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Monthly M&A InsIderA mergermArket report on globAl m&A Activity

April 2010

Monthly M&A InsIdermergermarket

GlobAl overvIew 01

AsiA-pAcific 05

AmericAs: lAtin AmericA 16

north AmericA 23

europe 32

middle eAst & AfricA 42

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CONTENTS

Monthly M&A Insider

global overview

01

global overview

elsewhere, aig also sold out of operations in the North american market with Metlife acquiring american life insurance Company (aliCo) for US$15.5bn. The significant amount of cash recouped from both of these sales will help aig reduce its debt and return funds to the governmental institutions which bailed it out at the height of the financial crisis, namely the New York Federal reserve and the US Treasury.

To an extent, both of these divestments have overshadowed a number of other large-cap transactions that have come to the market in recent weeks. Most prominently, indian mobile services provider bharti airtel finally entered the african market through its US$10.7bn acquisition of Zain africa from Kuwait-based Mobile Telecommunications Company KSC (Zain). according to mergermarket data, the deal stands as the second largest M&a transaction to be announced in africa with bharti airtel acquiring operations in 15 countries, excluding Morocco and Sudan.

Meanwhile, mergermarket intelligence suggests that Zain could help drive future activity in the TMT sector with the company reportedly willing to divest other assets in the MeNa region. in a bid to return further cash to shareholders, Zain may well look to dispose of its operations in Morocco, Sudan, iraq and Saudi arabia, with such assets likely to attract a number of potential suitors given the significant growth potential in the region.

Casting an eye back to the wider global M&a market, a total of 2,325 deals were announced in the first quarter of the year, carrying an aggregate disclosed value of US$479.4bn. Compared to previous activity over the same timeframe 12 months ago, deal volume was up 10.3% and valuations rose by 15.2%, largely thanks to the abovementioned large-cap activity stemming from aig’s continued restructuring. while dealmaking is slightly down on Q4 2009 numbers, both trade and financial acquirers are increasingly eyeing M&a opportunities. whether potential situations turn into announced transactions remains to be seen, although there is certainly cause for optimism and belief that activity will trend upwards over the course of 2010.

Tom Coughlan, Remark

DealMaKiNg iN The MoNTh oF MarCh waS DoMiNaTeD bY a DUo oF large-Cap CorporaTe DiveSTMeNTS UNDerTaKeN bY aMeriCaN iNTerNaTioNal groUp (aig). aS DiSCUSSeD iN ThiS pUbliCaTioN laST MoNTh, The ailiNg iNSUrer MoveD To DiSpoSe oF aia, The paN-aSiaN proviDer oF iNSUraNCe aND wealTh MaNageMeNT SolUTioNS, To UK-baSeD prUDeNTial iN a TraNSaCTioN valUeD aT US$35.5bN.

Head of Research – elias latsis

Editor – anna henderson

For advertising opportunities contact:

Erik Wickman

Tel: + (1) 212 6863329

[email protected]

Global overview: Tom Coughlan

Europe: Samuel Tedjasukmana, Damien Julliard and Sylvia Traganida

Middle East & Africa: petra witowski , lars lundqvist and Marie-laure Keyrouz

Latin America: Matthew albert and Jason Cozza

North America: aksana Fitzpatrick and irina arefyeva

Asia: Debbie Jung, Shunsuke okano and Maggie Cheung

Monthly M&A Insider 02

globAl overvieW

TrEND graPHS

GlobAl M&A quArterly trend

valUE vOlUME

0

200,000

400,000

600,000

800,000

1,000,000

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1,400,000

Q110

Q409

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Q404

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Volu

me

of d

eals

GlobAl M&A quArterly MId-MArket trend

valUE vOlUME

0

20,000

40,000

60,000

80,000

100,000

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140,000

Q110

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)

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1,500

2,000

Q110

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Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Moving average trend line


global overview

Trend graphs

GLOBAL M&A SectOr BreAkdOwn Ytd 2010

value volume

11.1%

2.8%

14.9%

19.3%

1.0%

1.6%3.1%

12.9%

0.5%0.7%

10.1%

20.5%

1.5% Industrials & Chemicals

TMT

Consumer

Business Services

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech

Construction

Leisure

Real Estate

Transportation

Agriculture

Defence

Industrials & Chemicals

TMT

Consumer

Business Services

Financial Services



Construction

Leisure

Real Estate

Transportation

Agriculture

Defence

13.3%

14.3%

17.6%

4.9%

3.6%

2.6%

2.7%

0.8%0.9%

10.5%

10.2%

11.4%

7.3%

GLOBAL M&A quArterLY prIvAte equItY trend

value volume

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Global buyouts

Global exits

0

100

200

300

400

500

600

700

800

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Global buyouts

Global exits


globAl overvieW

TrEND graPHS

GlobAl M&A deAl sIze breAkdown

valUE vOlUME

0

500

1,000

1,500

2,000

2,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e (U

S$bn

)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

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9,000

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

05

ASIA-PAcIfIc

A mergermArket m&A report on

Monthly M&A Insider

ASIA-pAcIfIc

HeAted SItuAtIon In tHe AuStrAlIAn mArket

Australia was at the center of the m&A market at the end of the quarter and into April. national Australia Bank finally ended a battle over AXA Asia pacific against Amp, which signed an exclusive agreement to acquire Amp in november 2009 in a cash-and-scrip offer that valued the company at uS$5.5bn. nAB came in with a more attractive offer in december and snatched away the company in a somewhat complicated transaction. nAB will offer A$6.43 per AXA Asia pacific share valuing the entire company at A$13.3bn (uS$12.1bn), while splitting off the Asian business and selling it to AXA SA, the listed france based insurance group that itself owns 54% of AXA Asia pacific. the whole transaction, if approved by authorities and completed, will leave nAB with control over the entire operations in Australia and new Zealand.

In the meantime, another battle started in Australia over macarthur coal. on 31 march, macarthur received an indicative offer from peabody energy, the uS mining company, which offered to acquire all macarthur shares for a cash consideration of A$13 per share. the situation intensified on 9 April when the Australian company new Hope corporation announced its intention to acquire all the shares in macarthur as well. the problem is however, that both offers are subject to a number of conditions, one of which is the gloucester offer not proceeding. In december 2009, macarthur agreed to take over gloucester in a scrip offer, which would result in an increased control in macarthur by noble group, the Hong kong based company. In addition, the uS company Xstrata is also expected to submit yet another offer for macarthur, which would mean that four bidders, Australian as well as foreign, are fighting to take over the Australian mining company. the decision now rests in the hands of macarthur’s major shareholders.

IndIAn telecom compAny enterS AfrIcAn mArket

meanwhile, Bharti Airtel, the Indian mobile service operator, signed an agreement with Zain, the kuwaiti telecom company, to acquire Zain Africa BV for a cash consideration of uS$9bn in the largest outbound transaction by an Indian company since 2007. the consideration will be fully satisfied in cash, of which uS$8.3bn will be paid upon closing and uS$0.7bn will be paid one year from closing. With a net debt of uS$1.7bn associated with the acquired business, the company is valued at a total of uS$10.7bn in this deal.

despite the size of the transaction, Bharti Airtel has already secured a large part of the financing. even prior to the official announcement of the agreement, Bharti Airtel disclosed that the company secured uS$7.5bn of the consideration from a group of financial firms led by Standard chartered Bank as well as additional uS$1bn to cover associated transaction cost. the acquired business includes over 42m Zain customers and operations in 15 African countries, excluding those in morocco and Sudan. the transaction is expected to allow Zain to focus on the middle eastern business while Bharti can significantly expand its overseas emerging markets operations.

deSpIte A numBer of lArge deAlS BeIng Announced AcroSS tHe ASIA pAcIfIc regIon In mArcH, tHe fIrSt quArter of 2010 StIll recorded tHe fIrSt declIne In m&A ActIVIty SInce tHe mArket HIt tHe Bottom In tHe SAme perIod lASt yeAr. on A quArter-to-quArter BASIS, tHe totAl VAlueS Went doWn By 36.7% WHIle tHe VolumeS SHrAnk By 27.9%. neVertHeleSS, WHen compAred to tHe fIrSt quArter of 2009, tHe m&A VAlueS more tHAn douBled from uS$56.5 to uS$115.4Bn, WHIle tHe numBer of deAlS AlSo IncreASed SlIgHtly from 464 to 487, ImplyIng A Sound recoVery In tHe mArket oVer tHe pASt yeAr.

ASIA PAcIfIc


Target: American International Assurance company limited Announced: 1 march 2010

Bidder: prudential plc Deal value: uS$35,500m

Seller: American International group Inc Deal nature: recommended

prudential plc has agreed to acquire AIA group limited from American International group Inc.

TERMS:• uS$25bn in cash.

• uS$5.5bn in new prudential shares. the shares are subject to a lock up, with 50% eligible for sale 12 months after closing and the remaining 50% can be sold 24 months after completion.

• uS$3bn in mandatory convertible Securities. these will pay a coupon of 3.75% and have a minimum conversion price of 100% of reference price and maximum of 125% of reference price, which is gBp 602.5, the closing price as on 26 february 2010.

• uS$2bn in preferred stock of prudential. these will pay a coupon of 6.25% and will be perpetual, non-call 10 year, with a 1% coupon step up.

• the implied equity value of the transaction is uS$35.5bn.

• An additional consideration of uS$5/1200ths of the cash consideration is payable by prudential to AIg per month from 1 September 2010 to the completion date, if the transaction has not yet completed by 31 August 2010.

FINANCING• prudential will finance the cash component of the

consideration through an underwritten rights issue raising uS$20bn and through a debt facility of uS$5bn senior debt, in form of a bridge loan. the rights issue and the debt facility are underwritten by credit Suisse, HSBc, and Jp morgan cazenove.

RATIONALE:• the acquisition is expected to create a life insurer with

Asia at its core and strong operations in the uS and the uk, and to significantly enhance presence in the high growth South east Asian life markets.

• the divestment is in line with AIg’s restructuring effort and focuses on enhancing the value of its key insurance businesses.

POST DEAL DETAILS:• prudential will seek a dual primary-listing on the Hong

kong Stock exchange.

• AIg will use the cash proceeds of the sale to redeem preferred interests with a liquidation preference of approximately uS$16bn held by the federal reserve Bank of new york (frBny), and to repay approximately uS$9bn under the frBny credit facility.

BACKGROUND:• during 2008, AIg suffered from financial distress, as a

result of the global credit crisis.

• In September 2008, frBny extended to AIg a two-year emergency secured loan of up to uS$85bn.

• In february 2009, AIg announced that it would pursue the partial or full initial public offering of AIA on the Hong kong Stock exchange as part of its strategy to repay the frBny loan.

• due to this transaction, AIg has decided not to pursue the initial public offering of AIA on the Hong kong Stock exchange.

• the boards of directors of both AIg and prudential have approved the transaction.

• AIA group has more than 320,000 agents and approximately 23,500 employees.

