monthly m&a insider september 2014 · close to us$5bn while adani power limited announced the...

A MERGERMARKET REPORT ON GLOBAL M&A ACTIVITY

MONTHLY M&A INSIDERSEPTEMBER 2014

Monthly M&A Insider | September

INSIDE:

GLOBAL OVERVIEW

LATIN AMERICA

NORTH AMERICA

ASIA-PACIFIC

EUROPE

MIDDLE EAST & AFRICA

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GLOBAL OVERVIEW

Monthly M&A Insider | September | 01

Despite still lackluster buyout numbers, private equity exits are gearing up for a strong ending to 2014. The global exit activity year-to-date (YTD) ending August 31 shows that the volume and value of exits have already exceeded the overall total for the first three quarters of 2013. This year’s numbers are up 5% in volume and 77% in value with 1,270 deals worth US$341.6bn compared to 2013’s 1,212 transactions worth about US$193.2bn.

Before this surge in exits, private equity firms went through a rough patch during the financial crisis where many of their portfolio companies underperformed. But, these firms have made it through the difficult times and can now exit their investments profitably assisted by a confluence of factors.

The initial public offering (IPO) market, for one, has lately become very open to private equity-backed companies as they fill up the pipeline. This burst of exits through IPOs can be attributed to pent-up demand since this avenue became much more accessible to private equity firms beginning in 2013 when the stock market saw significant gains.

Two other exit alternatives are wide open for private equity firms as well – sales to strategic buyers and secondary buyouts. Strategic sales are driven by corporate executives steadily gaining confidence in the market and seeking growth by spending their stockpile of cash through acquisitions. Private equity firms loaded with committed capital that they have to deploy have also resorted to secondary buyouts, which provide another way out for firms wanting to get rid of their portfolio companies.

August’s historic Kinder deal The Energy, Mining & Utilities sector saw an eventful quarter thus far as companies in this segment continue to consolidate streamline operations to achieve growth. The sector saw 987 deals worth US$374bn in Q3 2014’s first two quarters.

In a historic deal due to its size, Kinder Morgan Inc. announced in August the acquisition of its three MLPs: Kinder Morgan Energy Partners (88.6% stake) for US$59bn; El Paso Pipeline Partners (61.7% Stake) and Kinder Morgan Management (87% stake), both for roughly US$10bn. Executives from the company have been quoted as saying that through this consolidation, Kinder Morgan can now further grow through the acquisition of competitors. In a statement, the CEO of the company Richard D. Kinder said that the combined entity will become the biggest energy infrastructure company in North America and the third-largest energy company globally that will have an enterprise value of about US$140bn.

Aside from this mega transaction, two of the top deals in Asia-Pacific for August were from the Energy, Mining & Utilities sector as well. Aramco Overseas Company announced the purchase of a roughly 28.41% stake in S-Oil Corporation for close to US$5bn while Adani Power Limited announced the acquisition of Udupi Power Corporation Limited for US$984m. Europe also saw a large-cap transaction in the sector when Russian magnate Alisher Usmanov sold a 10% stake in his holding company USM Holdings Ltd through a share buyback worth US$1.8bn.

Head of Research: Elias Latsis

Editor: Laura Resetar

For advertising opportunities contact: Erik Wickman Tel: + (1) 212 686 3329 [email protected]

Global Overview: Karen Sibayan and Lana Vilner

Latin America: Fabio Lopes and Raquel Mozzer

North America: Dan Kim and Urna Chakraborty

Asia-Pacific: Brandon Taylor and Chris Wong

Europe: Peter Czempas and Damien Julliard

Middle East & Africa: Marie-Laure Keyrouz and Andrea Putaturo

TREND GRAPHS

GLOBAL OVERVIEW Monthly M&A Insider | September | 02

GLOBAL M&A QUARTERLY TREND GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND

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

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Total value Mid-market value Total volume Mid-market volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Num

ber of deals

0

100

200

300

400

500

600

700

800

900

YTD 2014*201320122011201020092008

Valu

e (U

S$bn

)

Buyout value Exit value Buyout volume Exit volume

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900


TREND GRAPHS

GLOBAL M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

12.2%

19.0%

12.0%

11.5%

8.3%

4.3%

7.7%

10.1%

3.2%3.3%

4.0%

1.2%2.0%

1.0%

0.2%

Industrials & Chemicals

Technology

Consumer

Business Services

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

6.4%

11.3%

8.7%

5.0%

17.6%

7.0%

16.1%

3.0%

4.6%

11.5%

0.2%0.7%

2.6%

2.3%

3.0%


Technology

Consumer

Business Services


Financial Services


Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

48.4%

29.5%

17.4%

3.4%1.3%

North America

Europe

Asia-Pacific

Central & South America

Middle East & Africa

34.9%

37.0%

22.3%

3.3%

2.5%

North America

Europe

Asia-Pacific

Central & South America

Middle East & Africa

GLOBAL M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


TREND GRAPHS

GLOBAL M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

41.9% 40.5%

27.3% 30.0% 29.2%

8.9% 7.9% 9.7% 10.1% 9.8%

15.2% 16.5%

20.3% 19.0% 19.4%

19.4% 20.5%27.5% 26.2% 27.5%

14.6% 14.6% 15.2% 14.7% 14.1%

43.2%

8.3%

16.1%

21.0%

11.4%

28.2%

9.9%

18.8%

28.0%

15.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.1% 90.9%89.3% 89.0% 89.2%

0.9% 1.0% 1.1% 1.0% 1.0%

4.6%3.9%

4.5% 4.8% 4.7%

3.8% 3.7%4.7% 4.7% 4.7%

0.6% 0.7%0.5% 0.4% 0.5% 0.4% 0.4%

89.9%

0.9%

4.3%

4.5%

88.0%

1.2%

5.2%

4.9%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

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A MERGERMARKET M&A REPORT ON

LATIN AMERICA


During July and August there were 70 deals announced worth US$8bn. Deal value decreased 80% from last quarter, where overall deal value was US$41.6bn. The volume of deals decreased 38%, which represents the lowest total since Q3 2005 when there were only 68 deals announced.

