merril datasite ma insider april2012
TRANSCRIPT
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Monthly M&A InsIder
A mergermArket report on globAl m&A Activity
April 2012
EDITION
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Behind these trends are macroeconomic concerns and
ongoing volatility, both of which are damaging confidence and
inhibiting dealmaking. In Europe, volatility will likely persist
through the year as sovereign debt problems are unlikely tobe resolved quickly. This will have an impact on valuations
and add to M&A risk.
Nevertheless, compared with Q4 2011, Europe saw an
increase in the total value of M&A in the first quarter, buoyed
by the announced US$61bn merger of Glencore with Xstrata.
Furthermore, companies from Asia continue to show good
appetite for European assets, with bidders from the region
seeing the present market situation as an opportunity to
acquire market share and expertise. In particular, Chinese
companies are increasingly interested in overseas assets,
as a way to diversify and mitigate the impact of falling profitmargins in their home territory.
Fears that growth in China may be slowing originate largely
from suppressed profits amongst Industrials & Chemicals
companies. These concerns could be assuaged however
if the recovery in the US is sustained and exports pick up.
Furthermore, although foreign investors are cooling on China,
a number of foreign businesses remain keen to establish
themselves in the country, attracted by the tremendous
opportunities that still exist.
In January, American Express purchased a stake in Chinese
mobile payments provider LianLian Pay, for US$125m. Thismove, which will allow American Express to offer digital
wallet services in the region, is a well considered attempt
to increase exposure to the fast growing consumer market
in Asia. The first quarter of 2012 also marked a landmark
investment into Chinas financial sector by western banks,
with UBS and Standard Chartered joining two Chinese
investors to acquire a 16.5% stake in China Cinda Asset
Management Corporation for US$1.6bn.Away from defensive stocks and ongoing consolidation
among financial services companies, perhaps one of the
most talked about deal announcements of late was the
US$1bn acquisition of mobile photography app Instagram
by Facebook. The deal is one amongst a stream of start-up
acquisitions, including direct marketer Tagtile and webcam
eye-tracking software GazeHawk, demonstrating a keen
desire to refresh the product offering and maintain innovation
at Facebook ahead of its flotation on the Nasdaq in May.
In the US, TMT M&A will continue to be a bright spot, and
there are also signs that niche cross-border pockets aresetting up for a strong 2012, such as deal making between
the US and Israel. Globally, the Media subsector has been
one of the most resilient, with volume only 3% below Q1 2011
levels in Q1 2012. Of note is Ciscos US$5bn acquisition of
broadcast software provider NDS Group from News Corp,
which is intended to assist with the development of their video
platform and expansion into China and India.
Taking stock of the global M&A situation, a number of
regional and sector niche opportunities mean that there
are good reasons to stay upbeat about deal making in 2012.
Crucially, the underlying factors influencing the downturnappear to be sentimentally rather than fundamentally
driven, so that those lucrative opportunities that do exist will
continue to be pursued, so long as financing can be obtained
and investors persuaded.
GLOBAL OVERVIEW
THE FIRST QUARTER OF 2012 SAW GLOBAL M&A DEAL VOLUME TOTAL 2,587 TRANSACTIONSCOLLECTIVELY VALUED AT US$421BN, REPRESENTING YEAR-ON-YEAR FALLS OF 20% AND 30% INACTIVITY AND VALUE TERMS. A SIMILAR TREND IS REFLECTED IN THE PRIVATE EQUITY SPHERE,WHERE THE SAME COMPARISON SHOWS VOLUME FALLING BY 20% AND VALUE BY 34%.
Head of Research: Elias Latsis
Editor: Felicity James
For advertising opportunities contact:
Erik WickmanTel: + (1) 212 [email protected]
Global overview: Rob Imonikhe
Latin America: Urna Chakraborty
North America: Ashley Klepach
Asia-Pacific: Timothy PhillipsEurope: Peter Kruk and Kirsty Wilson
Middle East & Africa: Silvia Paparello,Marie-Laure Keyrouz and Beatrice Bragho
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LEAGUE TABLES
Monthly M&A Insider
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 2 Goldman Sachs 125,364 56 143,280 -12.5%
2 8 Citigroup 111,578 34 81,479 36.9%
3 10 Deutsche Bank 107,651 41 68,435 57.3%
4 3 Morgan Stanley 107,200 54 126,915 -15.5%
5 1 JPMorgan 106,521 48 152,680 -30.2%
6 6 Barclays 95,618 33 89,937 6.3%7 7 Credit Suisse 79,315 31 82,732 -4.1%
8 16 Nomura Holdings 68,971 27 20,609 234.7%
9 5 Bank of America Merrill Lynch 61,069 39 97,137 -37.1%
10 18 BNP Paribas 55,785 4 20,230 175.8%
11 11 Rothschild 29,524 36 27,690 6.6%
12 26 RBC Capital Markets 28,044 28 12,612 122.4%
13 4 Lazard 24,709 34 101,791 -75.7%
14 9 UBS Investment Bank 23,398 33 71,062 -67.1%
15 20 Evercore Partners 15,493 19 18,177 -14.8%
16 82 TD Securities 14,757 9 1,999 638.2%
17 92 Greenhill & Co 13,580 6 1,618 739.3%
18 25 Jefferies & Company 12,677 20 13,729 -7.7%
19 32 BMO Capital Markets 12,002 13 8,217 46.1%20 15 HSBC 11,875 20 21,310 -44.3%
Source: mergermarket
The financial adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12. The tables cover all sectors and are based on thegeography of either the target, bidder or seller being Global.
TOP 20 FINANCIAL ADVISERS GLOBAL
VALUE
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 1 Goldman Sachs 125,364 56 78 -22
2 3 Morgan Stanley 107,200 54 64 -10
3 4 JPMorgan 106,521 48 60 -12
4 10 Deutsche Bank 107,651 41 53 -125 7 Bank of America Merrill Lynch 61,069 39 58 -19
6 5 PwC 4,017 39 60 -21
7 9 Deloitte 2,387 38 57 -19
8 13 Rothschild 29,524 36 42 -6
9 12 Citigroup 111,578 34 44 -10
10 14 Lazard 24,709 34 35 -1
11 16 Barclays 95,618 33 29 4
12 6 UBS Investment Bank 23,398 33 59 -26
13 8 Credit Suisse 79,315 31 57 -26
14 20 RBC Capital Markets 28,044 28 24 4
15 18 Nomura Holdings 68,971 27 26 1
16 2 KPMG 1,928 24 78 -54
17 11 Ernst & Young 3,061 23 51 -2818 31 Houlihan Lokey 1,687 22 15 7
19 15 Jefferies & Company 12,677 20 34 -14
20 26 HSBC 11,875 20 17 3
Source: mergermarket
TOP 20 FINANCIAL ADVISERS GLOBAL
VOLUME
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Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 4 Jones Day 23,011 56 71 -15
2 7 Linklaters 77,639 48 62 -14
3 9 Kirkland & Ellis 27,200 48 61 -13
4 1 DLA Piper 7,360 48 87 -395 2 Latham & Watkins 18,465 44 76 -32
6 6 Freshfields Bruckhaus Deringer 84,656 39 63 -24
7 3 Clifford Chance 22,385 39 73 -34
8 5 Allen & Overy 24,245 38 67 -29
9 12 CMS 1,417 35 50 -15
10 11 Hogan Lovells 5,108 34 50 -16
11 14 Sullivan & Cromwell 40,606 32 46 -14
12 10 Skadden Arps Slate Meagher & Flom 28,466 30 56 -26
13 13 Weil Gotshal & Manges 16,538 30 48 -18
14 27 Blake, Cassels & Graydon 13,685 26 28 -2
15 8 Baker & McKenzie 2,827 26 62 -36
16 49 Stikeman Elliott 16,237 25 19 6
17 17 White & Case 6,832 25 35 -1018 23 Dewey & LeBoeuf 23,301 23 30 -7
19 21 Wilson Sonsini Goodrich & Rosati P.C. 3,203 23 31 -8
20 35 Mayer Brown 1,970 23 22 1
Source: mergermarket
The legal adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and include lapsed and withdrawn deals. The tables coverall sectors and are based on the geography of either the target, bidder or seller being Global.
