MARCH 2014

Press Review March 2014

EURO-ASIA M&A TRENDS

According to a report by THOMSON REUTERS, the value of announced M&A deals involving companies in Asia-Pacific (excluding Japan) jumped 22.1% to USD 112.7 Bn in 1Q 2014, compared to 1Q 2013. This is the strongest start in the region during 1Q since 2011. The average deal size for disclosed deals reached USD 98.3 M, notably witnessing at least 2 transactions worth more than USD 5 Bn (vs. 0 in 1Q 2013). In overall regional M&A activity, Southeast Asia contributed the highest growth with an increase of 90.9% to USD 24.7 Bn compared to 1Q 2013.

According to KPMG, the M&A trend in Thailand is set to intensify with the country’s economic scale & a growing purchasing power of its middle class.
The better moneymaking sectors in Thailand this year are automotive, retail, shopping malls & F&B.

“There is a huge opportunity for Western companies to participate in the Thai economy beyond looking at it as a base for lower costs & high-quality labor”, said Tham Sai Choy, KPMG’s APAC chairman.

FOOD & BEVERAGE

Beverage

MCLEOD RUSSEL INDIA (India) acquires VIETNAM TEA FACTORY (China)

BM KHAITAN GROUP‘s MCLEOD RUSSEL INDIA, world’s largest black tea producer has forayed into the green tea business by acquiring a tea-processing factory in Vietnam. The deal, which was executed by the company’s step down subsidiary PHU BEN TEA COMPANY, was valued at USD 820K.

EV: USD 820 K

March 5th / Deal Curry

TEMASEK (Singapore) invests USD 150 M in China’s largest fruit juice producer

Singapore investment firm TEMASEK HOLDINGS has bought USD 150 M worth of bonds that are convertible to shares of CHINA HUIYUAN JUICE GROUP, the country’s largest fruit juice producer. A filling on the Hong Kong Stock Exchange showed that TEMASEK will own a 7.68% stake in the Chinese juice producer if the bonds are converted in full.

EV: USD 1.95 Bn
Revenue (2013): USD 0.73 Bn
EBITDA Margin: 22% (USD 0.16 Bn)
EV/Revenue: 2.7x
EV/EBITDA: 12.2x

March 21st / Channel News Asia


Food

FOSUN (China) invests USD 325 M in BEIJING SANYUAN FOODS (China)

Chinese conglomerate FOSUN INTERNATIONAL has acquired a 20.45% stake in BEIJING SANYUAN FOODS; a dairy products producer for USD 325 M. FOSUN will subscribe 306 million ordinary shares at RMB 6.53 apiece in a private placement offered by SANYUAN.

Turnover (LTM from Sep 2013): USD 592 M (+5%)
EV/Revenue: 2.2x

March 4th / AVCJ

UNILAZER VENTURES (India) buys stake in MAROOSH (India)

UNILAZER VENTURES has bought 43.5% stake for approximately USD 3 M in Mumbai based QSR chain, MAROOSH. The chain is owned by IMPRESA HOSPITALITY MANAGEMENT PVT LTD (India) & the funds will be used to expand its restaurant chain by opening 50 outlets by 2015.

EV ~ USD 7 M

March 20th / Deal Curry

L CAPITAL ASIA (France) takes majority stake in KU DE TA (Singapore)

Private equity firm L CAPITAL ASIA LLC has bought a 51% stake in restaurant, club & lounge operator KU DE TA. The price of the deal was undisclosed.

Turnover (2013): USD 40 M

EBITDA Margin: 27.5% (USD 11 M)
Eq. EV/Revenue ~ 1.8x
Eq. EV/EBITDA ~ 6.8x

March 27th / The Straits Times


Wine & Spirits

EXPONENT (UK) adds whiskey maker LOCH LOMOND DISTILLERY (UK) to portfolio

UK business-focused EXPONENT PRIVATE EQUITY has bought whisky maker the LOCH LOMOND DISTILLERY COMPANY alongside the company’s management. Exponent holds a majority stake in the business & deal was expected to value LOCH LOMOND at tens of millions of pounds, putting it near the lower-end of EXPONENT’s target enterprise values of EUR 90 M to EUR 425 M.

March 3rd / Alt Assets

HEALTH & BEAUTY

Luxury

KALAARI CAPITAL (India) invests in BLUESTONE (India)

KALAARI CAPITAL PARTNERS has invested USD 10 M into Bangalore based online jewelry startup BLUESTONE. The funds will be used to ramp up its marketing & invest in brand-building initiatives.

