South East Asia

Mergermarket trend report H1 2016

Fact file - H1 2016 vs. H1 2015

Inbound $11.4bn 39.4%

= total targeted activity

Domestic $18.4bn 43.4%

Outbound $5.9bn -85.4%

Consumer $8.3bn 557.0%

Private equity $1.4bn 255.0%

buyouts

Private equity $0.1bn -93.1%

exits
South East Asia
Given the continuing downward trend seen since 2013 in South East
Asia (SEA), total M&A activity during H1 2016 showed a revival by deal
value recording US$ 29.8bn with 188 deals, up 41.2% with only one deal
difference from H1 2015.
Inbound transactions contributed to the growth by value in the region,
with 85 deals valued at US$ 12.1bn accounting for 40.8% of the total
value of M&A. Asia-Pacific (including Japan) were the main bidders for
the inbound deals, taking 78.4% of the total inbound value with 57 deals
worth US$ 9.5bn. Greater China (including Hong Kong and Taiwan) made
32 investments amounting to US$ 5.1bn, surpassing the historial ranker-
Japan (US$ 2.1bn, 19 deals).
On the other hand, SEA countries were cautious about their own outbound
deal making. Compared to same period last year, H1 2016s value dropped
85.4% by value with one less deal, making the average deal size US$ 84.5m
versus last years US$ 571.7m. Uncertainties in the SEA markets are due
to recent political situations in Malaysia and Thailand, which could be
hindering companies from pursuing foreign takeovers.
The Energy, Mining & Utilities sector was the most active industry with As a traditional key player in the SEA region, M&A targeting Singapore saw
31 deals worth US$ 8.5bn, accounting for 28.4% market share. This was continuing downtrend since last year. The H1 2016 recorded US$ 8.7bn
largely due to the top deal announced in the second quarter which saw worth of deals, dropping 11.4% in terms of deal value and 17.3% in terms of
Newmont Nusa Tenggara, an Indonesian mining company, being acquired market share comparing to H1 2015.
by Amman Mineral Internasional for US$ 2.6bn.
On the other hand, predominantly because of the US$ 6.2bn Big C
The Consumer sector was also noticeable in H1 2016 with 16 deals worth
Supercenter deal, Thailand stood out with 23 deals worth US$ 7.9bn,
of US$ 8.3bn Jumping 556.9%, driven by two divestments by Casino
increasing 104% in terms of deal value comparing to the same period last
Guichard Perrachon of its Big C Supercenter in Thailand and Vietnam for
year. Activity in the Phillipines and Indonesia was dominated by domestic
US$ 6.2bn and US$ 1.1bn, respectively
activity contributing 78.2% and 76.4% respectively, towards the countrys
Meanwhile, private equity buyout transactions in H1 2016 totaled US$ total deal value during H1 2016.
1.4bn across 16 deals, increasing more than three times above H1 2015
with four more transactions. Pharma, Medical & Biotech was the most
targeted sector with four deals worth US$ 559m.
In contrast, PE players in the region showed discreet intention to exit
from the market during the first half year. H1 2016 saw only four exits in
the region worth US$ 91m, marking a sharp decrease in both value and
volume from the same period last year (US$ 1.3bn, 8 deals).

Quarterly M&A value Sector breakdown Cross-border activity

2016 13.0 16.8 US$ 29.8 bn
60 200

US$ 48.3 bn Other

2015 14.5 6.6 9.4 17.8 177 56.8 180
50 162 52.9 167
Agriculture 157
2014 9.6 14.9 11.4 19.7 US$ 55.6 bn 168 160
141
2013 11.7 26.3 25.4 10.5 US$ 73.9 bn 143 140
Construction 40
127
116 128

Value of deals (US$bn)