TOP 20 LEGAL ADVISERS GLOBAL
VOLUME
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 8 Freshfields Bruckhaus Deringer 84,656 39 78,791 7.4%
2 7 Linklaters 77,639 48 79,340 -2.1%
3 125 King & Wood Mallesons 62,034 10 2,947 2,005.0%
4 4 Sullivan & Cromwell 40,606 32 97,309 -58.3%
5 6 Skadden Arps Slate Meagher & Flom 28,466 30 82,892 -65.7%
6 53 Kirkland & Ellis 27,200 48 11,099 145.1%7 10 Allen & Overy 24,245 38 71,958 -66.3%
8 13 Dewey & LeBoeuf 23,301 23 62,875 -62.9%
9 29 Jones Day 23,011 56 22,205 3.6%
10 16 Clifford Chance 22,385 39 49,830 -55.1%
11 105 Paul Weiss Rifkind Wharton & Garrison 19,567 16 4,527 332.2%
12 12 Davis Polk & Wardwell 19,453 19 65,164 -70.1%
13 3 Latham & Watkins 18,465 44 97,784 -81.1%
14 36 Vinson & Elkins 17,175 21 15,963 7.6%
15 18 Weil Gotshal & Manges 16,538 30 44,552 -62.9%
16 34 Gibson Dunn & Crutcher 16,388 20 16,818 -2.6%
17 127 Stikeman Elliott 16,237 25 2,859 467.9%
18 11 Shearman & Sterling 15,231 17 69,153 -78.0%
19 195 Bennett Jones 14,245 6 1,020 1,296.6%20 2 Simpson Thacher & Bartlett 13,853 12 121,560 -88.6%
Source: mergermarket
TOP 20 LEGAL ADVISERS GLOBAL
VALUE
LEAGUE TABLES
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LEAGUE TABLES
VALUE
VALUE
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 Apollo Global Management 7,915 3
2= Access Industries 7,150 1
2= Riverstone Holdings 7,150 1
4 GS Capital Partners 3,578 2
5 Advent International 3,178 1
6 CITIC Capital Partners 2,500 3
7 CVC Capital Partners 2,423 3
8 Vista Equity Partners 2,251 3
9 Cinven 1,467 1
10 Blackstone Group 1,430 1
11 Insight Venture Partners 1,326 2
12 China Africa Development Fund 1,250 1
13 TPG Capital 871 2
14 Novo 708 1
15 Strategic Value Partners 663 1
Source: mergermarket
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 Permira 5,000 1
2 Madison Dearborn Partners 3,178 1
3 GS Capital Partners 3,028 2
4 EnCap Investments 2,850 15 Cinven 2,398 1
6 The Carlyle Group 2,293 3
7 Riverstone Holdings 2,123 2
8 Mid Europa Partners 1,801 2
9 Electra Partners 1,666 2
10 Intermediate Capital Group 1,467 1
11 Arle Capital Partners 1,260 1
12 Atlas Venture 1,002 3
13= Teachers Private Capital 1,000 1
13= Thoma Bravo 1,000 1
13= Vestar Capital Partners 1,000 1
Source: mergermarket
VOLUME
VOLUME
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 The Riverside Company - 7
2 Lloyds TSB Development Capital 278 4
3= Grey Mountain Partners - 4
3= mutares - 4
5 Apollo Global Management 7,915 3
6 CITIC Capital Partners 2,500 3
7 CVC Capital Partners 2,423 3
8 Vista Equity Partners 2,251 3
9 General Atlantic 415 3
10 The Carlyle Group 352 3
11 Wynnchurch Capital 99 3
12 H.I.G. Capital 47 3
13= Arsenal Capital Partners 30 3
13= Platinum Equity 30 3
15= Ciclad - 3
15= Levine Leichtman Capital Partners - 3
15= Naxicap Partners - 3
Source: mergermarket
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 Sun Capital Partners 98 6
2 Intel Capital 490 4
3 Audax Private Equity Group 124 4
4 The Carlyle Group 2,293 35 Atlas Venture 1,002 3
6 TA Associates 588 3
7 Platinum Equity 362 3
8 Scottish Equity Partners 208 3
9 Benchmark Capital 195 3
10 Softbank Capital Partners 180 3
11 American Capital 144 3
12 SV Angel 50 3
13 H.I.G. Capital - 3
14 GS Capital Partners 3,028 2
15 Riverstone Holdings 2,123 2
Source: mergermarket
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL BUYOUTS
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON GLOBAL EXITS
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is Global.The tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and exclude lapsed and withdrawn deals.
The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is Global.The tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and exclude lapsed and withdrawn deals.
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TREND GRAPHS
GLOBAL M&A QUARTERLY TREND
0
200
400
600
800
1,000
1,200
1,400
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
Value
(US$bn
)
Total value Mid-market value
Numberofdeals
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Value
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
100
200
300
400
500
600
700
800
900
GLOBAL M&A ANNUAL TREND GLOBAL M&A ANNUAL PRIVATE EQUITY TREND
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
YTD 2012*201120102009200820072006
Va
lue
(US$bn
)
Total value Mid-market value
Numberofd
eals
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Total volume Mid-market volume
0
100
200
300
400
500
600
700
800
900
YTD 2012*201120102009200820072006
Va
lue
(US$bn
)
Buyout value Exit value
Numberofd
eals
Buyout volume Exit volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
GLOBAL M&A QUARTERLY PRIVATE EQUITY TREND
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TREND GRAPHS
GLOBAL M&A SECTOR BREAKDOWN YTD 2012
GLOBAL GEOGRAPHIC BREAKDOWN YTD 2012
VALUE
VALUE
VOLUME
VOLUME
35.5%
6.4%
2.6%
4.5%
1.3%3.7%
2.2% 1.4%
5.9%
1.7%
8.8%
13.9%
6.7%
5.5%
Industrials & Chemicals
Consumer
Business Services
Technology
Energy, Mining & Utilities
Financial Services
Pharma, Medical & Biotech
Construction
Media
Leisure
Transportation
Real Estate
Agriculture
Telecommunications
1.9% 4.5%
35.5%
39.5%
18.6% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
9.0%
10.9%
2.1%
1.0% 0.9%
0.3%
3.4%
3.4%
3.2%
7.5%
3.8%
8.1%
21.6%
13.7%
11.1%
Industrials & Chemicals
Consumer
Business Services
Technology
Energy, Mining & Utilities
Financial Services
Pharma, Medical & Biotech
Construction
Media
Leisure
Transportation
Real Estate
Agriculture
Telecommunications
Defence
4.4%2.8%
34.3%
41.1%
17.4% Asia-Pacific
Europe
North America
Middle East & Africa
Central & South America
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TREND GRAPHS
GLOBAL M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
42.3%
16.8%
20.8%
7.5%
12.6%
39.8%
16.9%
23.0%
7.9%
12.5%
42.0%
15.3%
19.3%
8.9%
14.5%
40.6%
16.5%
20.5%
7.9%
14.5%
27.3%
20.6%
27.6%
9.5%
14.9%
30.2%
19.3%
25.8%
10.2%
14.5%
29.0%
20.8%
27.0%
10.6%
12.5%
US$5,001m
Percen
tage
80
82
84
86
88
90
92
94
96
98
100
YTD 2012*201120102009200820072006
US$5,001m
1.2%
5.0%
4.7%
88.3%
1.3%
5.5%
5.1%
87.4%
0.6%
0.9%
3.9%
4.6%
90.1%
1.0%
3.8%
3.9%
90.9%
89.2%
4.5%
4.7%
1.1%
0.4%
1.1%
4.7%
4.9%
88.8%
0.7% 0.7% 0.5%
1.1%
4.4%
4.9%
89.1%
0.4%0.5%
Percen
tage
SECTOR ANALYSISGLOBAL SECTOR ANALYSIS
Sector Q1 2012 Q1 2011 % change
Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count value volume
Energy, Mining & Utilities 149,485 35.5% 232 163,572 27.1% 294 -9% -62Industrials & Chemicals 58,444 13.9% 559 116,474 19.3% 639 -50% -80
Consumer 28,222 6.7% 354 53,388 8.8% 418 -47% -64
Financial Services 36,951 8.8% 210 61,424 10.2% 266 -40% -56
Pharma, Medical & Biotech 24,726 5.9% 194 32,445 5.4% 262 -24% -68
Technology 26,982 6.4% 281 28,455 4.7% 359 -5% -78
Business Services 23,247 5.5% 288 20,337 3.4% 439 14% -151
Media 7,361 1.7% 88 15,222 2.5% 91 -52% -3
Transportation 10,794 2.6% 83 19,070 3.2% 99 -43% -16
Real Estate 15,629 3.7% 54 41,980 6.9% 51 -63% 3
Leisure 5,642 1.3% 88 7,048 1.2% 107 -20% -19
Telecommunications 5,738 1.4% 24 24,907 4.1% 44 -77% -20
Defence 9 0.0% 7 5,520 0.9% 12 -100% -5
Construction 19,079 4.5% 99 12,333 2.0% 119 55% -20Agriculture 9,070 2.2% 26 1,900 0.3% 46 377% -20
Total 421,379 2,587 604,075 3,246 -30% -659
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M E R R I L L D A T A S I T E
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LATIN AMERICAA MERGERMARKET M&A REPORT ON
Monthly M&A Insider 09
Meanwhile, Mexico, Colombia and Costa Rica have also been
active in M&A for the first quarter, with Mexico and Colombia
both at 10 deals valued at US$1.1bn. Costa Rica only has two
reported deals for the quarter but they are collectively valued at
a whopping US$1bn, comprising 5.3% of deals by value.
The top deal of the quarter is Brazil-based Itau Unibanco
Holding SAs acquisition of a 49.99% stake in Brazil-based
Redecard SA. Announced on 07-Feb-12, it is valued at US$6.9m.
Itau Unibanco, a provider of commercial and investment banking
services, already owns a 50.01% stake in Redecard, a provider of
credit card payment processing services.
The lead Latin American financial adviser by value and
volume is Citigroup at number one, up nine spots from last
year, having advised on five deals worth US$15.5bn. In second
place is Banco Itau BBA, up five spots from Q1 2011, with
five deals worth US$9.6bn. The top Latin American legal
advisory firm by value is Mattos Filho, Veiga Filho, Marrey Jr
e Quiroga Advogados with five deals worth US$8.9bn followed
by Lefosse Advogados with four deals worth US$2.7bn. By
volume, the top Latin American legal firm is Pinheiro Neto
Advogados with 13 deals worth US$974m and Machado
Meyer Sendacz e Opice comes in second, having advised on
nine deals worth US$2.5bn.
IN Q1 2012 LATIN AMERICA M&A DROPPED IN TERMS OF BOTH VOLUME AND VALUE WHEN COMPAREDTO Q1 OF LAST YEAR, REPORTING 116 DEALS COLLECTIVELY WORTH US$19.1BN. THE SECTOR WITH THEHIGHEST MARKET SHARE, BUSINESS SERVICES, HAS 14 DEALS WORTH US$7.5BN, UP 680% FROM Q1 2011IN VALUE. BRAZIL REMAINS THE FORERUNNER IN THE FIRST QUARTER COMPRISING 75.4% OF DEALS BYVALUE AND 56% BY VOLUME WITH A TOTAL OF 65 DEALS WORTH US$14.4BN.
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Deal summary
Announced: 07-Feb-12 Deal Value: US$6,864m
Itau Unibanco Holding SA has agreed to acquire a 49.99%
stake in Redecard SA.
Itau Unibanco, the listed Brazil-based company
headquartered in Sao Paulo, is a provider of commercial and
investment banking services. Redecard, the listed Brazil-
based company headquartered in Barueri, is a provider of
credit card payment processing services.
TERMS:
R$35 (US$20.46) in cash per each Redecard share.
Itau Unibanco will acquire 336,390,251 shares in
Redecard, which corresponds to a 49.99% in the
target company.
Based on 672,970,705 Redecard shares outstanding, theimplied equity value of the transaction is R$23,553.975m
(US$13,732m).
The offer provides a premium of 9.5% over Redecards
closing share price of R$32.04 (US$18.68) on 06-Feb-12,
one day prior to the announcement of the transaction;
and a premium of 29.1% based on Redecards closing
share price of R$28.95 (US$15.84) on 06-Jan-12, the
last trading day one month prior to the announcement
of the transaction.
POST-DEAL DETAILS:
Once the transaction is completed, Redecard will be
delisted from BM&F Bovespa.
