 9.2% 18.5% 12.9% Other Other
13.8% 16.6%
ASIA!PACIFIC M&A SECTOR BREAKDOWN H2 2012
VALUE VOLUME
2.1% 1.8% 1.4% 2.2% 2.4% 3.5% 13.8% 2.5% Consumer 5.0% Consumer 25.4% 2.6% Financial Services Financial Services 2.7% Industrials & Chemicals 8.3% Industrials & Chemicals 4.4% Energy, Mining & Utilities 7.4% Energy, Mining & Utilities Telecommunications 3.6% Telecommunications 5.9% Technology Technology Transport Transport 6.8% Media Media Pharma, Medical & Biotech Pharma, Medical & Biotech 10.3% 3.5% 21.1% 13.9% Real Estate Real Estate Business Services 3.5% Business Services Leisure Leisure 11.9% Construction 9.4% Construction 12.5% 11.2% Agriculture 0.8% Agriculture
ASIA!PACIFIC Monthly M&A Insider | January | 38 TREND GRAPHS
ASIA!PACIFIC M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0.3% 0.3% 0.4% 0.4% 0.3% 0.4% 0.4% 100 100 1.2% 0.9% 0.9% 1.0% 1.5% 0.8% 1.1% 13.5% 17.6% 15.5% 19.8% 90 24.5% 23.9% 29.5% 4.8% 5.1% 4.5% 5.5% 4.4% 5.4% 5.0% 80 95 17.0% 22.8% 17.0% 27.2% 70 13.6% 19.0% 4.9% 5.4% 5.8% 5.1% 5.2% 15.8% 5.3% 6.0% 60 90 30.4% 50 30.6% 26.4% 29.8% 27.3% 22.2% 27.1% Percentage 40 Percentage 85
30 12.7% 11.3% 12.0% 11.2% 11.1% 12.1% 88.9% 88.4% 88.7% 88.3% 10.4% 88.3% 87.8% 87.3% 20 80 24.5% 10 21.0% 20.5% 21.4% 21.9% 20.0% 19.7%
0 75 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
!"#%7&&5' >!"#%7&&5'
SECTOR ANALYSIS ASIA!PACIFIC SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Consumer 58,966 25.4% 180 35,645 14.8% 161 65.4% 19 Financial Services 32,298 13.9% 96 34,249 14.2% 104 -5.7% -8 Industrials & Chemicals 29,078 12.5% 275 44,381 18.4% 276 -34.5% -1 Energy, Mining & Utilities 27,620 11.9% 146 41,710 17.3% 131 -33.8% 15 Telecommunications 23,949 10.3% 11 8,130 3.4% 11 194.6% 0 Technology 13,768 5.9% 122 13,058 5.4% 110 5.4% 12 Transport 10,130 4.4% 46 8,209 3.4% 40 23.4% 6 Media 6,360 2.7% 45 2,236 0.9% 38 184.4% 7 Pharma, Medical & Biotech 5,931 2.6% 88 3,925 1.6% 75 51.1% 13 Real Estate 5,911 2.5% 47 26,968 11.2% 35 -78.1% 12 Business Services 5,507 2.4% 108 4,027 1.7% 105 36.7% 3 Leisure 4,797 2.1% 65 11,679 4.8% 62 -58.9% 3 Construction 4,274 1.8% 45 4,176 1.7% 49 2.3% -4 Agriculture 3,232 1.4% 29 3,156 1.3% 18 2.4% 11 Other 713 0.3% 1 - - - - - Defence 11 0.0% 3 - - 1 - 2 Total 232,544 100.0% 1,307 241,551 100.0% 1,216 -3.7% 91
ASIA!PACIFIC Return to contents Monthly M&A Insider | January | 39 a mergermarket M&A report on europe
• European deals worth €252.3bn in H2 contributed 47.8% to the Europe’s €527.6bn-worth of deals in 2012. • Deal value in H2 decreased 8.4% compared to €275.3bn in H1. • CEE (€68.6bn) and the UK (€44.4bn) were the strongest European regions for deal activity.
Russian oil major Rosneft led the M&A European market in The UK remains strong the second half of 2012 with the purchase of BP’s 50% interest in TNK-BP for €24.2bn in November and then the remaining The UK has been the second most active region in Europe for 50% in December from AAR Consortium (Alfa Group, Access deal value (€44.4bn) with the highest deal volume (462 deals) in Industries and Renova) for €21.6bn. These deals will allow H2 after the CEE region (€68.6bn in value and 278 deals). The top Rosneft to become the world’s largest listed oil firm by output sale in the Real Estate sector of Annington to UK private equity and strengthen Russian President Vladimir Putin strategy to firm Terra Firma for €3.9bn helped to push the UK as the second control the energy assets that were privatised at low prices most active country. during the nineties. Iberia, with €16.5bn worth of deals, was the one of the weakest regions in deal volume (124 deals), due to the lack of confidence Remarkable growth in the Defence sector of investors to undertake deals in economic uncertainty. Once again, the Energy, Mining and Utilities sector was the most active with deals worth €80.3bn, accounting for 26% of the Private equity market share in H2 2012 and created a 32% increase in value Deal value of European buyouts in the second half of 2012 compared to H2 2011 (€60.8bn). (€31.1bn) accounted for 45.1% of the year’s total (€68.9bn), The biggest growth in deal value was registered in the Defence decreased 17.7% on H1 (€37.8bn) and was the lowest half year sector with deals worth €1.6bn in H2 2012, up 501% compared since H1 2010 (€25.8bn). to H2 2011 (€280m). The most significant deals in this sector European exits decreased in the last six months of 2012 which were the acquisitions of a 4.8% and 2.76% stakes in aerospace resulted in it contributing 42.2% to the 2012’s total of €83.9bn. company EADS by the German KfW Banking Group. The Dropping from €48.5bn in H1 to €35.4bn in H2, it was the transaction was in line with EADS’ strategy to simplify its highest H2 value since 2007 (€54.1bn). governance, while securing a share holding structure that would allow France, Germany and Spain to protect their interests. The largest exit in H2 was made by Cinven Limited and Finmeccanica SpA selling the Avio’s aviation business to General The Agriculture sector was the least active in 2012 with €253m Electric for €3.3bn. This acquisition is in line with GE’s strategy worth of deals, down 30% compared to H2 2011’s €359m. of strengthening its position in production of jet propulsions. There is a positive change in mega-deals in Europe (deals worth more than €5bn). After two consecutive years of decline, the value of European mega-deals increased to €142.4bn from €88.9bn with a 27% European market share in 2012. This was the highest deal value for these sized deals since 2008’s €263.9bn. All other deal size breakdowns decreased from 2011 to 2012 for deal value.
Monthly M&A Insider | January | 40 deal of the half year
Deal summary Announced: 12-Jul-12 Deal value: €3,562.33m
Dentsu Inc, the Japanese advertising agency has made a IRREVOCABLE UNDERTAKINGS: recommended cash offer to acquire the entire issued and to be • Aegis Directors who beneficially own or control and issued share capital of Aegis Group Plc, the UK media group. can procure the voting of Aegis Shares have irrevocably undertaken to do in respect of their controlled holdings DEAL TERMS: of 47,550,046 Aegis Shares representing, in aggregate, approximately 4.1% of the ordinary share capital of Aegis • Offer Price of £2.40 per AEG share. in issue on 11-Jul-12. In aggregate, Dentsu has acquired • The Offer values the entire issued and to be issued ordinary Aegis Shares, interests in Aegis Shares and received share capital of Aegis at approximately £3,164 million. irrevocable undertakings in relation to a total of 30.5% of Aegis’s ordinary share capital. • The Offer represents a premium of approximately 48.0% to the Closing Price per Aegis Share of 162.2 pence on 11-Jul-12 (being the last Business Day prior to the date CONDITIONS: of this announcement); • High Court approval.