120
2012 9.5 9.2 31.5 19.3 US$ 69.5 bn 105
Technology 107 100
30 98 100

Deal count
30.5 30.6
2011 14.0 10.6 15.3 6.8 US$ 46.7 bn 80 81 84
Financial Services 26.7 80
24.3 23.6 68 24.4 23.6
2010 15.9 12.3 11.8 21.7 US$ 61.0 bn 20 75 22.3 21.8 70
20.1 20.4 20.1 60
Energy, Mining & Utilities
4.8 15.9
2009 4.9 8.7 14.6 US$ 33.0 bn 40
13.9 13.8
10 11.4
Industrials & Chemicals
2008 19.1 19.9 9.4 6.6 US$ 55.0 bn 20
5.1 5.9
2007 10.8 23.0 10.2 13.0 US$ 57.1bn Consumer 0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 H1 2016
Value of deals (US$bn) 0 2 4 6 8 10 12 Inbound value Outbound value
Deal value (US$ bn) Inbound deal count Outbound deal count
Q1 Q2 Q3 Q4 H1 2015 H1 2016

South East Asia trend report H1 2016

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South East Asia
Top deals
Deal
Ann. Bidder Buy-side Target Target Seller
value Bidder country Sell-side advisors
date company advisors company sector company
(US$m)
6,155 8-Feb Berli Jucker Public Co Ltd Thailand FA: JayDee Partners; Maybank Big C Supercenter PCL Consumer FA: Bank of America Merrill
Investment Bank Berhad; Lynch; BNP Paribas; Credit
Morgan Stanley Agricole; Credit Suisse;
Goldman Sachs; HSBC;
LA: Weerawong, Chinnavat & JPMorgan; Natixis; Rothschild;
Peangpanor Ltd Societe Generale; The Quant
Group

LA: Linklaters; Darrois Villey

Maillot Brochier
2,600 30-Jun Amman Mineral Internasional PT Indonesia FA: - Newmont Nusa Tenggara PT Energy, Mining & Newmont Mining FA: -
(owner of Batu Hijau mine) Utilities Corporation; Sumitomo
LA: - (82.2% Stake) Corporation LA: Herbert Smith Freehills

2,142 20-May Oil Search Limited Australia FA: Credit Suisse; Goldman InterOil Corporation Energy, Mining & FA: Morgan Stanley; UBS
Sachs; Macquarie Group Utilities Investment Bank
Limited
LA: Goodmans; Osler, Hoskin
LA: Allens; Linklaters; McCarthy & Harcourt; Wachtell, Lipton,
Tetrault Rosen & Katz

1,484 30-May Globe Telecom Inc; and Philippines FA: JPMorgan; UBS Investment Vega Telecom Inc Telecom San Miguel Corporation FA: -
Philippine Long Distance Bank
Telephone Company LA: -
LA: Romulo, Mabanta,
Buenaventura, Sayoc & de los
Angeles; Picazo Buyco Tan Fider
& Santos

1,200 31-Jan Qualcomm Incorporated USA FA: - TDK's SAW Business Group Industrials & TDK Corporation FA: Deloitte
(51% Stake) Chemicals
LA: DLP Piper LA: Morrison & Foerster; Shook
Lin & Bok Singapore