The Industrials & Chemicals sector announced 50 deals worth US$5.1bn and the Consumer sector registered 43 deals worth US$4.4bn. The Energy, Mining & Utilities sector is still the most active sector with 66 deals announced year-to-date (YTD) worth a total consideration of US$25.5bn. In the top 10 deals list for August, there were five deals in this sector: the acquisition of a 60% stake in Galvani Industria, Comercio e Servicos by Yara International ASA for US$318m; the acquisition of a 55.5% stake in Transierra SA by Yacimientos Petroliferos Fiscales Bolivianos for US$266m; the acquisition of a 40% stake in Cubiro Block by Pacific Rubiales Energy Corp for US$228m; the acquisition of a 51% stake of Centeras el Hallazgo by Compania de Minas Buenaventura for US$81m; and the highest valued deal of the month was the acquisition of GDF Suez assets in Costa Rica and Panama by Celsia SA for US$840m. The assets being acquired will add 535 megawatts to Celsia’s current power generating capacity. Other assets include 367MW of thermoelectric and 118 MW of hydroelectric generation and 50 MW of wind power capacity in Panama. The objective of the acquisition is to capitalise on the potential for connecting energy assets between Colombia and Central America. Celsia was advised by BNP Paribas, Aleman Cordero Galindo & Lee and Wilkie Farr & Gallagher, while GDF Suez was advised by White & Case.

Brazil continues to be the most active country in the region, with 164 deals announced so far with a total value of US$28bn. Mexico came second with 44 deals YTD worth US$14.3bn, followed by Chile with 31 deals worth US$10.6bn.

The peak in private equity exits continues. In the YTD, there were eighteen deals in Latin America worth US$5.4bn. This is the most activity seen since Q4 2010, when nine exits and a total value of US$4.1bn were recorded, the highest value since Q2 2008. This year already has the highest value for LatAm exits. PE firms bought low and are selling high. Compared to last year when there were 13 deals worth US$499bn, there was a 991% increase in value and 38% increase in volume. Large deals include KKR’s acquisition of data center company Acquire Aceco TI, Bain’s acquisition of health-insurance operator Intermedica, General Atlantic’s acquisition of Mexican pharmaceutical company Sanfer, and Carlyle’s acquisition of Peruvian security company Grupo Liderman.

The impacts of reforms in Mexico and the macroeconomic adjustments post elections in Brazil will define the M&A scenario for 2014. The question still lies in whether Q3 2014 will witness the slowest activity YTD or if the current heat in private equity activity will generate an increase in total deal count and value in order to rescue Latin America from the current downward trend.


TOP DEALS

LATIN AMERICA

TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF THE MONTH (AUG-14)Announced Bidder company Target company Target dominant

sectorSeller company Exit multiples (x) Bid premia

1-day before

Deal value

(US$m) Revenue EBITDA P/E

13-Aug-14 Celsia SA ESP GDF Suez assets in Costa Rica and Panama


GDF Suez SA - - - - 840

25-Aug-14 Grupo Bio Pappel Corporacion Scribe SAPI de CV


- - - - - 700

14-Aug-14 Grupo Televisa SA de CV Cablecom SA de CV (51.55% stake)

TMT - - - - - 649

08-Aug-14 GTIS Partners; and Latin America Hotels LLC

BHG SA Brazil Hospitality Group (69.82% stake)

Leisure - 5.2 22.8 656.7 34.9% 490

05-Aug-14 Yara International ASA Galvani Industria, Comercio e Servicos SA (60% stake)


- 1.3 9.8 - - 318

05-Aug-14 Yacimientos Petroliferos Fiscales Bolivianos

Transierra SA (55.5% stake) Energy, Mining & Utilities

Total SA; and Petroleo Brasileiro SA

6.8 9.6 (loss) - 266

14-Aug-14 Pacific Rubiales Energy Corp Cubiro Block (40% stake) Energy, Mining & Utilities

Fondo de Capital Privado Hidrocarburos de Colombia

- - - - 228

07-Aug-14 Tivit Terceirizacao de Processos Servicos e Tecnologia SA

Synapsis Soluciones y Servicios IT Limitada

TMT Riverwood Capital LLC 1.2 - - - 199

21-Aug-14 Restaurantes Toks SA de CV Controladora Comercial Mexicana SAB de CV (46 California units and 7 beer factory units)

Leisure Controladora Comercial Mexicana SAB de CV

1.5 - - - 81

18-Aug-14 Compania de Minas Buenaventura

Canteras del Hallazgo SAC (51% stake)


Gold Fields Limited - - - - 81

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Latin American Data correct as of 05-Sep-14

Source: Mergermarket

TREND GRAPHS

LATIN AMERICA Monthly M&A Insider | September | 08

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

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

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

YTD 2014*201320122011201020092008


Valu

e (U

S$bn

)

0

100

200

300

400

500

600

700

800

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

YTD 2014*201320122011201020092008

Valu

e (U

S$m

)


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25

30

LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

LATIN AMERICA Monthly M&A Insider | September | 09

TREND GRAPHS

VALUE VOLUME

34.7%

6.1%

6.9%

4.2%

16.8%

2.8%

5.4%

0.1%

1.1%0.5%

8.4%

10.4%

1.8%

0.8%



Consumer

Business Services

Financial Services

Technology


Media

Leisure

Telecommunications

Transportation

Agriculture

Construction

Real Estate

0.9%

8.6%

0.4%0.1%

0.2%

13.1%

19.4%

1.1%

37.9%

14.4%

2.9%0.9%0.1%

Brazil

Chile

Colombia

Costa Rica

Ecuador

Guatemala

Mexico

Panama

Peru

Uruguay

Venezuela

Argentina

Bolivia

0.9%

5.3%

51.4%

0.3%

6.3%0.6%0.3%

13.8%

0.9%

0.3%

9.7%

8.4%0.9%

0.3%

0.3%0.3%

Brazil

Chile

Colombia

Costa Rica

Dominican Republic

Ecuador

El Salvador

Guatemala

Honduras

Mexico

Panama

Peru

Uruguay

Venezuela

Argentina

Bolivia

20.5%

15.6%

13.4%9.7%

9.4%

7.5%

3.8%

2.8%

1.9% 1.6%

0.9%

4.1%

4.1%

4.7%



Consumer

Business Services

Financial Services

Technology


Media

Leisure

Telecommunications

Transportation

Agriculture

Construction

Real Estate

LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

LATIN AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contentsLATIN AMERICA Monthly M&A Insider | September | 10