CONDITIONS:• prudential shareholders to approve the rights issue

• court sanctioning of the rights issue

• Anti-trust and other regulatory approvals

• customary closing conditions

deAl of tHe montH

7

ASIA PAcIfIc

Monthly M&A Insider

deAl of tHe montH

Advisers

Target/Seller Bidder

Financial Advising Seller: goldman Sachs ; deutsche Bank; morgan Stanley; citigroup; Blackstone group Holdings

Financial HSBc Bank; credit Suisse ; Jpmorgan cazenove; lazard

Legal Advising Seller: davis polk & Wardwell; Weil gotshal & manges; norton rose ; Simpson thacher & Bartlett; Sullivan & cromwell; debevoise & plimpton; Advising Goldman Sachs, Citigroup: cravath Swaine & moore

Legal cleary gottlieb Steen & Hamilton; Advising HSBC Bank, Credit Suisse, Lazard: Herbert Smith/gleiss lutz/Stibbe, Slaughter and may

PR fd; Seller PR: kekst and company PR Brunswick group

Mergermarket/dealReporter Intelligence

01-Mar-10 prudential is not planning to sell uk assets to help fund AIA bid, spokesperson says

04-Mar-10 AIA: prudential’s takeover could create uncertainties around newly-merged entity’s china insurance license, sources say

10-Apr-10 prudential sees increasing shareholder support for AIA offer, sources say

Exit multiples – Y/E 31/12/2009 Premium analysis

Multiples Value ($m) Offer price per share ($) -

Revenue - n/a 1 day before -

EBITDA - n/a 1 month before -

EBIT - n/a 1 day after -

Earnings 20.2x 1,754 Pre-rumour -

ASIA PAcIfIc


TOP 15 ASIA-PACIFIC ANNOUNCED DEALS FOR YTD 31 MARCh 2010Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia

1-day beforeDeal value

(US$m)Revenue EBITDA P/E

1-mar-10 p American International Assurance company limited

financial Services

prudential plc American International group Inc

n/a n/a 20.2 - 35,500

30-mar-10 p AXA Asia pacific Holdings (Asian businesses)

financial Services

AXA SA AXA Asia pacific Holdings limited

n/a n/a 24.7 - 8,645

10-mar-10 p Shanghai pudong development Bank (20% stake)

financial Services

china mobile group guangdong co ltd

n/a n/a 15.1 -13.1% 5,831

25-Jan-10 c Jupiter telecommunications co ltd (37.8% stake)

tmt kddI corporation liberty global Inc

3.6 8.3 32.6 64.5% 4,014

30-mar-10 p AXA Asia pacific Holdings limited

financial Services

national Australia Bank limited

n/a n/a 21.8 1.3% 3,571

22-mar-10 p Arrow energy limited energy, mining & utilities

consortium comprising royal dutch Shell and petrochina

36.9 7.4 10.5 -11.2% 3,352

17-mar-10 p Astro All Asia networks plc

tmt Astro Holdings Sdn Bhd

3.0 (loss) (loss) 20.3% 2,649

18-Jan-10 c orient overseas developments limited

real estate capitaland lmited orient overseas (International) limited

n/a n/a (loss) - 2,200

12-mar-10 p Siam city Bank plc financial Services

Bank of nova Scotia; and thanachart capital public company limited

financial Institutions development fund

n/a n/a 16.9 4.8% 2,109

14-Jan-10 p Aircel limited (telecom tower business)

tmt gtl Infrastructure limited

Aircel limited - 1,840

22-feb-10 p Westrac Holdings pty ltd

Industrials & chemicals

Seven network limited

Australian capital equity pty ltd

0.9 10.3 - 1,801

6-Jan-10 p San miguel corporation consumer top frontier Investment Holdings Inc

12.0% 4,132

15-feb-10 p Jupiter telecommunications co ltd (12.62% stake)

tmt Sumitomo corporation

3.6 8.3 32.6 55.0% 1,356

3-Jan-10 p Shandong electric power corporation; and Shandong luneng development group co ltd (stakes in 9 chinese companies)

transport Huaneng power International Inc

Shandong electric power corporation; and Shandong luneng development group co ltd

- 1,264

22-mar-10 p Bangkok mass transit System pcl (94.6% stake)

transport tanayong pcl keen leader Investment limited; keeree kanjanapas (private Investor); Siam capital developments (Hong kong) limited; and Siam rail transport and Infrastructure company limited

11.0 2.1 - 1,258

c = completed; p = pending; l = lapsed Source: mergermarket

top deAlS & eXpected deAlS

ASIA PAcIfIc


TOP 5 ASIA-PACIFIC ANNOUNCED DEALS OF ThE MONTh (MARCh 2010)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia


(US$m)Revenue EBITDA P/E

1-mar-10 p American International Assurance company limited

financial Services

prudential plc American International group Inc

n/a n/a 20.2 - 35,500

30-mar-10 p AXA Asia pacific Holdings (Asian businesses)

financial Services

AXA SA AXA Asia pacific Holdings limited

n/a n/a 24.7 - 8,645

10-mar-10 p Shanghai pudong development Bank (20% stake)

financial Services

china mobile group guangdong co ltd

n/a n/a 15.1 -13.1% 5,831

30-mar-10 p AXA Asia pacific Holdings limited

financial Services

national Australia Bank limited

n/a n/a 21.8 1.3% 3,571

22-mar-10 p Arrow energy limited

energy, mining & utilities

consortium comprising royal dutch Shell and petrochina

36.9 7.4 10.5 -11.2% 3,352

c = completed; p = pending; l = lapsed Source: mergermarket

top deAlS

10

ASIA PAcIfIc

Monthly M&A Insider

PIPELINE OF ASIA-PACIFIC ExPECTED DEALSSituation Target

companySector Potential bidder

companyFinancial adviser to bidder (B); target (T); seller (S)

Seller company Market cap/ est. value (US$m)

Comments

expected deal

lihir gold limited


newcrest mining limited

8,692 newcrest mining, the Australian-listed miner, has offered initial A$3.87 per share to lihir gold limited share holders as a starting point to begin further negotiations.

expected deal

transurban group

construction canada pension plan Investment Board (cppIB); and ontario teachers’ pension plan (otpp)

lazard (t); uBS Investment Bank (t); goldman Sachs (B); Jpmorgan (B)

6,500 transurban group in november received a conditional and non-binding joint takeover proposal from cppIB and otpp. the Board then evaluated the proposal and rejected it on the original terms. the future fund Board of guardians has subsequently considered supporting the proposal by cppIB and otpp. However, transurban continues to insist a bona fide proposal is needed before talks can proceed.

expected deal

chuo mitsui trust Holdings Inc

financial Services

Sumitomo trust & Banking

5,709 chuo mitsui trust and Sumitomo trust have announced a plan to consolidate the business by creating a holding company by April 2011.

expected deal

denway motors limited


guangzhou Automobile group

china International capital corporation (B); gf Securities (B)

4,469 guangzhou Automobile group submitted an application to list china lounge, and as part of the process, intends to privatize denway motors gAc under a scheme of arrangement, in which it plans to exchange its new H shares for those held by current denway shareholders.

expected deal

macarthur coal limited


new Hope corporation limited

3,239 new Hope corporation limited announced its intention to acquire 100% of macarthur coal limited offering 2.7 new Hope shares for every 1 macarthur share by way of a scheme of arrangement valuing macarthur at Aud 14.58 per share and representing a total consideration of A$3.71bn.

expected deal

macarthur coal limited


peabody energy corporation

3,237 the Board of macarthur coal limited advises that it has received an indicative, non-binding and highly conditional proposal from peabody energy corporation offering to acquire all the shares in macarthur for cash consideration of A$13.00 per share.

expected deal

eon capital Berhad

financial Services

Hong leong Bank Berhad

goldman Sachs (t); ethos capital one Sdn Bhd (t)

1,521 eon capital, the holding company of eon Bank group wishes to announce that eon capital has received a written proposal dated 30 march 2010 from Hong leong Bank Berhad for an offer to acquire the entire assets and liabilities of eon capital at an aggregate purchase consideration of myr 4.92bn (uS$1.5bn) to be satisfied fully in cash (“offer”).

expected deal

knm group Berhad


Bluefire capital group ltd

goldman Sachs (B)

1,059 knm group receives management buyout offer of myr 0.90 per share.

expected deal

Hunan nonferrous metals corporation


china minmetals corporation

china International capital corporation (B); evolution Watterson Securities (t)

State-owned Assets Supervision and Administration commission of Hunan provincial people's government

817 china minmetals has announced to acquire a 51% stake in Hunan nonferrous metals with the possibility to trigger mandatory unconditional cash offer.

expected deal

commuture corp; and todentsu corporation

tmt daimei telecom engineering corporation

279 (market cap of

commuture)

daimei telecom engineering, commuture and todentsu announced they have reached a basic agreement on a business integration.

eXpected deAlS

11

ASIA PAcIfIc

Monthly M&A Insider

leAgue tABleS

VAlueYTD

31-Mar-10house Value

(US$m)Deal count

1 Jpmorgan 57,645 11

2 goldman Sachs 48,918 13

3 deutsche Bank 48,782 8

4 citigroup 43,164 10

5 credit Suisse 37,432 5

6 HSBc Bank 35,808 2

7= Blackstone group Holdings 35,500 1

7= lazard 35,500 1

9 morgan Stanley 34,722 10

10 uBS Investment Bank 25,211 15

11 Barclays capital 15,824 7

12 nomura Holdings 15,080 5

13 Standard chartered 13,874 5

14 macquarie group 13,183 11

15 Bnp paribas 11,064 3

16= global Investment House kScc 10,700 1

16= State Bank of India 10,700 1

18 china International capital 8,164 6

19 guotai Junan Securities 6,505 3

20 rothschild 5,409 5Source: mergermarket

Volume

the financial adviser league tables by value and volume have been run from 01 January 2010 to 31 march 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

YTD 31-Mar-10

house Value (US$m)

Deal count





5 citigroup 43,164 10


7 pricewaterhousecoopers 1,682 10


9 cImB group 3,116 8

10 kpmg 2,956 8

11 Barclays capital 15,824 7

12 deloitte 2,273 7

13 china International capital 8,164 6

14 ernst & young 520 6

15 credit Suisse 37,432 5


17 Standard chartered 13,874 5

18 rothschild 5,409 5

19 optima capital 201 4

20 enAm Securities 155 4Source: mergermarket

TOP 20 FINANCIAL ADVISERS – ASIA-PACIFIC ExCL JAPAN

TOP 15 LEGAL ADVISERS – ASIA-PACIFIC ExCL JAPANVAlue

YTD 31-Mar-10

house Value (US$m)

Deal count

1 Herbert Smith/gleiss lutz/Stibbe 48,657 3

2 Slaughter and may 38,683 4

3 cleary gottlieb Steen & Hamilton 35,950 3

4 Simpson thacher & Bartlett 35,824 3

5 norton rose 35,800 8

6 Sullivan & cromwell 35,512 2

7= cravath Swaine & moore 35,500 1

7= debevoise & plimpton 35,500 1

7= Weil gotshal & manges 35,500 1

10 davis polk & Wardwell 28,975 4

11 linklaters 18,610 8

12 Allens Arthur robinson 14,164 6

13 mallesons Stephen Jaques 13,522 11

14 AZB & partners 13,323 16

15 freehills 13,236 14

16 Baker & mckenzie 6,239 9

17 Shanghai united law firm 5,831 1

18 freshfields Bruckhaus deringer 4,310 12

19 Skadden Arps Slate meagher & flom 4,122 6

20 gilbert + tobin 4,118 4Source: mergermarket

Volume

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 march 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

YTD 31-Mar-10

house Value (US$m)

Deal count


2 freehills 13,236 14

3 Jones day 2,359 13

4 freshfields Bruckhaus deringer 4,310 12

5 mallesons Stephen Jaques 13,522 11

6 clayton utz 2,992 10

7 kim & chang 2,219 10

8 Wongpartnership 1,995 10

9 Baker & mckenzie 6,239 10

10 clifford chance 2,027 9

11 dlA piper 186 9


13 linklaters 18,610 8

14 Allen & overy 2,540 8

15 Allen & gledhill 2,098 8

16 lee & ko 830 8

17 desai & diwanji 276 7



20 minter ellison 88 6Source: mergermarket

12

ASIA PAcIfIc

Monthly M&A Insider

leAgue tABleS

VAlue

YTD 31-Mar-10

house Value (US$m)

Deal count


2 Jpmorgan 4,938 4


4 citigroup 3,795 3


6 centerview partners 2,871 1

7 Bank of America merrill lynch 1,740 1

8= deutsche Bank 1,226 1

8= greenhill & co 1,226 1

10 celfin capital 924 1

11 kpmg 678 5

12 Sumitomo mitsui financial group 615 6


14 gcA Savvian 357 5

15 mizuho financial group 276 7Source: mergermarket

Volume

the financial adviser league tables by value and volume have been run from 01 January 2010 to 31 march 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors and are based on the geography of either target, bidder or seller being Japan.