South East Asia trend report H1 2016

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 South East Asia
Spotlight: Financial services Top Financial Services deals
Financial Service caught the attention in H1 2016 in SEA, with deal value Bank of Canada acquired 48% of Advanced Bank of Asia Limited for US$ Deal
increasing by 135.2% to US$ 2.9bn compared to H1 2015 (US$ 1.2bn, 18 103m. As reported by Mergermarket intelligence, even though Cambodia value Deal details
deals), whilst accounting for nine more deals. As local players consolidate is a smaller market and less developed compared to its ASEAN peers, it will (US$m)
amid tightening regulations and tougher economic climate, over two thirds continue to be an attractive destination to foreign investors. This is not only
781 Announcement date: 14-Jan
of the overall investment value came from overseas. Japan, South Korea and because the government allows foreign companies to own majority stakes
Taiwan in particular showed their appetite for Financial Service targets in and it is easier to find targets in Cambodia, but also because it could serve
Target: Security Bank Corporation (20% Stake)
SEA, making seven transactions worth US$ 1.7bn into the sector. as an entry point to the CLMV (Cambodia, Laos, Myanmar, and Vietnam)
region.
Bidder: The Bank of Tokyo-Mitsubishi UFJ Ltd
One transaction bumped the Philippines up to become the leading country
for Financial Services activity, the US$ 781m acquisition of a 20% in Security The M&A deal pipeline in banking segment is expected to be strong in
Seller: -
bank Corporation by the bank of Tokyo-Mitsubishi UFJ. Malaysia and the second half of 2016, as the banking consolidation trend is likely to be
Thailand overtook Indonesia to become the two hottest targeted countries continued and banks in SEA need to bolster their capital. Foreign investors
in terms of deal count with six deals worth US$ 714m and five deals worth from Asia-Pacific, such as Japan, Taiwan, and South Korea, who are aiming to
471 Announcement date: 08-Jun
US$ 596m, respectively. run the business overseas, will continue to be the key players. Direct impact
from Brexit on the banking sector in SEA will be limited, as Brexit is not likely
Target: LH Financial Group PCL (35.6% Stake)
Another regional highlight fell to Cambodia. It registered four M&A deals to have widespread negative rating consequences for home-grown Asia-
in H1 2016 worth US$ 237m, which were the only ones in this country Pacific banks and other financial institutions, according to Mergermarket
Bidder: CTBC Financial Holding Co Ltd
and all deals were Financial Services related. Two big ticket deals were the intelligence.
transactions involving a consortium led by Jeonbuk Bank Ltd from South
Seller: -
Korea acquired Phnom Penh Commercial Bank for US$ 134m; and National

320 Announcement date: 07-Apr

Financial Services Trend Activity Financial Services geography breakdown Target: Barclays Bank Plc (Wealth & Investment Man
agement businesses in Singapore and Hong Kong)

Bidder: Bank of Singapore Limited

Vietnam
20 50 Seller: Barclays Bank Plc
43
18 45
44 Thailand 243 Announcement date: 08-Apr
40
16 40
17.8 36
Singapore
Target: Alliance Financial Group Berhad
14 35
(14.82% Stake)
12
Value of deals (US$bn)

30
27 Philippines Bidder: Ong Beng Seng; Ong Tiong Sin; and Seow Lun Hoo
10 25
Deal count

8 20 Malaysia
Seller: Lutfiah Ismail
7.9
6 15 243 Announcement date: 05-May
Indonesia
4 10
Target: Royal Bank of Scotland Berhad
3.7
2 2.9 5 Cambodia
1.6 Bidder: Taiwan Life Insurance Co Ltd; and CTBC Bank Co
0 0 Ltd
2012 2013 2014 2015 H1 2016 100 200 300 400 500 600 700 800 900

Financial Services Deal value Financial Services Deal count

Deal value (US$ m) Seller: Royal Bank of Scotland Group Plc
H1 2015 H1 2016

South East Asia trend report H1 2016

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South East Asia
Financial advisor league table by value Financial advisor league table by deal count
Ranking Company name H1 2016 Ranking Company name H1 2016
H1 H1 Value Deal % Value H1 H1 Value Deal Count
2016 2015 (US$m) count change 2016 2015 (US$m) count change
1 26 Morgan Stanley 9,437 6 1,261.8% 1 1 CIMB Group 1,415 11 2
2 11 Goldman Sachs 8,727 6 277.1% 2 9 Credit Suisse 8,647 10 6
3 1 Credit Suisse 8,647 10 -76.2% 3 4 RHB Investment Bank 1,080 9 2
4 27 Maybank Investment Bank 6,970 6 987.4% 4 34 Morgan Stanley 9,437 6 4
5 22 JayDee Partners 6,186 2 729.2% 5 3 Goldman Sachs 8,727 6 -1
6 7 JPMorgan 5,515 4 -83.9% 6 12 Maybank Investment Bank 6,970 6 2
7 - BNP Paribas 5,175 3 - 7 44 UBS Investment Bank 3,769 5 4
8= - Credit Agricole 5,020 2 - 8 2 PwC 317 5 -3
8= 12 HSBC 5,020 2 119.0% 9 10 JPMorgan 5,515 4 0
8= - Natixis 5,020 2 - 10 15 Citi 3,236 4 1
11 35 Rothschild 4,017 3 877.4% 11 29 Deutsche Bank 2,068 4 2
12= 2 Bank of America Merrill Lynch 3,880 1 -89.0% 12 23 Deloitte 1,585 4 1
12= - Societe Generale 3,880 1 - 13 65 Kenanga Investment Bank 149 4 3
14 29 UBS Investment Bank 3,769 5 564.7% 14 8 EY 140 4 -1
15 3 Citi 3,236 4 -90.8% 15 - BNP Paribas 5,175 3 -

