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FLASHWIRE ASIA QUARTERLY

2nd QUARTER 2016

This Issue:
2
3

Asia M&A News and Trends

Asia Strategic
Buyer Report

Asia Private
Equity Report

Asian private equity volume slightly increased in 2q16,

with 233 announcements compared to 221 in 1q16.
Moreover, aggregate base equity significantly increased in
2q16; $33.4 billion compared to $24.4 billion in 1q16.

Deal volume in the Asian M&A market slightly increased in

2q16, with 2,073 announcements compared to 1,967 in
Asia Merger
1q16, representing the biggest quarterly total of the last five
Metrics
quarters. Moreover, the aggregate M&A spending
significantly decreased from 1q16 to 2q16, from $226 billion
Asia Industry
to $180.1 billion by 20.3%, while representing the second
Activity & Value biggest quarterly total of the last five quarters.

Top Asia Deals

Deal volume in Asias key economies is showing negative

results from 1q16 to 2q16; China has a positive trend in
volume, increasing by 3.1%. India, Japan and Australia have
negative trends in volumes, decreasing by 15.2%, 6.8% and
3.3%, respectively.
Over the past 3 months, the industries that have seen the
biggest increases in M&A deal activity, relative to the same
three month period one year ago, have been: Technology
Services (211 vs. 30), Commercial Services (169 vs. 102),
Producer Manufacturing (125 vs. 67), Distribution Services
(81 vs. 48), and Consumer Services (137 vs. 106). 9 of the 21
industries tracked by FactSet MergerStat posted positive
movement in deal flow over the last three months compared
to the same three months one year prior.
Over the past 3 months, the industries that have seen the
biggest declines in M&A deal volume, relative to the same
three month period one year ago have been: Retail Trade
(82 vs. 323), Non-Energy Minerals (96 vs. 271),
Communications (28 vs. 192), Transportation (58 vs. 210),
and Consumer Non-Durables (58 vs. 161). 12 of the 21
industries tracked by FactSet MergerStat posted negative
relative losses in deal flow over the last three months
compared to the same three months one year prior.

Topping the list of the largest deals announced in 1q16

is: China National Chemical Corps $43.7 billion deal for
Syngenta AG, Anbang Insurance Group Co Ltds $7.8
billion deal for Strategic Hotels & Resorts Inc, private
group led by Leonard Green & Partners LP, Hellman &
Friedman LLC and GIC Pte Ltds $7.5 billion deal for
MultiPlan Inc, Tencent Holdings Ltds $7.3 billion offer to
acquire Supercell Oy from Softbank Group Corp, and a
private group led by Canada Pension Plan Investment
Board, BC Investment Management Corp, Global
Infrastructure Management LLC, GIC Pte Ltd and China
Investment Corps $6.8 billion offer to acquire Asciano.
The top five financial advisors in Asia through the second
quarter of 2016, based on aggregate transaction value of
the deals worked on, were: Goldman Sachs & Co,
JPMorgan Chase & Co, Credit Suisse, UBS Group AG, and
HSBC Holdings Plc.
The top five legal advisors in Asia through the second
quarter of 2016, based on the aggregate transaction value
of the deals worked on, were: Simpson Thacher & Bartlett
LLP, Davis Polk & Wardwell LLP, Clifford Chance LLP,
Cleary Gottlieb Steen & Hamilton LLP, and Linklaters LLP.