YTD 31-Mar-10

house Value (US$m)

Deal count


2 mizuho financial group 276 7

3 Sumitomo mitsui financial group 615 6

4 kpmg 678 5

5 gcA Savvian 357 5

6 Jpmorgan 4,938 4


8 daiwa Securities group 236 4

9 citigroup 3,795 3

10 pricewaterhousecoopers 94 3

11 mitsubishi ufJ Securities 94 2

12 A.g.S. consulting 93 2

13 cImB group 88 2

14 orix m&A Solutions 55 2

15 uBS Investment Bank 4,014 1Source: mergermarket

TOP 15 FINANCIAL ADVISERS – JAPAN

VAlue

YTD 31-Mar-10

house Value (US$m)

Deal count

1 mori Hamada & matsumoto 7,741 13


3 nishimura & Asahi 5,608 8

4 gibson dunn & crutcher 4,611 2

5 latham & Watkins 4,014 1

6 Anderson mori & tomotsune 3,388 6

7 Shearman & Sterling 3,333 3

8 nagashima ohno & tsunematsu 3,330 9

9 morrison & foerster 2,871 2

10 dewey & leBoeuf 2,871 1

11 ropes & gray 1,807 2

12 tmI Associates 1,646 4

13 morgan lewis & Bockius 1,356 1

14 Abe, Ikubo & katayama 661 2

15 Baker & mckenzie 278 4Source: mergermarket

Volume

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 march 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Japan

YTD 31-Mar-10

house Value (US$m)

Deal count

1 mori Hamada & matsumoto 7,741 13

2 nagashima ohno & tsunematsu 3,330 9

3 nishimura & Asahi 5,608 8

4 Anderson mori & tomotsune 3,388 6

5 tmI Associates 1,646 4

6 Baker & mckenzie 278 4



9 Sato & partners 98 3

10 kitamura & Hiraga 96 3

11 gibson dunn & crutcher 4,611 2

12 morrison & foerster 2,871 2

13 ropes & gray 1,807 2

14 Abe, Ikubo & katayama 661 2

15 torikai law office 205 2Source: mergermarket

TOP 15 LEGAL ADVISERS – JAPAN

13

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

ASIA-PACIFIC M&A qUARTERLY TREND

VAlue Volume

0

50,000

100,000

150,000

200,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

700

800

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

ASIA-PACIFIC M&A qUARTERLY MID-MARKET TREND

VAlue Volume

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

14

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

ASIA-PACIFIC M&A SECTOR BREAKDOwN YTD 2010

VAlue Volume

5.7%

14.0%

6.1%

53.2%

1.1%

6.7%

1.2%1.8% 5.0%

1.7%2.8% 1.3%


TMT

Consumer

Financial Services


Business Services

Construction


Real Estate

Leisure

Transport

Agriculture

17.6%

13.7%

12.5%

7.4%

10.2%

1.8%

11.5%

6.8%

6.6%

5.7%

3.3%2.9%


TMT

Consumer

Financial Services


Business Services

Real Estate

Construction


Leisure

Transport

Agriculture

ASIA-PACIFIC M&A qUARTERLY PRIVATE EqUITY TREND

VAlue Volume

0

5,000

10,000

15,000

20,000

25,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Asia-Pacificbuyouts

Asia-Pacificexits

0

20

40

60

80

100

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Asia-Pacificbuyouts

Asia-Pacificexits

15

ASIA PAcIfIc

Monthly M&A Insider

trend grApHS

ASIA-PACIFIC M&A GEOGRAPhIC BREAKDOwN YTD 2010

VAlue Volume

China

Japan

Australia

South Korea

India

Hong Kong

Malaysia

Singapore

Indonesia

Taiwan

Other

13.1%

10.4%

36.2%

7.3%

18.1%

4.1%3.7%

3.3%1.9%

1.3%1.1%

24.2%

10.9%

11.1%

14.1%

17.6%

5.3%

5.3%

3.7%

3.1%

2.3%2.5% China

Japan

Australia

South Korea

India

Hong Kong

Malaysia

Indonesia

Singapore

Taiwan

Other

ASIA-PACIFIC M&A DEAL SIZE BREAKDOwN

VAlue Volume

0

50

100

150

200

250

300

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e (U

S$bn

)

0

300

600

900

1,200

1,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

LATIN AM

ERICA

LATIN AMERICAA MERgERMARkET M&A REpoRT oN

16Monthly M&A Insider

The largest deal transacted last month, for instance, came to market in the Argentinean oil & gas niche. The deal saw the Chinese state-owned enterprise, CNooC, move to acquire a US$3.10bn 50% stake in Bridas Corporation through its subsidiary incorporated in the British Virgin Islands. CNooC’s stake purchase in Bridas, also incorporated in the British Virgin Islands incidentally, will grant CNooC partial ownership of pan American Energy LLC, in which Bridas holds a 40% stake through a joint venture with the Uk-based global Energy giant Bp.

In addition to being the largest Latin American Energy, Mining & Utilities deal of 2010, the transaction also ranks as the largest acquisition undertaken by a Chinese firm in the region this year. The second largest transaction in the raw materials space also saw an Asian company on the buy-side with Japan’s Mitsubishi Corporation’s 25% stake purchase in Compania Minera del pacifico (CMp), the Chilean Mining firm, from parent company Compania de Acero del pacifico SA for a total consideration of US$924m announced in February.

given the abovementioned deals, it is certainly not surprising that the Energy, Mining & Utilities space has been the main hotbed of acquisition activity this year, accounting for nearly

25% of overall activity with regard to deal volume. In terms of valuations, the sector’s share is lower at around 10%, although this is significantly diluted by América Móvil’s two mega-deals in the Mexican TMT niche. Looking forward, deal opportunities will abound for companies operating in Latin America’s natural resources markets with the global appetite for soft commodities and subsoil resources increasing in step with the global economic recovery.

Meanwhile, private equity players are also showing encouraging signs of increased appetite for Latin American assets with nine transactions worth US$870m brokered in the first quarter of the year, the highest level of buyout and exit activity witnessed since the first half of 2008. The largest transaction of the quarter saw a consortium of investors including The Carlyle group and RLJ Equity partners back the management buyout of CVC Brasil operadora e Agencia de Viagens, the Brazilian tour operator, in a deal valued at an estimated US$393m. In terms of regional markets, Brazil has been the most active for financial investors, accounting for over half of activity in both volume and value terms.

A ToTAL oF 27 M&A TRANSACTIoNS woRTh US$4.84BN CAME To LATIN AMERICAN MARkET IN MARCh, BRINgINg ThE oVERALL dEAL CoUNT FoR ThE FIRST qUARTER To 80 TRANSACTIoNS ToTALLINg A RECoRd US$57.58BN. IT IS NoTEwoRThy ThAT ALMoST hALF oF ThIS hEFTy qUARTERLy VALUATIoN FIgURE wAS ACCoUNTEd FoR By Two ACqUISITIoNS UNdERTAkEN By AMéRICA MóVIL, NAMELy ThE TAkEoVERS oF CARSo gLoBAL TELECoM (US$19.36BN) ANd TELMEx INTERNACIoNAL (US$6.53BN) IN JANUARy. howEVER, wITh A ToTAL oF NINE US$1BN+ TRANSACTIoNS BRokEREd IN ThE REgIoN IN ThE FIRST ThREE MoNThS oF 2010, ThE LARgE-CAp SpACE hAS BUSTLEd wITh ACTIVITy IN A RANgE oF gEogRAphIC MARkETS ANd INdUSTRIES IN AddITIoN To MExICo’S TMT SECToR.

17

LATIN AM

ERICA

Monthly M&A Insider

Target: Bridas Corporation Announced: 14 March 2010

Bidder: CNooC International Limited Deal value: US$3.1bn

Seller: Bridas Energy holdings Ltd Deal nature: Acquisition, Cross border, private

STrucTure:• CNooC International Limited has agreed to acquire a 50%

stake in Bridas Corporation from Bridas Energy holdings Ltd (BEh), for a cash consideration of US$3.1bn.

• Bridas Corporation, an Argentina based company headquartered in British Virgin Islands, is engaged in oil and gas exploration and production.

• Bridas Energy holdings Ltd (BEh), an Argentina based company, is engaged in oil and gas exploration and production activities.

• CNooC International Limited, a China based investment holding company incorporated in British Virgin Islands, is a wholly owned subsidiary of China National offshore oil Corporation Ltd (CNooC Limited).

• CNooC Limited, a listed hong kong based company, is engaged in oil and gas exploration and production activities.

TerMS:• CNooC International has agreed to acquire a 50% stake

in Bridas Corporation from BEh for US$3.1bn in cash.

rATIonAle:• The transaction will enable CNooC Limited to expand its

business into Latin America and build up a foundation for future growth in the other countries. The acquisition is in line with the company’s growth strategy.

PoST DeAl DeTAIlS:• CNooC Limited, through CNooC International, and BEh

will each hold a 50% stake in Bridas Corporation.

• CNooC Limited’s proven reserves and average daily production are expected to be increased by 318m barrels of oil equivalent (BoE) and 46 thousand BoE respectively.

• CNooC International, BEh and Bridas Corporation have entered a joint venture deed, which allows the shareholders of CNooC International and BEh to make management decisions in relation to the Bridas Corporation on a joint basis. Upon completion of the transaction, Bridas Corporation could have its name changed.

exPecTeD coMPleTIon: • The transaction is expected to complete in the first half of

2010.

conDITIonS:• All necessary Chinese governmental and regulatory

approvals, permissions and consents.

BAckgrounD:• BEh currently owns a 100% stake in Bridas Corporation.

• Bridas Corporation currently owns a 40% stake in pan American Energy LLC, an Argentina based engaged in oil and gas exploration and production. At the end of 2009, Bridas Corporation had proven reserves of 636m BoE and an average daily production of 92 thousand BoE.

dEAL oF ThE MoNTh

Advisers


Financial:lawyer:

hopu Investment Management Akin grump Strauss hauer & Feld

Financial:lawyer:

JpMorgan Baker & Mckenzie

Pr: - Pr: ketchum

18

LATIN AM

ERICA

Monthly M&A Insider

ToP 15 lATIn AMerIcAn AnnounceD DeAlS YTD 2010Announced Status Target company Sector Bidder company Seller company exit multiples (x) Bid premia


(uS$m)revenue eBITDA P/e

13-Jan-10 p Carso global Telecom SAB de CV

TMT America Movil SA de CV 2.8% 19,358

11-Jan-10 p FEMSA Cerveza SA de CV

Consumer heineken NV Fomento Economico Mexicano SAB de CV

- 7,692

13-Jan-10 p Telmex Internacional SAB de CV (39.30% stake)

TMT America Movil SA de CV 2.6 10.6 23.6 2.2% 6,533

22-Jan-10 p polibutenos SA Industrias quimicas (33.33% stake); quattor participacoes SA (60% stake);and Unipar Comercial e distribuidora SA


Braskem SA Uniao de Industrias petroquimicas SA

- 4,238

27-Jan-10 p Bunge participacoes e Investimentos SA


Vale SA Bunge Limited - 3,800

14-Mar-10 p Bridas Corporation (50% stake)


CNooC International Limited

Bridas Energy holdings Ltd

- 3,100

28-Jan-10 p Fertilizantes Fosfatados SA (57.70% stake)


Vale SA The Mosaic Company; yara Brasil Fertilizantes SA

7.2 - 2,878

15-Feb-10 p Comunicaciones Nextel de Mexico SA de CV (30% stake)

TMT grupo Televisa SA de CV NII holdings Inc - 1,440

21-Feb-10 p Equipav SA Acucar e Alcool (50.79% stake)

Consumer Shree Renuka Sugars Limited

Equipav group - 1,184

10-Feb-10 p Compania Minera del pacifico SA (25% stake)


Mitsubishi Corporation Compania de Acero del pacifico SA

- 924

26-Feb-10 L Satelites Mexicanos, SA de CV

TMT EchoStar Satellite Services; MVS Comunicaciones

- 589

29-Jan-10 p Lq Inversiones Financieras SA (8.52% stake)

Financial Services

Citigroup Inc quinenco SA n/a n/a - 534

11-Jan-10 C dufry South America Ltd (48.96% stake)

Consumer dufry group - 529

7-Jan-10 C CVC Brasil operadora e Agencia de Viagens SA

Leisure RLJ Equity partners LLC;and The Carlyle group LLC

- 393

22-Jan-10 p Administradora de F de p habitat SA (59.77% stake)

Financial Services

Camara Chilena de la Construccion

Citigroup Inc n/a n/a -19.1% 372

C = Completed; p = pending; L = Lapsed Source: mergermarket

Top dEALS & ExpECTEd dEALS

19

LATIN AM

ERICA

Monthly M&A Insider

Top deals & expecTed deals

Top 5 LATIn AMerIcAn Announced deALs of The MonTh (MArch 2010)Announced status Target company sector Bidder company seller company exit multiples (x) Bid premia

1-day beforedeal value

(us$m)revenue eBITdA p/e

14-Mar-10 p Bridas corporation (50% stake)

energy, Mining & Utilities

cNooc International limited

Bridas energy Holdings ltd

- 3,100

29-Mar-10 p acucar Guarani sa (30.70% stake)

agriculture Tereos Internacional 3.5 7.4 16.1% 284

15-Mar-10 p Mhag servicos e Mineracao sa (70% stake)


steel do Brasil participacoes sa

- 245

26-Mar-10 p energimp (45% stake)


Fundo de Investimento do Fundo de Garantia do Tempo de servico

- 224

9-Mar-10 c cencosud sa (2.28% stake)

consumer paulmann Family corporacion Wong s.a.

