A mergermArket report on globAl m&A Activity Monthly M&A ...both Banco do Brasil and Bradesco, as well as Itau Unibanco – another of Brazil’s leading banks - are reportedly seeking

Monthly M&A InsIderA mergermArket report on globAl m&A Activity

JUly 2010

Monthly M&A InsIdermergermarket

GlobAl overvIew 01

AmericAs: lAtin AmericA 05

north AmericA 12

AsiA-pAcific 22

eUrope 32

middle eAst & AfricA 43

80 strandlondon, Wc2r 0rlUnited kingdom

t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

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www.mergermarket.comPart of the mergermarket group

CONTENTS

Monthly M&A Insider

globAl overvieW

01

glObal OvErviEw

head of research – Elias latsis

editor – anna Henderson

For advertising opportunities contact:

erik wickman

tel: + (1) 212 6863329

[email protected]

Global overview: Tom Coughlan

latin America: Mathew albert and Jason Cozza

north America: allen Chan and Svetlana alkayeva

Asia-Pacific: Shunsuke Okano and anita wong

europe: Samuel Tedjasukmana and Damien Julliard

Middle east & Africa: Marie-laure Keyrouz and lars lundqvist

Somewhat unsurprisingly, dealmaking has continued to largely fall in and around the lower end of the market in recent months with the average deal size for H1 2010 standing at US$174m. This stands as one of the lowest half-yearly figures seen in recent times and it is remarkable that since 2005, only H1 2008 registered a lower mean. Despite the retrenchment to mid-market dealmaking, it is notable that a number of mega deals were brokered over the first half of 2010. Tellingly, a number of these transactions were emerging market plays with the largest such deal seeing Mexican firm america Movil acquire domestic counterpart Carso global Telecom for a total consideration of US$28.06bn.

Elsewhere, the TMT space in africa also witnessed notable dealmaking activity with the US$10.70bn acquisition of Zain africa, the Nigeria-based telecommunications operator, by indian mobile services provider bharti airtel. The transaction, announced at the end of the first quarter, saw bharti airtel acquire Zain assets in 15 countries, excluding operations in Morocco and Sudan.

Private equity houses also continued to return to the M&a arena over the first six months of the year with 775 buyouts announced, carrying an aggregate disclosed value of US$75.24bn. in volume terms, this marks a significant 29.0% increase year-on-year and a 6.0% increase on H2 2009 numbers. Signs are also emerging that the asset class is beginning to target larger deals with the average buyout deal size standing at US$97m in H1 2010, the largest half yearly figure seen since the acute onset of the global financial crisis in the second half of 2008.

looking at the geographic breakdown of recent large cap private equity buyouts, it comes as little surprise that activity has principally centred in the North american market. indeed, seven of the top 10 largest private equity deals of the year have seen the acquisition of a US-based target with a number of industry heavyweights remaining acquisitive. The top buyout is a case in point in this regard with a blackstone group-led consortium moving to acquire hotel operator Extended Stay for US$3.90bn. Equally, sell-side activity has remained brisk with a total of 478 exits announced in H1 2010, suggesting that exit conditions are slowly improving as valuations trend upwards and price dislocation becomes a less burdensome issue.

all in all, the outlook for mid and large cap M&a activity is slowly improving. Despite this, obstacles certainly persist, particularly in the public arena where companies face the problem of convincing shareholders that a deal can be value accretive over the long term. against this backdrop it is encouraging that several large transactions have so far been announced in the second half of 2010 with both trade and financial investors coming to market. Carlyle group have already brokered two US$2.00bn+ deals with the largest deal seeing the private equity firm acquire NbTY, the US-based manufacturer and distributor of vitamin and food supplements, for a total consideration of US$3.71bn.

by tom Coughlan, remark, the Mergermarket Group

GlobAl overvIew

THE M&a MarKET SHOwED TENTaTivE SigNS OF rECOvErY iN THE FirST HalF OF 2010 wiTH a TOTal OF 5,062 DEalS wOrTH US$883.03bN aNNOUNCED aCrOSS THE glObE. COMParED TO THE SaME TiMEFraME 12 MONTHS PrEviOUS, DEal vOlUMES iNCrEaSED bY 14% wHilE THE riSE iN valUaTiONS waS a MOrE MODEST 8.0%, NO DOUbT DUE TO CONTiNUED iSSUES SUrrOUNDiNg DEal FiNaNCiNg aS wEll aS wiDEr MaCrOECONOMiC UNCErTaiNTY.

Monthly M&A Insider 02

globAl overvieW

TrEND graPHS

GlobAl M&A quArterly trend

valUE vOlUME

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

GlobAl M&A quArterly MId-MArket trend

valUE vOlUME

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

500

1,000

1,500

2,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Moving average trend line


globAl overvieW

TrEND graPHS

GlobAl M&A seCtor breAkdown ytd 2010

valUE vOlUME

8.9%

5.2%

17.3%

11.8%

3.6%

2.0%

3.2%

10.9%

0.4%0.7%

11.4%

23.3%

1.3%Industrials & Chemicals

TMT

Consumer

Business Services

Energy, Mining & Utilities

Financial Services

Pharma, Medical & Biotech

Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

Industrials & Chemicals

TMT

Consumer

Business Services


Financial Services


Construction

Leisure

Transportation

Real Estate

Agriculture

Defence

12.2%

15.2%

18.1%

4.2%

3.6%

2.3%

2.9%

0.5%1.2%

10.6%

10.3%

11.2%

7.6%

GlobAl M&A quArterly PrIvAte equIty trend

valUE vOlUME

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Global buyouts

Global exits

0

100

200

300

400

500

600

700

800

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Global buyouts

Global exits


globAl overvieW

TrEND graPHS

GlobAl M&A deAl sIze breAkdown

valUE vOlUME

0

500

1,000

1,500

2,000

2,500

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Valu

e (U

S$bn

)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Value not disclosed

Num

ber

of d

eals

LATIN AM

ERICA

LATIN AMERICAA MERgERMARkET M&A REpoRT oN


Banco Santander has recently pursued a strategy of overseas expansion into faster growing, more buoyant markets in order to sustain profitability and to diversify away from their home market as the Spanish economy is still in the throes of recession and worries of a looming sovereign debt crisis plague the country.

Tellingly, the group believes Latin America offers the best opportunities for growth worldwide and they are aggressively targeting the region for future expansion. At a Santander event on Latin America in July, Francisco Luzón, managing director of the Americas division, told the Financial Times the group will expand into Colombia and peru through acquisitions within the coming five years.

Aside from the string of small struggling savings banks, the largest Spanish lenders have remained largely resilient to the financial crisis, granting these players a unique opportunity to pursue inorganic growth while peers elsewhere in Europe and North America continue to struggle. Foremost among these large players are Santander and BBVA, the first and second largest banks in the Spanish market.

BBVA is already a big player in Latin America, which accounts for about half of the banking group’s profits. However, BBVA lacks a presence in Brazil after selling off its operations to Bradesco, the second largest bank in Brazil, for US$585m plus a 4.5% stake in the buyer, after the country’s financial crisis in 2003. BBVA subsequently upped its stake in Bradesco to 5.0% before divesting its holdings for a hefty US$1.50bn in 2008.

Robust economic growth, growing credit market penetration and high interest rates have given Brazil the enviable position as one of the most profitable markets for banking in the world. And ongoing consolidation in the market, with Brazil’s market leaders on the buy-side, may make it ever more difficult for foreign players such as BBVA to get a sizable foothold in Brazil.

For instance, the Brazilian regulatory authority recently said that Banco do Brasil, the largest lender in Latin America, may use proceeds from a new share sale to undertake new acquisitions. Bradesco, for its part, is also eyeing prospective banking and other Financial Services targets according to recent mergermarket intelligence. It is also noteworthy that both Banco do Brasil and Bradesco, as well as Itau Unibanco – another of Brazil’s leading banks - are reportedly seeking out deal opportunities abroad.

Clearly, Latin America is paying dividends for foreign players acquiring into the region’s banking sector. Santander is expected to see an increase in profits of 2.0% to 7.0% from the stake acquisition into grupo Financiero Santander Serfin. The group may also decide to float shares in the Mexican bank, replicating the success of the float of its Brazilian subsidiary last year. Indeed, Santander raised US$8.80bn in listing 16.0% of the share capital of its Brazil-based subsidiary last october in what turned out to be the largest global stock flotation of 2009.

LAtIn AMerIcA

IN JUNE, BANCo SANTANdER, THE EURozoNE’S LARgEST BANk By ASSETS, ANNoUNCEd THE US$2.50BN REpURCHASE oF A 24.9% STAkE IN gRUpo FINANCIERo SANTANdER SERFIN, THE MExICo-BASEd CoMMERCIAL ANd pRIVATE BANkINg gRoUp, wHICH SANTANdER SoLd To BANk oF AMERICA FoR US$1.60BN IN 2003. THE TRANSACTIoN RANkS AS THE LARgEST BANkINg SECToR ACqUISITIoN BRokEREd IN LATIN AMERICA IN 2010 ANd CoULd pRoVE A BELLwETHER FoR dEAL ACTIVITy IN THE SECToR goINg FoRwARd.

06

LATIN AM

ERICA

Monthly M&A Insider

target: grupo Financiero Santander Serfin SA de CV (24.9%) Announced: 09 June 2010

Bidder: Banco Santander SA Deal value: US$2.50bn

Seller: Bank of America Corporation Deal nature: Acquisition, Cross border, private, Transatlantic

Structure:• Banco Santander SA has agreed to acquire the remaining

24.9% stake it does not already own in grupo Financiero Santander Serfin.

• grupo Financiero Santander Serfin, the Mexico-based commercial and private banking group.

• Bank of America Corp is the listed US-based bank.

• Banco Santander SA, the listed Spain-based banking group.

terMS:• US$2.50bn in cash

rAtIonALe:• The acquisition is in line with Santander’s strategy to

boost the bank’s growth in a country with strategic opportunities.

expecteD coMpLetIon:• The transaction is expected to be completed within 90

days.

conDItIonS:• Subject to the approval by relevant regulators.

dEAL oF THE MoNTH

Advisers

target/Seller Bidder

Financial Bank of America Merrill Lynch Financial Santander global Banking and Markets

Financial wachtell, Lipton, Rosen & katz Legal davis polk & wardwell LLp

pr - pr -

07

LATIN AM

ERICA

Monthly M&A Insider

top 15 LAtIn AMerIcAn AnnounceD DeALS YtD 2010Announced Status target company Sector Bidder company Seller company exit multiples (x) Bid premia

1-day beforeDeal value

(uS$m)revenue eBItDA p/e

13-Jan-10 p Carso global Telecom SAB de CV

TMT America Movil SA de CV 1.7 4.8 14.4 2.8% 28,055

11-Jan-10 p FEMSA Cerveza SA de CV

Consumer Heineken NV Fomento Economico Mexicano SAB de CV

7,692

13-Jan-10 p Telmex Internacional SAB de CV (39.30% stake)

TMT America Movil SA de CV 2.6 10.6 23.6 2.2% 6,533

2-May-10 p Alumina do Norte do Brasil SA (57.00% stake); Aluminio Brasileiro SA (51.00% stake); Companhia de Alumina do para (61.00% stake); paragominas bauxite mine (60.00% stake)


Norsk Hydro ASA Vale SA 4,900

22-Jan-10 p polibutenos SA Industrias quimicas (33.33% stake); quattor participacoes SA (60.00% stake);and Unipar Comercial e distribuidora SA


Braskem SA Uniao de Industrias petroquimicas SA

4,238

27-Jan-10 p Bunge participacoes e Investimentos SA


Vale SA Bunge Limited 3,800

14-Mar-10 p Bridas Corporation (50.00% stake)


CNooC International Limited

Bridas Energy Holdings Ltd

3,100

28-Jan-10 p Fertilizantes Fosfatados SA (57.70% stake)


Vale SA The Mosaic Company; yara Brasil Fertilizantes SA

7.2 2,878

3-May-10 p Agre Empreendimentos Imobiliarios SA

Real Estate pdg Realty SA Empreendimentos e participacoes

13.8 1.5% 1,955

18-May-10 p plena Transmissoras SA (Seven Brazilian transmission companies)


State grid Corporation of China

plena Transmissoras SA

1,721

15-Feb-10 p Comunicaciones Nextel de Mexico SA de CV (30.00% stake)

TMT grupo Televisa SA de CV NII Holdings Inc 1,440

18-May-10 p Itau Unibanco Holding SA (2.50% stake)

Financial Services

Itausa - Investimentos Itau SA

Bank of America Corporation

15.0 12676.7% 1,115

21-Feb-10 C Equipav SA Acucar e Alcool (50.34% stake)

