An Acuris Company

Regional Overview

South East Asia Trend Report

Produced by

Jade Lee
Research Relationship Manager, South East Asia
H1 2017
Amy Wu
Senior Research Analyst, APAC

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Data analysis

South East Asia (SEA) had a sluggish half year
in 2017 for M&A activity. The region recorded
180 deals valued at US$24.4bn, 33 fewer deals
and a 15.2% decrease by deal value compared
to H1 2016 (213 deals, US$ 28.8bn). This came
as a result of a slowdown in intra-regional
first half year regarding to cross-border activity.
Transport sector recorded significant growth Quarterly M&A value
by value in H1 2017 in SEA, recording 12 deals 20122017 H1
worth of US$ 2.3bn from 16 deals with US$ 1bn
in H1 2016. It is mainly driven by one mega deal
announced in Singapore Hong Kong based 75

activity recording 97 deals valued at US$6bn.
Deal value declined 67.47% with 19 fewer deals
within the region compared to H1 2016 (116
deals, US$ 18.4bn), the second-lowest H1 value
since 2005 on Mergermarket record.
Despite the downturn of intra-regional activity,
HNA Holding Groups CWT Limited acquisition
10..5
for USD$ 1.9bn. Malaysia, however, overtook
Singapore to become the highest performing
country by volume with a record of 8 deals 60 19.3
announced, contributing two third deals
in total of SEAs transport sector. It already
25.4

Value of deals (US$bn)

caught up the full year historical high record 12.7
inbound M&A activity saw a record-breaking
of Malaysias deal making within this sector on
first half year in 2017, reached the highest 45 17
Mergermarket.
Mergermarket record since 2001 by value
18.6
with 83 deals valued at US$ 18.4bn. The deal Energy, Mining & Utilities remained to be the 14.7
31.5
value increased 77.6% by value while volume most active sector in terms of deal value
saw 14 less deals compared to H1 2016 and volume with 20 deals worth US$ 9.6bn, 11.4
30
(US$ 10.4bn, 97 deals). This was mainly accounting for 39.5% of overall deals in the 26 9
contributed by the top deal in SEA during region by value. This was largely due to the top
H1, the US$ 7bn investment of 50% stake deal of the region mentioned previously. 15.7
10
6.4
in Malaysia-based Refinery & Petrochemical 14.9
Private equity buyout transactions in SEA 15
Integrated Development (RAPID) project by 9.2
was another spotlight in H1 2017, seeing
Saudi Arabian Oil from Petroliam Nasional
14 deals worth US$ 3.6bn, an impressive 14.4
Berhad. Excluding this transaction, China 11.7 13.1 14.4
1.5x rise by value compared to H1 2016 9.6 9.4
remained the main buyers for inbound activity
(US$ 1.4bn, 18 deals). Business Services was 0
in SEA. With 23 deals valued at US$ 3.2bn,
the most dynamic sector for PE investors 2012 2013 2014 2015 2016 H1 2017
the country accounted for 17.3% of the total
by deal volume, attracting 5 deals worth
inbound value.
US$ 8.3m.
Q1 Q2 Q3 Q4
Outbound deal making of SEA countries also
Private equity exits saw a 17.7x increase
saw a positive sign with 64 deals worth US$
by value with 11 deals valued at US$ 1.7bn
5.9bn, up 14.56% by value with 11 fewer deals
compared to H1 2016 (4 deals, US$ 0.9m),
compared to H1 2016 (US$ 5.9bn, 75 deals).
reaching the third-highest record since 2009.
Singapore continued to lead the outbound
Several potential exits are in the pipeline.
activity with 47 transactions worth US$ 5.7bn,
Such as the sponsor of Singapore-based PSB
accounting for 82.6% of the total outbound
Academy, Hong Kong-based Baring Private
value. The SEA region found a theme of
Equity Asia, is looking to exit the education
relatively high valuations and low volume in the
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Data analysis
continued
business, according to Mergermarket
intelligence. Sector Breakdown
Advisors
Global Investment banks led the financial 9,641
Energy, Mining
advisor ranking in H1 2017. Morgan Stanley & Utilities 6,049
ranked first by value, making 7 deals worth
3,112
US$ 10bn and Credit Suisse took the first Technology
1,935
place by count, advising on 9 deals with
US$ 2.7bn. 2,345
Transport
White & Case topped the legal advisor ranking 1,020
by value, recording 4 deals with US$ 8.5bn.
2,086
Baker & Mckenzie jumped 9 places to first Real Estate
963
place by deal count from same period last
year, advising on 12 deals with US$ 2.8bn. 1,266
Business
Services 621