-3.5% 196

c = completed; p = pending; l = lapsed source: mergermarket

pIpeLIne of expecTed deALs situation Target

companysector potential bidder

companyfinancial adviser to bidder (B); target (T); seller (s)

seller company Market cap/ est. value ($m)

comments

Rumoured takeover target

TGN energy, Mining & Utilities

emgasud Barclays plc (T)

Techint compania Tecnica Internacional sacI

Us$344m (TGN debt)

emgasud, the argentine energy company, has offered to buy a majority stake in Transportadora de Gas del Norte (TGN), a local natural gas transporter, pagina/12 reported. The paper cited alejandro Ivanissevich, owner of emgasud, as saying that that TGN business plan must be redone, the company has failed in its strategy and emgasud can provide one for the company. as reported, TGN defaulted on its Us$344m debt in december. The value of its bonds fell to 10 cents. Following the default declaration, the company must face government intervention.

Rumoured takeover target

express de santiago Uno

Transportation Grupo Rios Us$34m (target

revenue)

It was reported that Grupo Rios, the colombia-based conglomerate, is in talks to acquire chilean mass transportation company express de santiago Uno. according to the article sources say Grupo Rios is currently restructuring the conglomerate’s management and is preparing a strategy to spur growth in chile through acquisitions. It also states the group is already in advanced negotiations and, following the deal, may seek to merge express de santiago Uno with alsacia, its mass transportation subsidiary. express santiago Uno, the operator of the Troncal 4 bus line, has annual revenues of Us$ 34m.

expected deals based on confirmed announcements by companies involved

20

LATIN AM

ERICA

Monthly M&A Insider

LEAgUE TABLES

VALUEYTD


(uS$m)Deal count

1 Credit Suisse 40,832 12

2 Citigroup 9,387 3

3 Allen & Company 9,132 2

4 Bank of America Merrill Lynch 9,082 6

5 Rothschild 8,756 6


7 Morgan Stanley 5,777 3

8 JpMorgan 4,374 3

9 Banco Bradesco 4,238 1

10 hopu Investment Management 3,100 1

11 Santander global Banking and Markets 1,713 2

12 Lazard 1,462 3

13 Caixa Banco de Investimento 1,221 3

14= Banco Itau BBA 1,184 1

14= Motilal oswal Investment Advisors 1,184 1Source: mergermarket

VoLUME

The financial adviser leue tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YTD 31-Mar-10

house Value (uS$m)

Deal count





5 Citigroup 9,387 3


7 JpMorgan 4,374 3

8 Lazard 1,462 3

9 Caixa Banco de Investimento 1,221 3

10 UBS Investment Bank 590 3


12 Santander global Banking and Markets 1,713 2

13 goldman Sachs 397 2

14 M&A International 333 2

15 paradigm Capital 163 2Source: mergermarket

ToP 15 FInAncIAl ADVISerS – lATIn AMerIcA

VALUEYTD


(uS$m)Deal count

1 dewey & LeBoeuf 25,891 2

2 Cleary gottlieb Steen & hamilton 15,500 5


4 gibson dunn & Crutcher 8,281 2

5= Freshfields Bruckhaus deringer 7,692 1

5= Loyens & Loeff 7,692 1

7 Skadden Arps Slate Meagher & Flom 6,798 3

8 Ulhoa Canto, Rezende e guerra - Advogados

6,678 2

9 Tozzini Freire Teixeira E Silva Advogados 5,740 6

10 Souza, Cescon Avedissian, Barrieu e Flesch Advogados

3,951 2


12 davis polk & wardwell 3,800 1

13 Baker & Mckenzie 3,400 2

14 Akin gump Strauss hauer & Feld 3,100 1

15 Barbosa, Mussnich & Aragao 2,280 1Source: mergermarket

VoLUME

The legal adviser leue tables by value and volume have been run from 01 January 2010 to 31 March 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YTD 31-Mar-10

house Value (uS$m)

Deal count

1 Tozzini Freire Teixeira E Silva Advogados 5,740 6

2 Cleary gottlieb Steen & hamilton 15,500 5

3 Machado Meyer Sendacz e opice 2,086 5

4 Linklaters 1,284 5

5 demarest e Almeida 1,093 4


7 Vieira de Almeida & Associados 1,866 3

8 white & Case 1,571 3

9 pinheiro Neto Advogados 1,260 3

10 Uria Menendez 1,082 3

11 Estudio Muniz, Ramirez, perez-Taiman & olaya Abogados

326 3




15 Ulhoa Canto, Rezende e guerra - Advogados

6,678 2

Source: mergermarket

ToP 15 legAl ADVISerS – lATIn AMerIcA

21

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

lATIn AMerIcAn M&A quArTerlY TrenD

VALUE VoLUME

0

10,000

20,000

30,000

40,000

50,000

60,000

Q110*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

25

50

75

100

125

150

175

Q110*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals


lATIn AMerIcAn M&A quArTerlY MID-MArkeT TrenD

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q110*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

20

40

60

80

100

Q110*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

22

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRAphS

lATIn AMerIcAn M&A SecTor BreAkDown YTD 2010

VALUE VoLUME

48.1%

17%

0.6%

0.1%2.3%

0.5%0.1%

0.7%

20.3%

10.3%

TMT

Consumer



Leisure


Agriculture

Transport

Financial Services

Business Services

17.5%

23.8%

1.3%2.5%2.5%

2.5%

10%

10%

16.3%

3.8%

10%



Consumer

TMT

Business Services

Financial Services

Transport

Agriculture

Construction


Leisure

lATIn AMerIcAn M&A quArTerlY PrIVATe equITY TrenD

VALUE VoLUME

0

3

6

9

12

15

Q1 10*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Latin American buyouts

Latin American exits

0

500

1,000

1,500

2,000

2,500

Q110*

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Latin American buyouts

Latin American exits

NORTH

AMERICA

NORTH AMERICAA MERgERMARkET M&A REpORT ON


Two days after the passage of the historic bill, Cerberus Capital Management Lp, the US based private equity firm, agreed to a capital commitment of US$830m to US$850m to Caritas Christi Health Care, the US based hospital operator. Historically, private equity firms have been successful in transforming hospitals into profitable institutions. As a result more investments from the private equity players are expected in the hospital sector. Also in the highest valued transaction in the North American region year to date, MetLife Inc, the listed US-based life insurance company, has agreed to acquire American Life Insurance Company, the US based life insurance company, from American International group Inc, the listed US-based insurance and financial services group, for a total consideration of US$15.5bn.

Foreign investors are also said to be looking to increase their onshore presence in the US. Firstsource Solutions, the listed India based outsourcing services provider, which provides a range of services to the healthcare industry, is reportedly seeking acquisition opportunities in the US. In addition, other established outsourcing destinations, including Mexico, China, and philippines, are looking to benefit from an increase in customer enrollment, claims processing and customer service as insurance becomes available to all US citizens.

In the past year a total of 285 transactions were announced in the pharma, Medical & Biotech sector valued at US$189.718bn. The ultimate impact of the president’s healthcare overhaul it to be seen at the end of 2010.

CANAdA TO HAvE THE LOwEST CORpORATE INCOME TAx RATE IN THE g7 IN 2012

Canada has one of the strongest economies in the world; it was also the last g7 nation to enter recession. In its efforts to further stimulate the domestic economy, the government has unveiled aggressive tax reduction plans to support the housing market and allow new and existing businesses to become more competitive on the global scale.

As part of Canada’s Economic Action plan, the government will lower the federal corporate income tax rate from 22.12% (2007) to 15% in 2012*. The government’s goal is to achieve a 25% combined federal and provincial corporate income tax rate to better compete with Uk and germany’s corporate economic environments. The new plans are expected to promote new investments and job creation in Canada, where unemployment remains a concern. * Source: department of Finance – Budget 2010

ObAMA-CAre And M&A

LEgISLATION pASSEd By CONgRESS THAT HAS A SIgNIFICANT IMpACT ON INdUSTRIES OFTEN RESULTS IN MERgERS & ACqUISITION OppORTUNITIES. INSIdERS ExpECT FOR THE US$938BN HEALTH CARE pLAN THAT pRESIdENT OBAMA SIgNEd INTO LAw TO TRANSLATE INTO TRANSACTIONS wITHIN THE HEALTHCARE, pHARMACEUTICAL ANd INSURANCE SECTORS. UNdER THE NEw pLAN, AppROxIMATELy 32 MILLION UNINSUREd AMERICANS wILL NOw HAvE HEALTHCARE COvERAgE. HEALTH CARE pROvIdERS THAT HAvE HAd A TOUgH TIME MAINTAININg pROFITABILITy wILL NOw HAvE AN INFLUx OF pATIENTS wITH AN ABILITy TO pAy FOR SERvICES.

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Monthly M&A Insider

Target: American Life Insurance Company (ALICO) Announced: 08 Mar 2010

bidder: MetLife Inc deal value: US$15.54bn

Seller: American International group (AIg) deal nature: Acquisition, divestment, domestic, private

Structure• MetLife has signed a definitive agreement to acquire

American Life Insurance Company (ALICO) from American International group (AIg).

• American Life Insurance Company, a US based company headquartered in wilmington, delaware, is a life insurance company. MetLife Inc, a US based company headquartered in New york, is a life insurance company. American International group, a US based company headquartered in New york, is an insurance and financial services group providing financial, retirement savings and asset management services.

Terms• Total consideration amounts to US$15.5bn, split into:

- US$6.8bn in cash;

- US$8.7bn in MetLife equity securities consisting of US$3bn in 78.2m new MetLife common shares, US$2.7bn in 6.9m MetLife preferred shares, convertible into 69m common shares (1:10 exchange ratio) subject to MetLife shareholders’ approval, and US$3bn in 40m MetLife equity units.

• The implied equity value of the transaction is approximately US$15.54bn.

Financing• The cash portion of the purchase price will be financed

through a combination of the issuances of senior debt, MetLife common stock and cash on hand.

rationale• The acquisition is in line with creating a global leader

in life insurance. The acquisition will enable MetLife to pursue its international growth and expansion strategy in Japan, Europe, the Middle East and Latin America.

• The acquisition will also enable AIg to reduce the liquidation preference of the Federal Reserve Bank of New york (FRBNy) in the special purpose vehicle formed by AIg and the FRBNy to hold the interests in ALICO.

Conditions • Certain regulatory approvals.

• Customary closing conditions.

expected completion• The transaction is expected to close by the end of 2010.