Consumer Shree Renuka Sugars Limited

Equipav group 1,059

12-Apr-10 C devon Energy Corporation (gulf of Mexico Shelf Assets)


Apache Corporation devon Energy Corporation

1,050

10-May-10 p Tivit Terceirizacao de processos Servicos e Tecnologia SA

TMT Apax partners LLp patria-Banco de Negocios; Votorantim Novos Negocios Ltda

1.8 8.9 22.4 7.4% 938

C = Completed; p = pending; L = Lapsed Source: mergermarket

Top dEALS & ExpECTEd dEALS

LATIN AM

ERICA


Top dEALS & ExpECTEd dEALS

top 5 LAtIn AMerIcAn AnnounceD DeALS oF the Month (June 2010)Announced Status target company Sector Bidder company Seller company exit multiples (x) Bid premia


(uS$m)revenue eBItDA p/e

9-Jun-10 p grupo Financiero Santander Serfin, S.A. de C.V. (24.90% stake)

Financial Services

Banco Santander SA Bank of America Corporation

2,500

22-Jun-10 p Companhia de Concessoes Rodoviarias (6.00% stake)


Andrade gutierrez Concessoes SA; Camargo Correa Investimentos em Infra Estrutura SA; Soares penido Concessoes SA

Brisa-Auto Estradas de portugal SA

574

2-Jun-10 p goldcorp Inc (San dimas gold-silver mine)


Mala Noche Resources goldCorp 500

10-Jun-10 C Laboratorios phoenix SACyF

pharma, Medical & Biotech

glaxoSmithkline plc 2.5 15.0 253

9-Jun-10 p wTorre ERg Empreendimentos Navais e portuarios SA; wTorre oleo e gas


Engevix Engenharia SA; Fundacao dos Economiarios Federais

wTorre SA 220


pIpeLIne oF expecteD DeALS Situation target

companySector potential bidder

companyFinancial adviser to bidder (B); target (t); seller (S)

Seller company Market cap/ est. value (uS$m)

comments

Auction Aguas Nuevas


Macquarie Capital, Morgan Stanley Infrastructure or Marubeni

Banco Santander 350 Banco Santander is negotiating with a few buyers on the sale of Aguas Nuevas, the Chilean utility, and it is close to sealing a deal, said a source close to the situation. In February, Banco Santander sent out an information memorandum on Aguas Nuevas and bids were expected the following month, as previously reported by this news service. Likely buyers are infrastructure funds such as Macquarie Capital and Morgan Stanley Infrastructure, as also previously reported. A published report in december 2009 tagged Japanese conglomerate Marubeni as a potential buyer. The source could not comment on a potential deal value, but it has been reported that Aguas Nuevas could be worth US$350m. The utility has 356,000 customers and an 8.8% share of the Chilean water market. Santander Infrastructure Fund II, which specialises in infrastructure assets, acquired the Chilean utility last year from grupo Solari.

Rumoured takeover target

Express de Santiago Uno

Transportation grupo Rios 34(target revenue)

It was reported that grupo Rios, the Colombia-based conglomerate, is in talks to acquire Chilean mass transportation company Express de Santiago Uno. According to the article, sources say grupo Rios is currently restructuring the conglomerate's management and is preparing a strategy to spur growth in Chile through acquisitions. It also states the group is already in advanced negotiations and, following the deal, may seek to merge Express de Santiago Uno with Alsacia, its mass transportation subsidiary. Express Santiago Uno, the operator of the Troncal 4 bus line, has annual revenues of US$34m.

Expected deals based on confirmed announcements by companies involved

9

LATIN AM

ERICA

Monthly M&A Insider

LEAgUE TABLES

VALUEYtD

30-Jun-10house Value

(uS$m)Deal count

1 Credit Suisse 54,811 18

2 Citigroup 48,970 7

3 Bank of America Merrill Lynch 13,982 11

4 Rothschild 9,671 8

5 Allen & Company 9,132 2

6 JpMorgan 8,179 7

7 deutsche Bank 7,899 6

8 Morgan Stanley 5,777 3

9 Santander global Banking and Markets 4,338 4

10 Banco Bradesco 4,254 2

11 goldman Sachs 3,209 5

12 Hopu Investment Management 3,100 1

13 HSBC Bank 2,576 5

14 Standard Chartered 2,500 1

15 Singular partners 1,955 1Source: mergermarket

VoLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YtD 30-Jun-10

house Value (uS$m)

Deal count


2 Bank of America Merrill Lynch 13,982 11



5 JpMorgan 8,179 7

6 deutsche Bank 7,899 6

7 UBS Investment Bank 1,060 6


9 HSBC Bank 2,576 5

10 Credit Agricole 1,916 5

11 Santander global Banking and Markets 4,338 4

12 Lazard 1,715 4

13 patri-Banco de Negocios 1,049 4


15 Caixa Banco de Investimento 1,221 3Source: mergermarket

top 15 FInAncIAL ADVISerS – LAtIn AMerIcA

VALUEYtD


(uS$m)Deal count

1 dewey & LeBoeuf 34,628 3

2 Cleary gottlieb Steen & Hamilton 15,611 6

3 Allen & overy 14,742 3

4 Freshfields Bruckhaus deringer 12,592 2

5 Skadden Arps Slate Meagher & Flom 10,236 6

6 Simpson Thacher & Bartlett 9,495 6

7 gibson dunn & Crutcher 8,281 2

8 Loyens & Loeff 7,692 1

9 Ulhoa Canto, Rezende e guerra - Advogados 6,678

2

10 davis polk & wardwell 6,400 3

11 Veirano Advogados 6,056 3

12 Tozzini Freire Teixeira E Silva Advogados 5,747 9

13 Barbosa Mussnich & Aragao 5,244 5

14 wikborg Rein & Co 4,981 2

15 Latham & watkins 4,900 1Source: mergermarket

VoLUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Latin America

YtD 30-Jun-10

house Value (uS$m)

Deal count

1 Machado Meyer Sendacz e opice 4,187 11

2 Mattos Filho, Veiga Filho, Marrey Jr. e quiroga Advogados

1,552 11

3 Tozzini Freire Teixeira E Silva Advogados 5,747 9

4 pinheiro Neto Advogados 3,093 9

5 Estudio Muniz, Ramirez, perez-Taiman & olaya Abogados

466 9




9 Barbosa, Mussnich & Aragao 5,244 5

10 Uria Menendez 1,802 5

11 Linklaters 1,284 5

12 Vieira de Almeida & Associados 2,440 4

13 demarest e Almeida 1,093 4

14 prieto & Carrizosa 290 4

15 Estudio Echecopar Abogados 223 4Source: mergermarket

top 15 LegAL ADVISerS – LAtIn AMerIcA

10

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRApHS

LAtIn AMerIcAn M&A quArterLY trenD

VALUE VoLUME

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

25

50

75

100

125

150

175

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals


LAtIn AMerIcAn M&A quArterLY MID-MArket trenD

VALUE VoLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

20

40

60

80

100

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

11

LATIN AM

ERICA

Monthly M&A Insider

TRENd gRApHS

LAtIn AMerIcAn M&A Sector BreAkDown YtD 2010

VALUE VoLUME

11.7%

11.2%

19.4%

2.7%0.9%0.8%

0.8%

42.5%

7.1%0.6%



Consumer

Financial Services

Business Services

TMT

Leisure


Agriculture

Transport



Consumer

Financial Services

Business Services

TMT

Leisure


Agriculture

Transport

14.8%

20.1%

1.1%3.2%

4.8%

5.3%

10.1%

11.1%13.8%

5.8%

9.0%



Consumer

Financial Services

Business Services

TMT

Leisure


Agriculture

Transport

Construction

LAtIn AMerIcAn M&A quArterLY prIVAte equItY trenD

VALUE VoLUME

0

3

6

9

12

15

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Latin American buyouts

Latin American exits

0

500

1,000

1,500

2,000

2,500

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Latin American buyouts

Latin American exits

NORTH

AMERICA

NORTH AMERICAA MERgERMARkET M&A REpORT ON

12Monthly M&A Insider

One of the highlight of the month is the acquisition of Talecris Biotherapeutics, the US-based biotherapeutic and biotechnology corporation, by grifols SA, the Spain-based chemical and pharmaceutical company, for a consideration of US$3.70bn. Other major deals in the pharma, Medical & Biotech sector in June include the acquisition of Valeant pharmaceuticals International by Biovail Corp. for a little less than US$3.70bn and the purchase of Abraxis BioScience Inc by Celgene Corporation for approximately US$2.71bn.

GooGle plAns to doMInAte AIrlIne tIcket seArchInGgoogle seems to have picked up the pace of acquisitions in 2010. During the financial crisis, the company’s activity in terms of acquisitions greatly decreased. Between 2008-2009, the company’s M&A activity combined was still less than the years prior to 2008. Now, almost three quarters of the way through the fiscal year of 2010, google’s activity in the M&A world seems to have recovered. The most notable acquisition by the company in the months of June and July is the ITA Software purchase. The deal was announced to be worth US$700m and is subject to customary closing conditions. If the deal closes, it will be the largest completed disclosed acquisition by google this year. Although the year seems to

have been better by the company in terms of acquisitions and maintaining its impeccable no-debt standing, the company still has its downsides. Serious concerns have been raised over the retrenchment from the booming Chinese market, which was prompted by difficulties with censorship, and the company is now directing all users from the territory to its Hong kong-based search engine.

If the deal does close, the acquisition of ITA software will put google on the map in the airline ticket search business. ITA Software, which conducts its business in the airline service industry, licenses its software to many companies in the airline industry. ITA will add great value in positioning google to compete with other airline ticket search engines, as well as putting it ahead of its current competitors that rely on its software. The acquisition may have adverse effects on the core businesses that license ITA. The deal is expected to come under FTC scrutiny, with google potentially creating a monopoly in the airline ticket search and reservation sector. google won’t necessarily be making the sale of airline tickets, but it will provide access to places where you can purchase tickets. The next time you fly, you may be flying with Air google.

north AMerIcAn IncreAse In vAlue of phArMA, MedIcAl & BIotech sector deAls seeMs evIdent thus fAr

THE VAlUE OF THE M&A ACTIVITy IN THE pHARMA, MEDICAl & BIOTECH SECTOR HAS INCREASED SlIgHTly THIS MONTH, wITH THREE OF THE FIVE lARgEST DEAlS IN JUNE HAppENINg IN THIS SpACE. THIS gROwTH TREND FOR NORTH AMERICAN COMpANIES IS CONSISTENT wITH A glOBAl INCREASE IN M&A IN THE SECTOR pREDICTED FOR THIS yEAR.

13

NORTH

AMERICA

Monthly M&A Insider

target: QEp Resources Inc Announced: 14 June 2010

Bidder: Questar Corporation (Shareholders) deal value: US$6.44bn

seller: Questar Corporation deal nature: Demerger, Domestic, private

structure:• Questar Corporation has agreed to spin off its subsidiary,

QEp Resources Inc.

• QEp Resources Inc, the US-based company headquartered in Denver, Colorado, is engaged in gas exploration and production, midstream and marketing.

• Questar Corporation, the listed US-based company headquartered in Salt lake City, Utah, is a natural gas-focused energy company.

terMs:• Questar shareholders will receive one share of QEp

common stock for each share of Questar common stock.

• The transaction has an implied equity value of US$6.44bn based on the opening price of US$37.00 per share on 16 June 2010 and 174m shares outstanding.

rAtIonAle:• The transaction will enable Questart to improve its

shareholder value and pursue greater growth strategies.

post deAl detAIls:• QEp Resources Inc will start trading under the symbol

‘QEp’ from 1 July 2010.

expected coMpletIon:• The transaction is expected to close in the fourth quarter

of 2010.