TREND GRAPHS

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

30.3%

9.2%

39.2%28.6%

21.8%

9.9% 10.1%

7.5%

9.6%

10.3%13.8%

25.1%36.6%

24.7%

28.6%

33.4%

20.1%

29.3%

19.0%

18.1%

14.3%

14.6% 14.8% 14.4% 16.7%

16.3%

45.5%

17.3%

20.9%

10.0%

26.3%

25.9%

25.7%

12.1%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.2% 85.8% 86.3% 86.7%

4.8% 6.8% 8.0%6.2% 5.7%

5.2%5.3%

6.6%5.6% 6.6%

1.2% 1.8% 2.0% 1.1% 0.7%0.6% 0.3% 1.2% 0.9% 0.9%0.8% 0.3%

86.2%

6.0%

6.9%1.9%

83.1%

6.3%

7.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

82.2%



NORTH AMERICA

North American M&A in Q3 so far has amounted to 736 deals worth US$310.1bn. Multiple billion dollar transactions pumped up deal value in August, continuing the trend of higher value transactions. Further evidence of this trend includes the noticeable increase in average deal size, currently at its highest ever in Mergermarket history at US$421m, compared to last quarter’s US$322m and Q1’s US$233m. Buyouts and exits have evened out at US$24.2bn and US$34.8bn respectively, however, with more exits than buyouts (161 versus 128).

Kinder Morgan’s US$58.8bn acquisition of an 88.6% stake in Kinder Morgan Energy Partners was the top deal for August and the company made two more stake acquisitions in August, both were worth US$10bn. This flurry of activity brought Energy, Mining & Utilities back to the top spot with a total value of US$232.5bn in the year-to-date (YTD) and a 22.2% market share by value. There were two deals in the Leisure sector: Burger King’s US$12.7bn acquisition of Tim Hortons was the second largest deal of the month and Scientific Games Corporation’s US$5bn acquisition of Bally Technologies was sixth. The sector has seen 110 deals worth US$32.9bn YTD, with a 3.1% market share by value and 3.2% market share by volume.

The Consumer sector has also been fairly active with 308 deals worth US$122.5bn YTD, the fourth largest sector by value with an 11.7% market share by value and 9.1% market share by volume. Reports have indicated that private equity interest in this sector has increased over the last year, buying companies that are lower priced and struggling, while competing with strategic acquirers. Advent International acquired a stake in Lululemon Athletica while Bain Capital acquired a stake in TOMS shoes. Retail sector IPOs have also been garnering interest so private equity firms are more inclined to invest in these companies and then exit via IPO. In 2013, there were 11 IPOs in the Consumer sector, all private equity exits, such as Zulily, Inc. and The Container Store Group in October. This year there has already been six such IPOs, the most recent one being The Michaels Companies going public in June.

More catalysts for activity in the sector include low interest rates, readily available financing and companies becoming wary of the old “everything under one roof” model, often selling off product lines to stem production and cut costs. Brunswick Corporation’s sale of its retail bowling business to Bowlmor, AMF Corp and Nestle USA’s sale of its Juicy Juice business to Harvest Hill Beverage Company in Q3 and Procter & Gamble’s steady sales of multiple product lines all year are proof of the moves companies are taking to be more streamlined. Furthermore, companies that are already specialised in one area have taken to acquiring rivals in order to show expansion. Dollar Tree’s acquisition of Family Dollar Stores, Tyson Foods’ acquisition of Hillshire Brands, and PetSmart’s acquisition of Pet360 are key examples of this kind of inorganic growth via acquisitions.


TOP DEALS

NORTH AMERICA

TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF THE MONTH (AUG-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m) Revenue EBITDA P/E

10-Aug-14 Kinder Morgan Inc Kinder Morgan Energy Partners LP (88.6% stake)


- 5.1 13.6 16.9 12.0% 58,761

26-Aug-14 Burger King Worldwide Inc Tim Hortons Inc Leisure - 4.2 17.3 32.4 14.9% 12,746

10-Aug-14 Kinder Morgan Inc El Paso Pipeline Partners LP (61.7% stake)


- 8.5 11.7 20.9 15.4% 10,376

10-Aug-14 Kinder Morgan Inc Kinder Morgan Management LLC (87% stake)


- - - 41.6 16.5% 10,251

24-Aug-14 Roche Holding AG InterMune Inc Pharma, Medical & Biotech

- 107.1 (loss) (loss) 37.5% 7,536

01-Aug-14 Scientific Games Corporation Bally Technologies Inc Leisure - 4.1 13.7 33.1 38.4% 5,009

05-Aug-14 NorthStar Realty Finance Corp Griffin-American Healthcare REIT II Inc

Real Estate Griffin Capital Corporation; and American Healthcare Investors

19.6 34.6 - - 4,000

12-Aug-14 Fleetcor Technologies Inc Comdata Inc Business Services Ceridian LLC 5.9 13.2 - - 3,450

22-Aug-14 Dynegy Inc Duke Energy Corporation (Midwest generation assets)


Duke Energy Corporation

- - - - 2,800

20-Aug-14 Infineon Technologies AG International Rectifier Corporation

TMT - 2.0 14.0 49.4 50.6% 2,262

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being North American (US + Canada) Data correct as of 05-Sep-14


TREND GRAPHS

NORTH AMERICA Monthly M&A Insider | September | 13

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

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

Valu

e (U

S$bn

)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

300

350

400

450

500

YTD 2014*201320122011201020092008


0

200

400

600

800

1,000

1,200

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

600

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

200

400

600

800

1,000

1,200

1,400

1,600

Valu

e (U

S$bn

)