• And of 45.0% to the average Closing Price per Aegis Share of • Aegis EGM approval. 165.5 pence over the three month period to 11-Jul-12 (being the last Business Day prior to the date of this announcement). • TCA approval (Australia). • Canadian competition approval. RATIONALE: • MOFCOM approval (China). • The combination of Dentsu and Aegis will create a new global communications network for the digital age focused • Bundeskartellamt approval (Germany). on delivering best-in-class brand, media, digital and • Russian competition approval. marketing services for the combined client base through a fully-integrated and scalable platform and combine Dentsu’s • South African competition approval. leadership position in the Asia-Pacific region and rapidly growing presence outside Asia with Aegis’s leading position • HSR approval (USA). in Europe, strong footprint in Asia and Australia and its market leading growth in North America and the faster- • OFT approval. growing regions.
FINANCING: • Dentsu is providing the cash consideration payable under the Offer from its own resources and loan facilities arranged with the Bank of Tokyo-Mitsubishi UFJ for these purposes. Morgan Stanley & Co. Limited is satisfied that sufficient resources are available to satisfy in full the cash consideration payable to Aegis Shareholders under the terms of the Offer.
europe Monthly M&A Insider | January | 41 deal of the half year
Sources of funding Equity provider Amount (€m) Stake Debt provider Terms - -- Mitsubishi UFJ Financial Group Inc n/a
Exit multiples – Y/E 31-Dec-12 Premium analysis Multiples Value (€m) Offer price per share (€) 3.3 Revenue 2.9 1,361.07 1 day before 47.97% EBITDA 15.2 259.14 1 month before 51.13 % EBIT 22.3 177.24 1 day after 1.91 % Earnings 36.9 97.25 Pre-rumour -
Advisers Target/Seller Bidder Financial Greenhill & Co Inc (Pieter-Jan Bouten, Richard Financial Morgan Stanley (Andrew Foster, Ian Hart, Hoyle, Hiroto Yamada); JPMorgan (Tim Wise) Laurence Hopkins, Hironobu Wakabayashi) Legal Blake, Cassels & Graydon LLP; Slaughter Legal Linklaters (Chris Barclay, Rasmus Berglund, and May (Cleo Alliston, Jonathan Fenn, Sarah Natalia Czajkowska, Pedro Caro de Sousa, Ferguson, Lucinda Ingram, Yvonne Lee, Miranda Eamonn Doran, Ben Dulieu, Jonathan Emery, Leung, Anna Lyle-Smythe, Caroline Phillips, Mark Fletcher, Heather Gibbons, Amanda Michael Rowe, Mark Thomas, Roland Turnill); Goh, Shane Griffin, David Holdsworth, Aurore Slaughter and May (Dominique Bompoint, Imbabazi, Anthea Jackson, Leila Karmali, James Tim Emmerson) Kent, Raphael Landesmann, Richard Levy, Jean Lovett, Marc Loy, James Miller, Sarah Opie, Ligia Osepciu, Hannah Patterson, Stephanie Patureau, Clare Peake, Divya Radhakrishnan, Evgeniya Rakhmanina, John Ramsay, Alexis Aronio de Romblay, Nick Rumsby, Megan Schellinger, Daniela Seeliger, Gitanjali Shankar, Julie Sharp, John Sheppard, Tom Shropshire, Sally Southwell, John Stone, Jonathan Swil, Lorna Tennent, Michael Tilley, Iain Wagstaff, Tom Wells, Emma Williamson, Wang Xi, Leon Yap); Shearman & Sterling LLP (Ayako Adachi, Masahisa Ikeda, Jeremy Kutner, Simon Little); White & Case LLP (Gavin Weir) PR Tulchan Communications (James Macey White, PR FTI Consulting (Sophie McMillan, Susanna Voyle) Charles Palmer)
mergermarket/dealReporter intelligence 06-Nov-12 Dentsu and Aegis obtain all antitrust clearances with exception of China 16-Aug-12 Aegis/Dentsu receives approval from German Federal Cartel Office 02-Aug-12 Dentsu receives approval from Australia’s Foreign Investment Review Board 23-Jul-12 Aegis and Dentsu: Scheme of Arrangement being sent to Aegis shareholders today 13-Jul-12 Aegis: Bollore accepts Dentsu offer and sells 26.4% stake for €915m 12-Jul-12 Aegis recommends Dentsu offer 25-Jan-12 Aegis sees takeover speculation after winning General Motors contract - market report
europe Monthly M&A Insider | January | 42 DEAL OF THE HALF YEAR
Bidder Dentsu Inc. Headquarters 1-8-1, Higashi-shimbash Minato-Ku 105 7001 Tokyo Japan Sector Media; Business Services Description Japan based advertising agency
Target Aegis Group Plc Headquarters Regents Place 10 Triton Street London NW1 3BF UK Sector Media; Business Services Description UK based company that provides marketing services in the areas of media communications and market research
EUROPE Monthly M&A Insider | January | 43 TOP DEALS & EXPECTED DEALS
TOP 10 EUROPEAN ANNOUNCED DEALS OF H2 2012
Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal sector 1-day value Revenue EBITDA P/E before (€m)
22-Nov-12 Rosneft Oil Company OJSC TNK-BP Limited Energy, Mining & BP Plc 1.0 4.0 6.0 - 24,211 (50% stake) Utilities
12-Dec-12 Rosneft Oil Company OJSC TNK-BP Limited Energy, Mining & Access Industries; 1.0 4.1 6.2 - 21,642 (50% stake) Utilities Alfa Group Consortium; and Renova Group of Companies
04-Jul-12 Volkswagen AG Dr. Ing. h.c. F. Porsche Industrials & Porsche Automobil 1.4 5.4 6.1 - 11,353 AG (50.1% stake) Chemicals Holding SE
27-Sep-12 Cassa depositi e prestiti spa Gruppo Sace Spa Financial Services Italian Ministry for the n/a n/a 32.9 - 6,050 Economy and Finance
08-Nov-12 Government of Belgium; Dexia SA (Undisclosed Financial Services n/a n/a - - 5,500 and Government of France Economic Interest)
26-Dec-12 Fondo de Reestructuracion NCG Banco SA Financial Services n/a n/a - - 5,425 Ordenada Bancaria (6.84% stake)
19-Nov-12 Terra Firma Capital Annington Homes Real Estate Nomura International Plc 19.9 23.0 - - 3,977 Partners Limited Limited
22-Nov-12 BP Plc Rosneft Oil Company Energy, Mining & Rosneftegaz OJSC 1.0 4.2 7.8 -2.4% 3,732 OJSC (5.66% stake) Utilities
12-Jul-12 Dentsu Inc Aegis Group Plc Media 2.9 15.2 36.9 48.0% 3,562 (85% stake)
21-Dec-12 General Electric Company Avio SpA Industrials & Cinven Limited; and 1.9 -- - 3,300 (aviation business) Chemicals Finmeccanica SpA
Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 04-Jan-13
EUROPE Monthly M&A Insider | January | 44 top deals & expected deals
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 Provinzial NordWest Financial Allianz SE 2,500 Allianz is aiming to acquire Provinzial Takeover Holding AG Services NordWest. The bidder is reported it has increased the offer to €2.5bn.