DEAl OF THE MONTH

Advisors

target/seller Bidder

financial financial Deutsche BankTudor pickering Holt & Co

legal legal Skadden Arps Slate Meagher & Flomlatham & watkins

pr pr

exit multiples – Y/e 31/12/2009 premium analysis

Multiples value (us$m) offer price per share (us$)

revenue 3.8x 1,972.5 1 day before

eBItdA 6.6x 1,144.6 1 month before

eBIt 13.0x 585.5 1 day after

earnings 29.9x 215.4 pre-rumour

14

NORTH

AMERICA

Monthly M&A Insider

top 15 north AMerIcAn Announced deAls for Ytd 30 June 2010 Announced status target company sector Bidder company seller company exit multiples (x) Bid premia

1-day beforedeal value

(us$m)revenue eBItdA p/e

22-Apr-10 p Qwest Communications International Inc

TMT Centurylink 1.8 5.2 15.9 15.0% 22,153

8-Mar-10 p American life Insurance Company

Financial Services

Metlife Inc American International group Inc

15,544

25-Feb-10 p Coca-Cola Enterprises Inc (North American operations)

Consumer The Coca-Cola Company

Coca-Cola Enterprises Inc

12,280

21-Feb-10 p Smith International Inc Energy, Mining & Utilities

Schlumberger limited

1.5 12.7 67.4 18.1% 12,198

19-Jan-10 p The williams Companies Inc (certain gas pipeline and domestic midstream businesses)


williams partners lp

The williams Companies Inc

11,750

11-Feb-10 p Allegheny Energy Inc Energy, Mining & Utilities

FirstEnergy Corp 2.6 7.5 12.0 31.6% 8,960

9-Mar-10 p Intervet/Schering-plough Animal Health; Merial limited


Sanofi-Aventis SA/Merck & Co Inc JV

Merck & Co Inc; Sanofi-Aventis SA

8,250

28-Apr-10 p E.ON US llC Energy, Mining & Utilities

ppl Corporation E.ON Ag 7,625

11-Mar-10 p Devon Energy Corporation (Assets in the deepwater gulf of Mexico, Brazil and Azerbaijan)


Bp plc Devon Energy Corporation

7,000

11-Feb-10 p Airgas Inc Industrials & Chemicals

Air products & Chemicals Inc

1.8 10.8 27.1 3.6% 6,834

28-Feb-10 p Millipore Corporation pharma, Medical & Biotech

Merck kgaA 4.1 16.3 34.0 13.3% 6,760

31-Mar-10 p general growth properties Inc (65.00% stake)

Real Estate Brookfield Asset Management Inc; Fairholme Capital Management llC; pershing Square Capital Management lp

-7.5% 6,550

14-Jun-10 C QEp Resources Inc Energy, Mining & Utilities

Questar Corporation (Shareholders)

Questar Corporation

3.8 6.6 29.9 6,438

3-May-10 p Continental Airlines Inc Transportation UAl Corporation 0.5 17.8 1.5% 6,192

12-May-10 p Sybase Inc Business Services

SAp Ag 4.4 13.1 34.9 56.4% 5,102

C = Completed; p = pending; l = lapsed Source: mergermarket

TOp DEAlS & ExpECTED DEAlS

15

NORTH

AMERICA

Monthly M&A Insider


top 5 north AMerIcAn Announced deAls of the Month (June 2010) Announced status target company sector Bidder company seller company exit multiples (x) Bid premia

1-day before

deal value


14-Jun-10 C QEp Resources Inc Energy, Mining & Utilities

Questar Corporation (Shareholders)

Questar Corporation

3.8 6.6 29.9 6,438

7-Jun-10 p Talecris Biotherapeutics Inc


grifols S.A. Cerberus Capital Management lp

2.4 12.3 17.4 63.9% 3,730

21-Jun-10 p Valeant pharmaceuticals International


Biovail Corporation 4.4 11.5 13.6 -6.8% 3,689

11-Jun-10 p Buckeye gp Holdings l.p Energy, Mining & Utilities

Buckeye partners lp

Arclight Capital partners llC; kelso & Company

1.6 10.7 23.5 31.8% 2,774

30-Jun-10 p Abraxis BioScience Inc (formerly American pharmaceutical partners Inc)


Celgene Corporation 7.6 17.3% 2,714

C = Completed; p = pending; l = lapsed Source: mergermarket

16

NORTH

AMERICA

Monthly M&A Insider

situation target company sector potential bidder company

financial advisor to bidder (B); target (t); seller (s)

seller company

Market cap/ est. value (us$m)

comments

Expected Deal Novell Inc TMT Elliott Associates

(T)JpMorgan 2,084 Elliott Associates, l.p. (together with funds under common management), a significant institutional stockholder of Novell, Inc., offered to purchase the entire company for US$5.75 per share in cash, which implies an enterprise value net of cash of US$1.00bn. The firm sent a letter to the Board of Directors of the Company explaining its offer.

Expected Deal Dollar Thrifty Automotive group


Avis Budget group, Inc

(B)Citigroup 1,281 Avis Budget group would like to make a substantially higher offer to acquire Dollar Thrifty. Dollar Thrifty had recently signed a definitive agreement to be acquired by Hertz for approximately US$41.00 per share.

Expected Deal playboy Enterprise, Inc

Media The Hefner Family

187 playboy Enterprises’ board of directors have received a proposal from Hugh M. Hefner (‘Hefner’) to acquire all of the outstanding shares of Class A and Class B common stock of pEI not currently owned by Hefner for US$5.50 per share in cash. Hefner owns 69.5% of pEI’s Class A common stock and 27.7% of pEI’s Class B common stock. This may could come under scrutiny from several law firms who will investigate Hefner’s offer to see if it breaches the fiduciary duty of the board to playboy shareholders.

Expected Deal California pizza kitchen Inc.

leisure Undisclosed Bidder

(B)Moelis & Company

439 California pizza kitchen, Inc. (CpkI) announced that its Board of Directors has authorized management to consider a wide range of financial and strategic alternatives to enhance shareholder value. The Company has engaged Moelis & Company, a global investment bank, to be its exclusive financial advisor in this review. California pizza kitchen, a US-based company headquartered in lA, CA, is a casual dining restaurant chain with a particular focus on the pizza segment.

Expected Deal Mediacom Communications Corporation

TMT Media's founder, Chairman and CEO, Rocco B. Commisso

(B) Bank of American Merrill lynch, (B) J.p. Morgan Securities Inc, (T)Barclays Capital

475 Mediacom Communications Corporation’s Board of Directors received a non-binding proposal from Mediacom’s founder, Chairman and CEO, Rocco B. Commisso, for a going private transaction. The proposal contemplates the acquisition of all of the Class A and Class B shares of Mediacom common stock not already beneficially owned by Commisso at a price of US$6.00 per share in cash.

Expected Deal galleon Energy Energy, Mining & Utilities

Undisclosed Bidder

(T)Cormark Securities, gMp Securities, Macquarie Capital Markets Canada

410 galleon Energy’s (TSE: gO) financial advisors are already talking with potential buyers. galleon announced it had retained gMp Securities, Cormark and Macquarie Capital to review strategic alternatives, which will include a number of options, including an outright sale or disposal of a material portion of its assets.

Expected deals are based on confirmed announcements by companies involved.

pIpelIne of north AMerIcAn expected deAls


17

NORTH

AMERICA

Monthly M&A Insider

lEAgUE TABlES

VAlUEYtd

30-Jun-10house value

(us$m)deal count


2 Deutsche Bank 101,032 47

3 Barclays Capital 100,480 49



6 JpMorgan 86,828 53

7 Bank of America Merrill lynch 82,292 59

8 lazard 70,014 44



11 Evercore partners 36,995 9

12 perella weinberg partners 36,341 11

13 Blackstone group Holdings 30,649 11

14 Tudor, pickering, Holt & Co 22,002 9

15 greenhill & Co 20,577 15

16 HSBC Bank 18,245 11

17 Allen & Company 15,462 6

18 RBC Capital Markets 14,216 36

19 Jefferies & Company 13,745 34

20 Rothschild 12,940 38Source: mergermarket

VOlUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada

Ytd 30-Jun-10

house value (us$m)

deal count




4 Bank of America Merrill lynch 82,292 59

5 JpMorgan 86,828 53



8 lazard 70,014 44




12 RBC Capital Markets 14,216 36

13 Jefferies & Company 13,745 34

14 TD Securities 8,112 29

15 Houlihan lokey 5,577 28

16 kpMg 4,543 25

17 CIBC world Markets plc 5,816 22

18 loln International 476 21

19 Macquarie group limited 4,201 20

20 pricewaterhouseCoopers 1,848 18Source: mergermarket

top 20 fInAncIAl AdvIs0rs – north AMerIcA

VAlUEYtd


(us$m)deal count




4 Sullivan & Cromwell 87,110 41

5 latham & watkins 84,454 66

6 weil gotshal & Manges 83,787 49

7 wachtell, lipton, Rosen & katz 83,153 32

8 Cravath Swaine & Moore 73,243 24

9 Dewey & leBoeuf 68,609 43

10 Debevoise & plimpton 66,879 18

11 Davis polk & wardwell 66,071 34

12 Shearman & Sterling 54,715 39

13 Blake, Cassels & graydon 50,520 52

14 Baker Botts 44,616 23

15 Herbert Smith/gleiss lutz/Stibbe 43,793 16

16 Slaughter and May 38,292 9

17 Fried Frank Harris Shriver & Jacobson 37,808 21

18 Norton Rose 35,500 5

19 gibson Dunn & Crutcher 34,692 39

20 Vinson & Elkins 33,030 23Source: mergermarket

VOlUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and lude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being USA and Canada

Ytd 30-Jun-10

house value (us$m)

deal count

1 DlA piper 5,878 80

2 Jones Day 31,054 75

3 latham & watkins 84,454 66

4 kirkland & Ellis 15,931 65




8 weil gotshal & Manges 83,787 49

9 Dewey & leBoeuf 68,609 43



12 gibson Dunn & Crutcher 34,692 39

13 Stikeman Elliott 15,578 37

14 k&l gates 9,605 36

15 wilson Sonsini goodrich & Rosati 3,557 35


17 Davis polk & wardwell 66,071 34

18 O'Melveny & Myers 18,702 34

19 Hogan lovells 6,434 33

20 wachtell, lipton, Rosen & katz 83,153 32Source: mergermarket

top 20 leGAl AdvIs0rs – north AMerIcA

18

NORTH

AMERICA

Monthly M&A Insider

lEAgUE TABlES

VAlUE VOlUME

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 USA and Canada The tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

ActIvItY tABle of prIvAte equItY fIrMs on north AMerIcAn BuYouts

VAlUE

Ytd 30-Jun-10

house value (us$m)

deal count

1 kohlberg kravis Roberts & Co 4,700 1

2 Cerberus Capital Management lp 4,048 3

3 Arclight Capital partners llC 2,774 1

4 kelso & Company 2,774 1

5 Thomas H lee partners lp 2,560 2Source: mergermarket

VOlUME

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 USA and Canada The tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

Ytd 30-Jun-10

house value (us$m)

deal count

1 Highland Capital partners Inc 435 5

2 Foundation Capital - 5

3 A M pappas & Associates 713 4

4 Denham Capital Management lp 644 4

5 Mayfield Fund 112 4Source: mergermarket

ActIvItY tABle of prIvAte equItY fIrMs on north AMerIcAn exIts

Ytd 30-Jun-10

house value (us$m)

deal count

1 Blackstone group Holdings 5,350 3

2 Centerbridge partners 3,925 3

3 warburg pus 3,528 3

4 Silver lake partners 3,159 3

5 Tpg Capital 2,730 4Source: mergermarket

Ytd 30-Jun-10

house value (us$m)

deal count

1 HIg Capital 149 6

2 Sun Capital partners 179 5

3 Tpg Capital 2,730 4

4 Ontario Teachers pension plan 423 4

5 golden gate Capital - 4Source: mergermarket

19

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

north AMerIcAn M&A quArterlY trend

0

100,000

200,000

300,000

400,000

500,000

600,000

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

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

200

400

600

800

1,000

1,200

1,400

Q2 10

Q1 10

Q4 09

Q3 09

Q2 09

Q1 09

Q4 08

Q3 08

Q2 08

Q1 08

Q407

Q3 07

Q2 07

Q1 07

Q4 06

Q3 06

Q2 06

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q2 04

Q1 04

Volu

me

of d

eals

north AMerIcAn M&A quArterlY MId-MArket trend

VAlUE VOlUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

Q2 10

Q1 10

Q4 09

Q3 09

Q209

Q1 09

Q4 08

Q3 08

Q2 08

Q1 08

Q4 07

Q3 07

Q2 07

Q1 07

Q4 06

Q306

Q2 06

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q2 04

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

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

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q204

Q104

Num

ber

of d

eals


VAlUE VOlUME

20

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

north AMerIcAn M&A sector BreAkdown Ytd 2010

VAlUE VOlUME

32.4%

7.8%

7.7%

7.8%

9.1%15.1%

0.7%2.1%

0.2%0.6%

12.6%

2.2%

1.8%


Financial services

Business services

Consumer

Energy, Mining & Utilites

TMT

Leisure

Transportation


Construction

Agriculture

Real Estate

Defence

14.0%

12.0%

9.0%

11.0%

8.71%3.38%3.20%1.3%

0.95%

0.89%

0.47%

15.0%

21.0%



Financial services


Consumer

Construction

Leisure

Transportation

Real Estate

Defence

Agriculture

TMT

Business services

north AMerIcAn M&A quArterlY prIvAte equItY trend

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

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

Q406

Q3 06

Q2 06

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q2 04

Q1 04

Valu

e (U

S$m

)

North American buyouts

North American exits

0

25

50

75

100

125

150

175

200

225

250

275

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

Q405

Q3 05

Q2 05

Q1 05

Q404

Q3 04

Q2 04

Q1 04

Num

ber

of d

eals

North American buyouts

North American exits

VAlUE VOlUME

21

NORTH

AMERICA

Monthly M&A Insider

TREND gRApHS

north AMerIcAn M&A deAl sIze BreAkdown

VAlUE VOlUME

0

100

200

300

400

500

600

700

800

900

1,000

H1 2010

H2 2009

H1 2009

H2 2008

H1 2008

H2 2007

H1 2007

H2 2006

H1 2006

H2 2005

H1 2005

H2 004

H1 2004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Valu

e (U

S$bn

)

0

500

1,000

1,500

2,000

2,500

3,000

H1 2010

H2 2009

H1 2009

H2 2008

H1 2008

H2 2007

H1 2007

H2 2006

H1 2006

H2 2005

H1 2005

H2 2004

H1 2004

Num

ber

of d

eals

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Value not disclosed

ASIA-PAcIfIc

A mergermArket m&A report on


ASIA-pAcIfIc

ChInA And hong KongWith 334 deals announced in the first half of 2010, china and Hong kong saw 31 more deals than in the equivalent period last year when 303 deals were announced, representing a 10.2% increase. However, deal value has dropped from US$67.60bn to US$51.80bn, down 23.4% from H1 2009.

there was a huge pick-up in inbound deals to china and Hong kong, with a massive surge of 212% in value compared to the same period last year, with 66 deals worth US$9.50bn coming to market.