Asia Mergers & Acquisitions Market Index

$140

1,200
$127.1

$120

1,000

$100

$106.7

$95.8

$97.0
800

$85.8
$80

$91.7

$87.5

600

$74.0

$72.5

$60

$64.7

$67.2

$68.9

$70.2
$64.2

400

$47.1

$40

$43.2
200

$20
853

877

856

1,013

923

773

691

766

772

843

564

618

785

635

683

755

Mar-15

Apr-15

May-15

Jun-15

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

$0

0
Deal Volume

FactSet.com

Aggregate Deal Value

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Asia MergerMetrics

2nd Quarter 2016

Merger Stats
Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended

12 Months Ended

06/30/16

06/30/15

Change

06/30/16

06/30/15

Change

Average
P/E

$1 Billion +

187

161

13.9%

$562.2

$514.1

9.3%

26.1

$500M to $999.9M

129

162

-25.6%

87.6

109.8

-20.2%

25.1

$250M to $499.9M

252

274

-8.7%

90.1

93.8

-4.0%

23.2

$100M to $249.9M

532

669

-25.8%

83.0

103.3

-19.7%

26.0

$50M to $99.9M

513

668

-30.2%

36.4

48.7

-25.4%

26.4

$25M to $49.9M

532

727

-36.7%

18.9

25.9

-27.0%

23.4

Deal Size

$10M to $24.9M

836

1,031

-23.3%

13.8

17.0

-19.1%

21.9

Under $10M

2,522

3,180

-26.1%

7.5

9.5

-21.0%

17.5

Undisclosed

3,305

3,448

-4.3%

N/A

N/A

N/A

N/A

Total

8,808

10,320

-17.2%

$899.4

$922.2

-2.5%

21.4

M&A at a Glance
MEDIAN P/E

MEDIAN PREMIUM
3.5%

2.5x

3.0%
2.0x

20.8x

2.5%

1.5x

2.0%

15.7x

14.9x

24.8%
21.8%

21.3%

1.5%

1.0x

1.0%
0.5x
0.5%
0.0x

0.0%
2q14

3q14

4q14

1q15

2q15

3q15

4q15

1q16

2q16

2q14

3q14

4q14

1q15

2q15

3q15

4q15

1q16

2q16

Deal Volume by Country

1,400
1,200

1,277

1,270

1,000
1,020
928

800

897

884

840

600

637

617

400
371

352

435

409

386

427

351

200
179

206

396
338

282
229

380

376

389

265

256
245

374
236

406
347

380

336
281

244

0
2q14

3q14

4q14

1q15
Australia

2q15
China/HK

India

3q15

4q15

1q16

2q16

Japan

FactSet Flashwire Asia Quarterly: Media: Media quotation with source attribution is encouraged. Reporters requesting additional information or editorial comment should contact
media_request@factset.com. Mergerstat gathers its data from sources it considers reliable; however, it does not guarantee the accuracy or completeness of the information provided
in this publication. Copyright 2016 FactSet Research Systems Inc. All rights reserved. It is illegal under federal copyright law to reproduce or redistribute this publication or any
portion of its contents without written authorization of the publisher.

FactSet.com

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Asia Sector Activity & Value

2nd Quarter 2016

SECTOR BY ACTIVITY
Target Industry
Technology Services
Commercial Services
Producer Manufacturing
Distribution Services
Consumer Services
Consumer Durables
Industrial Services
Miscellaneous
Government
Process Industries
Health Services
Health Technology
Utilities
Electronic Technology
Energy Minerals
Finance
Consumer Non-Durables
Transportation
Communications
Non-Energy Minerals
Retail Trade
Total

L3M 06/30/16
Deal Count
211
169
125
81
137
50
95
8
4
131
53
63
81
118
25
401
58
58
28
96
82
2,074

L3M 06/30/15
Deal Count
30
102
67
48
106
31
79
7
3
138
67
89
113
167
82
460
161
210
192
271
323
2,746

Difference
181
67
58
33
31
19
16
1
1
(7)
(14)
(26)
(32)
(49)
(57)
(59)
(103)
(152)
(164)
(175)
(241)
(672)

SECTOR BY VALUE
Target Industry
Transportation
Government
Miscellaneous
Communications
Health Services
Retail Trade
Consumer Non-Durables
Producer Manufacturing
Process Industries
Utilities
Non-Energy Minerals
Industrial Services
Health Technology
Consumer Durables
Consumer Services
Distribution Services
Commercial Services
Finance
Technology Services
Energy Minerals
Electronic Technology
Total

FactSet.com

L3M 06/30/16
Value
$2,997.5
187.7
0.0
1,296.7
1,939.4
3,105.4
3,527.7
4,423.3
4,910.0
4,070.0
3,823.3
6,347.9
13,393.5
9,819.4
5,125.8
5,302.7
10,567.7
48,789.0
13,470.9
16,405.1
20,626.8
$180,129.7

L3M 06/30/15
Value
$2,738.6
58.9
12.1
1,700.3
2,455.9
4,135.0
5,390.1
8,295.0
8,920.4
8,252.9
8,165.7
11,823.2
18,966.3
15,488.7
11,022.2
11,372.1
18,182.5
56,577.8
22,070.0
28,476.0
45,892.6
$289,996.4