CONDITIONS:
Redecard shareholder approval
Regulatory approvals
Customary closing conditions
BACKGROUND:
Itau Unibanco already owns a 50.01% stake in Redecard.
DEAL OF THE QUARTER
Advisers
Target Bidder
Financial BR PartnersCitigroupRothschild (Luiz Muniz)
Financial Banco Itau BBA
Legal Legal Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
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DEAL OF THE QUARTER
Target
Anglo American Sur S.A.
Headquarters: 939 Avenida Marcos Penteado de Ulhoa RodriguesBarueri, Sao Paulo 06460-040Brazil
Sector: Business Services
Description: Brazil-based provider of credit card payment processing services
Bidder
Itau Unibanco Holding SA
Headquarters: 100 Praca Alfredo Egydio De Souza AranhaParque Jabaquara, Sao Paulo 04344-902Brazil
Sector: Financial Services
Description: Brazil-based provider of commercial and investment banking services
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TOP 10 LATIN AMERICAN ANNOUNCED DEALS OF Q1 2012
Announced Bidder company Target company Target dominant
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal
value
(US$m)Revenue EBITDA P/E
07-Feb-12 Itau Unibanco Holding SA Redecard SA(49.99% stake)
Business Services 7.6 12.3 18.2 9.5% 6,864
26-Mar-12 Mubadala DevelopmentCompany PJSC
Grupo EBX (5.63% stake) Energy, Mining &Utilities
- 2,000
30-Jan-12 Atlantia-Bertin Group JV Atlantia SpA (concessionmotorway assets); andBertin SA (concessionmotorway assets)
Construction Atlantia SpA;and Bertin SA
- 1,132
24-Jan-12 Banco Davivienda SA HSBC Costa Rica; HSBCEl Salvador; and HSBCHonduras SA
Financial Services HSBC Bank(Panama) SA n/a n/a - 801
24-Feb-12 CPFL Energias Renovaveis SA Bons Ventos Geradora deEnergia SA
Energy, Mining &Utilities
Fundo deInvestimento emParticipacoesBrasil Energia;ServtecInvestimentose ParticipacoesLtda; and FIPProgresso
- 620
08-Feb-12 BTG Pactual SA Celfin Capital Financial Services - 600
21-Feb-12 Cosan SA Industria eComercio
America Latina Logistica(5.67% stake)
Transportation 4.9 13.1 69.6 109.6% 524
07-Mar-12 AXA SA HSBC Holdings plc(property and casualtybusinesses in Hong Kong,Singapore and Mexico)
Financial Services HSBC Holdingsplc
n/a n/a - 494
15-Mar-12 Transmissora Alianca deEnergia Eletrica SA
Abengoa ParticipacoesHolding SA (50.00% stake)
Energy, Mining &Utilities
Abengoa SA - 492
07-Mar-12 Prosegur Compania deSeguridad SA
Transbank; and NordesteSeguranca
Business Services 1.0 - 472
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being Latin America
Data correct as of 10-Apr-12
Source: mergermarket
TOP DEALS
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The financial adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12. The tables cover all sectors and are based on thegeography of either the target, bidder or seller being Latin American.
VALUE
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 10 Citigroup 15,525 5 5,596 177%
2 7 Banco Itau BBA 9,566 5 7,327 30.6%
3 31 BR Partners 7,121 2 75 9395%
4 13 Rothschild 6,864 2 5,240 31.0%
5 2 Goldman Sachs 4,335 5 13,305 -67.4%
6 15 Credit Suisse 2,272 2 4,011 -43.4%7 4 HSBC 1,715 3 8,376 -79.5%
8 9 Morgan Stanley 1,132 1 6,033 -81.2%
9 20 UBS Investment Bank 1,055 3 442 139%
10 1 BTG Pactual 974 3 14,435 -93.3%
11 14 Bank of America Merrill Lynch 753 2 5,233 -85.6%
12= 25 Barclays 693 1 201 245%
12= - ING 693 1 - -
13 - Stephens 656 2 - -
14 - Wells Fargo Securities 656 1 - -
15 - Standard Chartered 438 1 - -
16 6 Banco Bradesco BBI 352 1 7,738 -95.5%
17= - Daewoo Securities Co 308 1 - -
17= 16 Deutsche Bank 308 1 2,188 -85.9%17= - Samsung Securities Co 308 1 - -
Source: mergermarket
TOP 20 FINANCIAL ADVISERS LATIN AMERICA
VOLUME
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 4 Citigroup 15,525 5 8 -3
2 1 Banco Itau BBA 9,566 5 11 -6
3 3 Goldman Sachs 4,335 5 9 -4
4 16 HSBC 1,715 3 2 15 28 UBS Investment Bank 1,055 3 1 2
6 2 BTG Pactual 974 3 10 -7
7 14 BR Partners 7,121 2 3 -1
8 9 Rothschild 6,864 2 4 -2
9 5 Credit Suisse 2,272 2 8 -6
10 13 Bank of America Merrill Lynch 753 2 3 -1
11 - Stephens 656 2 - -
12 11 Banco Bradesco BBI 352 2 3 -1
13 7 Morgan Stanley 1,132 1 4 -3
14= 31 Barclays 693 1 1 0
14= - ING 693 1 - -
15 - Wells Fargo Securities 656 1 - -
16 - Standard Chartered 438 1 - -17= - Daewoo Securities Co 308 1 - -
17= 19 Deutsche Bank 308 1 2 -1
17= - Samsung Securities Co 308 1 - -
Source: mergermarket
TOP 20 FINANCIAL ADVISERS LATIN AMERICA
LEAGUE TABLES
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The legal adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and include lapsed and withdrawn deals. The tablescover all sectors and are based on the geography of either the target, bidder or seller being Latin American.
LEAGUE TABLES
VOLUME
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 2 Pinheiro Neto Advogados 974 13 10 3
2 1 Machado Meyer Sendacz e Opice 2,518 9 12 -3
3 3 Souza, Cescon, Barrieu & Flesch Advogados 2,296 6 10 -4
4 7 Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados 8,966 5 8 -35 11 Lefosse Advogados 2,702 4 4 0
6 13 Tozzini Freire Teixeira e Silva Advogados 89 4 4 0
7 5 Clifford Chance 1,352 3 9 -6
8 92 Linklaters 1,295 3 1 2
9 - Azevedo Sette Advogados 515 3 - -
10 8 Lobo & de Rizzo Advogados 472 3 6 -3
11 28 Gomez-Pinzon Zuleta 438 3 3 0
12 27 Jones Day 390 3 3 0
13 110 White & Case 299 3 1 2
14 - Brigard & Urrutia 46 3 - -
15 18 Skadden Arps Slate Meagher & Flom 1,732 2 3 -1
16 4 Barbosa, Mussnich & Aragao 1,124 2 9 -7
17 - Kim & Chang 1,016 2 - -18 - Alston & Bird 705 2 - -
19 - Mundie e Advogados 649 2 - -
20 67 Philippi, Yrarrazaval, Pulido & Brunner 637 2 1 1
Source: mergermarket
TOP 20 LEGAL ADVISERS LATIN AMERICA
VALUE
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 18 Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados 8,966 5 1,676 435%
2 19 Lefosse Advogados 2,702 4 1,386 94.9%
3 5 Machado Meyer Sendacz e Opice 2,518 9 10,840 -76.8%
4 6 Souza, Cescon, Barrieu & Flesch Advogados 2,296 6 9,446 -75.7%
5= 12 Davis Polk & Wardwell 2,000 1 6,404 -68.8%
5= 37 Shearman & Sterling 2,000 1 370 441%6 7 Skadden Arps Slate Meagher & Flom 1,732 2 8,669 -80.0%
7 4 Clifford Chance 1,352 3 12,306 -89.0%
8 89 Linklaters 1,295 3 17 7518%
9 2 Barbosa, Mussnich & Aragao 1,124 2 15,562 -92.8%
10 - Kim & Chang 1,016 2 - -
11 1 Pinheiro Neto Advogados 974 13 18,724 -94.8%
12= - Addleshaw Goddard 801 1 - -
12= - Arias, Fabrega & Fabrega 801 1 - -
12= - Berdeja y Asociados 801 1 - -
12= 97 Consortium Centro America Abogados 801 1 0 -
12= - Dudley & Asociados 801 1 - -
12= - F.A. Arias & Munoz 801 1 - -
12= - Hughes Hubbard & Reed 801 1 - -12= - Lopez Rodezno & Asociados 801 1 - -
12= - Morgan & Morgan 801 1 - -
Source: mergermarket
TOP 20 LEGAL ADVISERS LATIN AMERICA
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TREND GRAPHS
0
10
20
30
40
50
60
70
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
Total value Mid-market value
NumberofdealsV
alue
(US$bn
)
0
20
40
60
80
100
120
140
160
180
Total volume Mid-market volume
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
Value
(US$m
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
2
4
6
8
10
12
14
16
18
0
20
40
60
80
100
120
140
160
180
YTD 2012*201120102009200820072006
Total value Mid-market value
Numberofd
ealsVa
lue
(US$bn
)
0
100
200
300
400
500
600
700
Total volume Mid-market volume
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
YTD 2012*201120102009200820072006
Value
(US$m
)
Buyout value Exit value
Numberofd
eals
Buyout volume Exit volume
0
5
10
15
20
25
30
35
40
45
50
LATIN AMERICAN M&A QUARTERLY TREND
LATIN AMERICAN M&A ANNUAL TREND LATIN AMERICAN M&A ANNUAL PRIVATEEQUITY TREND
LATIN AMERICAN M&A QUARTERLY PRIVATEEQUITY TREND
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TREND GRAPHS
LATIN AMERICAN M&A GEOGRAPHIC BREAKDOWN YTD 2012
VALUE VOLUME
75.4%
4.9%
5.6%
5.3%
5.8%
0.3%0.1%
2.6%
Brazil
Chile
Colombia
Costa Rica
Mexico
Peru
Uruguay
Argentina
56.0%
12.1%
8.6%
1.7%
8.6%
5.2%
0.9%6.9%
Brazil
Chile
Colombia
Costa Rica
Mexico
Peru
Uruguay
Argentina
LATIN AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
24.4%
39.3%
12.9%
0.7%
1.1%4.2%
0.1%0.1%
6.1%
1.5%2.4%
Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Business Services
Financial Services
Technology
Leisure
Transportation
Construction
Real Estate
Pharma, Medical & Biotech
Media
18.1%
17.2%
16.4%12.1%
11.2%
6.0%
3.4%
3.4%
2.6%1.7%
0.9%
3.4%
3.4%Industrials & Chemicals
Energy, Mining & Utilities
Consumer
Business Services
Financial Services
Technology
Leisure
Transportation
Construction
Real Estate
Pharma, Medical & Biotech
Agriculture
Media
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LATIN AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
US$5,001m
46.9%
8.3%
21.8%