In the first half of 2010, financial Services m&A deals attracted the most foreign investment, with four transactions adding up to US$3.00bn, including the 27.2% stake in Hua Xia Bank, acquired by Deutsche Bank, with the state-owned Shougang group and State grid corporation of china.

Activity in the energy, mining and Utilities sector has cooled off so far this year, with only US$19.30bn worth of domestic and outbound transactions in the first half of 2010; compared to 146 deals worth US$67.90bn for the same period last year. However, the sector did dominate the outbound deals in the region for the first half of 2010, with 21 deals generating nearly US$15.00bn in value.

JApAnm&A activity in Japan slowed in the first half of 2010, in fact, it was the slowest first half period in Japan since 2002. total deal value in the Japanese market was US$22.20bn, which is 10.3% lower than the first half of 2009. the total number of deals was also down by 19.30% to 167 deals, compared to 207 deals for the same period last year. Activity in Q2 was particularly low, at just under US$7.00bn of activity, the lowest quarter since Q3 2005.

Despite the slowdown of overall m&A activity in Japan, Japanese cross-border deals recovered. H1 2010 saw 25 Japanese inbound m&A deals worth a total of US$2.60bn, a significant increase of 92.30% by volume and 11.3% by value compared to the first half of 2009. outbound m&A activity remained relatively stable, just up by 5.70% by volume and 1.4% by value.

Japan continues to see more outbound deals than inbound deals. the value of outbound deals was US$10.10bn, almost four times that of inbound deals. Japanese companies spent US$29.60bn on acquisitions in H1 2010, of which 34.10% was spent on acquisitions overseas.

In the first half of 2010, the tmt sector led with deals totaling US$5.60bn, 25.3% of total deal value compared to just 0.5% during the same period last year, largely due to the competing bids for Jupiter telecommunications by kDDI and Sumitomo corporation earlier in the year.

KoreAA total of 118 transactions with a korean target were announced in the first half of 2010, with a total value of US$9.00bn. the total volume of deals has increased from 83 compared to the same period last year, a 42.2% increase. However, deal value in the region has dropped 16.1% from the first half of 2009. the second quarter of 2010 was the lowest quarter by deal value since the first quarter of 2009, and the first half of 2010 was the slowest first half period since 2007.

Industrials & chemicals was the most dominant sector in terms of number of deals announced, with 33 deals adding to US$1.80bn. the consumer sector held the top spot in terms of overall deal value, with 11 deals totaling US$1.90bn, largely due to the US$1.10bn acquisition of gS mart and gS Square by Lotte Shopping company, the largest deal in 2010 so far.

korea’s pharma, medical & Biotech companies were the top picking for foreign companies buying korean firms, with four of the 11 South korean inbound deals in the first half of 2010 falling into the sector. A total of US$519m worth of deals were announced in the sector, 50.0% of all the South korean inbound deals by value. the top deal in the pharma, medical & Biotech sector was US listed diagnostic devices developer Inverness medical Innovations acquisition of a 75.8% stake in Standard Diagnostics for US$210m.

meanwhile, korean companies made 14 acquisitions in foreign markets in the second quarter of 2010, the second highest quarter to date in volume, only below the fourth quarter of 2007 which experienced 19 outbound deals. In the first half of 2010, chinese companies were the most popular for South korean outbound m&A, with 4 deals announced totaling US$450m in value.

AsIA-pACIfIC M&A trend In h1 2010

ASIA-PAcIfIc


xxtarget: Hangang group Hanbao Iron and Steel co Ltd Announced: 09 June 2010

Bidder: Hebei Iron and Steel co Ltd deal value: US$2.35bn

seller: deal nature: recommended

• Hebei Iron and Steel co Ltd (Hebei Iron), the chinese company principally engaged in smelting, processing and distribution of iron and steel products, has signed a definitive agreement to acquire Hangang group Hanbao Iron and Steel co Ltd (Hanbao Iron), the state-owned chinese iron and steel maker, from Handan Iron & Steel group co Ltd (Handan group), the chinese iron and steel maker, for an estimate consideration of cnY16.02bn (US$2.35bn).

• Hebei will fund the acquisition through issue up to 3.8bn new common shares to raise not more than cnY16.02bn (US$2.35bn).

• the transaction will enable Hebei Iron to expand the scale of the company and improve its profitability and competitiveness, as well as eliminate internal competition with the parent company.

• Handan Iron and Steel currently owns a 11.99% stake in Hebei Iron and Steel. Handan group, is a wholly owned subsidiary of Hebei Iron and Steel group co Ltd, the state-owned chinese iron and steel maker.

• the transaction has been approved by Hebei SASAc and the shareholders of Hebei Iron and Steel.

CondItIons:• Approval by the shareholders of Hebei.

• Approval by the china Securities regulatory commission.

• Approval by the State-owned Assets Supervision & Administration commission of the people’s government of Hebei province.

DeAL of tHe montH

Advisers


financial financial china International capital

Legal Legal Jincheng, tongda & neal

pr pr

exit multiples – Y/e 31/12/2009 premium analysis

Multiples Value (CnYm) offer price per share (CnY) n/a

revenue 1.4x 11586.04 1 day before n/a

eBItdA 1 month before n/a

eBIt 1 day after n/a

earnings 42.9x 373.67 pre-rumour n/a

ASIA-PAcIfIc


top 15 AsIA-pACIfIC AnnounCed deALs for Ytd 30 June 2010Announced status target company sector Bidder company seller company exit multiples (x) Bid premia



01-mar-10 L American International Assurance company Limited

financial Services

prudential plc American International group Inc

20.2 35,500

30-mar-10 p AXA Asia pacific Holdings (Asian businesses)

financial Services

AXA SA AXA Asia pacific Holdings Limited

24.7 8,645

04-may-10 p Lihir gold Limited energy, mining & Utilities

newcrest mining Limited

8.5 19.9 54.2 9.5% 8,286

10-mar-10 p Shanghai pudong Development Bank (20.00% stake)

financial Services

china mobile group guangdong co Ltd

11.1 -13.1% 5,831

25-Jan-10 c Jupiter telecommunications co Ltd (37.80% stake)

tmt kDDI corporation Liberty global Inc

3.6 8.3 32.6 64.5% 4,014

21-may-10 p piramal Healthcare Solutions business

pharma, medical & Biotech

Abbott Laboratories piramal Healthcare Limited

8.3 3,720

30-mar-10 p AXA Asia pacific Holdings Limited

financial Services

national Australia Bank Limited

21.8 1.3% 3,579

22-mar-10 p Arrow energy Limited energy, mining & Utilities

consortium comprising royal Dutch Shell and petrochina

36.9 7.4 10.5 -11.2% 3,352

18-may-10 p Denway motors Limited Industrials & chemicals

guangzhou Automobile group co Ltd

62.1 (loss) 23.6 53.0% 3,293

31-mar-10 p emobile Limited (57.45% stake)

tmt eAccess Limited gS capital partners; and temasek Holdings pte Ltd

3.3 (loss) 3,051

06-may-10 p Hua Xia Bank co Limited (27.15% stake)

financial Services

Deutsche Bank Ag; Shougang group corp; and State grid corporation of china

14.9 3,042

17-mar-10 c Astro All Asia networks plc

tmt Astro Holdings Sdn Bhd

3.0 (loss) (loss) 20.3% 2,649

09-Jun-10 p Hangang group Hanbao Iron and Steel co Ltd

Industrials & chemicals

Hebei Iron and Steel co Ltd

Handan Iron & Steel group co Ltd

1.4 42.9 2,346

18-Jan-10 c orient overseas Developments Limited

real estate capitaLand Lmited orient overseas (International) Limited

(loss) 2,200

21-may-10 p Agricultural Bank of china (Undisclosed stake)

financial Services

national council for Social Security fund

2,198

c = completed; p = pending; L = Lapsed Source: mergermarket

top DeALS & eXpecteD DeALS

ASIA-PAcIfIc


top 5 AsIA-pACIfIC AnnounCed deALs of the Month (June 2010)Announced status target company sector Bidder company seller company exit multiples (x) Bid premia



09-Jun-10 p Hangang group Hanbao Iron and Steel co Ltd


Hebei Iron and Steel co Ltd

Handan Iron & Steel group co Ltd

1.4 42.9 2,346

10-Jun-10 c pt Bryayan Bintangtiga energi; and pt Srivijaya Bintangtiga energi

energy, mining & Utilities

reliance coal resources pvt Ltd

pt Sugico graha

1,600

01-Jun-10 L eon capital Berhad financial Services

AffIn Holdings Berhad 1,581

07-Jun-10 p Hong kong Aircraft engineering company Limited (54.04% stake)

Business Services

Swire pacific Ltd 4.4 23.7 25.2 25.0% 1,245

30-Jun-10 p Shandong expressway operation & management co Ltd; and Shandong Weilai expressway (51.00% stake)

transport Shandong expressway company Limited

Shandong expressway group co Ltd

1,106

c = completed; p = pending; L = Lapsed Source: mergermarket

top DeALS

26

ASIA-PAcIfIc

Monthly M&A Insider

pIpeLIne of AsIA-pACIfIC expeCted deALssituation target company sector potential bidder

companyfinancial adviser to bidder (B); target (t); seller (s)

seller company Market cap/ est. value (us$m)

Comments

expected deal

transurban group

construction canada pension plan Investment Board (cppIB); and ontario teachers’ pension plan (otpp)

Lazard (t); UBS Investment Bank (t); goldman Sachs (B); Jpmorgan (B)

6,500 transurban group in november received a conditional and non-binding joint takeover proposal from cppIB and otpp. the Board then evaluated the proposal and rejected it on the original terms. the future fund Board of guardians has subsequently considered supporting the proposal by cppIB and otpp. transurban continues to insist a bona fide proposal is needed before talks can proceed. In may 2010, cppIB and otpp has raised its offer from AUD5.25 per transurban share to AUD5.57 per share. However, the revised takeover proposal was again rejected bytransurban as transurban considered that their offer was still too low.

expected Deal

chuo mitsui trust Holdings Inc

financial Services

Sumitomo trust & Banking

5,709 chuo mitsui trust and Sumitomo trust have announced a plan to consolidate the business by creating a holding company by April 2011.

expected deal

macarthur coal Limited


new Hope corporation Limited

3,239 new Hope corporation Limited announced its intention to acquire 100% of macarthur coal Limited offering 2.7 new Hope shares for every 1 macarthur share by way of a scheme of arrangement valuing macarthur at AUD14.58 per share and representing a total consideration of AUD3.71bn. on 9 April 2010, macarthur rejected the takeover bid from new Hope as macarthur considered the offer to be inadequate.

expected Deal

Hunan nonferrous metals corporation


china minmetals corporation

china International capital corporation (B); evolution Watterson Securities (t)

State-owned Assets Supervision and Administration commission of Hunan provincial people's government

817 china minmetals has announced it will acquire a 51.00% stake in Hunan nonferrous metals with the possibility that it may trigger a mandatory unconditional cash offer.

expected Deal

Healthscope Ltd


Undisclosed bidders

1,537 on 14 may 2010, Healthscope received an indicative take private proposal from a private equity consortium for AUD5.50 per share. on 31 may 2010, Healthscope Ltd received two additional competitive proposals, both at an indicative price of AUD5.80 per share, from undisclosed parties.

expected Deal

titan chemicals corp. Bhd.