1,162
Industrials &
Chemicals 2,754

971
Financial
Services 3,868

3,822
Other
11,569

0 2,400 4,800 7,200 9,600 12,000

Deal value (US$m)

H1 2017 H1 2016

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Top deals

Deal Details Advisor details

Value Announcement Target Bidder Seller FA to sell-side LA to sell-side FA to buy-side LA to buy-side

(US$m) date
7,000 28-Feb-17 Refinery & Saudi Arabian Oil Co Petroliam Nasional Morgan Stanley Shearman & Sterling White & Case
Petrochemical (Saudi Arabia) Berhad
Integrated
Development (RAPID)
project (50% Stake)
(Malaysia)

1,907 9-Apr-17 CWT Limited HNA Holding Group Credit Suisse; Kirkland & Ellis; Baker & Mckenzie;
(Singapore) Co Ltd DBS Bank WongPartnership TSMP Law Corporation
(Hong Kong)

1,200 4-May-17 GO-JEK Indonesia PT An investor group led

(Indonesia) by Tencent Holdings
Ltd
(China)

1,066 28-Jun-17 Croesus Retail Trust Blackstone Group LP Citi DBS Bank Simpson Thacher &
(Singapore) (USA) Bartlett

1,000 28-Jun-17 Lazada Group (32% Alibaba Group Holding Noerr Morgan Stanley
Stake) Ltd
(Singapore) (China)

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League tables

South East Asia Financial advisor league table by value South East Asia Financial advisor league table by deal count

Ranking H1 2017 H1 2016 Ranking H1 2017 H1 2016

H1 2017 H1 2016 Company name Value Deal count Value % Value H1 2017 H1 2016 Company name Value Deal count Deal count Count
(US$m) (US$m) change (US$m) change

1 2 Morgan Stanley 10,004 7 8,523 17.4% 1 2 Credit Suisse 2,729 9 10 -1

2 14 Citi 3,221 3 3,236 -0.5% 2 9 EY 713 8 6 2

3 25 DBS Bank 3,004 3 866 246.9% 3 5 Morgan Stanley 10,004 7 7 0

4 1 Credit Suisse 2,729 9 9,125 -70.1% 4 12 JPMorgan 1,299 7 4 3

5 32 Barclays 1,959 2 483 305.6% 5 4 RHB Investment Bank 543 7 8 -1

6 26 Lazard 1,700 3 792 114.6% 6 6 Goldman Sachs & Co 551 6 7 -1

7 10 JPMorgan 1,299 7 4,765 -72.7% 7 23 Affin Hwang Capital 436 6 3 3

8 11 Bank of America Merrill Lynch 1,282 2 4,430 -71.1% 8 1 CIMB Group 1,005 5 12 -7

9 18 CIMB Group 1,005 5 1,360 -26.1% 9 7 Maybank Investment Bank 866 5 7 -2

10= - Banca IMI/Intesa Sanpaolo 952 1 - - 10 18 Kenanga Investment Bank 298 4 4 0
10= - Santander Global Corporate Banking 952 1 - -

South East Asia Legal advisor league table by value South East Asia Legal advisor league table by deal count
Ranking H1 2017 H1 2016 Ranking H1 2017 H1 2016

H1 2017 H1 2016 Company name Value Deal count Value % Value H1 2017 H1 2016 Company name Value Deal count Deal count Count
(US$m) (US$m) change (US$m) change

1 4 White & Case 8,519 4 3,582 137.8% 1 10 Baker & McKenzie 2,833 12 7 5

2 111 Shearman & Sterling 7,400 4 34 21,664.7% 2 105 Freshfields Bruckhaus Deringer 2,201 7 1 6

3 31 Baker & McKenzie 2,833 12 800 254.1% 3 14 Clifford Chance 909 7 5 2

4 18 WongPartnership 2,361 5 1,219 93.7% 4 1 Allen & Gledhill 546 7 14 -7

5 151 Simpson Thacher & Bartlett 2,268 5 - - 5 3 Allen & Overy 402 6 12 -6

6 94 Freshfields Bruckhaus Deringer 2,201 7 109 1,919.3% 6 16 Rajah & Tann 291 6 4 2

7 1 Linklaters 2,130 3 7,723 -72.4% 7 7 WongPartnership 2,361 5 8 -3

8 30 TSMP Law Corporation 1,951 2 843 131.4% 8 151 Simpson Thacher & Bartlett 2,268 5 1 4

9 74 Kirkland & Ellis 1,907 3 170 1,021.8% 9 6 Herbert Smith Freehills 832 5 8 -3