Rumoured Schmolz + Industrials & Apollo Global 1,321 Schmolz + Bickenbach has attracted Takeover Bickenbach AG Chemicals Management, LLC; interest from financial investors, and Triton Asset amongst them Apollo Global and Management AG Triton Asset Management. The reports say the consideration for Schmolz + Bickenbach could be up to €500m and the company itself has €821m debts.
Rumoured TomTom N V Technology Apple Inc 900 Apple is rumoured of approaching Takeover TomTom with a potential bid. TomTom has so far declined to be in duscussions with Apple.
Potential Sportswift Limited Unknown Goldman Sachs (S) Charterhouse 616 Charterhouse has put up Card Factory Takeover (doing business as Capital Partners for sale. The initial business valation Card Factory) LLP is estimated at €616m approximately.
Potential Alitalia SpA Consumer Air France-KLM SA Lazard (B) 609 Air France has made an initial bid to Takeover acquire Alitalia. The bidders a share swap transaction on the exchange ratio 1.4 Alitalia shares 1 Air France share. The target company is valued at €750m.
Rumoured KaDeWe (Kaufhaus Goldman Sachs; Highstreet 500 The financially distressed German Takeover des Westens) and Rene Benko Holdings warehouses operator KaDeWe is (Private Investor) facing approaches from potential investors including Goldman Sachs and the Austrian real estate Entrepreneur Rene Benko.
Rumoured Openet Telecom Technology IBM Corporation Balderton Capital 380 It's being reported IBM has made Takeover Limited Management (UK) an initial offer that valued Openet at LLP approximately €380m.
Rumoured UkrSibbank Financial Sberbank CIB BNP Paribas SA - The Russian Sberbank is in talks Takeover Services with BNP Paribas to acquire an 85% stake in Ukrsibbank. The parties are at the final stages of the negotiations, and Sberbank is proceeding with the due diligence.
Expected deals based on confirmed announcements by companies involved
europe Monthly M&A Insider | January | 45 LEAGUE TABLES
TOP 20 EUROPEAN FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (€m) (€m) (%) 1 1 Goldman Sachs 108.8 64 79.4 36.9% 2 5 Citi 99.5 47 37.0 168.8% 3 3 Morgan Stanley 97.2 65 53.8 80.9% 4 6 Barclays 92.5 45 34.6 167.3% 5 10 Bank of America Merrill Lynch 81.6 41 23.2 251.6% 6 8 Deutsche Bank 81.1 41 30.3 167.4% 7 9 Rothschild 70.7 100 24.8 185.0% 8 11 Credit Suisse 70.3 47 23.2 203.1% 9 4 UBS Investment Bank 67.8 44 49.5 37.1% 10 2 JPMorgan 56.8 55 56.3 0.8% 11 25 VTB Capital 49.4 11 8.3 495.5% 12 38 Evercore Partners 36.1 18 4.1 771.6% 13 90 Renaissance Capital 28.8 5 1.1 2630.3% 14 - Lambert Energy Advisory 28.4 3 - - 15 13 Lazard 28.4 56 21.9 30.0% 16 12 Societe Generale 23.3 33 23.0 1.2% 17 7 HSBC 17.2 18 31.8 -46.0% 18 19 Nomura Holdings 17.1 20 10.8 59.2% 19 14 BNP Paribas 15.1 37 20.2 -25.1% 20 53 Greenhill & Co 10.4 11 2.5 313.9% Source: mergermarket
TOP 20 EUROPEAN FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (€m) change 1 2 PwC 6.5 113 90 23 2 3 Rothschild 70.7 100 74 26 3 1 KPMG 6.7 68 92 -24 4 9 Morgan Stanley 97.2 65 49 16 5 6 Goldman Sachs 108.8 64 60 4 6 4 Lazard 28.4 56 66 -10 7 7 JPMorgan 56.8 55 55 0 8 8 Deloitte 3.8 48 50 -2 9 13 Citi 99.5 47 40 7 10 12 Credit Suisse 70.3 47 41 6 11 14 Barclays 92.5 45 39 6 12 10 UBS Investment Bank 67.8 44 47 -3 13 17 Bank of America Merrill Lynch 81.6 41 36 5 14 15 Deutsche Bank 81.1 41 39 2 15 5 Ernst & Young 3.6 41 65 -24 16 11 BNP Paribas 15.1 37 43 -6 17 16 Societe Generale 23.3 33 37 -4 18 38 UniCredit Group 8.0 31 15 16 19 19 Leonardo & Co 2.2 26 32 -6 20 23 M&A International 0.3 26 28 -2 Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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 European.
EUROPE Monthly M&A Insider | January | 46 LEAGUE TABLES
TOP 20 EUROPEAN LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (€m) (€m) (%) 1 2 Linklaters 78.8 104 39.6 98.8% 2 10 Cleary Gottlieb Steen & Hamilton 73.9 30 20.4 262.9% 3 1 Freshfields Bruckhaus Deringer 65.5 101 51.5 27.2% 4 37 Cravath, Swaine & Moore 55.0 9 6.4 757.7% 5 12 White & Case 44.1 52 17.4 153.7% 6 11 Skadden Arps Slate Meagher & Flom 42.8 37 19.0 125.9% 7 4 Clifford Chance 41.7 77 31.4 32.9% 8 31 Weil Gotshal & Manges 32.6 32 7.8 316.0% 9 14 Latham & Watkins 32.5 46 14.1 129.9% 10 16 Baker & McKenzie 25.5 53 12.1 110.5% 11 20 Sullivan & Cromwell 24.3 24 10.4 132.4% 12 7 Shearman & Sterling 22.9 23 23.2 -1.3% 13 57 Wachtell, Lipton, Rosen & Katz 22.1 10 4.0 453.1% 14 58 Conyers Dill & Pearman 21.7 2 4.0 444.6% 15 3 Allen & Overy 20.9 73 31.7 -34.1% 16 41 CMS 19.6 72 5.3 267.9% 17 8 Hogan Lovells 16.5 36 22.4 -26.3% 18 139 Hengeler Mueller 16.3 26 1.1 1316.8% 19 23 Gibson Dunn & Crutcher 16.0 10 9.9 61.9% 20 52 De Brauw Blackstone Westbroek 15.6 33 4.3 264.2% Source: mergermarket
TOP 20 EUROPEAN LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (€m) change 1 1 DLA Piper 10.3 106 138 -32 2 4 Linklaters 78.8 104 89 15 3 2 Freshfields Bruckhaus Deringer 65.5 101 100 1 4 6 Clifford Chance 41.7 77 84 -7 5 7 Allen & Overy 20.9 73 80 -7 6 3 CMS 19.6 72 90 -18 7 9 Jones Day 15.4 56 63 -7 8 5 Baker & McKenzie 25.5 53 88 -35 9 10 White & Case 44.1 52 59 -7 10 13 Eversheds 2.0 48 42 6 11 8 Latham & Watkins 32.5 46 65 -19 12 33 Skadden Arps Slate Meagher & Flom 42.8 37 24 13 13 15 Loyens & Loeff 12.1 37 40 -3 14 11 Hogan Lovells 16.5 36 48 -12 15 19 Mayer Brown 4.6 36 37 -1 16 21 Ashurst 9.7 35 34 1 17 25 Kirkland & Ellis 11.7 34 30 4 18 47 Schjodt 2.2 34 20 14 19 43 De Brauw Blackstone Westbroek 15.6 33 21 12 20 17 SJ Berwin 8.3 33 38 -5 Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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 European.