Revenue (2013): USD 7 M

March 18th / Deal Curry

Takeover of GL BIJOUX (France) by RENAISSANCE INVESTMENT FUNDS (France)

Takeover of GL BIJOUX (France) by RENAISSANCE INVESTMENT FUNDS (France)

GL BIJOUX, a French jewelry brand in liquidation since February 2013, has been taken over by RENAISSANCE INVESTMENT FUNDS. RENAISSANCE paid EUR 2.5 M to acquire a 57% stake.

EV ~ EUR 4 M

March 26th / Lemande


Pharmaceuticals

NARAYANA HEALTH (India) acquires JUBILANT’s (India) hospital business

Bangalore based NARAYANA HEALTH has acquired the hospital business from JUBILANT FIRST TRUST HEALTHCARE a wholly owned subsidiary of JUBILANT LIFE SCIENCES. The value of the deal was not disclosed.

March 4th / Deal Curry

HAINAN HAIYAO (China) to invest USD 20 M in Pharma-Focused JV

China’s HAINAN HAIYAO, a Shenzhen-listed drug maker and distributor, plans to invest USD 20 M in a pharma-focused joint venture with several venture capital firms. HAINAN HAIYAO will hold a 49% stake in the joint venture, known as HAINAN HUANTAI BIO-PHARMACEUTICAL INVESTMENT FUND. It will primarily invest in biological and pharmaceutical related business.

March 10th / AVCJ

LUPIN (India) buys Mexican Ophthalmic Drug Firm LABORATORIOS GRIN (Mexico)

Foraying into the Latin American drug market, LUPIN LIMITED has acquired 100% equity stake in LABORATORIOS GRIN, the fourth largest pharmaceutical company in Mexico in the eye care segment. The acquisition is subject to certain closing conditions, the company said in a filing without disclosing the value of the deals.

Revenue (2013) ~ USD 28 M

March 28th / Deal Curry


Cosmetics & Toiletries

L CAPITAL ASIA (China) invests USD 25 M in Taiwan Skincare Brand

L CAPITAL ASIA, a private equity firm backed by luxury goods conglomerate LVMH (France), has invested USD 25 M for a significant minority stake in DR. WU (Taiwan), a clinical skincare brand.

March 20th / AVCJ

TEMASEK (Singapore) pays USD 5.7 Bn for stake in Li Ka-Shing’s A.S. WATSON (Hong Kong)

TEMASEK HOLDINGS has agreed to buy a 24.95% stake in A.S. WATSON, a health and beauty retailer owned by Hong Kong tycoon Li Ka-Shing, for USD 5.7 Bn. The transaction values A.S. Watson at approximately USD 23 Bn.

EV: USD 23 Bn

March 24th / AVCJ


Fashion

ASK PRAVI (India) announces investment in kids wear brand business, INDIAN CLOTHING LEAGUE (India)

ASK PRAVI PE OPPORTUNITIES FUND has announced its investment of up to USD 8 M in INDIAN CLOTHING LEAGUE PRIVATE LIMITED. The fund will pick up a substantial minority stake in the company.

March 3rd / Deal Curry

LUXOLA (Singapore) raises USD 10 M to doll up women & men in Southeast Asia

LUXOLA, a Singapore-based online beauty store, has raised USD 10 M led by Japanese strategic corporate investor TRANSCOSMOS. Existing backer GREE VENTURES (Japan) is also involved in this round. LUXOLA also operates LXEDIT, an online content site on beauty advice.

March 11th / Tech in Asia

INDUSTRY & CLEANTECH

Engineering & Construction

CHETTINAD CEMENT (India) to acquire ANJANI PORTLAND (India)

CHETTINAD CEMENT LIMITED is acquiring Hyderabad based ANJANI PORTLAND for an enterprise value of approximately USD 61 M. The acquisition gives the Chennai based company significant presence in the Andhra Pradesh (India) market and also to nearby Odisha (India) market.

Revenue (2013): USD 55 M
EBITDA (2013): 14.6% (USD 8 M)
EV/Revenue: 1.1x
EV/EBITDA: 7.6x

March 11th / Deal Curry

VICAT (France) to buyout partner SAGAR CEMENTS (India)

French cement maker VICAT GROUP is likely to buyout its Indian partner SAGAR CEMENTS’ 49% stake in JV for a consideration of EUR 482 M. The buyout would put VICAT in the top 10 cement companies in the country, making it the second largest in southern India.