Undisclosed bidder

815 titan chemicals corp may see its two major shareholders chao group and permodalan nasional selling their stakes in the company.

expected Deal

Wai chun mining Industry group co. Ltd.

consumer Undisclosed bidder

404 Wai chun mining has signed a memorandum of understanding in relation to the possible issue of new shares which may lead to a change in control of the company.

expected Deal

Boom Logistics

transport Archer capital and mcAleese group

200 Boom Logistics, the Australian-listed crane hire business, received a takeover offer from Archer capital and mcAleese group. Boom Logistics received two conditional proposals from Archer in April. the company rejected the first bid outright due to its conditionality. Boom Logistics has not yet formalised its response to the second offer of AUD0.52 per Boom Logistics share.

expected Deal

redflex Holdings Limited

tmt macquarie group Limited

206 redflex Holdings Limited received an indicative, non-binding and confidential proposal to acquire all of the issued capital of redflex by scheme of arrangement from a wholly owned subsidiary of macquarie group Limited at a price of AUD2.50 per share.

eXpecteD DeALS

expected deals based on confirmed announcements by companies involved

27

ASIA-PAcIfIc

Monthly M&A Insider

LeAgUe tABLeS

vALUeYtd


(us$m)deal count

1 Jpmorgan 30,839 22

2 morgan Stanley 30,001 20


4 HSBc Bank 25,542 12


6 macquarie group 22,185 17

7 Barclays capital 17,818 10

8 nomura Holdings 15,635 8

9 Bnp paribas 14,763 7

10 Bank of America merrill Lynch 14,696 11

11 Standard chartered 14,207 7

12 china International capital 13,803 8


14 credit Suisse 12,152 16

15= global Investment House kScc 10,700 1

15= State Bank of India 10,700 1

17 Bmo capital markets 10,282 2

18 Lazard 9,624 2

19 citigroup 8,965 13

20 greenhill caliburn 8,377 2Source: mergermarket

voLUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

Ytd 30-Jun-10

house Value (us$m)

deal count



3 kpmg 3,943 26


5 Deloitte 6,880 22

6 ernst & Young 1,465 22



9 pricewaterhousecoopers 2,025 19

10 macquarie group 22,185 17

11 credit Suisse 12,152 16

12 cImB group 7,028 16

13 rothschild 6,861 15


15 HSBc Bank 25,542 12


17 Barclays capital 17,818 10


19 china International capital 13,803 8

20 enAm Securities 541 8Source: mergermarket

top 20 fInAnCIAL AdVIsers – AsIA-pACIfIC exCL JApAn

top 20 LegAL AdVIsers – AsIA-pACIfIC exCL JApAnvALUe

Ytd 30-Jun-10

house Value (us$m)

deal count

1 Herbert Smith/gleiss Lutz/Stibbe 50,166 8


3 Slaughter and may 40,466 9

4 norton rose 38,129 17

5 Simpson thacher & Bartlett 37,422 6

6 cravath Swaine & moore 36,988 2

7 Sullivan & cromwell 36,077 4

8 cleary gottlieb Steen & Hamilton 35,950 3

9 Weil gotshal & manges 35,698 3

10 Davis polk & Wardwell 30,930 8

11 Allens Arthur robinson 23,956 15

12 mallesons Stephen Jaques 23,428 28


14 AZB & partners 16,550 37

15 Allen & overy 15,909 15

16 freehills 14,667 27

17 Baker & mckenzie 10,819 20

18 Blake Dawson 10,795 13

19 talwar, thakore and Associates 10,700 1

20 Sidley Austin 8,661 4Source: mergermarket

voLUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Asia-pacifc excluding Japan.

Ytd 30-Jun-10

house Value (us$m)

deal count


2 DLA piper 953 36

3 mallesons Stephen Jaques 23,428 28

4 freehills 14,667 27

5 Wongpartnership 3,927 24

6 kim & chang 3,727 24

7 Jones Day 3,303 23


9 clayton Utz 4,435 18

10 minter ellison 1,426 18


12 freshfields Bruckhaus Deringer 4,580 17

13 Allen & gledhill 4,151 16

14 Allens Arthur robinson 23,956 15


16 Allen & overy 15,909 15

17 clifford chance 3,539 15

18Amarchand & mangaldas & Suresh A Shroff & co

4,712 14

19 Lee & ko 1,164 14

20 Desai & Diwanji 797 14Source: mergermarket

28

ASIA-PAcIfIc

Monthly M&A Insider

LeAgUe tABLeS

vALUe

Ytd 30-Jun-10

house Value (us$m)

deal count

1 nomura Holdings 9,540 352 Jpmorgan 8,202 83 Bank of America merrill Lynch 5,131 34 Lazard 5,008 25 citigroup 4,440 46 morgan Stanley 4,343 147 goldman Sachs 4,128 68 UBS Investment Bank 4,014 19 greenhill & co 3,510 310 Deutsche Bank 3,409 211 centerview partners 3,301 112 mizuho financial group 2,516 2513 Sumitomo mitsui financial group 2,047 1614 gcA Savvian corporation 1,020 915 credit Suisse 997 3

Source: mergermarket

voLUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Japan

Ytd 30-Jun-10

house Value (us$m)

deal count


2 mizuho financial group 2,516 25

3 Sumitomo mitsui financial group 2,027 15

4 Daiwa Securities group 831 16


6 Jpmorgan 8,202 8

7 gcA Savvian corporation 1,020 9


9 kpmg 688 6

10 pricewaterhousecoopers 535 6

11 ernst & Young 602 5


13 A.g.S. consulting 254 4


15 greenhill & co 3,510 3Source: mergermarket

top 15 fInAnCIAL AdVIsers – JApAn

vALUe

Ytd 30-Jun-10

house Value (us$m)

deal count

1 mori Hamada & matsumoto 11,413 33

2 nishimura & Asahi 8,070 18

3 nagashima ohno & tsunematsu 8,019 18

4 Skadden Arps Slate meagher & flom 7,679 5


6 Anderson mori & tomotsune 6,012 11

7 morrison & foerster 5,635 8


9 gibson Dunn & crutcher 5,131 3

10 Latham & Watkins 4,235 3

11 Dewey & LeBoeuf 3,301 1


13 tmI Associates 2,115 12

14 ropes & gray 1,807 2

15 morgan Lewis & Bockius 1,356 1Source: mergermarket

voLUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and include lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being Japan

Ytd 30-Jun-10

house Value (us$m)

deal count

1 mori Hamada & matsumoto 11,413 33

2 nishimura & Asahi 8,070 18

3 nagashima ohno & tsunematsu 8,019 18

4 tmI Associates 2,115 12

5 Anderson mori & tomotsune 6,012 11

6 morrison & foerster 5,635 8


8 Baker & mckenzie 379 7

9 Skadden Arps Slate meagher & flom 7,679 5


11 kitamura & Hiraga 323 5

12 AZB & partners 862 4

13 Sullivan & cromwell 543 4

14 oh-ebashi Lpc & partners 412 4

15 Sato & partners 118 4Source: mergermarket

top 15 LegAL AdVIsers – JApAn

29

ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

AsIA-pACIfIC M&A quArterLY trend

vALUe voLUme

0

50,000

100,000

150,000

200,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

600

700

800

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

AsIA-pACIfIC M&A quArterLY MId-MArKet trend

vALUe voLUme

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

100

200

300

400

500

Q210

Q1 10

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

30

ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

AsIA-pACIfIC M&A seCtor BreAKdown Ytd 2010

vALUe voLUme

13.0%

14.2%

7.0%

17.7%25.0%

5.8%

2.6%

2.7%

7.4%

4.8%

1.4%1.8%


TMT

Consumer


Financial Services

Business Services


Construction

Real Estate

Transport

Leisure

Agriculture

20.5%

13.4%

11.0%

6.9%

9.9%

2.4%

10.5%

6.7%

5.4%

5.2%

4.5%3.3%


TMT

Consumer


Financial Services

Business Services


Construction

Real Estate

Transport

Leisure

Agriculture

AsIA-pACIfIC M&A quArterLY prIVAte equItY trend

vALUe voLUme

0

5,000

10,000

15,000

20,000

25,000

Q2 10

Q110

Q4 9

Q309

Q09

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

Asia-Pacificbuyouts

Asia-Pacificexits

0

20

40

60

80

100

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

Asia-Pacificbuyouts

Asia-Pacificexits

31

ASIA-PAcIfIc

Monthly M&A Insider

trenD grApHS

AsIA-pACIfIC M&A geogrAphIC BreAKdown Ytd 2010

vALUe voLUme

Australia

China

Hong Kong

India

Indonesia

Japan

Malaysia

Singapore

South Korea

Taiwan

Other

21.6%6.4%

8.9%

2.6%

4.7%

13.9%

2.6%

5.6%1.1%

23.4%

9.1%

25.9%

10.0%

11.0%

14.5%

15.7%

5.4%

5.1%

4.1%

3.7%2.6%

1.8%China

Japan

Australia

South Korea

India

Hong Kong

Malaysia

Singapore

Indonesia

Taiwan

Other

AsIA-pACIfIC M&A deAL sIZe BreAKdown

vALUe voLUme

0

50

100

150

200

250

300

H12010

H12009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Valu

e (U

S$bn

)

0

300

600

900

1,200

1,500

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Value not disclosed

Num

ber

of d

eals

32Monthly M&A Insider

europe

A mergermArket m&A report on

eUrope

the two state-owned Uk banks, Lloyds Banking group and royal Bank of Scotland, are in the process of selling off some of their assets, including those in europe, to satisfy european Commission’s conditions after it approved the state-aid they received over the last couple of years. A similar sell-off is taking place in Benelux and germany with kBC, Dexia, Ing and Commerzbank. meanwhile, back in the Uk, the re-privatisation of northern rock is gathering pace and resolution’s £2.75bn acquisition of AXA Uk’s life and pension businesses this month signals that more deals are expected in the sector.

meanwhile, Banco Santander is set to acquire 318 rBS branches in Scotland and north West england. the Spanish bank tabled a bid in the region of £1.50bn for the branches in mid-June 2010. It is understood that Santander is currently the sole bidder after Virgin money, national Australia Bank and Santander’s domestic rival BBVA withdrew their interests. rBS however, is keeping the door open for last-minute competing bids whilst at the same time ‘seriously reviewing’ Santander’s offer.

As for northern rock, the Uk government remains keen on the dual track exit strategy, the bailed-out newcastle-based lender. Both an Ipo and a straightforward disposal are on the cards. the bank is valued at about £2.00bn. Virgin money and tesco are reported to have keen interest.

Lloyds Banking group are to sell-off its Cheltenham & gloucester businesses, which comprises of 600 branches across the Uk. A consortium of national Bank of Australia and BBVA is said to be interested.

the interest shown for these state-owned Uk assets comes not only from established banks. recent reports suggest that new cash shells, or blank-cheque companies, are emerging to compete in the upcoming auctions, thus providing a breath of fresh air to the sector which currently lacks real competition. one example of this could be Lloyd’s

of London’s head, Lord Levene, who it has been widely reported is planning to float a shell company very soon on London Stock exchange’s AIm board and it is expected he will receive backing backing from several investors including Aviva, Invesco and F&C, and that they will then bid for Lloyds Banking group’s Cheltenham & gloucester.

moving away from the banking sector, other activities in the Financial Services sector could see increased m&A deal activity in the second half of the year. In June, Apollo, the American private equity firm, bid £824m for Brit Insurance, only for the Uk insurer to reject it early in July. Brit Insurance demands at least £865m from Apollo to allow due-diligence.

meanwhile, one established blank-cheque company, resolution, has agreed to acquire the Uk life and pension businesses of AXA, the French insurer, in late June; this follows its acquisition of Friends provident last year. the self-styled financial services consolidator will not stop there, as it continues to seek more acquisition opportunities, focusing on Uk and Western european assets.

resolution decided to acquire AXA’s Uk operations after considering a bid for Scottish Widows, Legal & general, or Aegon – the latter is currently reviewing the viability of its Uk distribution arms. this would further boost expectations of a very busy semester in the european Financial Services sector.

the CompULSory BreAk-Up oF the BAnkIng SeCtor In eUrope CoULD potentIALLy DrIVe Up m&A ACtIVIty In the regIon oVer the SeConD hALF oF the yeAr. other FInAnCIAL SerVICeS CompAnIeS Are ALSo eXpeCteD to See An InCreASe In m&A ACtIVIty, eSpeCIALLy In the Uk.