EUROPE Monthly M&A Insider | January | 47 LEAGUE TABLES
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON EUROPEAN BUYOUTS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (€m) count (€m) count 1 Terra Firma Capital Partners 3,977 1 1 AXA Private Equity 1,070 7 2 Advent International Corporation 3,583 5 2 Advent International Corporation 3,583 5 3 Hellman & Friedman 1,369 1 3 EQT Partners 705 5 4 Kohlberg Kravis Roberts & Co 1,328 4 4 Lloyds TSB Development Capital 78 5 5 Blackstone Group 1,145 4 5 Kohlberg Kravis Roberts & Co 1,328 4 6 GTCR LLC 1,122 1 6 Blackstone Group 1,145 4 7 Lone Star Funds 1,094 1 7 Penta Investments 145 4 8 AXA Private Equity 1,070 7 8 Gilde Investment Management 69 4 9 Cinven 1,047 2 9 Investindustrial 491 3 10 Bain Capital 1,039 1 10 IK Investment Partners 336 3 11 Apax Partners 800 2 11 AEA Investors 291 3 12 Lion Capital 800 1 12 Oaktree Capital Group 195 3 13= Ratos 798 1 13 H.I.G. Capital 162 3 13= Sjatte AP-fonden 798 1 14 Fondi Italiani per le infrastrutture SGR 140 3 15 Charterhouse Capital Partners 733 1 15 Macquarie Group 138 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 European. The tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON EUROPEAN EXITS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (€m) count (€m) count 1 Access Industries 21,642 1 1 HitecVision 563 4 2 Macquarie Group 4,997 1 2 3i Group 483 4 3 Cinven 3,300 1 3 Barclays Ventures 169 4 4 EQT Partners 3,050 2 4 Bridgepoint 1,670 3 5 Investor 3,050 1 5 HgCapital 1,316 3 6= AMP Capital Investors 2,499 1 6 Capvis Equity Partners 1,283 3 6= Industry Funds Management 2,499 1 7 Herkules Capital 798 3 8 Charterhouse Capital Partners 2,169 2 8 Waterland Private Equity Investments 675 3 9 Permira 1,899 2 9 BWK 206 3 10 Bridgepoint 1,670 3 10 Azini Capital Partners 140 3 11 HgCapital 1,316 3 11 Equistone Partners Europe 85 3 12 Capvis Equity Partners 1,283 3 12 Rutland Partners 33 3 13 Private Equity Partners 1,170 1 13 CM-CIC Capital Finance 11 3 14 Caisse de Depot et Placement du Quebec 1,145 1 14= BNP Paribas Developpement - 3 15 Sued Beteiligungen 1,065 1 14= Initiative & Finance Investissement - 3 Source: mergermarket Source: mergermarket
The private equity buyout 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-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
EUROPE Monthly M&A Insider | January | 48 TREND GRAPHS
EUROPEAN M&A QUARTERLY TREND EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND
500 2,000 100 450
450 1,800 90 400
400 1,600 80 350
350 1,400 70 Number of deals 300 Number of deals 300 1,200 60 250 250 1,000 50
Value ( ! m) Value 200 Value ( ! bn) Value 200 800 40 150 150 600 30
100 100 400 20
50 200 10 50
0 0 0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 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 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 12
Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume
EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND
1,200 8,000 300 1,600
7,000 1,400 1,000 250
6,000 1,200
800 Number of deals 200 Number of deals 5,000 1,000
600 4,000 150 800 Value ( ! bn) Value ( ! bn) Value 3,000 600 400 100
2,000 400
200 50 1,000 200
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Buyout value Exit value Buyout volume Exit volume
EUROPE Monthly M&A Insider | January | 49 TREND GRAPHS
EUROPEAN M&A GEOGRAPHIC BREAKDOWN H2 2012
VALUE VOLUME
7.5% 8.4% 11.8% CEE CEE 27.2% 7.4% Iberia 6.3% Iberia UK 5.2% UK Nordic Nordic 9.7% 8.7% Germany Germany France France Benelux Benelux 19.5% 5.7% Italy Italy 11.0% 6.5% Others Others
10.6%
13.6% 8.0% 17.6% 15.6%
EUROPEAN M&A SECTOR BREAKDOWN H2 2012
0.8% 0.1% 0.8% 2.6% 1.4% 0.7% 0.3% 2.3% 4.5% 3.4% 15.7% Industrials & Chemicals 4.1% Industrials & Chemicals 1.0% 21.8% 1.1% Consumer 4.7% Consumer 3.3% Business Services Business Services 4.2% Technology 5.2% Technology 8.2% Energy, Mining & Utilities Energy, Mining & Utilities Financial services Financial services 5.9% Pharma, Medical & Biotech Pharma, Medical & Biotech 13.6% 7.0% Transportation Transportation 14.6% Construction 7.5% Construction 4.0% Leisure Leisure Media Media Real Estate 8.5% Real Estate Telecommunications 11.8% Telecommunications 9.1% 31.8% Agriculture Agriculture Defence Defence
EUROPE Monthly M&A Insider | January | 50 TREND GRAPHS
EUROPEAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0.4% 0.4% 0.4% 0.2% 0.2% 0.2% 0.2% 100 100 0.9% 0.9% 0.6% 0.6% 0.7% 0.7% 0.7% 17.1% 2.1% 90 22.7% 98 2.7% 3.1% 26.4% 27.0% 3.2% 3.2% 34.6% 3.8% 4.0% 80 39.1% 38.8% 96 2.3% 3.2% 21.8% 2.7% 3.1% 2.9% 70 94 21.0% 3.5% 20.0% 19.7% 3.9% 60 92 17.6% 16.6% 14.8% 50 90 30.9% Percentage 24.1% 29.2% Percentage 40 27.2% 88 23.4% 20.2% 94.8% 22.3% 93.1% 93.2% 93.1% 30 86 91.4% 92.9% 90.8% 9.2% 11.5% 8.5% 9.1% 9.5% 9.8% 20 8.4% 84
10 20.3% 17.7% 18.6% 82 15.9% 13.7% 17.0% 16.4%
0 80 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
<€250m or undisclosed value <€250m or undisclosed value €251m-€500m €251m-€500m €501m-€2,000m €501m-€2,000m €2,001m-€5,000m €2,001m-€5,000m >€5,001m >€5,001m
SECTOR ANALYSIS
EUROPEAN SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value (€m) Mrk share Deal count Value (€m) Mrk share Deal count Value Volume Energy, Mining & Utilities 80,303 26.0% 201 60,795 28.0% 206 32% -2% Industrials & Chemicals 39,512 15.3% 516 30,790 14.2% 612 28% -16% Financial Services 34,276 13.2% 178 41,697 19.2% 202 -18% -12% Consumer 20,729 10.7% 344 17,313 8.0% 399 20% -14% Business Services 17,719 5.4% 280 8,577 3.9% 355 107% -21% Real Estate 11,351 5.2% 34 7,017 3.2% 57 62% -40% Pharma, Medical & Biotech 10,575 5.0% 140 5,899 2.7% 154 79% -9% Technology 10,073 5.0% 214 15,962 7.3% 229 -37% -7% Transportation 8,294 4.4% 122 8,861 4.1% 92 -6% 33% Telecommunications 6,574 3.1% 20 6,838 3.1% 29 -4% -31% Media 5,859 2.6% 81 4,254 2.0% 108 38% -25% Construction 2,691 2.1% 110 3,554 1.6% 105 -24% 5% Leisure 2,451 1.7% 96 5,074 2.3% 98 -52% -2% Defence 1,682 0.2% 8 280 0.1% 6 501% 33% Agriculture 253 0.1% 20 359 0.2% 28 -30% -29% Total 252,342 2,364 217,270 2,680 16% -12%
EUROPE Return to contents Monthly M&A Insider | January | 51 a mergermarket M&A report on the middle east & africa
Despite political unrest in parts of the Middle East and Africa, the region showed signs of improvement in terms of M&A activity during H2 2012. Total M&A deals amounted to US$28.5bn in H2 2012, up 23.9% from H1 2012 (US$23bn) and increased 56.6% compared to the same period last year (US$18.2bn). This represented the highest half-year portion since H1 2010 (US$33.2bn) and the second highest since H2 2007 (US$54.6bn). If we look at the whole period of 2012, M&A transactions in the region grew by 15.5% from US$44.5bn in 2011 to US$51.4bn.