Post deal details• The transaction is expected to increase Metlife’s operating

earnings per share by approximately US$0.45 to US$0.55 per share, and enable the company to increase its estimated 2011 year-end operating return on equity by 1.6%.

background • The transaction will include ALICO’s global Benefits

Network serving US and foreign multinationals. ALICO has approximately 60,000 points of distribution and 12,500 employees across more than 50 countries. The transaction has been approved by the boards of directors of both MetLife and AIg.

dEAL OF THE MONTH

Advisers

Target/Seller bidder

Financial goldman SachsMorgan StanleyCitigroupBlackstone group

Financial deutsche BankHSBC BankCredit SuisseBank of America Merrill LynchBarclays Capital

Legal davis polk & wardwellweil gotshal & MangesCleary gottlieb Steen & Hamilton Sullivan & Cromwell

Legal dewey & LeBoeufNishimura & Asahi

Pr kekst and Company Pr Sard verbinnen & Co

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Monthly M&A Insider

TOP 15 nOrTh AMerICAn AnnOunCed deALS FOr YTd 31 MArCh 2010 Announced Status Target company Sector bidder company Seller company exit multiples (x) bid premia


(uS$m)revenue ebITdA P/e

8-Mar-10 p American Life Insurance Company

Financial Services

MetLife Inc American International group Inc

n/a n/a - 15,544

25-Feb-10 p Coca-Cola Enterprises Inc (North American operations)

Consumer The Coca-Cola Company

Coca-Cola Enterprises Inc

- 12,200

21-Feb-10 p Smith International Inc Energy, Mining & Utilities

Schlumberger Limited

1.5 12.7 67.4 18.1% 12,198

19-Jan-10 p The williams Companies Inc (certain gas pipeline and domestic midstream businesses)


williams partners Lp

The williams Companies Inc

- 11,750

11-Feb-10 p Allegheny Energy Inc Energy, Mining & Utilities

FirstEnergy Corp 2.6 7.4 12.0 31.6% 8,899

9-Mar-10 p Intervet/Schering-plough Animal Health;and Merial Limited

pharma, Medical & Biotech

Sanofi-Aventis SA/Merck & Co Inc Jv

Merck & Co Inc; and Sanofi-Aventis SA

- 8,250

11-Mar-10 p devon Energy Corporation (Assets in the deepwater gulf of Mexico, Brazil and Azerbaijan)


Bp plc devon Energy Corporation

- 7,000

28-Feb-10 p Millipore Corporation pharma, Medical & Biotech

Merck kgaA 4.1 16.3 34.0 13.3% 6,760

11-Feb-10 p Airgas Inc Industrials & Chemicals

Air products & Chemicals Inc

1.5 8.8 19.2 -2.1% 6,544

15-Feb-10 L Terra Industries Inc Industrials & Chemicals

yara International ASA

2.7 10.4 26.9 23.6% 4,204

5-Jan-10 p kraft Foods (frozen pizza business)

Consumer Nestle SA kraft Foods Inc 1.8 12.5 - 3,700

15-Mar-10 p dominion Resources (Appalachian E&p business)


Consol Energy Inc dominion Resources Inc

- 3,475

1-Mar-10 p OSI pharmaceuticals, Inc pharma, Medical & Biotech

Astellas pharma Inc

6.7 13.0 40.3 40.5% 2,871

31-Mar-10 p general growth properties Inc (26% stake)

Real Estate Brookfield Asset Management Inc

-7.5% 2,500

2-Feb-10 p pNC global Investment Servicing Inc

Business Services

The Bank of New york Mellon Corporation

The pNC Financial Services group Inc

2.9 - 2,310


TOp dEALS & ExpECTEd dEALS

TOP 5 nOrTh AMerICAn AnnOunCed deALS OF The MOnTh (MArCh 2010) - buSIneSS ServICeS SeCTOrAnnounced Status Target company Sector bidder company Seller company exit multiples (x) bid premia

1-day before

deal value(uS$m)revenue ebITdA P/e

1-Mar-10 p RiskMetrics group Business Services MSCI Inc 4.7 42.5 47.3 16.7% 1,429

8-Mar-10 p infogROUp Inc Business Services CCMp Capital Advisors LLC

1.3 12.4 -2.0% 639

1-Mar-10 p First National Merchant Solutions LLC (51.00% stake)

Business Services Total System Services Inc

First National Bank of Omaha

3.2 - 151

30-Mar-10 C First American CoreLogic Inc (Undisclosed Stake)

Business Services The First American Corporation

- 144

26-Mar-10 p plato Learning Inc Business Services Thoma Bravo LLC 1.7 41.3 140.0 14.1% 100C = Completed; p = pending; L = Lapsed Source: mergermarket

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Monthly M&A Insider

Top deals & expecTed deals

Situation Target company Sector Potential bidder company

Financial adviser to bidder (B); target (T); seller (S)

Seller company

Market cap/ est. value (US$m)

Comments

expected deal Interactive data corporation

Business services

Undisclosed Bidder

(s)Goldman sachs

pearson plc 2,401 The Interactive data corporation (NYse:Idc) auction process is on a fast track, and first round bids are expected to be due within the first two weeks of February, sources close to the discussions said.

expected deal Novell Inc TMT elliott associates

(T)JpMorgan 2,074 elliott associates, l.p. (together with funds under common management), a significant institutional stockholder of Novell, Inc., offered to purchase the entire company for $5.75 per share in cash, which implies an enterprise value net of cash of Usd 1.0bn. The firm sent a letter to the Board of directors of the company explaining its offer.

expected deal cKe Restaurants leisure apollo Management

(T)UBs Investment Bank

667 cKe Restaurants (cKR) announced on 07-apr-10, that it has received an alternative takeover proposal to acquire all the outstanding shares. By determining that the party is an excluded party, the company is permitted, subject to certain conditions, to continue to furnish information and engage in further discussions and negotiations with the party until 27-apr-10. The bidder is speculated to be apollo Management.

expected deal Galleon energy energy, Mining & Utilities

Undisclosed Bidder

(T)cormark securities, GMp securities, Macquarie capital Markets canada

591 Galleon energy’s (Tse: Go) financial advisors are already talking with potential buyers. Galleon announced it had retained GMp securities, cormark and Macquarie capital to review strategic alternatives, which will include a number of options, including an outright sale or disposal of a material portion of its assets.

expected deal california pizza Kitchen Inc.

leisure Undisclosed Bidder

(B)Moelis & company

522 california pizza Kitchen, Inc. (cpKI) announced that its Board of directors has authorized management to consider a wide range of financial and strategic alternatives to enhance shareholder value. The company has engaged Moelis & company, a global investment bank, to be its exclusive financial advisor in this review. california pizza Kitchen , a Us based company headquartered in la, ca, is a casual dining restaurant chain with a particular focus on the pizza segment.

expected deals are based on confirmed announcements by companies involved

PIPelIne oF norTh AMerICAn exPeCTed deAlS

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LEAgUE TABLES

vALUEYTd

31-Mar-2010house value

(uS$m)deal count



3 Citigroup 81,951 21



6 JpMorgan 61,291 20

7 Blackstone group Holdings 57,181 7

8 Lazard 55,864 20

9 HSBC Bank 52,987 7

10 Barclays Capital 42,739 18


12 UBS Investment Bank 26,960 20


14 greenhill & Co 14,353 6

15 Tudor, pickering, Holt & Co 12,424 3

16 Evercore partners 12,262 6

17 perella weinberg partners 9,770 6


19 RBC Capital Markets 7,338 17

20 Centerview partners 6,973 4Source: mergermarket

vOLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada.

YTd31-Mar-2010

house value (uS$m)

deal count







7 JpMorgan 61,291 20

8 Lazard 55,864 20




12 RBC Capital Markets 7,338 17

13 Jefferies & Company 2,155 17

14 CIBC world Markets 3,720 15

15 Td Securities 2,384 13

16 Houlihan Lokey 4,734 12

17 keefe, Bruyette & woods 398 11

18 Lincoln International 241 10

19 william Blair & Company 856 9

20 Stifel, Nicolaus & Company 4,530 8Source: mergermarket

TOP 20 FInAnCIAL AdvISerS – nOrTh AMerICA

vALUEYTd

31-Mar-2010house value

(uS$m)deal count

1 weil gotshal & Manges 68,913 23

2 Cleary gottlieb Steen & Hamilton 60,342 14

3 Sullivan & Cromwell 57,252 14

4 Simpson Thacher & Bartlett 53,847 19

5 Cravath Swaine & Moore 52,532 10

6 davis polk & wardwell 49,279 13

7 wachtell, Lipton, Rosen & katz 46,684 16



10 Herbert Smith/gleiss Lutz/Stibbe 39,809 7

11 Latham & watkins 39,053 28

12 debevoise & plimpton 38,213 8

13 Slaughter and May 35,785 3

14 Norton Rose 35,500 3

15 Baker Botts 27,898 7

16 Blake, Cassels & graydon 25,852 22


18 Nishimura & Asahi 19,708 3


20 Fried Frank Harris Shriver & Jacobson 14,794 3Source: mergermarket

vOLUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 31 March 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada.

YTd31-Mar-2010

house value (uS$m)

deal count

1 Jones day 6,549 34

2 kirkland & Ellis 7,280 31


4 dLA piper 2,528 28

5 weil gotshal & Manges 68,913 23





10 Simpson Thacher & Bartlett 53,847 19

11 Stikeman Elliott 1,331 19


13 wilson Sonsini goodrich & Rosati 2,834 18

14 O'Melveny & Myers 13,765 17

15 wachtell, Lipton, Rosen & katz 46,684 16

16 Hogan & Hartson 3,393 15



19 Freshfields Bruckhaus deringer 8,287 14

20 paul weiss Rifkind wharton & garrison 5,422 14Source: mergermarket

TOP 20 LegAL AdvISerS – nOrTh AMerICA

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LEAgUE TABLES

vALUE vOLUME

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 USA and Canada. The tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals.

ACTIvITY TAbLe OF PrIvATe equITY FIrMS On nOrTh AMerICAn buYOuTS

vALUE

YTd31-Mar-2010

house value (uS$m)

deal count

1 The Carlyle group 1,440 1

2 Oak Hill Capital partners 1,075 1

3 Lion Capital 615 1

4 Tenaska Capital Management 605 1

5 denham Capital Management 600 3Source: mergermarket

vOLUME

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is USA and Canada. The tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals.

YTd31-Mar-2010

house value (uS$m)

deal count

1 Foundation Capital - 4

2 denham Capital Management 600 3

3 Battery ventures 160 3

4 greylock partners 100 3

5 Highland Capital partners 275 2Source: mergermarket

ACTIvITY TAbLe OF PrIvATe equITY FIrMS On nOrTh AMerICAn exITS

YTd31-Mar-2010

house value (uS$m)

deal count

1 Bain Capital 1,675 2

2 Blackstone group 1,425 2

3 CCMp Capital Advisors 1,184 3

4 ABRy partners 1,177 1

5 Thomas H. Lee partners 919 2Source: mergermarket

YTd31-Mar-2010

house value (uS$m)

deal count

1 CCMp Capital Advisors 1,184 3

2 Tpg Capital 480 3

3 HIg Capital - 3

4 Bain Capital 1,675 2

5 Blackstone group 1,425 2Source: mergermarket

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TRENd gRApHS

nOrTh AMerICAn M&A quArTerLY Trend

0

100,000

200,000

300,000

400,000

500,000

600,000

Q110

Q409

Q309

Q209

Q109

Q408

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Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

200

400

600

800

1,000

1,200

1,400

Q110

Q409

Q309

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Q109

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Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

nOrTh AMerICAn M&A quArTerLY MId-MArkeT Trend

vALUE vOLUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

Q110

Q409

Q309

Q209

Q109

Q408

Q308

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Q108

Q407

Q307

Q207

Q107

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Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals


vALUE vOLUME

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Monthly M&A Insider

TRENd gRApHS

nOrTh AMerICAn M&A SeCTOr breAkdOwn YTd 2010

vALUE vOLUME

34.3%

8.7%

12.7%

4.4%

14.4%

1.5%

6.0%

1.0%2.3%0.3%0.9%

13.3%

0.2%


Financial services

Business services

Consumer

Energy, Mining & Utilites

TMT

Leisure

Transportation


Construction

Agriculture

Real Estate

Defence

0.5%

19.0%

15.5%

11.5%14.5%

9.1%

10.7%

8.1%

3.8%2.9%

1.4%

1.5%1.4%

TMT

Business services



Financial services

Consumer


Construction

Leisure

Transportation

Real Estate

Defence

Agriculture

nOrTh AMerICAn M&A quArTerLY PrIvATe equITY Trend

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

North American buyouts

North American exits

0

25

50

75

100

125

150

175

200

225

250

275

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

North American buyouts

North American exits

vALUE vOLUME

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TRENd gRApHS

nOrTh AMerICAn M&A deAL SIze breAkdOwn

vALUE vOLUME

0

100

200

300

400

500

600

700

800

900

1,000

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e (U

S$bn

)

0

500

1,000

1,500

2,000

2,500

3,000

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

Num

ber

of d

eals

> $501m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed


europe

A mergermArket m&A report on

eUrope

Specifically , the three automotive manufacturers agreed to take small stakes in each other: Daimler agreed to acquire a 3.1% stake of newly issued renault’s shares and a 3.1% nissan stake from renault. meanwhile, renault will acquire 3.1% of Daimler shares. renault has independently agreed to exchange a 1.55% stake of Daimler with nissan for 2% of nissan shares. renault’s nissan stake - the two already have large cross-shareholdings as part of their 11-year alliance - would slip to 43.4% from 44.3%. the French government pledged to support the partnership, announced it plans to buy 0.55% of renault to keep its holding at 15.01%.