33

europe

Monthly M&A Insider

Target: oJSC polyus gold Announced: 30 June 2010

Bidder: kazakhgold group Limited: Deal value: €8.37bn

Seller: 30 June 2010 Deal nature: Cross-border, public, reverse take over

• kazakhgold group Limited (kazakhgold), the London listed kazakhstani miner, and oJSC polyus gold (polyus gold), its listed russian counterpart, announced a proposed combination of kazakhgold and polyus gold which would result in kazakhgold acquiring all of the issued share capital of polyus gold, currently the indirect controlling shareholder of kazakhgold.

STrucTure:• the combination will be conducted via a series of

conditional transactions. the freefloat of ployus gold will be acquired via a private exchange offer (peo).

TerMS:• polyus gold shareholders accepting the peo will receive

9.26 new kazahkgold shares for each polyus gold share held. this values each polyus gold share at US$53.71 based on US$5.80. kazakhgold closing gDr price on 29 June 2010, the last trading day prior to the offer announcement.

• the offer represents a 5.4% premium to the rUB1,576.7 polyus gold closing share price on 29 June 2010.

• holders of poyus gold ADSs (listed on the LSe in gDr form) will receive 4.885 kazakhgold gDrs for each poyus gold ADS held. this values each polyus gold gDr at US$28.33 based on US$5.80.

• the offer represents an 8.3% premium to the US$26.15 polyus gold closing gDr price on 29 June 2010.

BAckgrounD:• In August 2009, polyus gold, through its indirectly wholly-

owned subsidiary Jenington International, acquired a 50.1% stake in kazakhgold via a recommended partial offer.

• Since acquiring the 50.1% stake, polyus gold has, through Jenington, funded the operations of kazakhgold through US$50.00m shareholder loans.

PrIncIPAl ShAreholDerS oPTIon AgreeMenT & JennIngTon oPTIon AgreeMenT:• kazakhgold has entered into an option agreement with

the principal shareholders of polyus gold (nafta and onexim) to acquire their polyus gold stake, representing 74.3% of polyus gold issued share capital, using the same exchange ratios as under the peo.

• kazakhgold has entered into an option agreement with Jenington to acquire the 10,776,161 polyus gold shares (5.65% of polyus gold share capital) held by Jenington using the same exchange ratios as under the peo.

kAzAkhgolD equITy rAISIng:

• kazakhgold is launching a US$100m equity capital raising, originally planned as part of the partial offer for kazakhgold in 2009 but subsequently delayed.

• kazakhgold will offer 66.7m new shares at US$1.50 per share. the proceeds will be used to repay the US$50m shareholder loan made by Jenington in February and for general corporate purposes.

JennIngTon DISTrIBuTIon:• Following the completion of the peo and the equity

placing, Jenington will convert the US$50m shareholder loan made to kazakhgold in Aug-09 into 33.33m new kazakhgold gDrs, which will be distributed, on a pro rata basis, to shareholders who have accepted the peo and the principal shareholders.

DeAL oF the month

34

europe

Monthly M&A Insider

DeAL oF the month

• Assuming full acceptance of the peo, the accepting shareholders will receive no less than 0.02 additional kazakhgold gDrs per each new kazakhgold gDr issued under the offer. this is equivalent to an additional 0.185 kazakhgold gDrs per each polyus gold share held, based on the 9.26 kazakhgold gDr per polyus gold share exchange ratio.

PolyuS golD DIvIDenD:

• polyus gold expects to declare a dividend of approximately rUB1.7bn US$55m for 1h10, equivalent to rUB8.92 (US$0.29) per share. Accepting polyus gold shareholders will be eligible to receive the dividend.

conDITIonS:• 15% acceptances of the peo.

• Completion of the principal Shareholders option Agreement and Jenington option Agreement.

• kazakhgold egm approval.

• All the necessary regulatory and governmental approvals to remain in full force and effect; these have already been received by kazakhgold.

• mAC clause.

exit multiples – y/e 31/03/10 Premium analysis

Multiples value (€m) offer price per share (€) 43.89

revenue 9.8 x 852.86 1 day before 5.44%

eBITDA 22.8 x 366.87 1 month before 11.89%

eBIT 27.8 x 300.72 1 day after -

earnings 35.0 x 223.86 Pre-rumour 17.82%

Advisers

Target/Seller Bidder

Financial Internal Financial hSBC BankBmo Capital markets

legal Internal legal Debevoise & plimpton

Pr Internal Pr

Mergermarket/dealreporter Intelligence

20-May-10 polyus/kazakhgold: no significant progress made towards full merger, high chance deal may not happen, says source

24-Apr-10 kazakhgold reverse takeover of polyus could trigger government's preemptive right to buy assets, local market sources say

13-Apr-10 polyus reverse takeover by kazakhgold in very preliminary stages; will also need kazakhstani govt approval, source says

31-Jul-09 polyus will complete acquisition of 50.1% stake in kazakhgold by end of August, source says

24-Jul-09 polyus gold most likely to merge with kinross gold, Anglogold Ashanti or goldfields

35

europe

Monthly M&A Insider

ToP 15 euroPeAn AnnounceD DeAlS yTD 30 June 2010Announced Status Target company Sector Bidder company Seller company exit multiples (x) Bid premia


(€m)revenue eBITDA P/e

4-Jan-10 p Alcon Inc (52.00% stake)


novartis Ag nestle SA 8.0 20.9 26.9 9.5% 18,247

30-Jun-10 p oJSC polyus gold energy, mining & Utilities

kazakhgold group Limited

9.8 22.8 35.0 5.4% 8,367

5-Jan-10 C nk russneft oAo energy, mining & Utilities

mr. mikhail gutseriyev (private investor)

en+ group Ltd 4,595

14-Jun-10 C JSC Uralkali (53.20% stake)


Aerellia Investments Limited; Becounioco holdings Limited; and kaliha Finance Limited

madura holding Limited

10.5 21.7 37.9 21.4% 4,254

18-mar-10 p ratiopharm gmbh pharma, medical & Biotech

teva pharmaceutical Industries Ltd

2.3 3,625

24-Jun-10 p AXA SA (Uk life and pensions businesses)

Financial Services

resolution Limited AXA SA 20.4 3,330

20-Jan-10 C Areva t&D SA Industrials & Chemicals

Alstom SA; and Schneider electric SA

AreVA SA 0.6 3,180

24-Feb-10 C edenred SA Business Services

Accor SA (Shareholders)

Accor SA 3.7 9.2 2,937

22-Apr-10 p Arriva plc transportation Deutsche Bahn Ag 0.8 7.7 14.6 1.2% 2,819

23-Jun-10 p Cognis gmbh Industrials & Chemicals

BASF Se gS Capital partners; permira; and SV Life Sciences

0.9 7.5 28.0 2,408

8-Apr-10 p Iberia Lineas Aereas de espana SA

transportation British Airways plc 0.5 0.9% 2,234

15-mar-10 C tommy hilfiger Corporation

Consumer phillips-Van heusen Corporation

Apax partners LLp 1.3 7.9 2,200

21-Jun-10 p Subsea 7 Inc energy, mining & Utilities

Acergy m.S. Limited 1.2 5.5 10.0 1.8% 2,008

13-may-10 p Centertelecom oJSC

tmt oAo rostelecom Svyazinvest telecommunication Investment Joint Stock Company

51.0% 1,892

30-Apr-10 C BSg resources (guinea) Limited (51.00% stake)


Vale SA BSg resources Limited

1,880


top DeALS & eXpeCteD DeALS

36

europe

Monthly M&A Insider


ToP 5 euroPeAn AnnounceD DeAlS oF The MonTh (June 2010)Announced Status Target company Sector Bidder company Seller company exit multiples (x) Bid premia


(€m)revenue eBITDA P/e

30-Jun-10 p oJSC polyus gold energy, mining & Utilities

kazakhgold group Limited

9.8 22.8 35.0 5.4% 8,367

14-Jun-10 C JSC Uralkali (53.20% stake)


Aerellia Investments Limited; Becounioco holdings Limited; and kaliha Finance Limited

madura holding Limited

10.5 21.7 37.9 21.4% 4,254

24-Jun-10 p AXA SA (Uk life and pensions businesses)

Financial Services

resolution Limited AXA SA 3,330

23-Jun-10 p Cognis gmbh Industrials & Chemicals

BASF Se gS Capital partners; permira; and SV Life Sciences

0.9 7.5 28.0 2,408

21-Jun-10 p Subsea 7 Inc energy, mining & Utilities

Acergy m.S. Limited 1.2 5.5 10.0 1.8% 2,008


37

europe

Monthly M&A Insider

Situation Target company Sector Potential bidder company

Financial adviser to bidder (B); target (T); seller (S)

Seller company Market cap/ est. value (€m)

comments

potential takeover target

Bp plc energy exxonmobil Corporation

80,000 exxon, the Irving, texas-based oil company, has received permission from the US government to consider making an offer for Bp. A merger of Bp and exxon would create a company with a market capitalisation of US$400.00bn (€316.00bn). Bp has a market capitalisation of US$100.00bn (€80.00bn)

expected deal

Bancaja; Caixa Laietana; Caja de Ahorros de la rioja; Caja de Ahorros y monte de piedad de madrid; Caja de Avila; Caja Insular de Ahorros de Canarias; and Caja Segovia

Financial Services

Institutional protection Scheme

Lazard (t) 4,460 the board of directors of Caja madrid, Bancaja, Caixa Laietana,Caja de Ahorros de la rioja, Caja de Avila, Caja Insular de Ahorros de Canarias, and Caja Segovia, the Spain-based banks, have reached a non binding merger agreement. the new group will submit a request to the Fondo de restructuracion ordenada Bancaria for a total consideration of €4.46bn. the new group will become the first savings-bank in Spain with €430.00bn of assets.


manchester United Football Club Limited

Leisure red knights nomura holdings (t)

glazer Family partnership

1,195 the red knights, a consortium of private investors, is once again planning to remove manchester United’s owners, the glazer family.nomura, which is advising the red knights, values manchester United at £1.00bn (€1.19bn), considerably below the glazer family’s valuation of £1.500bn.

expected deal

BhF-Bank Ag Financial Services

Bnp paribas SA; Liechtenstein global trust; hypoVereinsbank; and Bank Vontobel Ag

Deutsche Bank Ag

600 Deutsche Bank acquired BhF through its 2009 purchase of the private bank Sal. oppenheim, and now wants to sell BhF. A sale prospectus will be sent to possible interested buyers in the coming days. BhF’s book value of about €600m will serve as a basis for price negotiations. potential bidders include the Liechtenstein bank Lgt, Swiss bank Vontobel, French bank Bnp paribas, and german bank hypo-Vereinsbank.


orange Cinema Series

tmt Canal+ SA France telecom SA

300 Canal plus, the French pay tV channel owned by Vivendi, is believed to be in talks to acquire competitor orange Cinema Series. orange Cinema Series has an estimated value of €300m.

expected deal

marie Brizard et roger International SA

Consumer Compagnie Financiere europeenne de prise de participation

Belvedere SA 185 Belvedere announced that it entered into exclusive negotiations with the CoFepp to sell the marie Brizard group. If the negotiations are completed successfully, the contract for the acquisition will be signed before the end of July 2010. the sale price is estimated to €185m.

note: expected deals based on confirmed announcements by companies involved

PIPelIne oF euroPeAn exPecTeD DeAlS


38

europe

Monthly M&A Insider

LeAgUe tABLeS

VALUeyTD


(€m)Deal count

1 Credit Suisse 67,536 572 goldman Sachs 60,919 393 Citigroup 51,226 254 morgan Stanley 41,213 545 Jpmorgan 41,048 406 Deutsche Bank 40,289 407 rothschild 33,111 728 Lazard 31,594 499 Barclays Capital 25,161 2110 Bank of America merrill Lynch 24,034 2011 greenhill & Co 20,611 712 UBS Investment Bank 19,275 3113 hSBC Bank 18,207 1814 nomura holdings 13,520 1915 Bnp paribas 11,116 2016 Credit Agricole CIB 9,992 1317 Sg 9,332 918 Bmo Capital markets 9,318 319 Blackstone group holdings 8,765 420 evercore partners 7,432 2