Num

ber of deals

0

50

100

150

200

250

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

50

100

150

200

250

300

350

Monthly M&A Insider | September | 14NORTH AMERICA

NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

7.6%

7.8%

5.8%

22.3%

16.8%

11.7%

5.0%

0.7%

1.6%

0.8%

1.7%

3.1%

0.1%

15.0% Industrials & Chemicals

Technology

Business Services



Consumer

Financial Services

Media

Leisure

Construction

Transportation

Real Estate

Telecommunications

Agriculture

17.3%

15.3%

12.6%

12.5%

9.7%

9.1%

8.9%

3.2%

3.0%

1.0%

1.9%

0.7%

0.6%

4.0%

0.2%


Technology

Business Services



Consumer

Financial Services

Media

Leisure

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

NORTH AMERICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

49.0%58.6%

31.9%37.3%

32.3%

7.3%5.5%

9.8% 9.0% 8.2%

17.4%

13.2%

27.7%20.8% 27.4%

13.9%

13.3%

17.8%

21.0%21.2%

12.4% 9.4% 12.8% 11.9% 10.9%

41.9%

7.4%

24.4%

15.4%

52.3%

14.6%

7.9%

6.7%

18.5%

10.9%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6% 91.1%

87.6% 87.6% 87.1%

0.9% 1.0% 1.1% 1.4% 1.4%

4.1% 3.8%

5.2% 5.4%5.0%

3.7% 3.4%5.5% 4.9% 6.0%

0.7% 0.7% 0.6% 0.6%0.5%

86.0%

1.5%1.1%

5.8%

5.6%

0.7%

88.4%

1.1%

4.5%

5.4%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m



ASIA-PACIFIC

August 2014 saw 258 deals with a total value of US$34.2bn which represents an increase in both volume and value over July, which had 236 deals worth US$29.7bn, as well as a year-on-year increase over August 2013’s figures (245 deals worth US$32.4bn).

Sector highlightsThe Industrials & Chemicals sector led in both volume (21%) and value (17%). The sector continues its leading trend in volume from last month and exceeds the Pharmaceutical, Medical & Biotech sector in terms of value from July 2014.

China saw an increase in volume and value from last month with 118 deals (46%) valued at US$21.1bn (62%) for August 2014. The Industrials & Chemicals sector activity relating to China saw inbound interest with Partners Group Holding AG agreeing to acquire a controlling stake in Suzhou Savera Shangwu Elevator Riding System, valued at US$450m, as well as Warburg Pincus with Baosteel Gases Limited creating a strategic partnership to acquire Henan Jinkai Chemical Investment Holding Group, valued at US$488m.

Technology, Media & Telecommunications (TMT) was the second-largest sector in terms of deal volume and value for August 2014 – 41 deals worth US$5.4bn – which is a slight increase in volume but a significant rise in value from US$3.4bn in July 2014. One notable cross-border acquisition was seen by Ting Hsin International Group in Taiwan who purchased a 60% stake of China Network Systems from South Korean private equity fund MBK Partners. The deal, valued at US$2.2bn, could be the largest deal this year in Taiwan, subject to regulatory review.

Energy, Mining & Utilities was the third largest sector in both volume and value for August (28 deals representing US$10.3bn). Like TMT, this was an increase over July in terms of volume and a sizeable jump in value (20 deals worth US$1.9bn in July 2014). In addition to the Udupi Power Corporation acquisition, China was the target of the second and third largest acquisitions in this sector with deals worth US$609m and US$607m each.

Standout geographiesBoth Australia (37 deals) and Japan (28 deals) follow behind China in volume for Asia-Pacific, however, activity is focused on smaller deals as shown by value for August 2014 (US$1.7bn for Australia and US$635m for Japan). For the second and third most deal-active countries in the region, the decrease in value is significant compared to July 2014 (US$5.2bn for Australia and US$7bn for Japan).

Nevertheless, there were still some larger transactions in the Asia-Pacific region compared to the high volume, lower value shopping coming from Australia and Japan. India had two of the region’s larger domestic acquisitions in August. Metmin Investment Holdings purchased a controlling stake in denim maker Spykar Lifestyle Private from private equity firm Avigo Capital Partners for US$494m, which represents an additional 30% stake in the target company. Whilst, in the Indian energy sector Adani Power Ltd acquired Udupi Power Corporation Ltd from Lanco Infratech in a deal worth US$984m.

TOP DEALS

Monthly M&A Insider | September | 16ASIA-PACIFIC

TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF THE MONTH (AUG-14)Announced Bidder company Target company Target dominant


1-day before

Deal value

(US$m)Revenue EBITDA P/E

12-Aug-14 Aramco Overseas Company BV

S-Oil Corporation (28.41% stake)


Hanjin Energy Co Ltd 0.33 n/a 25.38 16.3% 4,935

28-Aug-14 A consortium led by Warburg Pincus LLC, Goldman Sachs and Khazanah Nasional Berhad

China Huarong Asset Management Corporation (20.98% stake)

Financial Services - - - 8.00 - 2,359

26-Aug-14 Ting Hsin International Group

China Network Systems Co Ltd (60% stake)

Media MBK Partners Ltd - - - - 2,235

13-Aug-14 Adani Power Limited Udupi Power Corporation Limited


LANCO Infratech Limited - - - - 984

19-Aug-14 Shanghai Zhongji Investment Holding Co Ltd

Dian Dian Interactive Holding Co Ltd

Leisure Funplus Holding 20.50 - - - 961

11-Aug-14 Dairy Farm International Holdings Limited

Yonghui Superstores Co Ltd (19.99% stake)

Consumer - 0.93 18.98 n/a -4.2% 924

07-Aug-14 Berli Jucker Public Co Ltd METRO Cash & Carry Vietnam Co Ltd

Business Services METRO Cash & Carry International Holding BV

- - - - 877

28-Aug-14 Tian Di Science and Technology Co Ltd

CCTEG Chongqing Research Institute Co Ltd; CCTEG Xi’an Research Institute Co Ltd; and CCTEG Beijing Huayu Engineering Co Ltd