10 - Baer & Karrer 1,904 1 - - 10 2 White & Case 8,519 4 12 -8

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Spotlight Vietnam

Vietnam targeted activity in H1 2017 remained
active, recording 23 deals worth of US$ 921m,
since attracting more investors attention in
2015. After breaking the highest value and
volume with 29 deals worth of US$ 2.4bn in
H1 2015 on Mergermarket history, the average
deal making in Vietnam from H1 2015 to H1
2017 accounted for 12.7% of H1 SEAs total,
seen 8.6% jump up from the previous average
from H1 2001.
Consumer sector saw 5 announced deals
totaling US$ 359m in the first half year 2017,
becoming the most active sector by volume,
The M&A deal pipeline in Business services Vietnam Quarterly M&A Trend
sector especially Education segment 2012-2017 H1
is expected to be strong in the second
half of 2017 as Vietnam based Education
4200 50
companies have been seeking to expand
their business in SEA region where there is a
combined population of around 500 million,
Mergermarket reported. Vietnam-based
3500
360 Degrees JSC engaged in providing 220.5 40
educational services 51% stake in Thanh Tay
University acquisition and Vietnam Australia
International School acquisition by US-based
2800 77.0
TPG Capital already announced in H1 2017.
220.5
According to Mergermarket intelligence, 54.6

Value of deals (US$m)

and second largest sector by value following 30
Vietnam-based education providers Topica
construction sector. Three out of top five high

Deal Count
Edtech and TTC education are seeking to
value deals in Vietnam announced in consumer
launch a new funding to expand their business 2100 134.6
sector. 7.5% stake in Masan Nutri-Science
in SEA region and ILA Vietnam is also in talks 62.6
Corporation and 4.2% stake in Masan Group 119.2
with several private equity firms for a trade
Corporations acquisition by US-based private 106.6 20
sale.
equity firm Kohlberg Kravis Roberts & Co LP 1400
for US$ 150m and US$ 100m respectively 84.2
were the two largest deals announced in this
sector. 128.2 85.2
119.8 10
Japan and South Korea have been top two 700 88.1
153.8
134.6
countries to invest into Vietnam besides other 88.9
SEAs countries since 2015. Japan has made 89.0
45.0
19 deals worth of US$ 922m total from 2015 75.1 45.0 77.8
to H1 2017, including 2 deals with US$ 81m 0 0
in H1 2017 and Business Services was the 2012 2013 2014 2015 2016 H1 2017
most targeted sector followed by Consumer
sector. South Korea has invested 12 deals with
Deal value (US$m)
US$ 344m during the same period into this
country including 2 deals worth of US$ 57m
during H1 2017. Industrial & Chemicals caught Q1 Q2 Q3 Q4
the most attention from South Korea investors
and the Consumer sector followed.
Full year deal count H1 deal count

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Criteria Contacts

Production Commercial Deal Submissions

All data is based on transactions over US$ 5m Analysts Americas Americas
and is based on the Mergermarkets M&A deals Jade Lee Kurt Viehl Jason Loria

database. Deals with undisclosed deal values Jade.Lee@acuris.com

+852 2158 9709
Kurt.Viehl@acuris.com
+1 212 390 7812
Jason.Loria@acuris.com
+1 646 378 3122

are included where the targets turnover Amy Wu Asia Asia

Amy.Wu@acuris.com
exceeds US$10m. Deals where the stake +852 2158 9708 Ajay Narang
Ajay.Narang@acuris.com
John Capulong
John.Capulong@acuris.com
acquired is less than 30% will only be included Head of Research, APAC +852 2158 9764 +852 2158 9723

if the value is greater than US$100m. Gerry Tee

Gerry.Tee@acuris.com
EMEA EMEA

+852 2158 9741 Ben Rumble Andrea Putaturo

Click here for the full deal criteria. Ben.Rumble@acuris.com
+44 20 3741 1007
Andrea.Putaturo@acuris.com
+44 20 3741 1274

Press Relations
M&A trend: Based on the dominant geography Top deals: Based on the dominant geography Americas
of the target company being South East Asia. of the target company being South East Asia.
All trend data excludes lapsed and withdrawn FA refers to financial advisor. LA refers to legal Chrissy Carney
bids. advisor. Excludes lapsed and withdrawn bids. Chrissy.Carney@acuris.com
+1 646 378 3118
Cross-border M&A: Inbound refers to the All values are in US$.
dominant geography of the target company Asia
Data correct as of 06-July-2017
being South East Asia, and the dominant
geography of the bidder being any other Su-Chin Zhang
country excluding South East Asia. Outbound SuChin.Zhang@acuris.com
+852 2158 9706
refers to the dominant geography of the
bidder company being South East Asia, and EMEA
the dominant geography of target being any
other country excluding South East Asia. Olivia Cummins
Excludes lapsed and withdrawn bids. Olivia.Cummins@acuris.com
+44 20 3741 1129

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