10.3%
12.7%
16.2%
10.8%
31.3%
16.2%
25.5%
30.5%
20.3%
24.5%
10.0%
14.7%
9.2%
29.3%
36.6%
10.1%
14.8%9.4%
6.9%
24.9%
19.2%
39.6%
28.9%
18.4%
27.3%
11.1%
14.4%
35.9%
29.7%
21.3%
13.1%
Percentage
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
1.0%
5.4%
7.4%
85.1%
0.2%
5.3%
6.3%
87.5%
0.6%
4.7%
5.3%
88.2%
0.3%
6.9%
5.4%
85.7%82.2%
6.3%
8.2%
1.2%1.0% 0.7% 1.2% 1.8% 2.0%
6.0%
6.0%
86.0%
0.8% 0.9%
Percentage
1.1%
9.5%
5.2%
84.5%
US$5,001m
TREND GRAPHS
LATIN AMERICAN SECTOR ANALYSIS
Sector Q1 2012 Q1 2011 % change
Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume
Energy, Mining & Utilities 4,673 24.4% 20 11,100 28.0% 31 -58% -35%Industrials & Chemicals 434 2.3% 21 1,149 2.9% 21 -62% 0%
Consumer 1,384 7.2% 19 4,601 11.6% 29 -70% -34%
Financial Services 2,464 12.9% 13 517 1.3% 8 377% 63%
Pharma, Medical & Biotech 24 0.1% 3 161 0.4% 5 -85% -40%
Technology 139 0.7% 7 56 0.1% 5 148% 40%
Business Services 7,525 39.3% 14 965 2.4% 16 680% -13%
Media 292 1.5% 1 40 0.1% 3 0% -67%
Transportation 797 4.2% 4 8,008 20.2% 9 -90% -56%
Real Estate 28 0.1% 4 1,094 2.8% 2 -97% 100%
Leisure 211 1.1% 4 48 0.1% 4 340% 0%
Telecommunications 0 0.0% 0 11,385 28.7% 4 0% 100%
Defence 0 0.0% 0 0 0.0% 1 100% 0%
Construction 1,167 6.1% 4 194 0.5% 10 100% -60%Agriculture 5 0.0% 2 331 0.8% 9 -98% -78%
Total 19,143 116 39,649 157 -52% -26%
SECTOR ANALYSIS
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A MERGERMARKET M&A REPORT ON
18Monthly M&A Insider
NORTH AMERICA
M&A DOWN IN Q1 2012 AFTER STEADY 2011ALTHOUGH M&A ACTIVITY HELD STEADY IN 2011, NORTH AMERICAN ACTIVITY DECLINED IN Q1 2012, WITH873 DEALS VALUED AT US $149M, REPRESENTING A 9.9% DECREASE IN VOLUME AND A 26.2% DECREASE INVALUE. WHEN COMPARED TO THE SAME TIME LAST YEAR, Q1 2012 ACCOUNTED FOR A 43.37% DECREASE INM&A ACTIVITY IN NORTH AMERICA. IN THE NORTH AMERICA REGION, PRIVATE EQUITY EXITS WERE THE ONLYTRANSACTIONS THAT HAD INCREASED FROM 2011, ACCOUNTING FOR 138 DEALS VALUED AT US$ 21.3M. THISREPRESENTS A 10.8% INCREASE IN ACTIVITY FROM THE SAME TIME LAST YEAR. WHILE NORTH AMERICANEXITS HAVE INCREASED, PRIVATE EQUITY BUYOUTS HAVE STAYED IN LINE WITH THE OVERALL NORTH AMERICATREND, DECREASING 35.95% SINCE Q4 2011.
A closer look at the M&A deal size breakdown reveals a
dramatic decrease in large-cap transactions with a deal value
greater than US$5bn, with 4 deals valued at US$26.572bn. This
represents an 80.15% decrease from Q1 2011. Another area
consistent with the downward trend in 2012 was small-cap
transactions, with a deal value between US$0m to US$250m.
This breakdown decreased 32.77% from Q1 2011. Deal values
of US$250 to US$500m remained steady when compared to the
same period in 2011.
Energy, Mining & Utilities dominate deal activity
in 2012
Like the overall M&A activity trend in North America, the
market share in Q1 2012 for the individual sectors have
drastically declined from the year prior, with a 43% decrease in
deal value. The Energy, Mining, & Utilities sector dominated in
2012, with 92 deals valued at US$46.026m, which represents a
30.9% market share. This represents a 51% decrease in value
from Q1 2011 and a 15% decreased by volume. The sector with
the second largest market share in Q1 2012 was Industrials
& Chemicals, with a 16.1% market share. Industrials &Chemicals accounted for 164 deals worth US$23.924m,
which accounted for a 57% decrease in deal values and a 10%
decrease in deal volume.
Agriculture was the sector with the largest announced
transaction for Q1 2012, with Glencore International plc
acquiring Viterra Inc. for a deal value of US$7.347bn. The
offer represented a 1.7% premium based on the previous
closing share price of CA$15.98 per share. The transaction is
still pending. Energy, Mining & Utilities did have the second
largest announced deal for Q1 2012. A consortium of investors,
made up of Apollo Global Management, Riverstone Holdings,
and Access Industries Inc, has agreed to acquire EP Energy
Corporation from El Paso Corporation for a deal value
of US$7.150bn.
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DEAL OF THE QUARTER
Deal summary
Announced: 20-Mar-12 Deal Value: US$7,347m
PLAN OF ARRANGEMENT:
Viterra Inc.(TSX:VT), a Canada corporation, has signed
a definitive agreement to be acquired by Glencore
International plc (LON: GLEN), a Switzerland corporation.
The boards of directors of both companies have approved
the merger.
Viterra Inc., a Canadian company headquartered at
Regina, SK, is a vertically integrated global agri-business
company that provides premium quality ingredients to
leading global food manufacturers.
Glencore International , a Switzerland-based company
headquartered in Baarermattstrasse, BAAR is a holding
company operating within the commodity sector.
RATIONALE: The firm stated that the acquisition of Viterra is consistent
with Glencores strategy of strengthening its position as
one of the global leaders in grain and oilseeds markets.
They further stated that Viterras Tier 1 portfolio of assets
in Canada and Australia will allow Glencore to build
upon its position as one of the worlds largest commodity
suppliers and provides the opportunity to leverage
Glencores extensive global networks, expertise and best
practices in order to create additional value across its
agricultural businesses.
TERMS:
C$16.25 per VT share
The offer provides a premium of 1.7% based on VTs closing
share price on 19-Mar-12 of C$15.97 or 48% over VTs
closing share price on 08-Mar-12 of C$10.98, a day prior to
public announcement of expression of interest in VT.
The implied equity value of the transaction is
approx. C$6.1bn.
If a superior offer were to emerge for VT, the company would
be required to give GLEN at least 5 business days to make
adjustments to its current offer before VTs board of directors
could effect a change of recommendation of the deal.
CONDITIONS:
ICA (Canada)
CA (Canada)
HSR (USA)
FIRB Approval (Australia)
ACCC Approval (Australia)
EU Merger Regulation
MOFCOM (China)
JFTC (Japan)
KFTC (South Korea)
Competition Tribunal (South Africa)
AMC (Ukraine)
Competition Board (Turkey)
Overseas Investment Act (New Zealand)
VT EGM (66 2/3% affirmative vote required to approve)
FINANCING:
The transaction will be funded out of Glencores existing
cash resources and available credit facilities.
POST DEAL DETAILS: Glencore has entered into agreements with each of
Agrium and Richardson International which provide for
the sale of certain assets. Agrium will acquire the majority
of Viterras retail agri-products business including its 34%
interest in Canadian Fertilizer Limited (CFL) for which
Agrium will pay C$1.8bn. Richardson International will
acquire 23% of Viterras Canadian grain handling assets,
certain agri-centres and certain processing assets in
North America for C$0.8bn.
Regina, Canada will be the head office of North American
Agriculture business.
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DEAL OF THE QUARTER
Exit multiples Y/E 31-Nov-11 Premium analysis
Multiples Value (US$m) Offer price per share (US$) 16.09
Revenue - - 1 day before 1.71%
EBITDA 10.4x 704.37 1 month before 58.84%
EBIT 15.0x 490.41 1 day after 1.9%
Earnings 22.6x 266.34 Pre-rumor 47.34%
EXPECTED CLOSE:
The transaction is expected to close in the second quarter
of 2012.
TERMINATION DATE:
The termination date for the transaction is 15-Oct-12 but
it can be extended under certain circumstances.
TERMINATION FEE: C$185m, or 3.03% based on the implied equity value of
the deal. The per-share increase required to cover this
fee in a superior offer would be C$0.49. Under certain
circumstances, there would be a reverse termination fee
and the parent would owe the company C$50m.
IRREVOCABLES:
Senior Officers and Alberta Investment Management
Corp, the largest shareholder of Viterra have entered into
agreements with Glencore supporting the transaction.
BACKGROUND OF THE MERGER:
There were rumors in the media that the firm might
have received expression of interest from several parties.
On 09-Mar-12, the company acknowledged that it has
received expressions of interest from third-parties but
there can be no assurance that a transaction will result.
On 15-March-12, the firm acknowledged that, in response
to expressions of interest from third parties to acquire the
company, a process has been established by the Board
of Directors of Viterra, which includes confidentialityagreements being entered into and the provision of due
diligence. Following this announcement, on 20-Mar-
12, the firm announced that it has signed a definitive
agreement pursuant to which Glencore has agreed to
acquire shares of Viterra for C$16.25 per share.
Advisers
Target/Seller Bidder
Financial Canaccord Genuity Limited;TD Securities Inc.