China Coal Technology and Engineering Group Corporation

- - - - 869

22-Aug-14 Zhejiang Busen Garments Co Ltd

Guangxi Kanghua Agricultural Corporation

Agriculture Consortium led by Li Yan (private investor)

6.78 14.81 17.29 - 615

22-Aug-14 North Mining Shares Company Limited

Shaanxi Province Da Qin Jia Ye Company Limited (70% stake); and Luo Nan Xian Da Qin Jia Mining Company Limited (70% stake)


Li Sheng Li (private investor); and Ma Wei Min (private investor)

- - - - 609

n/a=not applicable Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Asia-Pacific Data correct as of 04-Sep-14


TREND GRAPHS


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

ASIA-PACIFIC

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

Valu

e (US$

bn)

Num

ber of deals

0

20

40

60

80

100

120

140

160

180

200

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

100

200

300

400

500

600

700

800

900

1,000

Valu

e (U

S$bn

)

Num

ber of deals

0

100

200

300

400

500

YTD 2014*201320122011201020092008


0

500

1,000

1,500

2,000

2,500

3,000

3,500

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

YTD 2014*201320122011201020092008


0

50

100

150

200

250

300

350

Valu

e (U

S$bn

)

Num

ber of deals

0

5

10

15

20

25

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

20

40

60

80

100

120

0

20

40

60

80

100

120


ASIA-PACIFIC M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME


TREND GRAPHS

42.6%

14.1%

11.0%

8.3%

5.2%

5.4%

2.0%

4.2%

1.4%1.2%

4.6%China

Australia

South Korea

Hong Kong

India

Japan

Singapore

Malaysia

Taiwan

Kazakhstan

Other

36.9%

14.2%8.6%

4.6%

11.3%

7.7%

2.8%

3.7%

1.3%

0.8%

8.1%China

Australia

South Korea

Hong Kong

India

Japan

Singapore

Malaysia

Taiwan

Kazakhstan

Other

8.7%

9.8%

11.3%

15.0%

2.1%10.3%

3.1%

3.7%

5.7%

8.4%

2.5%1.7%

0.6% 11.5%0.9%

4.7%


Technology

Consumer


Business Services

Financial Services


Leisure

Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

Defence

Other

13.0%

20.1%

11.4%

10.3%

8.8%

7.8%

6.2%

6.0%

4.3%

4.0%

2.6%

3.1%

1.5% 0.1%

0.2%

0.6%


Technology

Consumer


Business Services

Financial Services


Leisure

Transportation

Media

Real Estate

Construction

Agriculture

Telecommunications

Defence

Other

ASIA-PACIFIC M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


ASIA-PACIFIC M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

Return to contents

75

80

85

90

95

100

YTD 2014*201320122011201020092008

Perc

enta

ge

88.5%

0.9%

5.7%

4.5%

0.4% 0.3%0.4%

87.9% 88.8% 87.6% 88.5%

1.0% 1.4% 0.8% 0.9%

5.3%5.1%

5.9%5.6%

5.4% 4.4% 5.3% 4.7%

0.4% 0.3% 0.3% 0.3%

88.0%

5.6%

0.7%

5.4%

87.2%

6.4%

1.1%

5.0%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

13.5%

34.4%

13.4%

15.3%

23.4%

13.0%

25.6%

20.0%

19.1%

22.3%

29.6%19.9%

13.5%24.4% 20.6%

12.0% 11.2% 11.2% 12.0% 12.2%

22.2%30.4% 26.4% 29.7% 28.8%

15.7%

17.0% 26.8%13.5%

16.6%

20.5% 22.1% 20.4% 21.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

21.5%



EUROPE

M&A activity experienced a slower pace in August seeing only 264 deals compared to 455 transactions completed in July. The disparity in deal values was even greater, looking at August’s value equalling US$48,127m opposed to July’s US$125,239m. However, August’s modest results did not prevent Q3 2014’s US$172.6bn deal value looking stronger than Q3 2013’s total value of US$148.8bn. Yet, one has to note that 752 deals registered in Q3 2014 are significantly lower than results of Q3 2013, which had witnessed 1,440 transactions at the time.

The overall deal value in 2014 year-to-date (YTD) seems to be set on a positive course to overcome total deal value in 2013. This is however, not reflected in the number of deals accomplished, as investors remain cautious. The total 2014 YTD deal count totals 3,582 transactions, which represents a 25% decline from 4,210 deals recorded in Q1-Q3 2013.

Deal of the monthIn August the largest deal occurred between Walgreen Company and Alliance Boots. After 2012’s acquisition of a 45% stake in Alliance Boots, Walgreen has exercised its option to acquire a 55% stake valuing the deal at US$23.819bn. For both companies, this deal cements their strategic partnership and an effort to create the first global pharmacy-led health and wellbeing enterprise.

The transaction’s primary aim is to reduce the costs of running the companies. It is estimated that a three-year plan which includes corporate, field and store-level cost, will amount to reductions worth US$1bn. The deal will grant Walgreen Company access to European markets and serves as an initial step towards international expansion, with Asia and Latin America being targeted in the long run. Africa could potentially be targeted for long-term growth in the future as well.

Private equity The YTD exit values continue to exceed buyout values. Total value of exits amounted to US$113.5bn compared to the value of buyouts worth US$73.6bn. However, buyouts surpassed exits by registering 618 buyouts against 449 exits in 2014.

KKR was one of the most active private equity firms in August. The house was involved in the two largest exits of the month. Having sold a 55% stake in Alliance Boots via AB Acquisitions Holdings, KKR also divested its 97.6% stake in U.N Ro-Ro Isletmeleri for roughly US$935m. This Turkish marine freight transportation service provider, operating 12 vessels on Mediterranean routes, has attracted interest from two Turkish private equity firms – Esas Holding and Actera Group.