The most active sector in H2 2012 was Energy, Mining & Utilities Highlights from the region with US$12bn worth of deals accounting for 42.1% of the MEA market. With five of the top ten deals announced in the region The outlook for Saudi Arabia and Egypt to become the region’s in the second half of 2012, the sector posted an 84.3% increase most attractive Private Equity destinations is promising. At the on its deal value performance compared to H2 2011 (US$6.5bn). “PE Partners - Saudi Arabia 2012”, a Private Equity summit The top deal in the sector was the acquisition of offshore OML that took place in Riyadh in November 2012, Phil Gandier, 138 block by China Petrochemical Corporation from Total MENA Head of Transaction Advisory Services at Ernst & Young, Nigeria Plc and Total SA for a consideration of US$2.6bn. stressed the relatively new trend concerning Private Equity in MENA and the challenges ahead. Although most Private Equity Financial Services, with US$7.6bn-worth of deals and three firms are still in the process of development, the region offers of the top ten transactions, had a market share of 26.6%. new investment opportunities that are “expected to be driven by The largest deal of H2 occurred in this sector and was Qatar funds that target healthcare, education, infrastructure, oil & gas National Bank’s acquisition of Société Générale’s holding in services and consumer-focused industries.” National Société Générale Bank SA, valued at US$2.6bn. Saudi Arabia offers favourable conditions to attract capital South Africa and Nigeria were the most active countries by deal and investment thanks to a steady growth, healthy financial value with a 21.9% market share including three of the top ten institutions and relaxed foreign policies. The country was said deals, and a 21.1% market share including two of the top ten to be the top Private Equity investment destination of the region deals, respectively. The former, however, took the lead in terms in 2011. As for the challenges and future outlook, it remains of deal volume as well, with 44 deals worth US$6.2bn. Due to problematic to exit existing portfolios and the number of active political instability, Egypt came in third with seven transactions Private Equity funds has shrunk due to the financial crisis. Also, accounting for 14.5% of the market while Israel posted a 21.6% the current unrest in the region has slowed down international market share by volume with 32 deals worth US$2.6bn. commitments. However, key factors that should boost Private Equity activities in MENA include “historical Private Equity Goldman Sachs jumped five places by deal value and nine under-penetration, earning backed returns, low leverage places by deal volume to top the financial adviser league table capital structure, increasing demand for growth capital and for both value and volume, after having advised on seven deals opportunities for future investment and growth.” worth US$5.3bn. Allen & Overy and Freshfields Bruckhaus Deringer were at the top of the legal adviser league table by both value and volume.
Monthly M&A Insider | January | 52 deal of the half year
Deal summary Announced: 20-Jul-12 Deal value: US$901m
Anglo American Plc has acquired a 4.5% stake in Kumba Iron RATIONALE: Ore Limited in a stock transaction. • The acquisition will expand Anglo’s contribution to Kumba’s Kumba Iron Ore Limited., a South Africa based company underlying earnings this year. headquartered in Centurion, Gauteng, is engaged in the exploration, extraction, beneficiation, marketing, sale, and POST-DEAL DETAILS: shipping of iron ore. • Anglo American increased its stake in Kumba Iron Ore Anglo American Plc, a UK based company headquartered in Limited from 65.2% to 69.7%. London, is a mining and natural resources group.
BACKGROUND: DEAL TERMS: • Anglo American has increased its shareholding in Kumba • Anglo American acquired 14,492,638 shares in Kumba Iron Iron Ore Limited by 4.5% through the exercise of options Ore for ZAR519 (US$63.53) per share representing 4.5% stake which were acquired in 2011 and 2012. in the company.
• The transaction is valued at ZAR7521.68m (US$920.80m).
• The offer represents a discount of 8.2% based on the Kumba Iron Ore Limited closing price on 19 July 2012 of ZAR567 (US$69.22) per share.
• The offer represents a discount of 10.5% based on the Kumba Iron Ore Limited closing price on 20 August 2012 of ZAR536.49 (US$64.42) per share.
• The implied equity value of the transaction is approx. ZAR167,148.43m (US$20,462.13m).