Financial Bank of America Merrill Lynch;RBC Capital Markets;
Legal Ashurst;Fasken Martineau Dumoulin;Sidley Austin;Stikeman Elliott;Torys
Legal Bennett Jones;Curtis, Mallet-Prevost, Colt, & Mosle;King & Wood Mallesons;Linklaters
PR PR Hill + Knowlton Strategies;Hinton & Associates;
RLM Finsbury
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DEAL OF THE QUARTER
mergermarket/dealReporter Intelligence
11-Mar-11 Glencore is behind 3.5bn offer for Viterra report
12-Mar-11 Viterra: Glencore, ADm said to have indicated highest bid for Bunge chasing
12-Mar-11 Glencore CEO confirms interest in Gavilon
13-Mar-11 Viterra could see foreign suitors find Canadian partners before launching bids report
Bidder
Glencore International plcHeadquarters: Baarermattstrasse 3
Baar, ZugSwitzerland
Sector: Mining
Description: Switzerland-based producer and marketer of mineral, metal, energy, and agricultural commodities
Target
Viterra Inc.
Headquarters: 2625 Victoria AvenueRegina, SaskatchewanCanada
Sector: Consumer
Description: Canada-based vertically integrated global agri-business company
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TOP DEALS & EXPECTED DEALS
TOP 10 NORTH AMERICAN ANNOUNCED DEALS OF Q1 2012
Announced Bidder company Target company Target dominated
sector
Seller company Exit multiples (x) Bid premia
1-day
before
Deal value
(US$m)Revenue EBITDA P/E
20-Mar-12 Glencore International plc Viterra Inc Agriculture 0.6 7.9 22.6 1.7% 7,347
24-Feb-12 Apollo GlobalManagement LLC;Riverstone Holdings LLC;and Access Industries Inc
EP Energy Corporation Energy, Mining &Utilities
El Paso Corporation - 7,150
25-Jan-12 Roche Holding Ltd Illumina Inc Pharma, Medical& Biotech
6.5 25.6 82.3 35.3% 6,846
28-Mar-12 Tyco Flow Control Pentair Inc Industrials &
Chemicals
1.5 18.9 118.4 - 5,230
27-Jan-12 Eastman ChemicalCompany
Solutia Inc Industrials &Chemicals
2.2 8.7 12.8 41.7% 4,600
30-Jan-12 ABB Ltd Thomas & BettsCorporation
Industrials &Chemicals
1.6 10.1 20.0 24.2% 3,770
16-Jan-12 Pembina Pipeline Corp Provident Energy Ltd Energy, Mining &Utilities
25.3% 3,681
15-Feb-12 Kellogg Company Procter & GambleCompany (Pringlessnack business)
Consumer Procter & GambleCompany
2.4 14.6 - 3,545
16-Mar-12 BCE Inc Astral Media Inc Media 3.3 10.6 15.2 38.0% 3,208
17-Feb-12 Advent InternationalCorporation; and GSCapital Partners
TransUnion Corp BusinessServices
Madison DearbornPartners LLC; andPritzker family
3.1 9.4 34.5 - 3,178
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being North America (US + Canada)
Data correct as of 11-Apr-12
Source: mergermarket
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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 Georgia GulfCorporation
Industrials &Chemicals
WestlakeChemicalCorporation
Deutsche Bank (B);Morgan Stanley (B)
1,198 On 13-Jan-12, Georgia Gulf Corp, theUS-based manufacturer of chlorvinyland aromatics chemicals, receivedan unsolicited, US$35 per share offerfrom Westlake Chemical Corporaiton,the US-based manufacturer of basicchemicals, vinyls, polymers, and polyvinyl.On 01-Feb-12, Westlake raised theoffer price and stated that it would bewilling to pay part of the considerationin its own shares. The company alsodecided against nominating directorsto the Georgia Gulf Board of Directors.In the meantime, Georgia Gulf Board ofDirectors has deemed the price as notappropriate and has not accepted the offer.
Expected Deal Monster WorldwideInc
Technology Undisclosedbidder
Stone Key Partners(T); Bank ofAmerican MerrillLynch (T)
986 On 01-Mar-12, Monster Worldwide Inc, theUS-based provider of employment services,announced that the Board of Directors isreviewing strategic alternatives for thecompany. They have retained Stone KeyPartners and Bank of American MerrillLynch as financial advisers for the review.
Expected Deal Jakks Pacific Inc Consumer Oaktree Capital Rothschild (T) 492 On 13-Sep-11, Jakks Pacific Inc, the listedUS-based manufacturer of toy products,received a public unsolicited offer from
Oaktree Capital to buy the target at US$20per share. The bidder already owns a 4.99%stake in Jakks. This offer was unanimouslyrejected by the targets Board of Directors on05-Oct-11.
Expected Deal LHC Group Inc Pharma,Medical &Biotech
Undisclosedbidder
JPMorgan (T) 360 On 14-Feb-12, LHC Group Inc, the US-basedprovider of healthcare services to Medicarebeneficiaries, has announced that theBoard of Directors is exploring strategicalternatives for the company.
Expected Deal AMAGPharmaceuticals Inc
Pharma,Medical &Biotech
MSMB CapitalMA
286 On 03-Aug-11, AMAG Pharmaceuticals, thelisted US-based biopharmaceutical company,received an unsolicited proposal from MSMBCapital Management to acquire the companyat US$18 per share in cash. AMAG Boardof Directors has unanimously opposed theproposal and urged stockholders to take no
action on the offer. One of the reasons whythe Board of Directors might not supportthe acquisition is that MSMB is proposing toremove six of the seven current members ofAMAGs Board and to replace them with itsown nominees.
Expected deals based on confirmed announcements by companies involved
PIPELINE OF NORTH AMERICAN EXPECTED DEALS
TOP DEALS & EXPECTED DEALS
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Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 3 Goldman Sachs 47,800 37 82,724 -42.2%
2 6 Bank of America Merrill Lynch 39,102 26 70,175 -44.3%
3 10 Deutsche Bank 34,620 24 46,055 -24.8%
4 5 Barclays 31,808 25 73,118 -56.5%
5 9 Citigroup 31,187 19 51,228 -39.1%
6 16 RBC Capital Markets 29,459 30 12,103 143%7 1 JPMorgan 26,943 28 131,317 -79.5%
8 4 Morgan Stanley 26,358 26 74,943 -64.8%
9 2 Lazard 17,114 26 83,200 -79.4%
10 7 Credit Suisse 16,288 16 62,470 -73.9%
11 13 Evercore Partners 15,403 18 14,866 3.6%
12 44 TD Securities 14,757 9 1,999 638%
13 8 UBS Investment Bank 14,478 15 54,154 -73.3%
14 79 Greenhill & Co 12,862 4 546 2256%
15 14 Jefferies & Company 12,233 19 14,460 -15.4%
16 19 BMO Capital Markets 12,002 13 8,217 46.1%
17 15 Moelis & Company 10,306 15 14,333 -28.1%
18 51 Tudor, Pickering, Holt & Co 10,000 3 1,427 601%
19 25 Scotia Capital 8,474 7 5,452 55.4%20 47 Canaccord Genuity 8,406 9 1,632 415%
Source: mergermarket
The financial adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12. The tables cover all sectors and are based on thegeography of either the target, bidder or seller being US or Canadian.
TOP 20 FINANCIAL ADVISERS NORTH AMERICA
LEAGUE TABLES
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 1 Goldman Sachs 47,800 37 51 -14
2 11 RBC Capital Markets 29,459 30 21 9
3 3 JPMorgan 26,943 28 39 -11
4 2 Bank of America Merrill Lynch 39,102 26 41 -155 6 Morgan Stanley 26,358 26 31 -5
6 13 Lazard 17,114 26 17 9
7 10 Barclays 31,808 25 23 2
8 9 Deutsche Bank 34,620 24 29 -5
9 17 Houlihan Lokey 736 21 13 8
10 8 Citigroup Inc 31,187 19 29 -10
11 7 Jefferies & Company 12,233 19 30 -11
12 31 Evercore Partners 15,403 18 8 10
13 5 Credit Suisse 16,288 16 35 -19
14 4 UBS Investment Bank 14,478 15 37 -22
15 22 Moelis & Company 10,306 15 11 4
16 18 Robert W. Baird & Co 425 14 13 1
17 27 BMO Capital Markets 12,002 13 10 318 30 Sandler O'Neill & Partners 3,192 13 9 4
19 26 Wells Fargo Securities 5,446 12 10 2
20 25 Lincoln International 517 11 11 0
Source: mergermarket
TOP 20 FINANCIAL ADVISERS NORTH AMERICA
VALUE
VOLUME
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Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 1 Kirkland & Ellis 26,190 48 57 -9
2 4 Jones Day 21,069 46 45 1
3 2 Latham & Watkins 12,644 38 53 -15
4 3 DLA Piper 2,329 33 46 -135 5 Sullivan & Cromwell 35,248 27 37 -10
6 12 Blake, Cassels & Graydon 10,566 25 27 -2
7 8 Weil Gotshal & Manges 15,409 24 32 -8
8 6 Skadden Arps Slate Meagher & Flom 22,564 23 36 -13
9 31 Stikeman Elliott 15,984 23 18 5
10 11 Wilson Sonsini Goodrich & Rosati 3,003 22 30 -8
11 30 Vinson & Elkins 17,175 21 18 3
12 20 Morgan Lewis & Bockius 1,911 21 24 -3
13 46 Morrison & Foerster 2,564 19 14 5
14 75 Gowling Lafleur Henderson 1,575 19 7 12
15 15 Dewey & LeBoeuf 20,794 18 25 -7
16 24 Davis Polk & Wardwell 17,453 17 21 -4
17 40 Gibson Dunn & Crutcher 16,288 17 15 218 45 Mayer Brown 1,140 17 14 3
19 21 McDermott Will & Emery 5,423 16 23 -7
20 36 Linklaters 11,861 14 16 -2
Source: mergermarket
The legal adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and include lapsed and withdrawn deals. The tables coverall sectors and are based on the geography of either the target, bidder or seller being US or Canadian.