In a depressed motor industry, the move seems to answer a number of questions for all three carmakers. A more complete use of their respective capacities and sharing investments should reduce cost per unit and there will be benefits in developing small cars together. this is a business area in which Daimler, which along with the luxury mercedes-Benz brand owns loss-making Smart, is struggling. there might also be advantages in developing a range of electric cars where the high development costs will place a sharp focus on profitability.

However, the success of the alliance is unfortunately not guaranteed; one should not forget the failed nine-year Daimler-Chrysler merger, which Daimler is still paying for. However, Daimler’s Ceo and co-chairman of the cooperation committee mr. Dieter Zetsche dismissed any idea that the cooperative deal would end up as a full-blown merger such as the Daimler Chrysler debacle saying, “at this point in time there is no thought of going further”.

InVeStIng In CLotHeS IS BACk In FASHIon

the Consumer sector has started showing signs of improvement and saw the announcement of a large deal in the european consumer space last month with the sale of tommy Hilfiger to phillips-Van Heusen Corporation, a US clothes designer and manufacturer. this deal is the latest in a series of fashion companies transactions - other examples include the sale of Cath kidston to tA Associates, the sale of net-a-porter to richemont and the sale of nicole Farhi to opengate Capital.

Due to the volatility of the markets, fashion companies prefer a sale to an Ipo. For instance, new Look postponed its £1.7bn Ipo from February to June, according to the Sunday times. new Look was acquired by private equity firms Apax and permira in 2004.

meanwhile in Italy, three popular fashion brands have started considering sale options.

According to Il Sole 24 ore, Bulgari, the listed jeweller, may consider selling a minority stake to private equity without surrendering full control. Valentino Fashion group is looking to sell its Valentino brand as well.

Lastly, Salvatore Ferragamo, the private fashion house, may sell a minority stake to private equity instead of opting for an Ipo, according to Il Sole 24 ore.

Also, only two weeks ago the sale of another Italian brand, gianfranco Ferre, was cleared by the Italian ministry of Development. Its parent company, It Holding, has been put into administration last year. It seems that now is the time to invest in fashion.

A THREE WAY MERGER TO RECOVER?

on 7 AprIL renAULt, nISSAn, AnD DAImLer, tHe LISteD FrenCH, JApAneSe AnD germAn CAr mAnUFACtUrerS, AnnoUnCeD A wIDe ALLIAnCe AImeD At SAVIng ABoUt US$5.35Bn oVer tHe next FIVe yeArS, By SHArIng teCHnoLogy InVeStment CoStS, AnD gAInIng SCALe AnD ACCeSS to new mArketS. tHe ALLIAnCe wAS SeALeD wItH A SymBoLIC eqUIty SwAp.

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Monthly M&A Insider

Target: tommy Hilfiger Corporation Announced: 15 march 2010

Bidder: phillips-Van Heusen Corporation Deal value: €2.2bn

Seller: Apax partners LLp Deal nature: Cross-border, exit, private, transatlantic

phillips-Van Heusen Corp. (pVH) has signed a definitive agreement to acquire tommy Hilfiger from Apax partners.

tommy Hilfiger Corporation, the netherlands based company headquartered in Amsterdam, is a designer and supplier of men’s and women’s sportswear, jeanswear and childrenswear. phillips-Van Heusen Corporation, the listed US-based company headquartered in new york, is a designer and manufacturer of branded dress shirts, sportswear, and footwear. Apax partners LLp, a Uk based company headquartered in London, is a private equity firm.

Terms• A total consideration of €2.2bn satisfied by €1.924bn in

cash and €276m in pVH common stock.

• An assumption of €100m in liabilities will be added to the consideration.

• the implied equity value of the transaction is approximately €2.2bn.

• pVH will issue to Apax and the other tommy Hilfiger shareholders approximately 8.7m shares valued at €276m, subject to certain adjustments.

Financing

• Approximately $385m from cash on hand;

• $2.45bn of senior secured debt, including an undrawn revolver of $450m;

• $600m of senior unsecured notes;

• $200m by issuing pVH perpetual convertible preferred stock;

• $200m raised through a public offering of common stocks prior to closing.

Termination Fee• pVH will pay €69m to the selling shareholders, in case the

transaction fails to complete.

Rationale

• the acquisition will create one of the world’s largest and most profitable apparel companies with a combined revenue of approximately $4.6bn, and will be an opportunity for pVH to introduce a number of its brands into the international market.

Post Deal Details• mr tommy Hilfiger will remain the principal designer and

visionary for the tommy Hilfiger brand.

• mr Fred gehring will continue as Ceo of tommy Hilfiger and will join the pVH Board of Directors.

Expected Completion• the transaction is expected to close during pVH’s fiscal

second quarter in 2010.

Conditions• receipt of financing by pVH.

• required regulatory approvals.

Background• In may 2006, funds advised by Apax partners took the

company private in a transaction worth €1.2bn.

DeAL oF tHe montH

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Monthly M&A Insider

DeAL oF tHe montH

Advisers


Financial Credit Suissemorgan StanleyCitigroup

Financial Deutsche Bankpeter J SolomonBank of America merrill LynchrBC Capital marketsBarclays Capital

Legal Simpson thacher & BartlettHerbert Smith/gleiss Lutz/Stibbe

Legal wachtell, Lipton, rosen & katzwillkie Farr & gallagherDe Brauw Blackstone westbroek

PR Brunswick groupkekst & CompanyIra wuelfing kommunikation

PR Sard Verbinnen & Co

Exit multiples – Y/E [31/03/10] Premium analysis

Multiples Value (€m) Offer price per share (€) n/a

Revenue 1.3x 1,655.75 1 day before n/a

EBITDA 7.9x 279.64 1 month before n/a

EBIT 10.7x 206.05 1 day after n/a

Earnings - - Pre-rumour n/a

35

europe

Monthly M&A Insider

TOP 15 EuROPEAn AnnOunCED DEALS YTD 31 MARCH 2010 Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia


(€m)Revenue EBITDA P/E

4-Jan-10 p Alcon Inc (52% stake)

pharma, medical & Biotech

novartis Ag nestle SA 8.0 20.9 26.9 9.5% 18,247

5-Jan-10 C nk russneft oAo energy, mining & Utilities

mikhail gutseriyev (private Investor)

en+ group Ltd 4,595

20-Jan-10 p Areva t&D SA Industrials & Chemicals

Alstom SA; and Schneider electric SA

AreVA SA 0.7 4,090

18-mar-10 p ratiopharm gmbH pharma, medical & Biotech

teva pharmaceutical Industries Ltd

2.3 3,625

15-mar-10 p tommy Hilfiger Corporation

Consumer phillips-Van Heusen Corporation

Apax partners LLp

1.3 7.9 2,200

17-Feb-10 C Barclays plc (5.20% stake)

Financial Services

International petroleum Investment Company

n/a n/a 8.9 -32.7% 1,428

23-mar-10 p Vt group plc Business Services

Babcock International group plc

1.2 15.5 56.0 6.5% 1,367

29-Jan-10 C talk talk telecom group pLC

tmt the Carphone warehouse group plc (shareholders)

the Carphone warehouse group plc

0.9 8.5 1,355

28-mar-10 p Volvo Cars Corporation


Zhejiang geely Holding group Company Limited

Ford motor Company

1,342

19-Jan-10 p Cegelec SA Industrials & Chemicals

Vinci SA qatari Diar real estate Investment Co

1,291

16-Feb-10 p rBS Sempra Commodities LLp (european and Asian operations)

Financial Services

Jpmorgan Chase & Co rBS Sempra Commodities LLp

n/a n/a 1,235

18-mar-10 p endesa Cogeneracion y renovables SL (60% stake)

energy, mining & Utilities

enel green power SpA endesa SA 1,141

23-Feb-10 C Ambea AB pharma, medical & Biotech

triton partners 3i group plc; and government of Singapore Investment Corporation pte Ltd

1.6 18.6 1,133

27-Jan-10 C pets At Home Limited

Consumer kohlberg kravis roberts & Co

Bridgepoint Capital Limited

2.6 14.8 21.9 1,101

10-mar-10 p Sektor eiendomsutvikling AS

real estate niam AB Sektorgruppen AS

1,088


top DeALS & expeCteD DeALS

36

europe

Monthly M&A Insider

Situation Target company Sector Potential bidder company

Financial adviser to bidder (B); target (T); seller (S)

Seller company Market cap/ est. value (€m)

Comments

rumoured takeover

StADA Arzneimittel Ag

pharma, medical & Biotech

pfizer Inc; Actavis group hf

1,740 StADA Arzneimittel could attract takeover interest should it exercise its option to acquire the outstanding 85% stake in german Bioceuticals Arzneimittel, industry observers agreed.

expected deal

telekom Srbija a.d.

tmt Hellenic telecommunications organisation SA; France telecom SA; Deutsche telekom Ag; and orascom telecom Holding S.A.e

government of the republic of Serbia

1,500 the government of Serbia will launch a tender this week, possibly as early as tomorrow, to select a financial advisor for selling a 40% stake in telekom Srbija, said a source close to the company and an insider from the finance ministry. the source said that the tender for the 40% stake in telekom Srbjia would most probably be launched by 1 September.

expected deal

endesa (gas transport and distribution units)


kohlberg kravis roberts & Co; gDF Suez SA; Blackstone group Holdings LLC; macquarie group Limited; gALp energia SgpS SA; AxA private equity; F2i Sgr SpA; morgan Stanley Infrastructure

Jpmorgan (S); mediobanca (S)

endesa SA 700 endesa potential bidders grapple with route around call option on gas disposal; macquarie, F2i and Axa study teaser, sources say

potential takeover target

Cadbury wedel Consumer Bnp paribas (S); HSBC Bank (S)

Cadbury plc; and kraft Foods Inc

kraft has mandated HSBC and Bnp paribas to advise on the sale of wedel and kandia. the eC approved kraft's gBp 11.5bn bid for Cadbury on the condition it divests wedel and kandia, both Cadbury assets.

note: expected deals based on confirmed announcements by companies involved

PIPELInE OF EuROPEAn ExPECTED DEALS

top DeALS & expeCteD DeALS

TOP 5 EuROPEAn AnnOunCED DEALS OF THE MOnTH (MARCH 2010)Announced Status Target company Sector Bidder company Seller company Exit multiples (x) Bid premia


(€m)Revenue EBITDA P/E

18-mar-10 p ratiopharm gmbH pharma, medical & Biotech

teva pharmaceutical Industries Ltd

2.3 3,625

15-mar-10 p tommy Hilfiger Corporation

Consumer phillips-Van Heusen Corporation

Apax partners LLp 1.3 7.9 2,200

23-mar-10 p Vt group plc Business Services

Babcock International group plc

1.2 15.5 56.0 6.5% 1,367

28-mar-10 p Volvo Cars Corporation


Zhejiang geely Holding group Company Limited

Ford motor Company

1,342

18-mar-10 p endesa Cogeneracion y renovables SL (60% stake)


enel green power SpA endesa SA 1,141


37

europe

Monthly M&A Insider

LeAgUe tABLeS

VALUeYTD

31-Mar-2010House Value

(€m)Deal count





5 Deutsche Bank 44,646 18

6 Lazard 35,694 19


8 HSBC Bank 33,026 10

9 Blackstone group Holdings 29,071 3


11 greenhill & Co 18,932 4



14 evercore partners 7,432 2


16 Bank of America merrill Lynch 6,475 9

17 royal Bank of Scotland group 6,296 6



20 perella weinberg partners 5,675 2Source: mergermarket

VoLUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 31 march 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being europe

YTD 31-Mar-2010

House Value (€m)

Deal count



3 kpmg 3,076 27

4 pricewaterhouseCoopers 2,258 22


6 Deloitte 312 20


8 Lazard 35,694 19




12 global m&A 42 13

13 Close Brothers Corporate Finance 3,111 12



16 Lincoln International 311 11

17 grant thornton Corporate Finance 217 11

18 HSBC Bank 33,026 10


20 Bank of America merrill Lynch 6,475 9Source: mergermarket

TOP 20 FInAnCIAL ADVISERS

VALUeYTD

31-Mar-2010House Value

(€m)Deal count


2 weil gotshal & manges 36,589 13


4 Cravath Swaine & moore 33,714 4

5 Simpson thacher & Bartlett 31,868 8



8 Slaughter and may 27,632 8

9 Debevoise & plimpton 27,195 3


11 Davis polk & wardwell 26,085 4

12 Allen & overy 26,051 35

13 Skadden Arps Slate meagher & Flom 24,437 5

14 wachtell, Lipton, rosen & katz 21,492 4

15 Homburger 21,212 4


17 Freshfields Bruckhaus Deringer 18,392 27

18 Loyens & Loeff 8,033 12


20 Latham & watkins 7,074 13Source: mergermarket

VoLUme

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 europethe tables by value and volume have been run from 01 January 2010 to 31 march 2010 and exclude lapsed and withdrawn deals

