APRIL 2013

Press Review April 2013

EURO-ASIA M&A TRENDS

Indian Companies Seek Expansions through M&A

More companies in Indian are seeking cross-border M&A activity. Deal activity has also seen a shift in deals centred around IT and Pharmaceuticals to consumer goods and energy due to the growing consumer class. In 2012, Indian made 72 outbound acquisitions worth over USD 11 Bn (USD 6.7Bn in 2011).

April 1st / Bangkok Post

China Remains the Most Attractive M&A Target in Asia-Pacific

A total of 142 inbound & domestic deals worth USD 26.3 Bn in Q1 2013 makes China the most attractive M&A market in Asia-Pacific as the huge volume acts as a stabilizer for global M&A activity. Cross-border activities increased by 69% in Q1 2013 vs the comparable period in 2012. Outbound investments also increased by 57% to USD 12.9 Bn.

April 9th / Lawyers Weekly

Chinese Investment in Europe Jumps

China’s M&A activity in Europe last year was up 21% to USD 12.6 Bn as Chinese buyers moved to seize opportunities in a region hit by a lingering debt crisis & economic softness. This trend is expected to continue as Chinese companies, finding growth slowing at home, look abroad for know- how & strong brands.

April 16th / Wall Street Journal

FOOD & BEVERAGE

MINOR INTERNATIONAL Increases Stake in BREADTALK to 9%

MINOR INTERNATIONAL (THA), through its subsidiary, MINT, has recently increased its stake in BREADTALK (SIN) from 6.3% to 8.9%. MINT currently owns over 1300 restaurants and has been steadily building up its restaurant brand portfolio in the recent years. (RIVERSIDE & COURTYARD (CHI) in 2012 & THAI EXPRESS (SIN) in 2011)

March 27th / Singapore Business Review

AB INBEV Plans Acquisitions in China

AB INBEV (BEL), the world’s biggest beermaker, plans acquisitions in China to tap on the rising beer consumption in the country. AB INBEV plans to boost capital spending to USD 3.7 Bn in 2013 to increase capacity in China & Brazil. China’s beer market presents humongous growth potential with per-capita consumption levels much lower vs other countries.

April 8th / Bloomberg

India to See M&A Surge in Sugar Sector

India’s sugar sector is gearing for a surge in M&A activity due to the government’s easing measures allowing companies to sell the entire sugar production in the open market. Domestic players are believed to be open to acquisitions as a way to acquire new technology, increase retail presence & introduce new products. The sugar sector is set to double to USD 30 Bn in the next five years (CAGR of +15% for 2012-2017)

April 8th / The Economic Times

DIVINE INVESTMENTS SA to Buy PRINTEMPS

DIVINE INVESTMENTS SA (QAT), a fund backed by Qatari investors, is set to acquire PRINTEMPS (FRA), a department store chain for EUR 1.6 Bn. The investment is the latest in a string of high-profile purchases by investors from the gas-rich Gulf state.

EV/Revenue: 0.2x
EV/EBITDA: 0.8x

April 8th / Wall Street Journal

R&R ICE CREAM to Acquire FREDERICKS DAIRIES

R&R ICE CREAM (GBR), Europe’s largest private-label ice cream manufacturer, has agreed to acquire local rival FREDERICKS DAIRIES (GBR), Britain’s largest independent ice cream manufacturer in a deal worth USD 75 M.

EV/Revenue: 1.2x
EV/EBITDA: 9.5x

April 10th / Just Food

PAI to buy R&R ICE CREAM

PAI PARTNERS (FRA), a PE firm, has agreed to buy R&R ICE CREAM (GBR), an ice cream maker, for EUR 850 M from OAKTREE CAPITAL. R&R ICECREAM is the largest private-label ice cream manufacturer in Europe.

Est EV/Revenue: 1.4x
Est EV/EBITDA: 9.4x

April 29th / Financial Times

HEALTH & BEAUTY

PHARMANIAGA to Buy PT ERRITA PHARMA

PHARMANIAGA (MAL), a manufacturer & distributor of generic pharmaceuticals & hospital equipment, agreed to buy PT ERRITA PHARMA (IDN), a manufacturer of generic pharmaceuticals for USD 28 M. PHARMANIAGA plans to increase its production capacity by 20% through the acquisition.

Est EV/Revenue: 1.4x

April 4th / The Sun Daily

CANBANK VC Invests in GNRC GUAWAHATI

CANBANK VC (IND), a subsidiary of CANARA BANK which invests in various industries, invested USD 4 M in GNRC GUAWAHATI Hospital Group (IND), a healthcare service provider for an undisclosed stake. The funds will be used to finance the establishment of a 1,000-bed super- speciality hospital in Guwahati.

April 5th / Express Healthcare

GOLDMAN SACHS & GIC Invest USD 100 M in China Healthcare iKANG

IKANG GUOBIN HEALTHCARE GROUP (CHI), one of China’s largest healthcare companies, received a USD 100 M investment from GOLDMAN SACHS GROUP & Government of Singapore Investment Corp. The investment marked a new record high of foreign investment into the Chinese healthcare industry.