VoLUme

the financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being europe

yTD 30-Jun-10

house value (€m)

Deal count

1 rothschild 33,111 72

2 kpmg 5,575 70

3 pricewaterhouseCoopers 4,760 60



6 Deloitte 3,978 51

7 Lazard 31,594 49





12 ernst & young 1,171 30

13 DC Advisory partners 4,139 27


15 global m&A 80 22




19 nomura holdings 13,520 19

20 hSBC Bank 18,207 18Source: mergermarket

ToP 20 FInAncIAl ADvISerS

VALUeyTD


(€m)Deal count


2 Cravath Swaine & moore 53,165 9

3 Simpson thacher & Bartlett 47,513 20

4 Cleary gottlieb Steen & hamilton 45,985 27



7 herbert Smith/gleiss Lutz/Stibbe 40,428 39

8 Slaughter and may 40,296 23


10 Skadden Arps Slate meagher & Flom 34,754 22


12 Freshfields Bruckhaus Deringer 33,580 57




16 Wachtell, Lipton, rosen & katz 26,734 6

17 homburger 21,282 8



20 Clifford Chance 16,376 47Source: mergermarket

VoLUme

the legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 andlude lapsed and withdrawn deals. the tables cover all sectors andare based on the geography of either the target, bidder or seller being europe

yTD 30-Jun-10

house value (€m)

Deal count



3 DLA piper 4,112 76


5 CmS 4,077 57

6 Clifford Chance 16,376 47

7 herbert Smith/gleiss Lutz/Stibbe 40,428 39

8 Jones Day 8,398 39

9 hogan Lovells 8,740 37


11 mannheimer Swartling 4,313 32


13 SJ Berwin 4,202 31

14 White & Case 6,082 29


16 Vinge 2,733 28

17 Cleary gottlieb Steen & hamilton 45,985 27


19 eversheds 332 26

20 Loyens & Loeff 11,502 25Source: mergermarket

ToP 20 legAl ADvISerS

39

europe

Monthly M&A Insider

LeAgUe tABLeS

VALUe

yTD 30-Jun-10

house value (€m)

Deal count

1 Advent International 1,818 4

2 CVC Capital partners 1,600 3

3 kohlberg kravis roberts & Co 1,450 4

4 Cinven 1,401 2

5 triton partners 1,269 3

6 niam 1,088 1

7 Bridgepoint Capital 898 4

8= Bain Capital 883 1

8= Berkshire partners 883 1

10 Apax partners 881 2Source: mergermarket

VoLUme

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 europe the tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

yTD 30-Jun-10

house value (€m)

Deal count

1 hgCapital 606 8

2 Sovereign Capital partners 50 5

3 procuritas 28 5

4 Advent International 1,818 4

5 kohlberg kravis roberts & Co 1,450 4

6 Bridgepoint Capital 898 4

7 Warburg pincus 698 4

8edmond de rothschild Investment partners

53 4

9= Bnp paribas Developpement - 4

9= Lloyds tSB Development Capital - 4Source: mergermarket

AcTIvITy TABle oF PrIvATe equITy FIrMS on euroPeAn BuyouTS

VALUe

yTD 30-Jun-10

house value (€m)

Deal count

1= permira 2,408 2

1= SV Life Sciences 2,408 2

3 gS Capital partners 2,408 1

4 Apax partners 2,200 1

5 the Carlyle group 1,871 4

6 riverstone holdings 1,751 1

7 3i group 1,133 2

8 montagu private equity 1,117 2

9 Bridgepoint Capital 1,101 1

10 Astorg partners 804 1Source: mergermarket

VoLUme

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 europethe tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

yTD 30-Jun-10

house value (€m)

Deal count

1 the Carlyle group 1,871 4

2 ISIS private equity partners 44 4

3= Duke Street 404 3

3= parcom Capital 404 3

5 Barclays private equity 363 3

6 Capman group - 3

7= permira 2,408 2

7= SV Life Sciences 2,408 2

9 3i group 1,133 2

10 montagu private equity 1,117 2Source: mergermarket

AcTIvITy TABle oF PrIvATe equITy FIrMS on euroPeAn exITS

europe


trenD grAphS

euroPeAn M&A quArTerly TrenD

VALUe VoLUme

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Q210

Q110

Q409

Q309

Q2 09

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q4 04

Q3 04

Q2 04

Q104

Valu

e (€

m)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Q2 10

Q110

Q4 09

Q3 09

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q3 07

Q207

Q107

Q4 06

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

euroPeAn M&A quArTerly MID-MArkeT TrenD

VALUe VoLUme

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

m)

0

100

200

300

400

500

600

700

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Num

ber

of d

eals

moving average trend line

EUROPE

Monthly M&A Insider

EuropEAn M&A SEctor BrEAkdown Ytd 2010

value volume

11.4%

3.6%

0.5%0.3%

14.0%

9.4%

5.5%

10.7%

20.2%

15.9%1.9%

1.6%

5.1%

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence


Consumer

15.7%

20.8%

0.9%0.5%3.3%

1.7%

3.8%

7.0%

4.8%

11.0%

8.9%

7.9%

13.3%

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence


Consumer

TMT

Business Services

Financial Services



Construction

Leisure

Transportation

Real Estate

Agriculture

Defence


Consumer

Trend graphs

EuropEAn M&A quArtErlY prIvAtE EquItY trEnd

value volume

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q4 07

Q307

Q2 07

Q107

Q406

Q3 06

Q206

Q106

Q405

Q3 05

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (€

m)

European buyouts

European exits

0

50

100

150

200

250

300

350

400

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

Q107

Q4 06

Q306

Q206

Q1 06

Q4 05

Q3 05

Q2 05

Q1 05

Q4 04

Q3 04

Q204

Q104

Num

ber

of d

eals

European buyouts

European exits

41

europe


euroPeAn M&A DeAl SIze BreAkDown

VALUe VoLUme

0

50

100

150

200

250

300

350

400

450

500

550

600

650

700

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Valu

e (€

bn)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

H12010*

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> €501m

€251m-€500m

€101m-€250m

€15m-€100m

€5m-€14.9m

Value not disclosed

Num

ber

of d

eals

trenD grAphS

euroPeAn M&A geogrAPhIc BreAkDown yTD 2010

VALUe VoLUme

Iberia

Benelux

Italy

Other

SEE

UK & Ireland

Nordic

France

CEE

Germany

8.1%

9%

10.8%

9.1%

7.4%

2.5%

17.1%

6.3%

2.8%

27.8%

6.7%

5.3%

5.2%3.1%

22.9%

12.3%

12.6%

12.3%

11.7%

7.7%

Iberia

Benelux

Italy

Other

SEE

UK & Ireland

Nordic

France

CEE

Germany

43

Mid

dle east &

africa

THE MIDDLE EAST & AFRICA

A MERgERMARkET M&A REpoRT on

Monthly M&A Insider

The total deal value for the TMT sector was US$11.50bn, making it the biggest sector with a total share of 41.0% of total deal value in the region in the reporting period. Energy, Mining & Utilities, with a total value of US$4.90bn, is the second biggest contributing sector with a 17.0% share based by value. Based on volume, the three biggest contributing sectors are Industrials & Chemicals, Financial Services and Energy, Mining & Utilities with a 15.0% share each, just ahead of TMT and Consumer with a 13.7% and 13.0% share respectively.

nigeria has witnessed the highest level of M&A activity in terms of value. Its US$10.80bn worth of deals make up 38.0% to the total deal value in the region. South Africa, with its US$7.80bn worth of deals, contributed 27.3% to the total deal value and made it the second biggest country in the region.

Based on volume, South Africa topped the regional run down, contributing 31.8% with its 41 deals. Israel is the second biggest country, and contributing 27.9% to the total M&A activity based volume with 36 deals.

UBS Investment Bank was ranked the top financial adviser for the region based on value in the first half of 2010. Advising on four deals with a total value of US$15.80bn, it inched just ahead Barclays Capital, which also advised on four deals but with a slightly lower total value of US$14.40bn.

Based by volume, goldman Sachs was the busiest adviser, advising on eight deals with a total value of US$10.30bn. Rand Merchant Bank, the South African based financial adviser, was in second position based on volume; advising on seven deals with a total value of US$2.80bn.

The legal adviser table for the first half of 2010 was topped by Herbert Smith/gleiss Lutz/Stibbe, based on value, who advised on a total deal value of US$15.40bn spread over five deals. While Linklaters took the second position with US$13.59bn over seven deals, just ahead of Allen & overy, who advised on US$13.57bn over six deals.

Linklaters, however, is the top legal adviser based volume, along with Edward nathan Sonnenbergs and Bowman gilfillan who advised on US$6.40bn and US$1.70bn worth of deals respectively over seven deals.

MIddle eAst & AfrIcAn M&A ActIvIty reMAIns strong

WITH FIRST HALF oF 2010 CoMIng To An EnD, IT CAn BE ConCLUDED THAT M&A ACTIvITy In THE MIDDLE EAST AnD AFRICA REMAInS STRong. ALTHoUgH M&A LEvELS DRoppED By 83.0% FRoM THE FIRST To THE SEConD qUARTER oF 2010, THE ToTAL vALUE oF DEAL ACTIvITy In THE FIRST HALF oF THE yEAR ToTALLED AT US$28.40Bn, ITS HIgHEST FIRST HALF vALUE SInCE 2007 WHEn IT REACHED US$32.30Bn.

44

Mid

dle east &

africa

Monthly M&A Insider

target: palabora Mining Company Limited (26.0% stake) Announced: 11 June 2010

Bidder: Black Economic Empowerment deal value: US$172m

deal nature: Domestic, public

descrIPtIon • Black Economic Empowerment consortium (BEE)

has agreed to acquire 26.0% stake in palabora Mining Company Limited (pMC) via Equity Empowerment Transaction.

• Black Economic Empowerment, South Africa-based consortium consisting of local communities and employees, that encourages the redistribution of wealth and opportunities to previously disadvantaged communities and individuals, women and people with disabilities. palabora Mining Company Limited, South Africa based producer of refined copper.

terMs• The offer provides a discount of 5.3% based on pMC

closing share price on 10-Jun-10 of ZAR10,600.00 (US$1,364.65) and discount of 20.5% based on pMC closing price on 11-May-10.

• The implied equity value of the transaction is approx. ZAR48.34bn (US$6.25bn).

fInAncIng• The fresh issue of shares is out of the accumulated

reserves of the company and financing will be done through an interest-bearing convertible loan.

rAtIonAle• The palabora Copper Employee Trust, Leolo Community

Trust, and negota consortium will make up the BEE shareholding. The community trust, which will acquire 10.0% of the shares in palabora Copper, will be made up of the Makhushane, Selwane, Maseke, Mashishimale and Majeje communities of the Ba-phalaborwa area. All of palabora Copper 2,200 permanent employees, out of which 75.0% of whom are historically disadvantaged South Africans (HDSAs), 9.0% are women and 42.0% are HDSAs in senior management, will acquire 10.0% of the shares in palabora Copper.

eXPected coMPletIon• The transaction is expected to close in the fourth quarter

of 2010.

condItIons• pMC shareholder approval.

• Department of Mineral Resources approval.

• Customary closing conditions

Post deAl detAIls• Under this transaction, BEE partners will create a new

company called palabora Copper, in which the BEE will hold 26.0% shareholding in palabora Copper and remaining 74.0% will be held by pMC. pMC is 57.7% held by Rio Tinto and 16.8% by Anglo American. key members of the negota consortium, which will hold 6.0%, will spearhead business development and job creation in the Ba-phalaborwa area.

DEAL oF THE MonTH

45

Mid

dle east &

africa

Monthly M&A Insider

Advisers


financial RothschildBarnard Jacobs Mellet Corporate Finance (pty) Ltd

financial

legal Webber Wentzel legal

Pr Pr

exit multiples – y/e 30/06/2009 Premium analysis

Multiples value (Us$m) offer price per share (Us$) 12.93

revenue 0.9 700.25 1 day before -5.28%

eBItdA 4.8 138.02 1 month before -20.53%

eBIt 10.5x 63.33 1 day after -10.28%

earnings 16.2x 34.45 Pre-rumour n/a

DEAL oF THE MonTH

46

Mid

dle east &

africa

Monthly M&A Insider

toP 15 MIddle eAstern & AfrIcAn AnnoUnced deAls for ytd 30 jUne 2010Announced status target company sector Bidder company seller company exit multiples (x) Bid premia


(Us$m)revenue eBItdA P/e

30-Mar-10 C Zain Africa Bv TMT Bharti Airtel Limited Mobile Telecommunications Company k.S.C.