Blackstone Group was another American private equity firm active in August. Blackstone acquired Alliance Industrie, a French distributor of automotive and commercial vehicle spare parts, for US$587m. Blackstone Group along with the Blue Water Energy UK-based private equity firm specialising in energy investments, has also acquired Siccar Point Energy, UK-based oil and gas producer, for US$500m.

Despite M&A activity in August being slower than in June and July, interesting acquisitions continued to take place in various sectors. The Consumer sector was boosted by the acquisition of a remaining stake in Alliance Boots by Walgreen Company. The biggest Financial Services sector deal happened between CaixaBank and Barclays Bank which sold its retail banking, wealth, investment management and corporate banking businesses in Spain for US$1,050bn.

TOP DEALS

Monthly M&A Insider | September | 21EUROPE

TOP 10 EUROPEAN ANNOUNCED DEALS OF THE MONTH (AUG-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


06-Aug-14 Walgreen Company Alliance Boots GmbH (55% stake)

Consumer AB Acquisitions Holdings Limited

0.9 13.0 17.0 - 23,820

13-Aug-14 Management Vehicle USM Holdings Limited (10% stake)


Alisher Usmanov (private investor)

- - - - 1,800

31-Aug-14 CaixaBank SA Barclays Bank SAU Financial Services Barclays Plc - - - - 1,050

05-Aug-14 Esas Holding AS; and Actera Group

U.N Ro-Ro Isletmeleri AS (97.6% stake)

Transportation Kohlberg Kravis Roberts & Co LP

- - - - 935

22-Aug-14 North Atlantic Drilling Limited

Rosneft Oil Company OAO (150 drilling rigs)


Rosneft Oil Company OAO - - - - 925

20-Aug-14 Grupo Angeles Servicios de Salud SA de CV

Espirito Santo Saude SGPS SA (96.54% stake)


- 1.6 10.1 29.1 9.1% 770

07-Aug-14 Consortium for BIM Banca Intermobiliare di Investimenti e Gestioni SpA

Financial Services - - - 163.6 12.9% 753

29-Aug-14 Vnesheconombank Sukhoi Company (JSC) (28.55% stake)

Defence - 1.1 62.0 - 693

08-Aug-14 Etihad Airways Alitalia – Compagnia Aerea Italiana Spa (49% stake); and Alitalia Loyalty Spa (75% stake)

Transportation - - - - - 670

13-Aug-14 Intel Corporation Axxia Systems Limited Business Services Avago Technologies Ltd 5.8 - - - 650

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being European Data correct as of 04-Sep-14


TREND GRAPHS


EUROPEAN M&A QUARTERLY PRIVATE EQUITY TREND

EUROPEAN M&A QUARTERLY TREND

EUROPE

Num

ber of deals

0

100

200

300

400

500

600

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


Valu

e (US$bn

)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Valu

e (US$bn

)

Num

ber of deals

0

20

40

60

80

100

120

140

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

0

50

100

150

200

250

300

350

400

450


EUROPEAN M&A ANNUAL TREND EUROPEAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (US$

bn)

Num

ber of deals

0

200

400

600

800

1,000

1,200

1,400

1,600

YTD 2014*201320122011201020092008


0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Num

ber of deals

0

50

100

150

200

250

300

350

YTD 2014*201320122011201020092008


Valu

e (US$

bn)

0

200

400

600

800

1,000

1,200

1,400

1,600


EUROPEAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

EUROPE

21.1%

9.0%

18.8%

6.8%

8.5%

5.5%

4.8%

2.9%2.7%

3.4%

2.3%2.3%

5.0%

6.9%UK

France

Germany

Republic of Ireland

Switzerland

Netherlands

Spain

Italy

Russia

CEE (excl. Russia)

Norway

Sweden

Portugal

Others

11.8%

21.6%

12.2%

1.5%5.6%5.6%

3.8%

0.5%

4.2%

3.3%

6.8%

13.7%

6.6%

2.8%

UK

France

Germany

Republic of Ireland

Switzerland

Netherlands

Spain

Italy

Russia

CEE (excl. Russia)

Norway

Sweden

Portugal

Others

5.5%

2.5%

10.6%

6.4%

22.6%

8.4%

3.6%

2.5%

7.5%

2.1%

6.5%

11.1%

0.8%0.2%

9.7%Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

15.0%

12.5%9.4%

7.8%

7.1%

6.6%

4.3%

4.1%

4.1%

1.4%

0.2%

1.0%

3.7%

2.2%

20.6% Industrials & Chemicals

Consumer

Business Services

Technology

Financial Services



Leisure

Media

Construction

Transportation

Real Estate

Telecommunications

Agriculture

Defence

EUROPEAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME

Monthly M&A Insider | September | 24EUROPE

TREND GRAPHS

EUROPEAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

Return to contents

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

44.4%

8.3%

19.2%

15.0%

13.1%

33.6%28.6% 26.6%

33.9%

8.5% 9.0% 9.8% 9.5%

20.9%29.1% 29.0%

25.3%

20.7%18.7% 20.4%

18.7%

16.3% 14.6% 14.2% 12.6%

22.1%

10.2%

27.5%

25.8%

14.4%

45.9%

7.2%

21.6%

15.5%

9.8%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

80

82

84

86

88

90

92

94

96

98

100

YTD 2014*201320122011201020092008

Perc

enta

ge

90.6%93.1%

92.1% 91.1% 91.7%

0.9% 0.9% 0.7% 0.9% 0.8%

4.2%

2.9%3.2%

3.6%3.7%

3.7%2.7% 3.7% 4.0%

3.5%

0.6% 0.5%

90.9%

0.9%

3.6%

4.1%

0.4% 0.4%

92.4%

0.9%

3.2%

3.3%

US$0-US$250m

US$251m-US$500m

US$501m-US$2,000m

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

>US$5,001m

0.3% 0.3% 0.2%



THE MIDDLE EAST & AFRICA

August’s poor performance reflects the absence of large transactions during the period. This is in sharp contrast to recent months, when deals in the region of US$1bn or above have been a regular occurrence. The largest transaction in August was the US$229m acquisition of a 66% stake in Industries Chimiques du Senegal by Indorama Synthetics of Indonesia. It is one of a small number of deals signed during 2014 in the Industrials & Chemicals sector, which accounts for only 3% of total M&A activity year-to-date (YTD) in terms of value (US$875m). Real Estate still holds the lion’s share YTD (20.3%, which is equivalent to US$5.9bn), followed by Energy, Mining & Utilities (19.9%, US$5.8bn), and Telecommunications (17.2%, US$5bn). South Africa, Qatar and Israel remain the most attractive countries (21.5%, 18.3%, and 17.3% market shares respectively).