Revenue (LTM): EUR 58 M
EBITDA: 6% (EUR 3 M)
EV/Revenue: 1.0x
EV/EBITDA: 16.8x

March 19th / Deal Curry


Renewable Energy

EMERTEC 5 (France) raised EUR 50M to fund CLEANTECH start-ups

EMERTEC 5 is planning to raise an additional EUR 10 M from the actual EUR 50M, to fund 15 biotech’s start-ups (approximately EUR 5 M per company). The competency domains will go from hydrogenated solutions to microalgae. Two start-ups have been already funded YNSECT (Bio refinery) by first round table of EUR 1.8 M and QUALISTEO (energy reducing) with second round table of EUR 2 M.

March 7th / L’Usine Nouvelle

SURAJBARI WINDFARM (India) raises funds from IFC

Promoted by MORGAN STANLEY (USA) & CONTINUUM ENERGY (India), SURAJBARI WINDFARM DEVELOPMENT PRIVATE LIMITED has secured funding from IFC to set up wind farms in Madhya Pradesh. The proposed investment will be backed by IFC through loans of up to USD 48 M & possible syndication of up to USD 96 M.

March 18th / Deal Curry

ARYSTA LIFE SCIENCE LTD. (Japan) announced acquisition of GOEMAR (France)

ARYSTA acquired GEOMAR, a global player in the development of bio-stimulants, bio-control products & innovative plant nutrition especially through Physio Activator & natural defenses technologies.

Revenue (2012): EUR 20 M

March 27th / Usinenouvelle

NEW TECHNOLOGIES

Payment Solutions

VALAR VENTURES (US), SQUAREPEG (Australia) lead USD 20 M round for VEND (New Zealand)

VEND, a New Zealand-based point-of-sale software provider, has received USD 20 M in Series B funding. The company will use the new funds to expand globally, with a particular focus on North America, continental Europe and the UK. VEND’s cloud-based software allows retailers to process sales, track inventory & perform customer management.

March 26th / AVCJ


Payment Solutions

ALIBABA (China) invests USD 215 M for 20 to 25% of chat app TANGO (USA)

ALIBABA has invested USD 215 M into chat app TANGO for a stake between 20 to 25%, valuing the 4-year-old US-based company at over USD 1 Bn. The deal is part of a USD 280 M funding round led by ALIBABA with other current investors including YAHOO co-founder Jerry Yang who now runs investment fund AME CLOUD VENTURES & who introduced the deal to Jack Ma, the billionaire founder of ALIBABA.

March 21st / WSJ, Forbes & FT


E-Commerce

SINGPOST’s (Singapore) grand plan to rule e-commerce in Asia

SINGPOST’s bottom line has received a boost from its logistics, retail, and e-commerce operations. SINGPOST’s e-commerce plans have been solidifying in the past year. The centerpiece of its major push is SP ECOMMERCE, a comprehensive ecommerce product that launched in April 2013 and now has over 200 paying clients including big brands like GROUPON & ZALORA.

Revenue (LTM): SGD 810 M (28% from e-commerce)
EBITDA: 27% (SGD 221 M)
EV/Revenue: 2.2x
EV/EBITA: 8.2x

March 5th / Tech In Asia

TENCENT (China) to buy 15% stake in JD.COM (China) ahead of IPO

TENCENT HOLDINGS LTD will buy a 15% in China’s No. 2 e-commerce firm JD.COM for USD 215 M, saying the two firms want to form a strategic partnership to transform the country’s e-commerce industry.

Revenue (First 9 months of 2013): USD 8 Bn

March 10th / Reuters

KINNEVIK (Sweden) leads investment in Online Classifieds QUIKR (India)

Sweden based PE firm KINNEVIK has led an investment of USD 90 M in online & mobile classifieds QUIKR. Existing investors including EBAY (USA), OMIDYAR NETWORK (USA), MATRIX PARTNERS INDIA, NOKIA GROWTH PARTNERS (USA) & NORWEST VENTURE (USA) have also participated in this round which valued the company over USD 250 M.

March 12th / Deal Curry


E-Media

ALIBABA GROUP HOLDING LTD (China) increases stake to 70.8% on CHINAVISION MEDIA GROUP LTD (China)

E-commerce ALIBABA increases stake in CHINAVISION, with a USD 803.5 M offer from an initial stake of 27% ahead of an IPO. ALIBABA’s strategy is to expand its audience in its shopping sites & squeeze out rivals.

EV: USD 1.9 Bn

March 13th / The Deal