11.2 10,700

18-Feb-10 p Tsogo Sun Holdings pty Ltd

Leisure gold Reef Resorts Limited

Hosken Consolidated Investments Limited; and SABMiller plc

19.7 21.9 59.0 2,721

28-Mar-10 p Sonangol Sinopec International Limited (55.0% stake)


Sinopec Corporation Hongkong International Limited

Sinopec overseas oil & gas Limited

2,457

31-Mar-10 p Momentum group Limited

Financial Services

Metropolitan Life Limited

FirstRand Limited 1,986

10-May-10 p Anglo American Zinc Energy, Mining & Utilities

Hindustan Zinc Limited

Anglo American plc 2.0 6.3 1,338

25-Mar-10 p Hyprop Investments Limited (66.70% stake)

Real Estate Redefine Income Fund Limited

15.3 2.5% 942

21-Mar-10 C qatar Shipping Company qSC

Transportation qatar navigation Company q.S.C.

-24.0% 917

10-Jan-10 C qatar Real Estate Investment Co

Real Estate Barwa Real Estate Company qSC

10.1 30.6% 862

20-May-10 p Shadeed Iron & Steel LLC


Jindal Steel & power Ltd

Al ghaith Holding pJSC

464

10-Mar-10 C Foodcorp (proprietary) Limited (77.0% stake)

Consumer new Foodcorp Holdings (proprietary) Limited

pamodzi Investment Holdings (proprietary) Limited

0.6 5.8 453

18-Jan-10 p Bank Audi SAL - Audi Saradar group (13.95% stake)

Financial Services

M1 group Ltd EFg-Hermes Holding Company

3.4% 450

15-Mar-10 C kingdom Hotel Investments (43.90% stake)

Leisure kingdom Holding Company

4.1 14.3 0.4 25.0% 375

18-Feb-10 C Chambishi Metals plc (90% stake); and Comit Resources FZE


Eurasian natural Resources Corporation plc

International Mineral Resources Bv

300

26-Apr-10 p northam platinum Ltd (12.20% stake)


Eurasian natural Resources Corporation plc

Mvelaphanda Resources Limited

5.4 18.3 28.7 -4.8% 297

31-Mar-10 L Freeworld Coatings Ltd (81.14% stake)


Brait private Equity 1.0 6.5 0.2 13.3% 291


Top DEALS & ExpECTED DEALS

47

Mid

dle east &

africa

Monthly M&A Insider

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


Maroc Telecom TMT government of Morocco

15,000 Moroccan government is planning to sell up to an 8.00% stake in the Moroccan telecom company Maroc Telecom

Rumoured takeover

Amraz Industrials & Chemicals

Cargal group 127 Cargal, the privately held Israeli packaging company, is holding talks to acquire the Israeli plastic packaging firm Amraz


Days Inn Hotel Ramallah

Leisure Tiger group 22 Tiger group, a palestine-based investment company, is considering bringing on board a strategic investor to help complete its Days Inn Hotel in Ramallah

Expected deals based on confirmed announcements by companies involved

PIPelIne of MIddle eAstern & AfrIcAn eXPected deAls

Top DEALS & ExpECTED DEALS

toP 5 MIddle eAstern & AfrIcAn AnnoUnced deAls of the Month (jUne 2010)Announced status target company sector Bidder company seller company exit multiples (x) Bid premia

1-day before

deal value

(Us$m)revenue eBItdA P/e

6-Jun-10 C Zambia Telecommunications Company Limited (75% stake)

TMT Lap green networks government of the Republic of Zambia

257

11-Jun-10 C palabora Mining Company Limited (26% stake)


Black Economic Empowerment

0.9 4.8 16.2 -5.3% 172

16-Jun-10 C Royal Bank of Scotland (UAE) (Retail Banking business)

Financial Services

Abu Dhabi Commercial Bank

Royal Bank of Scotland (UAE)

100

21-Jun-10 C Barnard Jacobs Mellet Holdings Ltd

Financial Services

FirstRand Limited 1.5 23.9 27.5 20.7% 50

13-Jun-10 C Cimentos de nacala SA (51% stake)

Construction Camargo Correa Cimentos SA

Insitec group 50


48

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

vALUEytd

30-jun-10house value

(Us$m)deal count







7= global Investment House 10,700 1

7= State Bank of India 10,700 1


10 Royal Bank of Scotland group 4,933 2

11 Commerzbank 4,933 1


13 Lazard 3,859 3


15 Rand Merchant Bank 2,829 7Source: mergermarket

voLUME

The financial adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

ytd 30-jun-10

house value (Us$m)

deal count


2 Rand Merchant Bank 2,829 7




6 Deloitte 100 4

7 pricewaterhouseCoopers 78 4



10 Lazard 3,859 3


12 vunani Corporate Finance 186 3

13 nedbank Capital 175 3


15 Bnp paribas 10,700 2Source: mergermarket

toP 15 fInAncIAl AdvIsers – MIddle eAst & AfrIcA

vALUEytd

30-jun-10house value

(Us$m)deal count





5 Talwar, Thakore and Associates 10,700 1

6 Edward nathan Sonnenbergs 6,393 7


8 Stikeman Elliott 4,966 2


10= goERg Rechtsanwaelte 4,933 1

10= kirkland & Ellis 4,933 1

10= noerr 4,933 1

10= Willkie Farr & gallagher 4,933 1

14 Webber Wentzel 3,838 7

15 Tabacks 2,721 1


voLUME

The legal adviser league tables by value and volume have been run from 01 January 2010 to 30 June 2010 and include lapsed and withdrawn deals. The tables cover all sectors andare based on the geography of either the target, bidder or seller being Middle East & Africa including Israel

ytd 30-jun-10

house value (Us$m)

deal count


2 Edward nathan Sonnenbergs 6,393 7

3 Webber Wentzel 3,838 7

4 Bowman gilfillan 1,702 7


6 Werksmans 728 6





11 DLA Cliffe Dekker Hofmeyer 738 4

12 norton Rose - 4

13 gibson Dunn & Crutcher 735 3

14 Jones Day 597 3

15 Stikeman Elliott 4,966 2Source: mergermarket

toP 15 legAl AdvIsers – MIddle eAst & AfrIcA

49

Mid

dle east &

africa

Monthly M&A Insider

LEAgUE TABLES

vALUE

vALUE

ytd 30-jun-10

house value (Us$m)

deal count

1 Capitau 453 1

2 Tene Capital 23 1

3 Capinnova Investment Bank 20 1

4= good Energies Investments 15 1

4= new Energies Invest 15 1

4= Zouk ventures 15 1

7= growthgate Capital Corporation - 1

7= gulf Capital - 1

7= Sanlam private Equity - 1

7= The Carlyle group - 1Source: mergermarket

voLUME

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 Mid-dle East & Africa including Israel. The tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

ytd 30-jun-10

house value (Us$m)

deal count

1 Capitau 453 1

2 Tene Capital 23 1

3 Capinnova Investment Bank 20 1

4= good Energies Investments 15 1

4= new Energies Invest 15 1

4= Zouk ventures 15 1

7= growthgate Capital Corporation - 1

7= gulf Capital - 1

7= Sanlam private Equity - 1

7= The Carlyle group - 1Source: mergermarket

ActIvIty tABle of PrIvAte eqUIty fIrMs on MIddle eAstern & AfrIcAn BUyoUts

vALUEytd 30-jun-10

house value (Us$m)

deal count

1pamodzi Investment Holdings (proprietary) 453 1

2 Radius ventures 160 1

3 pitango venture Capital 100 2

4 Cedar Fund 89 2

5= Ant Capital partners Co 60 1

5= Bridge Capital Fund 60 1

5= Marathon venture Capital Fund 60 1

5= Mitsubishi UFJ Capital Co 60 1

5= nippon venture Capital Co 60 1

5= Teuza - A Fairchild Technology venture 60 1

5= yozma group 60 1Source: mergermarket

voLUME

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 Middle East & Africa including Israel. The tables by value and volume have been run from 01 January 2010 to 30 June 2010 and exclude lapsed and withdrawn deals

ytd 30-jun-10

house value (Us$m)

deal count

1 pitango venture Capital 100 2

2 Cedar Fund 89 2

3 Evergreen venture partners 29 2

4pamodzi Investment Holdings (proprietary)

453 1

5 Radius ventures 160 1

6= Ant Capital partners Co 60 1

6= Bridge Capital Fund 60 1

6= Marathon venture Capital Fund 60 1

6= Mitsubishi UFJ Capital Co 60 1

6= nippon venture Capital Co 60 1

6= Teuza - A Fairchild Technology venture 60 1

6= yozma group 60 1Source: mergermarket

ActIvIty tABle of PrIvAte eqUIty fIrMs on MIddle eAst & AfrIcA eXIts

50

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AfrIcA M&A qUArterly trend

vALUE voLUME

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

30

60

90

120

150

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q2 8

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals

MIddle eAst & AfrIcA M&A qUArterly MId-MArket trend

vALUE voLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

Q210

Q1 10

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q1 6

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Valu

e (U

S$m

)

0

10

20

30

40

50

60

70

80

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Q104

Volu

me

of d

eals


51

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AfrIcA M&A sector BreAkdown ytd 2010

vALUE voLUME

3.3%0.2%

0.5%0.2%

3.8%

10.8%

17.3%

40.5%

11.1%

3.8%

1.3%

7.0%

0.3%


Financial Services


TMT

Consumer

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence

15.1%

15.1%

15.1%

6.2%

6.8%

0.7%2.1%

2.7%2.7%

2.7%

4.1%

13.0%

13.7%


Financial Services


TMT

Consumer

Business Services

Real Estate


Leisure

Transportation

Construction

Agriculture

Defence

MIddle eAst & AfrIcA M&A qUArterly PrIvAte eqUIty trend

vALUE voLUME

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

Q210

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Valu

e (U

S$m

)

Middle East& Africa buyouts

Middle East& Africa exits

0

2

4

6

8

10

12

14

16

18

20

-

Q2 10

Q110

Q409

Q309

Q209

Q109

Q408

Q308

Q208

Q108

Q407

Q307

Q207

Q107

Q406

Q306

Q206

Q106

Q405

Q305

Q205

Q105

Q404

Q304

Q204

Num

ber

of d

eals

Middle East& Africa buyouts

Middle East& Africa exits

52

Mid

dle east &

africa

Monthly M&A Insider

TREnD gRApHS

MIddle eAst & AfrIcA M&A geogrAPhIc BreAkdown ytd 2010

vALUE voLUME

1.9%0.9%0.2%

0.2%

0.2%

4.8%

8.6%

0.3%1.8%

27.4%

2.8%

0.5%

4.0%

1.0%

6.3%

0.8%38.0%

South Africa

Israel

Egypt

United Arab Emirates

Kuwait

Qatar

Saudi Arabia

Nigeria

Oman

Jordan

Angola

Namibia

Lebanon

Zambia

Libya

Zimbabwe

Mazambique

31.8%

27.9%

6.2%

5.4%

4.7%

3.9%

3.9%

3.1%

2.3%

2.3%

2.3%

1.6%

1.6%

1.6%1.6%

South Africa

Israel

Egypt

United Arab Emirates

Kuwait

Qatar

Saudi Arabia

Nigeria

Oman

Jordan

Syrian Arab Republic

Angola

Namibia

Lebanon

Sierra Leone

MIddle eAst & AfrIcA M&A deAl sIZe BreAkdown

vALUE voLUME

0

10

20

30

40

50

60

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H1 2005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Valu

e ($

bn)

0

50

100

150

200

250

H12010

H22009

H12009

H22008

H12008

H22007

H12007

H22006

H12006

H22005

H12005

H22004

H12004

> US$501m

US$251m-US$500m

US$101m-US$250m

US$15m-US$100m

US$5m-US$14.9m

Value not disclosed

Num

ber

of d

eals

www.mergermarket.comRemark, part of The Mergermarket group

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t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

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disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

Remark, the events and publications arm of The Mergermarket group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

The following notes pertain to data contained in this publication:

• Deals are included where the deal value is greater than or equal to €5m.

• Where no deal value has been disclosed, deals are included if the turnover of the target is greater than or equal to €10m.

• Deals are included in the graphs and Top Deals in each section based on the dominant geography and dominant sector of the target company. Data underlying the League Tables are based on deals where the bidder, target or parent geography of either is that of the geography in focus.

• H1 2010 refers to the period 31 January 2010 to 30 June 2010.

Documents

A mergermArket report on globAl m&A Activity Monthly M&A ...both Banco do Brasil and Bradesco, as well as Itau Unibanco – another of Brazil’s leading banks - are reportedly seeking