One of the most important events held during the period was the US-Africa Leaders’ Summit, promoted by the Obama administration to drum up US investments towards the continent. For two days at the beginning of August representatives for most African countries gathered in Washington alongside corporate America leaders and big names from the investment community. The initiative is part of broader push to tap the continent’s economic potential, after years in which China has been perceived to have the upper hand. As highlighted by the Financial Times, “although the United States is still the leader in foreign direct investment in African economies, China surpassed the United States as Africa’s biggest trading partner in 2009.” The shared view among business leaders is of a region where consumer demand and the rising middle classes will underpin growth in the years ahead.

As previously reported, the African Development Bank said last May that the African continent grew at a rate of about 4% in 2013, compared to 3% for the global economy, although with substantial variations among regions. The bank’s projections saw growth accelerate to close to 5% in 2014, and 5%-6% in 2015. During a panel discussion at the US-Africa summit, Ajay Banga, CEO of MasterCard, equated Africa’s development stage to where Asia was 15 years ago. He added that technology and access to financial networks will help boost consumer spending that will drive the continent’s economic growth.

Back to Q3 figures, on the private equity front buy-outs stood at US$393m for the July-August period, compared to US$525m for the whole Q2 and US$1bn in Q1. US$548m-exit deals have been announced so far in the quarter, markedly down on the previous three months (US$2.7bn). The general outlook looks, however, optimistic.

According to a recent report compiled by the Africa Private Equity and Venture Capital Association (“The Search for Returns – Investor views on private equity in Africa”) over two-thirds of the firms surveyed believe that Africa is more attractive compared to other emerging markets. Views are mixed when it comes to identifying the most attractive region within the continent. “Twenty-six percent of limited partners think Sub-Saharan Africa (as a whole) is the most attractive proposition” said the report; “another 24% believe West Africa is the most attractive region, while 28% of limited partners are of the opinion that there is no single most attractive region.” PE firms also appear willing to increase their future exposure to the region, with more than 85% of LPs planning to do so over the next 24 months.

Reflecting the bullish mood in the PE community, David Rubenstein, joint CEO of the Carlyle Group, said that “opportunities are far greater than people thought a few years ago, and the great explosion in private equity, if it is going to occur anywhere in the world in the next couple of years, is probably going to be in Africa.” Carlyle closed last April its first fund exclusively dedicated to sub-Saharan Africa at US$698m, 40% above target.

Although on a smaller scale, France hosted in July a similar initiative to the US-African summit, with the aim of strengthening the country’s economic ties with the continent – the Franco-African Foundation for Growth. Reflecting on China’s penetration into the region, Etienne Giros, deputy chairman of the Conseil des investisseurs français en Afrique (CIAN), said that “the delay in French investment that is so often spoken of remains relative. However, the African market as a whole is growing quicker than France’s share of said market.”

Deal activity in the Middle East and Africa region (ME&A) declined sharply during the first two months of Q3 2014, completely reversing the uptick registered in Q2 2014. August in particular stands out for its subdued activity, with volume at US$796m (down 91.5% on the same month last year) and 15 transactions (down 60%). It is the lowest level generated during this month since before the financial crisis in 2008, according to Mergermarket data.

TOP DEALS

Monthly M&A Insider | September | 26MIDDLE EAST & AFRICA

TOP 10 MIDDLE EASTERN & AFRICAN ANNOUNCED DEALS OF THE MONTH (AUG-14)Announced Bidder company Target company Target dominant


1-day before

Deal value


21-Aug-14 Indorama Synthetics, Tbk Industries Chimiques du Senegal (66% stake)


Government of Senegal; and Indian Farmers Fertiliser Co-operative Ltd

- - - - 229

30-Aug-14 Bharti Airtel Limited; and Safaricom Limited

Essar Telecom Kenya Limited TMT Essar Capital Limited - - - - 120

04-Aug-14 BRF Brasil Foods SA Alyasra Food Company (frozen food distribution unit) (75% stake)

Consumer Alyasra Food Company - - - - 120

06-Aug-14 Minor International Public Co Ltd

Rani Minor Holding II Ltd (49% stake)

Real Estate Rani Investment LLC - - - - 101

12-Aug-14 Denel Group BAE Systems Land Systems South Africa Proprietary Limited

Defence BAE Systems Plc; and DGD Technologies (2001) Proprietary Limited

- - - - 80

18-Aug-14 Minor International Public Co Ltd

Sun International (Botswana) Proprietary Limited (64% stake); Sands Hotels (Proprietary) Limited (80% stake); Sun International of Lesotho (Proprietary) Limited (37.54% stake); St. Vincent Investments Limited (40.49% stake); and Sun International (Zambia) Limited (50% stake)

Leisure Sun International Ltd - - - - 64

13-Aug-14 Macrovest 147 Proprietary Limited

EVRAZ Highveld Steel and Vanadium Limited (34% stake)


EVRAZ Plc - - - - 27

05-Aug-14 Sanhua Holding Group Heliofocus Ltd (30.23% stake) Energy, Mining & Utilities

Zhejiang Sanhua Co Ltd 10.1 - - - 20

13-Aug-14 Yahoo! Inc ClarityRay TMT Saar Wilf (private investor) - - - - 15

11-Aug-14 Ascendis Health (Pty) Limited

Arctic Healthcare (six brands) Consumer Arctic Healthcare (Pty) Ltd - - - - 14

Based on announced deals, including lapsed and withdrawn bids Based on dominant geography of target company being Middle East or Africa Data correct as of 08-Sep-14