TOP 20 LEGAL ADVISERS NORTH AMERICA
LEAGUE TABLES
Ranking Q1 2012 Q1 2011
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 3 Sullivan & Cromwell 35,248 27 83,317 -57.7%
2 42 Kirkland & Ellis 26,190 48 10,159 158%
3 8 Skadden Arps Slate Meagher & Flom 22,564 23 64,850 -65.2%
4 22 Jones Day 21,069 46 20,262 4.0%
5 9 Dewey & LeBoeuf 20,794 18 60,339 -65.5%
6 12 Davis Polk & Wardwell 17,453 17 51,140 -65.9%7 52 Vinson & Elkins 17,175 21 8,763 96.0%
8 28 Gibson Dunn & Crutcher 16,288 17 15,806 3.0%
9 26 Freshfields Bruckhaus Deringer 16,114 11 17,848 -9.7%
10 90 Stikeman Elliott 15,984 23 2,859 459%
11 79 Paul Weiss Rifkind Wharton & Garrison 15,905 13 4,527 251%
12 16 Weil Gotshal & Manges 15,409 24 34,901 -55.8%
13 167 Bennett Jones 14,245 6 505 2721%
14 2 Simpson Thacher & Bartlett 13,223 11 114,460 -88.4%
15 4 Latham & Watkins 12,644 38 80,613 -84.3%
16 18 Linklaters 11,861 14 30,458 -61.1%
17 1 Wachtell, Lipton, Rosen & Katz 11,297 10 135,577 -91.7%
18 7 Shearman & Sterling 10,915 10 67,589 -83.9%
19 41 Willkie Farr & Gallagher 10,844 8 10,428 4.0%20 33 Blake, Cassels & Graydon 10,566 25 14,733 -28.3%
Source: mergermarket
TOP 20 LEGAL ADVISERS NORTH AMERICA
VALUE
VOLUME
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LEAGUE TABLES
VALUE
VALUE
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 Apollo Global Management 7,915 2
2 Access Industries 7,150 1
3 Riverstone Holdings 7,150 1
4 GS Capital Partners 3,578 2
5 Advent International 3,178 1
6 Blackstone Group 1,430 1
7 Insight Venture Partners 1,326 2
8 Trilantic Capital Partners 464 1
9 Golden Gate Capital 354 1
10 Prospect Capital 266 1
11 GI Partners 250 1
12 Bain Capital 238 1
13 Insight Equity 192 2
14 Arlon Capital Partners 188 1
15 Z Capital Partners 177 2
Source: mergermarket
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 Madison Dearborn Partners 3,178 1
2 EnCap Investments 2,850 1
3 Riverstone Holdings 1,273 1
4 The Carlyle Group 1,273 1
5 Teachers Private Capital 1,000 1
6 Thoma Bravo 1,000 17 Vestar Capital Partners 1,000 1
8 Abingworth Management 925 1
9 Advent Venture Partners 925 1
10 Atlas Venture 925 1
11 Novartis Venture Funds 925 1
12 Polaris Venture Partners 925 1
13 Berkshire Partners 750 1
14 Greenbriar Equity Group 750 1
15 Avista Capital Partners 722 2
Source: mergermarket
VOLUME
VOLUME
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 The Riverside Company 0 7
2 Grey Mountain Partners 0 4
3 Wynnchurch Capital 99 3
4 Platinum Equity 30 3
5 Levine Leichtman Capital Partners 0 3
6 Apollo Global Management 7,915 2
7 GS Capital Partners 3,578 2
8 Insight Venture Partners 1,326 2
9 Insight Equity 192 2
10 Z Capital Partners 177 2
11 Birch Hill Equity Partners Management 138 2
12 The Stephens Group 83 2
13 Versa Capital Management 62 2
14 HIG Capital 47 2
15 Arsenal Capital Partners 30 2
Source: mergermarket
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 Sun Capital Partners 98 6
2 Audax Private Equity Group 124 4
3 TA Associates 588 3
4 Benchmark Capital 195 3
5 American Capital 144 3
6 SV Angel 50 37 Avista Capital Partners 722 2
8 Angelo, Gordon & Co 351 2
9 Rho Capital Partners 180 2
10 Softbank Capital Partners 180 2
11 Morgenthaler Ventures 62 2
12 General Catalyst Partners 0 2
13 HIG Capital 0 2
14 Macquarie Group 0 2
15 Panorama Capital 0 2
Source: mergermarket
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN BUYOUTS
ACTIVITY TABLE OF PRIVATE EQUITY FIRMS ON NORTH AMERICAN EXITS
The private equity buyout activity tables by value and volume are based on private equity firms advising the bidder on buyout deals where the dominant geography of the target company is US orCanadian. The tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and exclude lapsed and withdrawn deals.
The private equity exit activity tables by value and volume are based on private equity firms advising the vendor on exit deals where the dominant geography of the target company is US orCanadian. The tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and exclude lapsed and withdrawn deals.
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TREND GRAPHS
NORTH AMERICAN M&A QUARTERLY TREND
0
100
200
300
400
500
600
Q1
12
Q4
11
Q3
11
Q2
11
Q1
11
Q4
10
Q3
10
Q2
10
Q1
10
Q4
09
Q3
09
Q2
09
Q1
09
Q4
08
Q3
08
Q2
08
Q1
08
Q4
07
Q3
07
Q2
07
Q1
07
Q4
06
Q3
06
Q2
06
Q1
06
V
alue
(US$bn
)
Total value Mid-market value
Numberofdeals
0
200
400
600
800
1,000
1,200
1,400
1,600
Total volume Mid-market volume
0
50
100
150
200
250
Q112
Q411
Q311
Q211
Q111
Q410
Q310
Q210
Q110
Q409
Q309
Q209
Q109
Q408
Q308
Q208
Q108
Q407
Q307
Q207
Q107
Q406
Q306
Q206
Q106
V
alue
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
50
100
150
200
250
300
350
NORTH AMERICAN M&A ANNUAL TREND NORTH AMERICAN M&A ANNUAL PRIVATEEQUITY TREND
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
YTD 2012*201120102009200820072006
Total value Mid-market value
NumberofdealsV
alue
(US$bn
)
0
1,000
2,000
3,000
4,000
5,000
6,000
Total volume Mid-market volume
0
50
100
150
200
250
300
350
400
450
500
YTD 2012*201120102009200820072006
Value
(US$bn
)
Buyout value Exit value
Numberofdeals
Buyout volume Exit volume
0
200
400
600
800
1,000
1,200
NORTH AMERICAN M&A QUARTERLY PRIVATEEQUITY TREND
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TREND GRAPHS
NORTH AMERICAN M&A SECTOR BREAKDOWN YTD 2012
VALUE VOLUME
16.1%
7.7%
12.3%
5.0%
6.6%
30.9%
4.5%
2.4%
2.9%
0.5%
0.4%
1.5%
5.7%3.7%
Industrials & Chemicals
Technology
Pharma, Medical & Biotech
Business Services
Consumer
Energy, Mining & Utilities
Financial Services
Leisure
Media
Construction
Transportation
Real Estate
Telecommunications
Agriculture
18.8%
16.0%
11.3%
10.7%
10.5%
10.5%
3.6%
3.2%2.2%
1.6%
1.3%
8.9%
0.5%
0.1%
0.4%
Industrials & Chemicals
Technology
Pharma, Medical & Biotech
Business Services
Consumer
Energy, Mining & Utilities
Financial Services
Leisure
Media
Construction
Transportation
Real Estate
Telecommunications
Defence
Agriculture
NORTH AMERICAN M&A DEAL SIZE BREAKDOWN
VALUE VOLUME
0
10
20
30
40
50
60
70
80
90
100
YTD 2012*201120102009200820072006
US$5,001m
52.8%
14.7%
16.8%
6.2%
9.5%
43.5%
18.8%
21.6%
6.5%
9.6%
49.3%
13.8%
17.5%
7.3%
12.2%
58.8%
13.3%
13.2%
5.4%
9.3%12.5%
9.7%
27.7%
18.0%
32.1%
37.6%
21.4%
20.5%
8.8%
11.7%
17.8%
26.3%
33.0%
11.0%
11.9%
Percentage
75
80
85
90
95
100
YTD 2012*201120102009200820072006
1.1%
1.5%
5.3%
5.3%
86.8%
1.1%
1.8%
6.2%
5.3%
85.6%
0.8%
3.7%
4.2%
90.6%
1.0%
3.5%
3.8%
91.0%
87.4%
5.2%
5.6%
1.1% 1.4%
4.9%
5.4%
87.6%
0.7% 0.7% 0.7%
1.5%
5.5%
5.4%
87.2%
0.5%0.6%
US$5,001m
Percentage
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NORTH AMERICAN SECTOR ANALYSIS
Sector Q1 2012 Q1 2011 % change
Value ($m) Mrk share Deal count Value ($m) Mrk share Deal count Value Volume
Energy, Mining & Utilities 46,026 30.9% 92 93,422 35.5% 108 -51% -15%
Industrials & Chemicals 23,924 16.1% 164 56,192 21.4% 183 -57% -10%
Consumer 9,774 6.6% 92 5,683 2.2% 93 72% -1%
Financial Services 6,706 4.5% 78 6,123 2.3% 96 10% -19%
Pharma, Medical & Biotech 18,277 12.3% 99 23,523 8.9% 128 -22% -23%
Technology 11,444 7.7% 140 20,497 7.8% 168 -44% -17%
Business Services 7,503 5.0% 93 9,535 3.6% 140 -21% -34%
Media 4,252 2.9% 28 5,906 2.2% 33 -28% -15%Transportation 578 0.4% 14 1,044 0.4% 18 -45% -22%
Real Estate 5,460 3.7% 11 33,759 12.8% 13 -84% -15%
Leisure 3,525 2.4% 31 784 0.3% 20 350% 55%
Telecommunications 2,263 1.5% 5 160 0.1% 5 1314% 0%
Defence 9 0.0% 4 4,978 1.9% 7 -100% -43%
Construction 750 0.5% 19 1,437 0.5% 33 -48% -42%
Agriculture 8,507 5.7% 3 43 0.0% 7 19684% -57%
Total 148,998 873 263,086 1,052 -43% -17%
SECTOR ANALYSIS
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A MERGERMARKET M&A REPORT ON
Monthly M&A Insider 30
ASIA-PACIFIC
Chindia dominate deal landscapeThe two Asian BRICs, China and India, stamped their mark
on the Asian M&A scene in Q1 2012. Making up nearly half of
Asia-Pacifics total deal value, the two giants surged ahead in
the Energy, Mining & Utilities sector. India was home to this
quarters biggest deal. Sesa Goa, the Indian-listed diversified
mining company, agreed to acquire Sterlite Industries, its
domestic-listed affiliate, under the umbrella of Vedanta
Resources in a share swap agreement that values the deal
at US$10.3bn.