Exit multiples – Y/E 31-Dec-11 Premium analysis Multiples Value (US$m) Offer price per share (US$) 63.53 Revenue 3.4 - 1 day before -8.22% EBITDA 5.0 - 1 month before -10.5% EBIT 5.2 - 1 day after -1.66% Earnings 720 - Pre-rumour -
Advisers Target/Seller Bidder Financial - Financial Barclays Legal - Legal - PR - PR -
middle east & africa Monthly M&A Insider | January | 53 DEAL OF THE HALF YEAR
mergermarket/dealReporter intelligence 20-Jul-12 Kumba could wait before expanding in West Africa 22-Nov-11 Anglo American CEO denies speculation of buyouts at Kumba or Anglo Platinum 21-Nov-11 Kumba eyeing East African projects and buys
Bidder Anglo American Plc Headquarters 20 Carlton House Terrace London UK Sector Construction; Industrial Products and Services; Manufacturing (other); Mining Description UK based mining and natural resources group
Target Kumba Iron Ore Limited Headquarters Centurion Gate 124 Akkerboom Street Centurion South Africa Sector Mining Description South Africa based supplier of iron ore
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 54 TOP DEALS
TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF H2 2012
Announced Bidder company Target company Target dominant Seller company Exit multiples (x) Bid premia Deal sector 1-day value Revenue EBITDA P/E before (US$m)
12-Dec-12 Qatar National Bank National Société Générale Financial Services Société Générale --0.1 -6.5% 2,558 Bank SA
19-Nov-12 China Petrochemical Total Nigeria plc (offshore Energy, Mining & Total SA; and Total --- - 2,500 Corporation OML 138 block) (20% stake) Utilities Nigeria plc
16-Aug-12 Qatar Telecom (QTel) QSC National Mobile Telecommunications 1.8 4.8 3.5 - 2,206 Telecommunications Company KSC (47.5% stake)
06-Dec-12 Absa Group Limited Barclays Africa Limited Financial Services Barclays Plc 2.4 -- - 2,071
20-Dec-12 Oando Energy Resources Inc ConocoPhillips (Nigerian Energy, Mining & ConocoPhillips --- - 1,790 business) Utilities Company
18-Dec-12 Pertamina PT ConocoPhillips Algeria Ltd Energy, Mining & ConocoPhillips --- - 1,750 Utilities Company
20-Oct-12 The National Shipping Vela International Marine Transportation Saudi Arabian --- - 1,300 Company of Saudi Arabia Limited Oil Co
01-Oct-12 Redefine Properties Fountainhead Property Financial Services ---1.5% 1,242 International Limited Trust
10-Sep-12 Shelf Drilling International Transocean Ltd (38 Shallow Energy, Mining & Transocean Ltd --- - 1,050 Holdings Ltd Water Drilling Rigs) Utilities
20-Jul-12 Anglo American Plc Kumba Iron Ore Limited Energy, Mining & 3.4 5.0 720.0 -8.2% 921 (4.5% stake) Utilities
Based on announced deals, including lapsed and withdrawn bids Source: mergermarket Based on dominant geography of target company being Middle East or Africa Data correct as of 04-Jan-13
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 55 LEAGUE TABLES
TOP 20 MIDDLE EASTERN & AFRICAN FINANCIAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 6 Goldman Sachs 5.3 7 1.5 248.9% 2 - Morgan Stanley 2.8 2 - - 3 - Societe Generale 2.6 1 - - 4 29 Jefferies & Company 1.9 3 0.2 - 5 - HSBC 1.3 2 - - 6 20 Citi 1.2 3 0.4 203.9% 7= - UniCredit Group 0.9 2 - - 7= 40 BNP Paribas 0.9 2 0.0 - 9 - Mediobanca 0.9 1 - - 10 3 JPMorgan 0.8 3 2.7 -68.6% 11 - Akira Partners 0.7 1 - - 12 - RBC Capital Markets 0.6 1 - - 13 - GMP Securities 0.5 2 - - 14 21 Credit Suisse 0.4 3 0.3 17.9% 15 7 KPMG 0.4 2 1.5 -74.6% 16 - National Bank Financial 0.4 1 - - 17 - Canaccord Genuity 0.3 3 - - 18= 11 Investec 0.3 2 1.1 -73.7% 18= 1 Standard Chartered 0.3 2 5.2 -94.9% 20 - Robert W. Baird & Co 0.3 1 - - Source: mergermarket
TOP 20 MIDDLE EASTERN & AFRICAN FINANCIAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 10 Goldman Sachs 5.3 7 2 5 2 - BDO 0.1 4 - - 3 31 Jefferies & Company 1.9 3 1 2 4 14 Citi 1.2 3 2 1 5 8 JPMorgan 0.8 3 2 1 6 25 Credit Suisse 0.4 3 1 2 7 - Canaccord Genuity 0.3 3 - - 8 13 Rand Merchant Bank 0.2 3 2 1 9 - PwC 0.1 3 - - 10 1 Standard Bank Group 0.0 3 8 -5 11 - Morgan Stanley 2.8 2 - - 12 - HSBC 1.3 2 - - 13= - UniCredit Group 0.9 2 - - 13= 40 BNP Paribas 0.9 2 1 1 15 - GMP Securities 0.5 2 - - 16 5 KPMG 0.4 2 3 -1 17= 12 Investec 0.3 2 2 0 17= 7 Standard Chartered 0.3 2 2 0 19 6 Rothschild 0.2 2 3 -1 20 - Barclays 0.1 2 - - Source: mergermarket The financial adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals. The tables cover all sectors and are based on the geography of either the target, bidder or seller being Middle East & Africa, including Israel.
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 56 LEAGUE TABLES
TOP 20 MIDDLE EASTERN & AFRICAN LEGAL ADVISERS VALUE
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Value Value change (US$bn) (US$bn) (%) 1 7 Allen & Overy 4.0 4 1.4 192.4% 2 3 Freshfields Bruckhaus Deringer 3.4 6 2.0 72.5% 3 6 Norton Rose 2.5 3 1.4 80.6% 4 10 Clifford Chance 2.1 3 1.0 115.5% 5 67 Linklaters 1.5 4 0.0 - 6 - White & Case 1.4 2 - - 7 16 Gibson Dunn & Crutcher 1.3 4 0.5 143.1% 8 - Reed Smith 1.3 1 - - 9 - Baker Botts 1.1 1 - - 10 - Slaughter and May 1.0 2 - - 11= - Epstein Rosenblum Maoz 0.9 1 - - 11= - Rosenram 0.9 1 - - 11= - Bonelli Erede Pappalardo 0.9 1 - - 14 12 Meitar Liquornik Geva & Leshem Brandwein 0.7 2 0.6 15.9% 15= - Greenberg Traurig 0.6 1 - - 15= 53 Goldfarb Seligman & Co 0.6 1 0.0 4453.8% 15= - Willkie Farr & Gallagher 0.6 1 - - 15= - Allens 0.6 1 - - 19 2 DLA Cliffe Dekker Hofmeyr 0.5 5 3.5 -85.8% 20 57 Simmons & Simmons 0.5 3 0.0 6762.5% Source: mergermarket
TOP 20 MIDDLE EASTERN & AFRICAN LEGAL ADVISERS VOLUME
Ranking H2 2012 H2 2011 H2 2012 H2 2011 Company name Value Deal count Deal count Deal count (US$bn) change 1 4 Freshfields Bruckhaus Deringer 3.4 6 4 2 2 1 DLA Cliffe Dekker Hofmeyr 0.5 5 8 -3 3 37 Webber Wentzel 0.1 5 1 4 4 38 Edward Nathan Sonnenbergs 0.1 5 1 4 5 8 Allen & Overy 4.0 4 2 2 6 67 Linklaters 1.5 4 1 3 7 7 Norton Rose 1.3 4 1 3 8 21 Gibson Dunn & Crutcher 2.5 3 2 1 9 9 Clifford Chance 2.1 3 2 1 10 58 Simmons & Simmons 0.5 3 1 2 11= 68 Mayer Brown 0.2 3 1 2 11= - White & Case 1.4 2 - - 11= - Slaughter and May 1.0 2 - - 14 6 Meitar Liquornik Geva & Leshem Brandwein 0.7 2 3 -1 15= - Goodwin Procter 0.3 2 - - 15= 11 Latham & Watkins 0.2 2 2 0 15= - GKH Law Offices 0.2 2 - - 15= 3 Bowman Gilfillan 0.1 2 5 -3 19 - Reed Smith 0.1 2 1 - 20 57 Desai & Diwanji 1.3 1 - - Source: mergermarket The legal adviser league tables by value and volume have been run from 01-Jul-12 to 31-Dec-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 Middle East & Africa, including Israel.