TREND GRAPHS


MIDDLE EASTERN & AFRICAN M&A QUARTERLY TREND

MIDDLE EASTERN & AFRICAN M&A QUARTERLY PRIVATE EQUITY TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL TREND

MIDDLE EASTERN & AFRICAN M&A ANNUAL PRIVATE EQUITY TREND

Valu

e (U

S$m

)

Num

ber of deals

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

20

40

60

80

100

120

140

160

Valu

e (U

S$bn

)

Num

ber of deals

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008


0

100

200

300

400

500

600

Valu

e (U

S$bn

)

Num

ber of deals

0

2

4

6

8

10

12

14

YTD 2014*201320122011201020092008


0

10

20

30

40

50

60

70

Valu

e (U

S$m

)

Num

ber of deals

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Q314*

Q214

Q114

Q413

Q313

Q213

Q113

Q412

Q312

Q212

Q112

Q411

Q311

Q211

Q111

Q410

Q310

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108


0

5

10

15

20

25


MIDDLE EASTERN & AFRICAN M&A GEOGRAPHIC BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

21.4%

18.3%

0.8%1.2%

1.5%

2.1%1.9%

2.2%2.2%

0.8%0.8% 0.7%

0.6%

1.5%

4.5%

3.3%

8.7%

17.3%

9.2%

South Africa

Qatar

Israel

Algeria

United Arab Emirates

Chad

Angola

Ivory Coast

Nigeria

Saudi Arabia

Egypt

Ghana

Namibia

Cameroon

Senegal

Kenya

Ethiopia

Morocco

Other

30.5%

2.1%

19.4%

0.8%

11.2%0.4%1.2%

0.4%

3.7%

3.7%

3.7%0.8%

1.2%1.2%

0.4% 4.1%

0.8%

0.8%1.2%

10.7%

1.7%South Africa

Qatar

Israel

Algeria

United Arab Emirates

Chad

Angola

Ivory Coast

Nigeria

Saudi Arabia

Egypt

Ghana

Namibia

Cameroon

Senegal

Kenya

Ethiopia

Morocco

Botswana

Tunisia

Other

13.7%

11.2%

15.0%

6.2%

10.8%8.3%

5.8%

5.0%

4.6%

4.1%

4.1%3.3%

2.5% 0.4%

5.0%



Consumer

Technology

Financial Services

Business Services


Telecommunications

Transportation

Real Estate

Media

Leisure

Construction

Agriculture

Defence

19.9%

1.1%

17.2%7.3%

20.2%

1.1%

0.2%3.1% 5.9%

0.3%0.8%

3.0%

10.2%

8.3%

1.4%



Consumer

Technology

Financial Services

Business Services


Telecommunications

Transportation

Real Estate

Media

Leisure

Construction

Agriculture

Defence

MIDDLE EASTERN & AFRICAN M&A SECTOR BREAKDOWN YTD 2014

VALUE VOLUME


MIDDLE EASTERN & AFRICAN M&A DEAL SIZE BREAKDOWN YTD 2014

VALUE VOLUME

TREND GRAPHS

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0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

42.6%47.3% 45.4% 46.9% 44.8%

5.6% 4.0%5.6% 6.1% 4.9%

11.5% 13.0%10.0% 11.1% 12.3%

36.5%32.4% 33.1% 28.6% 30.3%

3.8% 3.3% 5.9% 7.3% 7.7%

54.8%

4.3%

9.4%

25.7%

5.8%

48.9%

14.0%

25.6%

4.5%7.0%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

0

10

20

30

40

50

60

70

80

90

100

YTD 2014*201320122011201020092008

Perc

enta

ge

47.5%53.1%

68.0%58.4%

65.3%

13.7% 12.9%9.0% 9.2% 8.2%

18.9%13.2%

12.6%

13.9% 13.5%

51.2%

8.5%

20.0%

19.1%18.2% 19.2%

9.4%

17.2%12.1%

1.6% 1.0% 1.3%

72.4%

6.4%

10.0%

10.4%

US$0-US$14.9m

US$15m-US$100m

US$101m-US$250m

US$251m-US$500m

>US$501m

1.7% 0.9% 0.8% 1.2%

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EXECUTIVE MANAGEMENTEd BifulkPresident Tel: +1 212 229 6563

EXECUTIVE SALESAnna ScottRegional Director, UK Tel: +44 (0) 207 422 6263

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Manuel BentosinosRegional Director, Mexico, Columbia & Caribbean Tel: +52 55 9171 2237

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Brian GilbreathVice President, Midwest & Latin America Tel: +1 404 934 8085

Hank GregorySVP, Western Canada & Pacific Northwest Tel: + 604 603 4360

Todd CaveNorthern California, Pacific Northwest & Western Canada Tel: +1 651 632 4369

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Ross WhittakerRegional Director, New England Tel: +1 617.535.1516

Jon LenihanRegional Director, Boston Tel: +1 617 535 1618

Scott RedikerRegional Director, Mid Atlantic Tel: +1 443 690 3122

Forrest R. DoaneRegional Director, New York Tel: +1 212 229 6620

Bill PoleseRegional Director, New York +1 212 229 6612

John McElroneRegional Director, New York Tel: +1 212 229 6656

Joseph SolanoRegional Director, New York Tel: +1 212 229 6576

Hillary PryorRegional Director, New York Tel: +1 212 367 5924

Harry Poulos Regional Director, New York Tel: +1 212 367 5924

Meiken Castillo Regional Director, New York Tel: +1 212 229 6879

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The following notes pertain to data contained in this publication:

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

Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to US$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.

Mid-market is defined as US$10m - US$250m.

*Q3 2014 refers to the period 01-Jul-14 to 31-Aug-14. *YTD 2014 refers to the period 01-Jan-14 to 31-Aug-14.

For a full version of the mergermarket M&A deal database inclusion and league table criteria, go to http://www.mergermarket.com/pdf/deal_criteria.pdf.

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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 qualified professional adviser. While reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Schulte Roth & Zabel nor Mergermarket nor any of its subsidiaries or 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.

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