In China, four of the regions top ten deals involved a Chinese
target. It also led the way by deal volume, racking up 101deals in the first quarter of 2012, followed by Japan with 81
and Australia with 62. In another possible harbinger of the
popularity of the Energy, Mining & Utilities sector in Asia, the
third-largest deal was Shanghai Baosteel Stainless Steels
US$4.1bn bid for the stainless steel business unit of Baoshan
Iron & Steel.
Malaysia was also featured in the top ten deals when
1Malaysia Development, a Malaysian state-owned strategic
development company, agreed to buy Tanjong Energy, a
Malaysia-based electrical power generating company, for
US$2.8bn. Perhaps like China, the Malaysian state-ownedfirm cited its federal strategy of long-term energy security as
the prime motive for the acquisition.
Top two sectors pull further aheadEnergy, Mining & Utilities, already the most popular sector in
Asia in Q1 2012 with a third of total deal value (US$25.7bn),
was joined by Industrials & Chemicals as the other major
sector to significantly increase its market share. Industrials
& Chemicals accounted for 24.2% of total deal value in Asia,
up from 20.9% in Q1 2011. Expect China and India, as well as
Southeast Asia, Japan and Australia, to feature more heavily
in these sectors in the upcoming quarters.
On a value percentage increase, however, only three sectors
managed to register a move upwards on Q1 2011. These were
Energy, Mining & Utilities, Real Estate and Pharma Medical& Biotech which were all up by 89.2%, 89.2% and 36.1%,
respectively on the first quarter of 2011.
Perhaps having fallen out with the Asian consumer boom
story, bidders ostensibly retreated from the Consumer and
Financial Services sectors, which saw significant declines in
both deal value and count. The Consumer sector saw its total
share of M&A nearly halve from 12.6% in Q1 2011 to just 6.8%
in Q1 2012, whereas its deal value was down 57.6% over the
same period. Financial Services saw its total deal value fall by
just over 50%, perhaps an indication that eurozone fears over
banks are also affecting Asian players.
ASIA-PACIFIC FOLLOWED MUCH THE SAME PATH AS THE REST OF THE WORLD IN POSTING A DECLINEIN M&A IN Q1 2012, WITH US$77.2BN IN DEALS. THE TOTAL DEAL VALUE WAS 14.5% LOWER THAN THEPREVIOUS QUARTER, WHILE ON A YEAR-ON-YEAR BASIS IT WAS DOWN BY 21.4%. AS A RESULT, IT WAS THELOWEST QUARTERLY TOTAL SINCE RIGHT AFTER THE FALLOUT FROM THE GLOBAL FINANCIAL CRISIS (Q12009). IN TERMS OF VOLUME, THE TOTAL NUMBER OF 441 DEALS IN THE FIRST QUARTER WAS A SIGNIFICANTDECLINE ON THE 574 DEALS THAT Q4 2011 WITNESSED. HOWEVER, THIS MAY HAVE CONTRIBUTED TO THEINCREASED AVERAGE DEAL SIZE IN THE FIRST QUARTER OF US$175M.
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DEAL OF THE QUARTER
Deal summary
Announced: 25-Feb- 11 Deal value: US$10,289m
Sesa Goa, the India listed diversified mining company, has
agreed to acquire Sterlite Industries India Ltd, its domestic
listed affiliate under the umbrella of Vedanta Resources PLC.
STRUCTURE: The transaction will be conducted via a share exchange
Scheme of Arrangement.
TERMS:
0.6 Sesa Goa share per Sterlite.
The exchange ratio valued Sterlie at INR136.41 per share,
based on Sesa Goas prior closing price of INR227.35.
It valued the entire share capital of Sterlite at INR458bn
(US$9.26bn, using the exchange rate of US$ : 49.5137 INR).
The offer term represents a 15% premium over
INR118.65, the Sterlites prior closing price.
SIMULTANEOUS MERGER:
Along with Sterlite merger, Sesa Goa will issue 72.3m
and 78.7m shares to acquire its 70.5%-owned Vedanta
Aluminum Ltd (VAL) and The Madras Aluminum Co Ltd
(MALCO) respectively.
The transactions valued VAL at INR22.3bn (US$471m) and
MALCO at INR17.9bn (US$363m) based on Sesa Goas
prior closing price of INR227.35.
Both VAL and MALCO are part of Vedanta Resources.
SUBSTANTIAL SHAREHOLDERS:
Twinstar Holdings Ltd, a Vedanta Resources subsidiary,
owns 49.72% in Sterlite.
Citibank N.A. New York owns 12.75% in Sterlite
Finsider International Co, another Vedanta Resources
subsidiary, owns 46.2% in Sesa Goa.
Franklin Templeton Investments own in aggregate 12.2%in Sesa Goa.
FINANCING:
Sesa Goa will issue 2016.42m shares for Sterlite merger
representing 69.9% dilution.
For the whole transaction, Sesa Goa will issue a total of
2167.42m shares representing 71.3% dilution.
RATIONALE AND POST DEAL:
To consolidate the diversified mining business and create
INR10bn (US$200m) synergy.
Vedanta will transfer its 38.8% stake in Cairn India and the
US$5.9bn debt to Sesa Sterlite.
Sesa Sterlite, the post-deal entity, will own 58.9% in Cairn
India and will be listed on BSE, NSE and NYSE.
CONDITIONS:
Approval from Foreign Investment Promotion Board
India (FIPB)
Approval from Competition Commission of India (CCI)
Approval from BSE
Approval from NSE
Approval from the High Courts at Mumbai and Madras
Approval from the Supreme Court of Mauritius
Approval from Sterlite shareholders and creditors at EGM(min 75% votes req)
Approval from Sesa Goa shareholders and creditors at
EGM (min 75% votes req)
Approval from Vedanta shareholders at EGM (min 75%
votes req)
Approval from VAL shareholders and creditors
Approval from MALCO shareholders and creditors
Completion of mergers with Sterlite, VAL and MALCO are
inter-conditional
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DEAL OF THE QUARTER
Bidder
Shoei Co Ltd
Headquarters: Sesa Ghor20 EDC ComplexPatto, PanajiGoa, India403 001
Sector: Energy, Mining & Utilities
Description: India-based company engaged in the business of prospecting, mining, processing and exporting iron ore
Target
Sterlite Industries (India) Limited
Headquarters: SIPCOT Industrial ComplexMadurai By Pass RoadT V Puram P.O.TuticorinTamil NaduIndia628 002
Sector: Energy, Mining & Utilities
Description: India-based non-ferrous metals and mining company involved in smelting, mining and refining of copper, zinc and aluminum
mergermarket/dealReporter Intelligence
22-Feb-12 Vedanta Resources plans to merge Sesa Goa with Sterlite Industries report
23-Feb-12 Vedanta Resources plans to offload holding in three India-based companies to Sterlite Industries report
25-Feb-12 Vedanta to merge Sterlite with Sesa Goa
AdvisersTarget/Seller Bidder
Financial Bank of America Merrill Lynch; JPMorgan;Morgan Stanley
Financial Citigroup
Legal Amarchand & Mangaldas & Suresh A Shroff & Co Legal Luthra & Luthra Law Offices (Advising: Citigroup)
PR RLM Finsbury PR -
Exit multiples Y/E 31-Mar-11 Premium analysis
Multiples Value (US$m) Offer price per share (US$) 20.89
Revenue 17.9x 413.5 1 day before 97.1%
EBITDA 29.8x 249.1 1 month before 102.48%
EBIT 39.5x 188.1 1 day after 83.4%
Earnings 22.3x 142.2 Pre-rumour -
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TOP 10 ASIA-PACIFIC ANNOUNCED DEALS OF Q1 2012Announced Status Bidder company Target company Target dominant sector Seller company Exit multiples (x) Bid premia
1-day before
Deal
value
(US$m)Revenue EBITDA P/E
25-Feb-12 P Sterlite Industries (India)Limited
Energy, Mining& Utilities
Sesa Goa Limited 3.3 21.9 35.8 15.0% 10,289
06-Mar-12 P Industrial Bank Co Ltd(16.10% stake)
FinancialServices
China TobaccoCorporation; PICCAsset ManagementCompany Limited;Beijing InfrastructureInvestment Co Ltd; andShanghai Zheng Yang
International TradeCo Ltd
n/a n/a 5.4 -11.0% 4,181
29-Feb-12 P Baoshan Iron & SteelCo Ltd (Stainless SteelBusiness Unit)
Industrials &Chemicals
Shanghai BaosteelStainless Steel Co Ltd
Baoshan Iron &Steel Co Ltd
1.0 22.8 - 4,073
29-Jan-12 P ExxonMobil Yugen Kaisha Industrials &Chemicals
TonenGeneral SekiyuK.K
ExxonMobilCorporation
- 3,926
30-Mar-12 P Roy Hill Holdings Pty Ltd(30.00% stake)
Energy, Mining& Utilities
Marubeni Corporation;POSCO; and STXCorporation Co Ltd
HancockProspecting PtyLtd
- 3,655
07-Mar-12 P Tanjong Energy HoldingsSdn Bhd
Energy, Mining& Utilities
1MalaysiaDevelopment
Tanjong PublicLimited Company
- 2,816
29-Feb-12 P Baoyin Special Steel PipeCo Ltd (58.50% stake);Baoshan Iron & Steel CoLtd (Special steel assets);
Shanghai BaosteelSpecial Metal MaterialsCo Ltd; Shanghai WugangGas Co Ltd (94.50%stake); and ZhonghangSpecial Materials Industry(9.71% stake)
Industrials &Chemicals
Baosteel Special SteelCo Ltd
Baoshan Iron &Steel Co Ltd
n/a n/a n/a - 2,697
21-Feb-12 P Alibaba.com Limited(27.03% stake)
Technology Alibaba Group HoldingLtd
8.2 27.2 32.4 0.5 2,355
31-Jan-12 C UAE Exchange &Financial Services Ltd(40.00% stake)
BusinessServices
Centurion InvestmentCompany
BavaguthuRaghuram Shetty(Private Investor)
- 2,000
16-Mar-12 C China Cinda AssetManagement Corporation(16.54% stake)
FinancialServices
UBS AG; StandardChartered Plc;National Council forSocial Security Fund;and CITIC Capital
Partners Limited
Ministry ofFinance China
n/a n/a - 1,639
C = Completed; P = Pending; L = Lapsed
Based on announced deals, including lapsed and withdrawn bids
Based on dominant geography of target company being Asia-Pacific
Data correct as of 10-Apr-12
Source: mergermarket
TOP DEALS & EXPECTED DEALS
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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 QSR Brands Bhd Leisure Johor Corporation;CVC CapitalPartners; MalayChamber ofCommerceMalaysia;
Kulim(Malaysia)Berhad
650 QSR Brands received offer from JohorCorp and CVC Capital Partners inDecember at MYR6.80 per share, andfrom Malay Chamber of CommerceMalaysia in January at MYR6.90. Thevendor has recected the latter.