YTD 31-Mar-2010

House Value (€m)

Deal count



3 DLA piper 1,996 29

4 CmS 1,805 28


6 Clifford Chance 3,851 26

7 Jones Day 2,567 21


9 mannheimer Swartling 3,280 16

10 Baker & mckenzie 865 15

11 Vinge 172 14

12 weil gotshal & manges 36,589 13


14 travers Smith 2,546 13


16 Loyens & Loeff 8,033 12

17 Dewey & LeBoeuf 5,258 12

18 SJ Berwin 2,100 12

19 kirkland & ellis 5,642 11

20 Lovells 4,466 11Source: mergermarket

TOP 20 LEGAL ADVISERS

38

europe

Monthly M&A Insider

LeAgUe tABLeS

VALUe

YTD 31-Mar-2010

House Value (€m)

Deal count

1 Advent International 1,240 3

2 triton partners 1,133 1

3 kohlberg kravis roberts & Co 1,101 3

4 niam 1,088 1

5= Bain Capital 883 1

5= Berkshire partners 883 1

7 Cinven 800 1

8 BC partners 585 1

9 Intermediate Capital group 508 1

10 warburg pincus 388 2Source: mergermarket

VoLUme

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 europethe tables by value and volume have been run from 01 January 2010 to 31 march 2010 and exclude lapsed and withdrawn deals

YTD 31-Mar-2010

House Value (€m)

Deal count

1 HgCapital 179 4

2 Advent International 1,240 3

3 kohlberg kravis roberts & Co 1,101 3

4 Bnp paribas Developpement - 3

5 warburg pincus 388 2

6 Bridgepoint Capital 294 2

7 3i group 284 2

8 UI gestion 80 2

9 edmond de rothschild Investment partners 40 2

10 Sovereign Capital partners 33 2Source: mergermarket

ACTIVITY TABLE OF PRIVATE EquITY FIRMS On EuROPEAn BuYOuTS

VALUe

YTD 31-Mar-2010

House Value (€m)

Deal count

1 Apax partners 2,200 1

2 3i group 1,133 1

3 montagu private equity 1,117 2

4 Bridgepoint Capital 1,101 1

5 Astorg partners 804 1

6= AxA private equity 585 1

6= european Capital 585 1

8= Duke Street 404 3

8= parcom Capital 404 3

10 Barclays private equity 363 1Source: mergermarket

VoLUme

the private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is europethe tables by value and volume have been run from 01 January 2010 to 31 march 2010 and exclude lapsed and withdrawn deals

YTD 31-Mar-2010

House Value (€m)

Deal count

1= Duke Street 404 3

1= parcom Capital 404 3

3 montagu private equity 1,117 2

4 phoenix equity partners 256 2

5 endless Investments 28 2

6 the Carlyle group 17 2

7= Argos Soditic - 2

7= Capman group - 2

7= wadinko - 2

10 Apax partners 2,200 1Source: mergermarket

ACTIVITY TABLE OF PRIVATE EquITY FIRMS On EuROPEAn ExITS

europe


trenD grApHS

EuROPEAn M&A quARTERLY TREnD

VALUe VoLUme

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q4 7

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q4 04

Q3 04

Q2 04

Q104

Valu

e (€

m)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

EuROPEAn M&A quARTERLY MID-MARkET TREnD

VALUe VoLUme

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q4 04

Q3 04

Q2 04

Q104

Valu

e (€

m)

0

100

200

300

400

500

600

700

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

europe


EuROPEAn M&A SECTOR BREAkDOWn YTD 2010

VALUe VoLUme

32.1%

3.0%

0.5%

0.8%

3.6%

0.9%0.4%

13.1%

10.4%

5.7%

4.0%

8.7%

16.8%


Consumer

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

0.6%2.3% 0.6%


Consumer

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real estate

Defence

Agriculture

3.5%4.5%

5.4%

7.4%

7.6%

9.0%

10.3%11.1%

17.1%

20.7%

trenD grApHS

EuROPEAn M&A quARTERLY PRIVATE EquITY TREnD

VALUe VoLUme

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

m)

European buyouts

European exits

0

50

100

150

200

250

300

350

400

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

European buyouts

European exits

europe


EuROPEAn M&A DEAL SIzE BREAkDOWn

VALUe VoLUme

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Valu

e (€

bn)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Value not disclosed

Num

ber

of d

eals

trenD grApHS

EuROPEAn M&A GEOGRAPHIC BREAkDOWn YTD 2010

VALUe VoLUme

UK & Ireland

CEE

France

Nordic

Germany

Iberia

Benelux

Italy

Other

SEE

2.5%

20.7%

6.8%

12.0%

9.1%

6.4%

6.8%

8.9%

2.5%

24.2%22.3%

13.2%

11.7%

12.8%12.1%

7.5%

7.0%

5.7%

4.4%3.3%

UK & Ireland

CEE

France

Nordic

Germany

Iberia

Benelux

Italy

Other

SEE

42

Mid

dle east &

africa

THE MIDDLE EAST & AFRICA

A MERgERMARkET M&A REpoRT on

Monthly M&A Insider

Bharti Airtel Limited’s US$10.7bn offer for Zain Africa BV has had a big impact on the M&A sector breakdown based by value, and TMT account for 46% of the total deal value for the first quarter 2010 well ahead of Energy Mining & Utilities with a 12% share and Real Estate with an 8% share. Based by volume Financial Services was the most active sector with a 16% share of the M&A in the region followed by Industrial & Chemicals, Consumer and Energy Mining & Utilities each with a 15% share.

In the geographic breakdown nigeria account for 46% of the total M&A activity based by volume followed by South Africa with a 29% share. South Africa, together with Israel, is also top of the table by volume. The two countries had a 28% share each of the M&A based by value. United Arab Emirates was the third most active country with a 9% share of the M&A activity based by volume.

DUBAI WoRLD’S RESTRUCTURIng SETS THE SCEnE FoR FURTHER ACTIVITy In THE MIDDLE EAST

Dubai World continues to be the focus of attention in the Middle East, with the company announcing their restructuring plans on 25 March. The proposal has set the outstanding debt held by creditors at US$14.2bn. The government of Dubai has anticipated converting US$8.1bn of debt into equity through the Dubai Financial Support Fund. The DSFS will also commit to funding US$1.5bn cash into Dubai World for working capital and interest payment commitments.

The creditors will need to respond within the next few weeks, but it seems likely they will accept the terms of the proposal. This may be the push needed to revive the markets. According to the Wall Street Journal, investors were hesitant to react until Dubai World’s restructuring process was clearer.

Dubai Financial Market (DFM) and the Abu Dhabi Exchange (ADX) have reportedly been discussing a potential merger, offering a trading platform with lower costs and higher trading volumes. A partnership between the two would create the region’s second biggest stock exchange, and allow the companies to modernise their market structures. It would also provide a welcome boost for ADX, which needs an international exchange partner to increase Abu Dhabi as a financial centre. Borse Dubai, which owns 80% of DFM, also holds 30% in nasdaq oMX and is the single largest shareholder in LSE.

SyRIA opEnS DooRS To FoREIgn InVESToRS

overall, Middle East and Africa continue to look optimistic over the upcoming months. The Financial Services sector looks set to increase due to regional consolidation, and TMT remains active in north Africa. Bharti Airtel Limited’s offer for Zain Africa BV could be a catalyst for further telecommunication deals in 2010.

Infrastructure and energy is also likely to rise within Syria, as the government is drafting a law to open the sectors to private investors. The government has already shortlisted bids for two wind farms and a power generation plant. As Syria lacks coal, they are eager to find a partner who can import it into the country.

The US$10.7bn offer for ZAIn AfrIcA ShApeS A good Q1 for The MIddle eAST And AfrIcAn M&A

WITH THE EnD oF THE FIRST qUARTER 2010 IT AppEARS THAT M&A In MIDDLE EAST AnD AFRICA IS oFF To A gooD START. THE ToTAL M&A ACTIVITy FoR THE REgIon AMoUnTED To US$24.2Bn, Up 3.5 TIMES CoMpARED To THE SAME pERIoD 2009 WITH A ToTAL VALUE oF US$5.4Bn, AnD IS THE HIgHEST qUARTERLy M&A VALUE In THE REgIon SInCE THE q4 2007 WHEn IT pEAkED US $34.6Bn.

43

Mid

dle east &

africa

Monthly M&A Insider

Target: Zain Africa BV Announced: 30 March 2010

Bidder: Bharti Airtel Limited Deal value: US$10.7bn

Seller: Mobile Telecommunications Company K.S.C Deal nature: Cross Border, Public

DESCRIPTION • Bharti Airtel Limited (Bharti) has signed an agreement

to acquire Zain Africa BV (Zain Africa), excluding the operations in Morocco and Sudan, from Mobile Telecommunications Company K.S.C. (Zain) for a cash consideration of US$9bn.

• Zain Africa is the Nigeria based telecommunications operator and the African unit of Zain. Zain is a listed Kuwait based telecommunications operator. Bharti, a listed India based company headquartered in New Delhi, is a mobile services provider and the subsidiary of Bharti Enterprises, the India based business group with interests in telecom, agriculture business and financial services.

TERMS• Bharti will acquire Zain Africa from Zain for US$9bn in

cash.

• Bharti Airtel will assume US$1.7bn of consolidated debt obligations.

• The acquired businesses include Zain’s African mobile services business operations in 15 countries, excluding the operations in Morocco and Sudan.

• US$8.3bn will be settled upon closing.

• The remaining balance of the consideration of US$0.7bn will be paid in one year from closing.

FINANCING• Bharti has secured the entire financing requirement of

US$8.3bn for the transaction;

• Including US$7.5bn from Standard Chartered Bank, Barclays, SBI Group, ANZ, BNP, Bank of America Merrill Lynch, Credit Agricole CIB, DBS, HSBC, Bank of Tokyo Mitsubishi UFJ and Sumitomo Mitsui Banking Corporation;

• The remaining of up to US$1bn will be financed by SBI Group to cover any associated transaction costs.

RATIONALE• The transaction will enable Zain to focus on its highly cash

generative operations in the Middle East, and allow Bharti to transform into a global telecom company as well as create opportunities to tap into the emerging markets.

CONDITIONS• Approval by the shareholders of Zain concerning the size

of available distributable reserves.

• Repayment of Revolving Credit Facility of US$4bn.

• Satisfaction of certain approvals.

POST DEAL DETAILS• Zain intends to distribute a large proportion of the

upfront net proceeds from the sale of Zain Africa to its shareholders in the form of dividends.

• Post acquisition, the total customer base of Bharti will increase to around 179m in 18 countries.

BACKGROUND• Zain Africa has operations in Burkina Faso, Chad, the

Republic of the Congo, the Democratic Republic of the Congo, Gabon, Ghana, Kenya, Malawi, Madagascar, Niger, Nigeria, Sierra Leone, Tanzania, Uganda and Zambia with over 42m customers.

• In 2009, Zain Africa has generated a proportionate EBITDA of US$958m.

• On 15 February 2010, Bharti agreed to enter into exclusive discussions with Zain to acquire Zain Africa.

• On 25 March 2010, Bharti completed the due diligence of Zain Africa.