April 15th / China Daily

KKR to Buy Stake in SMCP (Sandro Maje, Claudie, Pierlot)

US PE buyout house, KKR is to acquire 65% in French fashion brand, SMCP from PE firms L CAPITAL and FLORAC for EUR 650 M. KKR aims to double the business in 5 years through an aggressive expansion plan in the US, China, Korea and Japan.

Est EV/Revenue: 1.9x
Est EV/EBITDA: 10.8x

April 18th / Financial Times

HERMES Acquires Majority Stake in JOSEPH ERARD

HERMES (FRA), a luxury goods company, acquired a majority stake in JOSEPH ERARD (SWI), a luxury watch maker. HERMES previously owned 33% & has increased its stake to an undisclosed amount. Deal is part of a consolidation trend of luxury watchmakers by luxury groups.

April 20th / IVC Post

KERING Acquires POMELLATO

KERING (former PPR) acquires a majority stake in POMELLATO (ITA), one of Europe’s major jewelry group with strong international position. With this acquisition, KERING is extending & reinforcing its portfolio of luxury brands in the high growth jewelry market. POMELLATO is valued at EUR 336 M.

EV/Revenue: 2.3x
EV/EBITDA: 15x

April 24th / Reuters

Luxury Swiss Watchmaker CORUM Sold to CHINA HAIDIAN

CHINA HAIDIAN (CHI), owner of the top four domestic Chinese watch brands, has acquired 100% of CORUM (SWI), a luxury watchmaker, for EUR 72 M. This acquisition is the first purchase of a luxury Swiss watch company by a Chinese rival. It will anchor CHINA HAIDIAN’s position in the Swiss market while opening new prospects for development & positioning of the CORUM brand worldwide.

EV/Revenue: 0.6 x

April 25th / Channel News Asia

INDUSTRY & CLEANTECH

GIC to Invest USD 150 M in GREENKO HYDROELECTRIC Projects

GIC (SIN), a sovereign wealth fund, will invest ~ USD 150 M in GREENKO GROUP (IND), a player in clean energy industry. The capital injection will be used to fund 6 new hydroelectric plants in India. GIC’s infrastructure portfolio targets minority equity stakes in power generation & water utilities among others.

March 19th / Renewable Energy World

UNITED ENGINEERS Seeks Water Acquisitions in China

UNITED ENGINEERS (SIN), a provider of engineering, construction & integrated facility management services, is eyeing acquisitions to expand in water treatment industry. The company is scouting for purchases in China & Singapore & plans to expand in Vietnam, Indonesia & Malaysia.

March 28th / The Edge

LNV TECHNOLOGY Enters into JV with SINOMA

LNV TECHNOLOGY (IND), a cement equipment manufacturer, signed a JV with SINOMA INTERNATIONAL ENGINEERING (HKG), a provider of contract integration services in cement industry. SINOMA will hold 68% while V C Rao, MD of LNV Technology & LVT of Thailand will each hold 16% equity.

EV/Revenue: 1.5x

April 12th / The Times of India

BB Agrees to Buy POWER-ONE

ABB (CHE), an engineering company, agreed to buy POWER-ONE (USA), the world’s 2nd largest solar inverter maker, for USD 1 Bn. The acquisition would help increase its market share in the global solar power market, which is expected to grow by around 10% annually over the next decade.

EV/Revenue: 1.0x
EV/EBITDA: 10.0x

April 23rd / New York Times

Renewed Interest in Indian Renewable Energy

India’s renewable energy sector, led by wind energy, sees a rebound with 5 deals worth USD 500 M in 2013 so far. Wind energy is entering a consolidation phase as dominant players would look at acquiring fringe players who entered the sector for tax breaks who are looking for exits. India plans to double its renewable energy capacity to 55,000 MW by 2017 to reduce its dependence on fossil fuel. By 2020, it plans to obtain 15% of its power needs from renewable sources.

April 29th / Power Engineering

NEW TECHNOLOGIES

Demand Growth for Mobile Payments in Asia Pacific

MASTERCARD’s new survey estimates that Asia-Pac is one of the fastest growing mobile payment markets in the world. 55% Indonesian consumers surveyed make mobile payments, with China (54%) and Thailand (51%) consumers trailing behind. Survey reflects the changing behaviours of consumers in the region, choosing to pay for online goods with their mobile devices.

March 20th / MasterCard

CATCHA GROUP to Invest USD 150 M in ASEAN Online Industry

Leading Malaysia based investment group, CATCHA GROUP has announced that it would be investing up to USD 150 in online businesses in ASEAN over the next 5 years. Its current portfolio includes online companies such as ICARASIA, IPROPERTY & GROUP CATCHA MEDIA worth over USD 300 M.

March 25th / E27

SCRIPPS NETWORKS Acquires ASIAN FOOD CHANNEL

US TV network company, SCRIPPS NETWORKS has acquired Singapore based ASIAN FOOD CHANNEL, a satellite channel dedicated towards food related programmes for USD 65 M.

April 15th / SG Entrepreneurs