Expected deal Pacific BrandsLimited
Consumer Kohlberg KravisRoberts & Co.
MacquarieGroup (B),
FlagstaffPartners (T)
600 Pacific Brands has received an unsolicitedapproach from KKR regarding a possible
full acquisition in January 2012. An updateis expected when Pacific Brands reportsits annual results in late February.
Expected deal Cockatoo CoalLimited
Energy,Mining &Utilities
SK NetworksCompany Ltd
MacquarieGroup (B)
400 Cockatoo has received binding commitmentfor AU$150m loan on 12-Mar-12, which isone of conditions for an extension of theexclusivity period up to 30-Apr-12.
Expected deal Norton GoldFields Limited
Energy,Mining &Utilities
Zijin Mining GroupCo Ltd
Bank ofAmericaMerrill Lynch(T)
200 Norton Fields confirms it has received anindicative, non-binding and conditionalproposal from Zijin Mining Group Co., Ltd(Zijin) regarding a potential change of controltransaction for Norton on 04-Apr-12.
Expected deal WestSideCorporationLimited
Energy,Mining &Utilities
Liquefied NaturalGas Limited
Moelis &Company (T),Allens ArthurRobinson (T)
120 WestSide Corporation received an indicativeproposal from Liquefied Natural Gas Limitedas part of 2-for-5 non-renounceable pro rataentitlement offer of new ordinary shares byWestSide to raise AU$25.4m.
SignificantM&A
SamsungElectronics(LCD business)
Technology IPO SamsungElectronicsCo Ltd
- Samsung Electronics announced that itdecided to spin off its LCD business unit by01-Apr-12. The new division will have aninitial capital of KRW750bn.
Expected deals based on confirmed announcements by companies involved
PIPELINE OF ASIA PACIFIC EXPECTED DEALS
TOP DEALS & EXPECTED DEALS
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Ranking 2011 2010
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 2 Morgan Stanley 13,717 10 15,810 -1323.8%
2 10 Bank of America Merrill Lynch 13,606 4 9,615 4150.8%
3 7 Citigroup 12,609 6 12,290 259.6%
4 4 JPMorgan 12,389 6 14,938 -1706.4%
5 89 Rothschild 7,618 7 190 390947.4%
6 20 Credit Suisse 7,568 7 4,807 5743.7%7 50 CITIC Securities 7,225 4 864 73622.7%
8 1 Goldman Sachs 6,625 7 23,437 -7173.3%
9 32 HSBC 6,173 8 2,299 16850.8%
10 5 Deutsche Bank 5,174 7 13,153 -6066.3%
11 28 Standard Chartered 3,632 3 3,561 199.4%
12 55 Somerley 2,355 1 675 24888.9%
13 6 UBS Investment Bank 2,320 6 12,536 -8149.3%
14 3 Barclays 1,609 4 15,481 -8960.7%
15 33 Macquarie Group 1,586 3 2,194 -2771.2%
16 74 Southwest Securities 1,322 2 352 27556.8%
17 39 Maybank Investment Bank 1,286 3 1,646 -2187.1%
18 41 RBC Capital Markets 1,271 2 1,427 -1093.2%
19 19 Ernst & Young 1,268 7 5,283 -7599.8%20 63 OSK Investment Bank 1,267 3 503 15188.9%
Source: mergermarket
TOP 20 FINANCIAL ADVISERS ASIA-PACIFIC
The financial adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and exclude lapsed and withdrawn deals. The tables coverall sectors and are based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.
LEAGUE TABLES
Ranking 2011 2010
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 5 Morgan Stanley 13,717 10 13 -3
2 28 HSBC 6,173 8 4 4
3 102 Rothschild 7,618 7 1 6
4 8 Credit Suisse 7,568 7 10 -35 2 Goldman Sachs 6,625 7 14 -7
6 9 Deutsche Bank 5,174 7 9 -2
7 6 Ernst & Young 1,268 7 12 -5
8 10 Citigroup 12,609 6 9 -3
9 14 JPMorgan 12,389 6 6 0
10 7 UBS Investment Bank 2,320 6 11 -5
11 4 PwC 478 6 14 -8
12 1 KPMG 150 5 16 -11
13 11 Bank of America Merrill Lynch 13,606 4 9 -5
14 30 CITIC Securities 7,225 4 4 0
15 19 Barclays 1,609 4 5 -1
16 13 Gresham Advisory Partners 106 4 7 -3
17 3 Deloitte 75 4 14 -1018 18 Standard Chartered 3,632 3 6 -3
19 12 Macquarie Group 1,586 3 9 -6
20 35 Maybank Investment Bank 1,286 3 3 0
Source: mergermarket
TOP 20 FINANCIAL ADVISERS ASIA-PACIFIC
VOLUME
VALUE
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LEAGUE TABLES
The legal adviser league tables by value and volume have been run from 01-Jan-12 to 31-Mar-12 and include lapsed and withdrawn deals. The tables cover allsectors and are based on the geography of either the target, bidder or seller being Asia-Pacifc excluding Japan.
VOLUME
Ranking 2011 2010
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Deal count Deal count
change
1 5 Freehills 7,633 14 15 -1
2 7 Desai & Diwanji 287 13 15 -2
3 28 Amarchand & Mangaldas & Suresh A Shroff & Co 11,646 10 7 3
4 125 Jingtian & Gongcheng 9,796 10 1 95 6 Clifford Chance 1,719 10 15 -5
6 4 Baker & McKenzie 2,173 9 16 -7
7 8 Kim & Chang 1,636 9 14 -5
8 41 Gilbert + Tobin 2,337 8 4 4
9 10 AZB & Partners 2,196 8 13 -5
10 - King & Wood Mallesons 1,222 8 - -
11 2 Allen & Overy 1,190 8 17 -9
12 11 Linklaters 1,747 7 12 -5
13 29 WongPartnership 717 7 7 0
14 3 Minter Ellison 1,484 6 17 -11
15 13 Norton Rose 639 6 12 -6
16 15 Khaitan & Co 558 6 12 -6
17 18 Lee & Ko 557 6 10 -418 63 Rajah & Tann 405 5 3 2
19 20 Allen & Gledhill 302 5 10 -5
20 68 White & Case 108 5 3 2
Source: mergermarket
TOP 20 LEGAL ADVISERS ASIA-PACIFIC
VALUE
Ranking 2011 2010
Q1 2012 Q1 2011 Company name Value
(US$m)
Deal count Value
(US$m)
Value change
(%)
1 42 Amarchand & Mangaldas & Suresh A Shroff & Co 11,646 10 2,723 32769.0%
2 - Luthra & Luthra Law Offices 10,289 1 - -
3 66 Jingtian & Gongcheng 9,796 10 1,315 64494.3%
4 5 Freehills 7,633 14 12,735 -4006.3%
5 78 Latham & Watkins 5,822 4 929 52669.5%
6 168 Jipyong & Jisung 3,655 1 79 452658.2%7 14 Vinson & Elkins 2,896 3 9,320 -6892.7%
8 21 Freshfields Bruckhaus Deringer 2,645 3 5,333 -5040.3%
9 4 Allens Arthur Robinson 2,547 3 14,773 -8275.9%
10 - Fulbright and Jaworski 2,500 1 - -
11 117 Slaughter and May 2,355 1 369 53821.1%
12 11 Gilbert + Tobin 2,337 8 9,683 -7586.5%
13 8 AZB & Partners 2,196 8 10,726 -7952.6%
14 6 Baker & McKenzie 2,173 9 11,927 -8178.1%
15 25 Sullivan & Cromwell 2,103 2 4,735 -5558.6%
16 9 Linklaters 1,747 7 9,946 -8243.5%
17 32 Clifford Chance 1,719 10 4,068 -5774.3%
18 41 Jun He Law Offices 1,639 1 2,740 -4018.2%
19 19 Kim & Chang 1,636 9 5,991 -7269.2%20 55 Kirkland & Ellis 1,580 4 2,153 -2661.4%
Source: mergermarket
TOP 20 LEGAL ADVISERS ASIA-PACIFIC
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VALUE
VALUE
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 CITIC Capital Partners 1,839 2
2 China Africa Development Fund 1,250 1
3 Morgan Stanley Private Equity 300 1
4 Advantage Partners 254 2
5= Consus Partners 228 1
5= Industrial Bank of Korea 228 1
5= Mirae Asset Financial Group 228 1
8 L Capital Asia 200 1
9= Bain Capital 152 1
9= Crescent Capital Partners 152 1
9= WestLB 152 1
Source: mergermarket
Rank
Q1 2012 Company name Value(US$m)
Dealcount
1 Catalyst Investment Managers 404 2
2 The Longreach Group 300 1
3 Vogo Investment 257 1
4 Mizuho Capital Partners 185 1
5 Millennium Technology Ventures 175 1
6 Japan Industrial Partners 130 1
7= Ant Capital Partners 117 1
7= SBI Holdings 117 1
9= Consus KC 113 1
9= Eugene Asset Management 113 1
Source: mergermarket
VOLUME
VOLUME
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 CITIC Capital Partners 1,839 2
2 Advantage Partners 254 2
3 Lunar Capital Management 150 2
4 General Atlantic 104 2
5 China Africa Development Fund 1,250 1
6 Morgan Stanley Private Equity 300 1
7= Consus Partners 228 1
7= Industrial Bank of Korea 228 1
7= Mirae Asset Financial Group 228 1
10 L Capital Asia 200 1
Source: mergermarket
Rank
Q1 2012 Company name Dealcount
Value(US$m)
1 Catalyst Investment Managers 404 2
2 The Longreach Group 300 1
3 Vogo Investment 257 1
4 Mizuho Capital Partners 185 1
5 Millennium Technology Ventures 175 1
6 Japan Industrial Partners 130 1