DEAL OF THE MONTH

44

Mid

dle east &

africa

Monthly M&A Insider

Advisers


Financial BNP Paribas SA; UBS Investment Bank Financial Standard Chartered Plc; State Bank of India; Barclays Capital; Global Investment House KSCC

Legal Linklaters Legal Herbert Smith/Gleiss Lutz/Stibbe; AZB & Partners

PR PR

Mergermarket/dealReporter Intelligence

13-Apr-2010 Bharti-Zain: Congo Republic claims companies are in violation of Zain's local license for not providing details on transaction

31-Mar-2010 Zain announces the US$10.7bn sale of African operations to Bharti Airtel

31-Mar-2010 Bharti Airtel inks definitive agreement to acquire Zain's African operations

25-Mar-2010 Zain-Africa sale valued at US$10.7bn; US$9bn equity value

22-Mar-2010 Bharti Airtel receives board approval to acquire Zain's Africa operations; lines up financing for deal

17-Mar-2010 Bharti Airtel sends out term sheet to lenders for US$8.5bn in offshore loans to fund Zain deal

9-Mar-2010 Bharti Airtel reaches loan agreement with State Bank India to part-finance purchase of Zain's Africa operations

Exit multiples – Y/E [31/12/2009] Premium analysis

Multiples Value (US$m) Offer price per share (US$) n/a

Revenue - - 1 day before n/a

EBITDA 12.0 x 592.42 1 month before n/a

EBIT - - 1 day after n/a

Earnings - - Pre-rumour n/a

45

Mid

dle east &

africa

Monthly M&A Insider

Top 15 MIddle eASTern & AfrIcAn AnnoUnced deAlS for YTd 31 MArch 2010Announced Status Target company Sector bidder company Seller company exit multiples (x) bid premia


(US$m)revenue ebITdA p/e

30-Mar-10 p Zain Africa BV TMT Bharti Airtel Limited Mobile Telecommunications Company k.S.C.

11.2 10,700

28-Mar-10 p Sonangol Sinopec International Limited (55% stake)


Sinopec Corporation Hongkong International Limited

Sinopec overseas oil & gas Limited

2,457

18-Feb-10 p Tsogo Sun Holdings pty Ltd

Leisure gold Reef Resorts Limited

Hosken Consolidated Investments Limited; and SABMiller plc

2,249

31-Mar-10 p Momentum group Limited

Financial Services

Metropolitan Life Limited

FirstRand Limited 1,986

25-Mar-10 p Hyprop Investments Limited (66.70% stake)

Real Estate Redefine Income Fund Limited

15.3 2.5% 942

21-Mar-10 p qatar Shipping Company qSC

Transportation qatar navigation Company q.S.C.

-24% 917

10-Jan-10 p qatar Real Estate Investment Co

Real Estate Barwa Real Estate Company qSC

10.1 30.6% 862

10-Mar-10 C Foodcorp (proprietary) Limited (77% stake)

Consumer new Foodcorp Holdings (proprietary) Limited

pamodzi Investment Holdings (proprietary) Limited

0.6 5.8 453

18-Jan-10 p Bank Audi SAL - Audi Saradar group (13.95% stake)

Financial Services

M1 group Ltd EFg-Hermes Holding Company

n/a n/a 3.4% 450

15-Mar-10 p kingdom Hotel Investments (43.90% stake)

Leisure kingdom Holding Company

4.1 14.3 0.4 25.0% 375

18-Feb-10 p Chambishi Metals plc (90% stake); and Comit Resources FZE


Eurasian natural Resources Corporation plc

International Mineral Resources BV

300

31-Mar-10 p Freeworld Coatings Ltd (81.14% stake)


Brait private Equity 1.0 6.5 0.2 13.3% 291

17-Feb-10 p national petrochemical Industrial Company (42.60% stake)


Alujain Corporation 10.3% 200

16-Mar-10 p Adcock Ingram Limited (13% stake)

pharma, Medical & Biotech

Black Economic Empowerment

2.6 9.1 11.9 177

8-Jan-10 p Capevin Investments Ltd (39.40% stake)

Consumer Remgro Limited; and Zeder Investments Limited

11.2 -6.4% 158


Top DEALS & EXpECTED DEALS

46

Mid

dle east &

africa

Monthly M&A Insider

Situation Target company Sector potential bidder company financial adviser to bidder (b); target (T); seller (S)

Seller company Market cap/ est.

value (US$m)

comments

Rumoured Takeover

Dubai International Financial Exchange Ltd

Financial Services

Abu Dhabi Exchange government of Dubai; Dubai Holding LLC; and Borse Dubai Ltd

1,933 Abu Dhabi and Dubai in talks regarding potential stock exchange merger

Expected Deal Rehab Flour Mill Agriculture kenana Sugar Company Rehab Saudi Egyptian group

1,000 kenana Sugar Company targeting acquisitions in Egypt's food industry via its USD 1bn fund

Expected Deal South African Coal Mining Holdings (SACMH)


JSW Energy Ltd 10 SACMH receives firm intention to make an offer from JSW Energy

Expected deals based on confirmed announcements by companies involved

pIpelIne of MIddle eASTern & AfrIcAn expecTed deAlS

Top DEALS & EXpECTED DEALS

Top 5 MIddle eASTern & AfrIcAn AnnoUnced deAlS of The MonTh (MArch 2010)Announced Status Target company Sector bidder company Seller company exit multiples (x) bid premia

1-day before

deal value

(US$m)revenue ebITdA p/e

30-Mar-10 p Zain Africa BV TMT Bharti Airtel Limited Mobile Telecommunications Company k.S.C.

11.2 10,700

28-Mar-10 p Sonangol Sinopec International Limited (55% stake)


Sinopec Corporation Hongkong International Limited

Sinopec overseas oil & gas Limited

2,457

31-Mar-10 p Momentum group Limited

Financial Services

Metropolitan Life Limited

FirstRand Limited 1,986

25-Mar-10 p Hyprop Investments Limited (66.70% stake)

Real Estate Redefine Income Fund Limited

15.3 2.5% 942

21-Mar-10 p qatar Shipping Company qSC

Transportation qatar navigation Company q.S.C.

-24.0% 917


47

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

VALUEYTd


(US$m)deal count



3 Standard Chartered 11,000 2


5= global Investment House 10,700 1



8= Commerzbank 4,933 1

8= Royal Bank of Scotland group 4,933 1


11 Rand Merchant Bank 2,754 5

12 Ing 2,457 1

13 Investec 2,280 2

14 grant Thornton Corporate Finance 2,249 1

15 Fidelis partners 1,986 1

15 Rothschild 19 1Source: mergermarket

VoLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

YTd 31-Mar-2010

house Value (US$m)

deal count


2 Rand Merchant Bank 2,754 5




6 Standard Chartered 11,000 2


8 Investec 2,280 2

9 Standard Bank group 591 2

10= pSg Capital 300 2

10= questCo 300 2

12 nedbank Capital 128 2

13= global Investment House 10,700 1


15= Commerzbank 4,933 1

15= Royal Bank of Scotland 4,933 1Source: mergermarket

Top 15 fInAncIAl AdVISerS – MIddle eAST & AfrIcA

VALUEYTd


(US$m)deal count




4 Edward nathan Sonnenbergs 5,468 5



7= goERg Rechtsanwaelte 4,933 1

7= kirkland & Ellis 4,933 1

7= noerr 4,933 1

7= Willkie Farr & gallagher 4,933 1

11= Allen & overy 2,457 1

11= Skadden Arps Slate Meagher & Flom 2,457 1

13 Webber Wentzel 2,328 5

14 Tabacks 2,249 1

15= Darrois Villey Maillot Brochier 1,844 1

15= Weil gotshal & Manges 1,844 1Source: mergermarket

VoLUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 31 March 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

YTd 31-Mar-2010

house Value (US$m)

deal count

1 Edward nathan Sonnenbergs 5,468 5

2 Webber Wentzel 2,328 5



5 DLA Cliffe Dekker Hofmeyer 392 3




9 Bowman gilfillan 1,140 2

10 White & Case 862 2

11 Read Hope phillips 468 2

12 Dewey & LeBoeuf 450 2

13 Jones Day 300 2

14 Werksmans 73 2

15= Clyde & Co 56 2

15= DLA piper 56 2Source: mergermarket

Top 15 legAl AdVISerS – MIddle eAST & AfrIcA

48

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

VALUE

VALUE

YTd 31-Mar-2010

house Value (US$m)

deal count

1 Capitau 453 1

2 Brait private Equity 291 1

3= good Energies Investments 15 1

3= new Energies Invest 15 1

3= Zouk Ventures 15 1

6= growthgate Capital - 1

6= gulf Capital - 1

6= The Carlyle group - 1Source: mergermarket

VoLUME

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 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals

YTd 31-Mar-2010

house Value (US$m)

deal count

1 Capitau 453 1

2 Brait private Equity 291 1

3= good Energies Investments 15 1

3= new Energies Invest 15 1

3= Zouk Ventures 15 1

6= growthgate Capital - 1

6= gulf Capital - 1

6= The Carlyle group - 1Source: mergermarket

AcTIVITY TAble of prIVATe eQUITY fIrMS on MIddle eAST & AfrIcA bUYoUTS

VALUE

YTd 31-Mar-2010

house Value (US$m)

deal count

1 pamodzi Investment Holdings 453 1

2 pitango Venture Capital 70 1

3= Ant Capital partners 60 1

3= Bridge Capital Fund 60 1

3= Cedar Fund 60 1

3= Marathon Venture Capital Fund 60 1

3= Mitsubishi UFJ Capital 60 1

3= nippon Venture Capital 60 1

3= Teuza - A Fairchild Technology Venture 60 1

3= yozma group 60 1Source: mergermarket

VoLUME

The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Middle East & Africa including Israel The tables by value and volume have been run from 01 January 2010 to 31 March 2010 and exclude lapsed and withdrawn deals

YTd 31-Mar-2010

house Value (US$m)

deal count

1 pamodzi Investment Holdings 453 1

2 pitango Venture Capital 70 1

3= Ant Capital partners 60 1

3= Bridge Capital Fund 60 1

3= Cedar Fund 60 1

3= Marathon Venture Capital Fund 60 1

3= Mitsubishi UFJ Capital 60 1

3= nippon Venture Capital 60 1

3= Teuza - A Fairchild Technology Venture 60 1

3= yozma group 60 1Source: mergermarket

AcTIVITY TAble of prIVATe eQUITY fIrMS on MIddle eAST & AfrIcA exITS

49

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAST & AfrIcA M&A QUArTerlY Trend

VALUE VoLUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e ($

m)

0

20

40

60

80

100

120

140

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

MIddle eAST & AfrIcA M&A QUArTerlY MId-MArKeT Trend

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e ($

m)

0

10

20

30

40

50

60

70

80

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals


50

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAST & AfrIcA M&A SecTor breAKdown YTd 2010

VALUE VoLUME

11%4%

3%

4%

12%

46%

8%

1%

11% Financial Services


Consumer


TMT

Real Estate


Leisure

Transportation

Financial Services


Consumer


TMT

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence

7%

7%

5%

3%3%

1%3%

1%

16%

15%

9%

15%

15%

Financial Services


Consumer


TMT

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence

MIddle eAST & AfrIcA M&A QUArTerlY prIVATe eQUITY Trend

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Valu

e ($

m)

Middle East& Africa buyouts


0

2

4

6

8

10

12

14

16

18

20

-

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Num

ber

of d

eals



51

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAST & AfrIcA M&A geogrAphIc breAKdown YTd 2010

VALUE VoLUME

3%

7%

1%2%

2%

46%

10%

29%

Nigeria

South Africa

Angola

Qatar

United Arab Emirates

Israel

Lebanon

Saudi Arabia

Israel

South Africa

Egypt


Lebanon

Nigeria

Kenya

Libya

Morocco

Namibia

Oman

Qatar

Saudi Arabia

Sierrra Leone

Uganda

28%

3%

4%

9%28%

1%

5%

3%

1%

1%3%

7%

1%9%

1%

South Africa

Anglola

Qatar


Isreal

Lebanon

Saudia Arabia

Libya

Jordan

Oman

Egypt

Namibia

Uganda

Sierra Leone

Nigeria

MIddle eAST & AfrIcA M&A deAl SIZe breAKdown

VALUE VoLUME

0

10

20

30

40

50

60

H1 2010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $5$01m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Valu

e ($

bn)

0

50

100

150

200

250

H12010*

H2 2009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> $5$01m

$251m-$500m

$101m-$250m

$15m-$100m

$5m-$14.9m

Value not disclosed

Num

ber

of d

eals

www.mergermarket.comRemark, part of The Mergermarket group

11 West 19th Street, 2nd fl.New York, NY 10011USA

t: +1 212 686-5606f: +1 212 [email protected]

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t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

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disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

The following notes pertain to data contained in this publication:

• Deals are included where the deal value is greater than or equal to €5m.

• Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to €10m.

• Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• H1 2010 refers to the period 31 January 2010 to 31 March 2010.

a mergermarket report on global m&a activity monthly m&a ... · cost. the acquired business...

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