Legal advisor league table by value Legal advisor league table by deal count
Ranking Company name H1 2016 Ranking Company name H1 2016
H1 H1 Value Deal % Value H1 H1 Value Deal Count
2016 2015 (US$m) count change 2016 2015 (US$m) count change
1 22 Linklaters 7,651 6 637.8% 1 34 White & Case 3,582 11 9
2 - Darrois Villey Maillot Brochier 7,431 3 - 2 2 Allen & Gledhill 2,252 9 -5
3 56 White & Case 3,582 11 1,946.9% 3 6 Allen & Overy 2,523 8 1
4 62 Herbert Smith Freehills 3,349 7 2,645.1% 4 21 Herbert Smith Freehills 3,349 7 4
5 21 Allen & Overy 2,523 8 140.1% 5 3 WongPartnership 1,219 7 -5
6 60 Allens 2,383 3 1,639.4% 6 4 Linklaters 7,651 6 -5
7 28 Weerawong, Chinnavat & Peangpanor 2,306 2 274.4% 7 8 Latham & Watkins 1,052 5 -1
8 1 Allen & Gledhill 2,252 9 -94.6% 8 1 Baker & McKenzie 718 5 -13
9= - Goodmans 2,142 1 - 9 15 Morgan Lewis & Bockius 665 5 1
9= - McCarthy Tetrault 2,142 1 - 10 81 DLA Piper 1,596 4 3
9= - Osler, Hoskin & Harcourt 2,142 1 - 11 33 Khaitan & Co 848 4 2
9= - Wachtell, Lipton, Rosen & Katz 2,142 1 - 12 42 Hogan Lovells International 66 4 2
13 79 DLA Piper 1,596 4 3,446.7% 13 63 Shearman & Sterling 34 4 3
14 13 Shook Lin & Bok Singapore 1,301 3 -50.4% 14 - Darrois Villey Maillot Brochier 7,431 3 -
15 2 WongPartnership 1,219 7 -96.9% 15 36 Allens 2,383 3 1

South East Asia trend report H1 2016

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South East Asia
Trend report criteria Production contacts
All data is based on transactions over US$ 5m and is based on Mergermarkets M&A deals database. Analyst: Global research editor:
Deals with undisclosed deal values are included where the targets turnover exceeds US$10m. Susie Xiao Kirsty Wilson
Deals where the stake acquired is less than 30% will only be included if the value is greater than US$100m. T: +852 2158 9733 T: +44 20 3741 1281
Q1 data run from 01-Jan to 30-Jun
All values are in US$. PR contacts
M&A trend: Based on the dominant geography of the target company being South East Asia. Su-Chin Zhang
All trend data excludes lapsed and withdrawn bids. T: +852 2158 9706

Cross-border M&A: Inbound refers to the dominant geography of the target company being South East Asia and
the dominant geography of the bidder being any other country excluding South East Asia. Outbound refers to the
dominant geography of the bidder company being South East Asia, and the dominant geography of the target Commercial contacts
being any other country excluding South East Asia. Excludes lapsed and withdrawn bids. Ajay Narang
T: +852 2158 9764
Top deals: Based on the dominant geography of the target company being South East Asia. FA refers to financial
advisor and LA refers to legal advisor. Excludes lapsed and withdrawn bids.
Deal submission contacts
Industry analysis: Based on the dominant sector and geography of the target company. Excludes lapsed and Jade Lee
withdrawn bids. T: +852 2158 9709

League tables: Based on the dominant geography of the target, bidder or seller company being South East Asia.
Financial advisor tables exclude lapsed and withdrawn bids. Legal advisor tables include lapsed and withdrawn bids.

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