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 57 LEAGUE TABLES
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON MIDDLE EASTERN & AFRICAN BUYOUTS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1= Castle Harlan 1,050 1 1 Standard Chartered Private Equity 210 2 1= CHAMP Private Equity Pte 1,050 1 2= Castle Harlan 1,050 1 1= Lime Rock Partners 1,050 1 2= CHAMP Private Equity Pte 1,050 1 4 Golden Gate Capital 250 1 2= Lime Rock Partners 1,050 1 5= Standard Chartered Private Equity 210 2 5 Golden Gate Capital 250 1 5= Bridgehouse Capital 210 1 6= Bridgehouse Capital 210 1 5= Pembani Remgro Infrastructure Fund 210 1 6= Pembani Remgro Infrastructure Fund 210 1 5= The Carlyle Group 210 1 6= The Carlyle Group 210 1 9= Emerging Capital Partners 125 1 9= Emerging Capital Partners 125 1 9= Wendel 125 1 9= Wendel 125 1 11 Saban Capital Group 65 1 11 Saban Capital Group 65 1 12 First Israel Mezzanine Investors 36 1 12 First Israel Mezzanine Investors 36 1 13 Angola Capital Partners 24 1 13 Angola Capital Partners 24 1 14= Hasso Plattner Ventures Africa 21 1 14= Hasso Plattner Ventures Africa 21 1 14= RMB Corvest (Pty) 21 1 14= RMB Corvest (Pty) 21 1 14= Shalamuka Capital Proprietary 21 1 14= Shalamuka Capital Proprietary 21 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-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON MIDDLE EASTERN & AFRICAN EXITS
VALUE VOLUME
Ranking Ranking H2 2012 Company name Value Deal H2 2012 Company name Value Deal (US$m) count (US$m) count 1 Leeds Equity Partners 250 1 1 Carmel Ventures 141 2 2 Prime Natural Resources 240 1 2 Leeds Equity Partners 250 1 3 Carmel Ventures 141 2 3 Prime Natural Resources 240 1 4= Magma Venture Partners 120 1 4= Magma Venture Partners 120 1 4= Motorola Ventures 120 1 4= Motorola Ventures 120 1 4= Plenus 120 1 4= Plenus 120 1 7= Actis 61 1 7= Actis 61 1 7= RMB Capital Partners 61 1 7= RMB Capital Partners 61 1 9= Intel Capital 30 1 9= Intel Capital 30 1 9= Jerusalem Venture Partners (JVP) 30 1 9= Jerusalem Venture Partners (JVP) 30 1 9= Walden Israel Venture Capital 30 1 9= Walden Israel Venture Capital 30 1 12= Siemens Acceleration in Communications 21 1 12= Siemens Acceleration in Communications 21 1 12= StageOne Ventures 21 1 12= StageOne Ventures 21 1 14= CCMP Capital Advisors - 1 14= CCMP Capital Advisors - 1 14= Ethos Private Equity - 1 14= Ethos Private Equity - 1 14= Global Capital Management - 1 14= Global Capital Management - 1 14= Partech International - 1 14= Partech International - 1 14= Unitas Capital Pte - 1 14= Unitas Capital Pte - 1 Source: mergermarket Source: mergermarket
The private equity buyout 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-Jul-12 to 31-Dec-12 and exclude lapsed and withdrawn deals.
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 58 TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A MIDDLE EASTERN & AFRICAN M&A QUARTERLY QUARTERLY TREND PRIVATE EQUITY TREND
40,000 160 7,000 25
35,000 140 6,000 20 30,000 120 5,000 Number of deals Number of deals 25,000 100 15 4,000 20,000 80 3,000 Value (US$m) Value Value (US$m) Value 10 15,000 60
2,000 10,000 40 5 5,000 20 1,000
0 0 0 0 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4 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 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 12
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market 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
70 350 10 50 Number of deals Number of deals 60 300 8 40 50 250 6 30 Value (US$bn) Value 40 200 (US$bn) Value
30 150 4 20
20 100 2 10 10 50
0 0 0 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
Total value Mid-market value Total volume Mid-market volume Total value Mid-market value Total volume Mid-market volume
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 59 TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN H2 2012
VALUE VOLUME
0.5% 0.7% 0.5% 0.7% 2.2% 0.9% 12.2% 1.9% South Africa 0.7% South Africa 2.1% 21.9% Nigeria 0.7% Nigeria 29.7% 6.1% Egypt 2.0% Egypt 2.7% Israel 2.0% Israel Kuwait 1.4% Kuwait 7.6% 0.7% United Arab Emirates United Arab Emirates 2.7% Algeria 0.7% Algeria Iraq Iraq 7.7% Mozambique 8.8% Mozambique The Democratic 21.1% 7.4% The Democratic Republic of Congo Republic of Congo 2.0% 9.3% Saudi Arabia Saudi Arabia 4.7% Morocco Morocco 14.5% Tanzania 21.6% Tanzania Cameroon Cameroon Ivory Coast Ivory Coast Others Others
MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN H2 2012
VALUE VOLUME
0.7% 0.2% 1.0% 2.7% 0.7% 10.3% 3.4% Energy, Mining & Utilities 3.4% 17.6% Energy, Mining & Utilities Consumer 4.1% Consumer 4.7% 1.3% Financial Services Financial Services 1.3% Technology 4.7% Technology 0.2% 1.5% Industrials & Chemicals Industrials & Chemicals 42.1% 4.7% 1.7% Construction Construction 4.7% Business Services 16.2% Business Services Pharma, Medical & Biotech 6.8% Pharma, Medical & Biotech Agriculture Agriculture Transport Transport Telecommunications 7.4% Telecommunications Media Media 26.6% 9.5% Real Estate Real Estate 4.3% 8.8% 9.5% Leisure Defence
MIDDLE EAST & AFRICA Monthly M&A Insider | January | 60 TREND GRAPHS
MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
100 100 4.0% 3.4% 9.1% 7.2% 6.0% 7.4% 7.9% 5.7% 4.0% 90 90 5.6% 5.7% 6.2% 5.1% 6.2% 13.1% 11.1% 10.2% 15.4% 11.2% 12.7% 80 80 14.5% 48.1% 53.1% 70 58.5% 70 65.7% 65.7% 67.2% 68.0% 32.6% 33.3% 60 60 37.0% 27.9% 29.7% 33.9% 32.5% 50 50 Percentage 17.3% Percentage 40 19.1% 40 17.3% 30 12.7% 13.3% 12.2% 30 18.8% 9.5% 47.4% 14.5% 42.2% 47.0% 44.8% 44.6% 20 39.3% 14.1% 20 36.3% 12.8% 11.3% 12.6% 12.9% 10 10 14.0% 11.9% 7.8% 7.3% 8.9% 8.8% 8.1% 0 1.0% 0.9% 1.7% 1.5% 1.0% 1.3% 1.1% 0 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012
US$0m-US$14.9m US$0m-US$14.9m 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$501m
SECTOR ANALYSIS
MIDDLE EASTERN & AFRICAN SECTOR ANALYSIS Sector H2 2012 H2 2011 % change Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume Energy, Mining & Utilities 11,982 42.1% 26 6,500 35.7% 27 84% -4% Financial Services 7,572 26.6% 14 2,836 15.6% 24 167% -42% Telecommunications 2,941 10.3% 5 620 3.4% 5 374% 0% Transport 1,348 4.7% 6 402 2.2% 4 236% 50% Technology 1,342 4.7% 14 810 4.5% 9 66% 56% Consumer 1,217 4.3% 24 3,437 18.9% 29 -65% -17% Industrials & Chemicals 497 1.7% 13 2,586 14.2% 29 -81% -55% Construction 427 1.5% 11 158 0.9% 8 171% 38% Pharma, Medical & Biotech 381 1.3% 7 199 1.1% 4 92% 75% Agriculture 370 1.3% 7 21 0.1% 4 1647% 75% Real Estate 293 1.0% 4 57 0.3% 1 410% 300% Business Services 45 0.2% 10 402 2.2% 13 -89% -23% Media 45 0.2% 5 48 0.3% 2 -8% 150% Leisure 6 - 1 120 0.7% 7 -95% -86% Defence - - 1 - - - - - Total 28,467 148 18,196 166 56% -11%
MIDDLE EAST & AFRICA Return to contents Monthly M&A Insider | January | 61 About merrilL corporation
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Monthly M&A Insider | January | 62 About merrilL datasite
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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 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 users and administrators to: Need to work remotely? 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 the financial and legal industries for more than 40 years. Our Designate user permissions. Team administrators can control employees execute letters of confidentiality and we are audited which users will be able to view, print or download specific annually (internal and third-party) to make certain our IT documents, folders or projects – simply and quickly. infrastructure and processes remain sound.
Search every word in every document. With large document Merrill DataSite was the first virtual data room to receive the collections, sophisticated search features are key to finding ISO 27001 certification for its comprehensive Information critical information and accelerating the due diligence process. Security Management System (ISMS). Merrill DataSite performs Optical Character Recognition (OCR) The ISO 27001 standard, developed by the International on each and every letter in each and every document. Our Organisation for Standards to establish international search capabilities allow users to search tens – if not hundreds requirements for information security and certification of – of thousands of pages to find what’s relevant to them. Merrill ISMS, is designed to ensure effective protection of information DataSite’s search capabilities ensure nothing is missed in any assets in foreign markets, as well as across national and of the posted documents – regardless of where they may be regional boundaries. organised within the index (e.g. find every instance of “contract” 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 of soft and hard copy documents to the electronic viewing Using wildcard, fuzzy, proximity, boosting, Boolean and platform. As a result, designated administrators are able to grouping modifiers, you can search and find exact matches review documents the moment they are available. and near-matches, including misspelled words. Potential Through secure, simultaneous access, full text search buyers will enjoy increased confidence knowing they’ve capabilities and robust reporting tools, both archival and received and seen all materials and documents that are transactional due diligence processes are streamlined. As a relevant to their decision-making. result, Merrill DataSite gives you more insight and control, and dramatically reduces transaction time and costs. Protect confidential information. ”View-only” documents are never downloaded. Merrill DataSite, not the computer’s browser, As a leading provider of VDR solutions worldwide, Merrill DataSite controls the caching process providing unmatched security has empowered more than 2 million unique visitors to perform levels. Unlike other VDR providers, images are never viewable electronic due diligence on thousands of transactions totaling on the PC’s cache after the conclusion of a session. trillions of dollars in asset value.
Monthly M&A Insider | January | 63 MERRILL CORPORATION contacts
EXECUTIVE MANAGEMENT Chris Robilliard Steve Piccone Regional Director, Australia & New Zealand Vice President, New York Ed Bifulk Tel: +612 8667 3064 Tel: +1 212 229 6883 President Tel: +1 212 229 6563 Manuel Bentosinos BJ Birtz Regional Director, Mexico, Columbia Regional Director, Raleigh EXECUTIVE SALES & Caribbean Tel: +1 919 996 9117 Tel: +52 55 9171 2237 Chris Beckmann Paul Kleinkauf Regional Director, Germany, Switzerland Ana Paula Macêd Távora de Castro Regional Director, Southeast & Poland Regional Director, South America Tel: +1 404 602 3251 Tel: +49 69 25617 110 Tel: +55 11 9908 0858 Michail Sidorov Manuel Bianchi Luis Felipe Salles Cunha Regional Director, Ohio & Michigan Regional Director, Europe Regional Director, Brazil Tel: +1 216 333 1274 Tel: +44 (0)207 422 6271 Tel: +55 11 3568 2429 Jessie Saini Will Brown Carlos Nogueira Regional Director, Midwest Regional Director, Life Science Regional Director, Brazil Tel: +1 312-386-2293 Tel: +33 1 40 06 13 02 Tel: +55 11-3895-8572 Scott Haugen Francesco Caracuta Brian Gilbreath Regional Director, Minnesota & Wisconsin Regional Director, Europe Vice President, Midwest & Latin America Tel: +1 651 632 4375 Tel: +44 (0)207 422 6270 Tel: +1 404 934 8085 Anthony Crosby Hakema El-Hadad Hank Gregory Regional Director, Chicago Regional Director, France &Northern Africa SVP, Western Canada & Pacific Northwest Tel: +1 312 674 6511 Tel: +33 (0) 1 40 06 13 10 Tel: + 604 603 4360 Mark Plaehn Alex Gross Ryan MacMillan Regional Director, Chicago Regional Director, Eastern Europe & Middle East Regional Director, Canada Tel: +1 312 674 6527 Tel: +49 69 7593 7148 Tel: +1 416 214 2448 Kelly-Leigh Keefe Mike Hinchliffe Jason Hedges Regional Director, Chicago Regional Director, Europe Regional Director, Canada Tel: +1 312 386 2229 Tel: +44 (0)207 422 6256 Tel: +1 416-878-3260 Nicholas Renter Jonathan Hughes Michael Kennedy Regional Director, Texas Account Manager, Europe Regional Director, New England Tel: +1 214 754 2100 Tel: +44 (0)207 422 6267 Tel: +1 207 829 4369 Bryan Brighton Shashank Jain Ross Whittaker Regional Director, Austin Account Manager, United Arab Emirates Regional Director, New England Tel: +1 512 551 2986 Tel: +971 (0)50 252 3025 Tel: +1 617.535.1516 Andrew Buonincontro Alvaro Ortega Jon Lenihan Regional Director, Bay Area Regional Director, Southern Europe Regional Director, Boston Tel: +1 650 493 1400 Tel: +34 610 909 353 Tel: +1 617-535-1618 Erik Sandie Adam Pang Scott Rediker Regional Director, Bay Area Account Manager, Europe Regional Director, Mid Atlantic Tel: +1 650 493 1400 Tel: +44 20 7422 6268 Tel: +1 443-690-3122 Jay Loyola Merlin J. Piscitelli Forrest R. Doane Regional Director, Bay Area Regional Director, Europe Regional Director, New York Tel: +1 949 622 0663 Tel: +44 (0)207 422 6266 Tel: +1 212 229 6620 Dan Phelan Jérôme Pottier Adam Kuritzky Regional Director, Los Angeles Regional Director, France Regional Director, New York Tel: +1 213 253 2139 Tel: +33 (0) 1 40 06 13 12 Tel: +1 917 232 9569 Hans Schumann Colin Schopbach John McElrone Regional Director, San Diego Regional Director, Europe Regional Director, New York Tel: +1 760 635 0830 Tel: +44 (0)207 422 6221 Tel: +1 212 229 6656 David Yeary Anna Scott Ken Longernecker Vice President, DataSite Life Sciences Regional Director, UK Regional Director, New York Tel: +1 415 307 4414 Tel: +44 (0)207 422 6263 Tel: +1 212 229 6882 James Snaza Mark Finnie Will Wilkes Director of Life Sciences Regional Director, North Asia Regional Director, New York Tel: +1 651 632 4585 Tel: +852 2536 2534 Tel: +1 212 229 6588 Jon Blue Ari Lee Joseph Solano Vice President, Clean Tech Regional Director, North Asia Regional Director, New York Tel: +1 206 696 9169 Tel: +852 9855 3758 Tel: +1 212 229 6576 Vincent Lork Matthew Mezzancello Regional Director, South East Asia Regional Director, NY, NJ & PA Tel: +65 6248 4602 Tel: +1 212 229 6618
Return to contents Monthly M&A Insider | January | 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.
Wher e 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.
Q4 2012 refers to the period 01-Oct-12 to 31-Dec-12. H2 2012 refers to the period 01-Jul-12 to 31-Dec-12.
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