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Difference
$258.9
128.8
(12.1)
(403.7)
(516.5)
(1,029.5)
(1,862.3)
(3,871.7)
(4,010.4)
(4,182.9)
(4,342.5)
(5,475.2)
(5,572.9)
(5,669.3)
(5,896.4)
(6,069.5)
(7,614.8)
(7,788.8)
(8,599.1)
(12,071.0)
(25,265.8)
($109,866.7)

Asia Strategic Buyer Report

2nd Quarter 2016

Merger Stats
Number of Deals

Agg. Transaction Value ($Bil)

12 Months Ended

12 Months Ended

06/30/16

06/30/15

Change

06/30/16

06/30/15

Change

Average
P/E

$1 Billion +

162

129

20.4%

$481.3

$400.4

20.2%

27.1

$500M to $999.9M

102

134

-31.4%

70.2

91.3

-23.1%

27.1

$250M to $499.9M

217

233

-7.4%

77.8

79.6

-2.3%

22.0

$100M to $249.9M

469

601

-28.1%

72.9

92.8

-21.4%

27.3

$50M to $99.9M

445

590

-32.6%

31.5

43.0

-26.7%

23.3

$25M to $49.9M

471

651

-38.2%

16.8

23.3

-27.8%

23.6

$10M to $24.9M

Deal Size

735

934

-27.1%

12.1

15.4

-21.3%

21.7

Under $10M

2,198

2,700

-22.8%

6.7

8.4

-20.4%

17.8

Undisclosed

3,031

3,128

-3.2%

N/A

N/A

N/A

N/A

Total

7,830

9,100

-16.2%

$769.4

$754.2

2.0%

21.4

PUBLIC BUYER INDEX

$120

700
600

$100
$107.7

500

$80
$59.4
$60

$51.4

$45.4

400

$45.5

$44.9

$43.1

$40

$49.9

$45.8

$48.8

$30.5

$28.1

200

$20
639

543

418

508

501

558

376

394

492

410

300

475

497

$0

100
0

Jul-15

Aug-15

Sep-15

Oct-15

Nov-15

Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Asia Private Equity Report

Indices

Top Private Equity: YTD 2016

PE BUYER INDEX
$20

100
80

$15

$12.7

$12.1
$7.9

$8.8

$11.7

$8.2

$6.5

20
73

94

84

82

88

65

67

89

76

81

0
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

GOING PRIVATE INDEX

$8

$7.3

$7

$7,000.0

13-May-16

5,000.0

Lone Star Fund X (US) LP

Lone Star Americas Acquisitions LLC

26-Feb-16

1,529.7

01-Apr-16

1,500.0

01-Jan-16

1,200.0

01-Jan-16

1,000.0

22-Jun-16

1,000.0

19-Apr-16

1,000.0

$6

$5.0

$5.0

$5
$3.6

$4

4
3

$3

$2
$1

28-Jan-16

76

$0

$0.5

$0.0
2

$0.1
2

01-Feb-16

950.0

01-Jan-16

850.0

$0

0
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16

FactSet.com

Fund (Private Equity Sponsor)

Thoma Bravo Fund XII
Thoma Bravo LLC

40

$5.2
$6.8

$5
78

Value ($Mil)

$13.4

60
$10

Open Date

$17.9

$16.3

Copyright 2016 FactSet Research Systems Inc. All rights reserved.

Xaingyang 3D Technology Industry Fund

Cybernaut (China) Venture Capital Management
CITIC Capital Partners Private Equity Fund
CITIC Capital Partners Management Ltd
GGV Capital VI Fund
GGV Capital
Carlyle Asia Growth Partners V LP
The Carlyle Group LP
KPCB Digital Growth Fund III
KPCB (China) Advisory Co Ltd
Led Lighting Industry Base Fund
Beijing Century GSR Ventures Management Co
Battery Ventures XI Fund
Battery Ventures
Sequoia China Growth Fund IV LP
Sequoia Capital China Advisors (Hong Kong) Ltd

Top Asia Deals

Rank

Seller (Unit Sold)

Financial Advisor
Legal Advisor
Syngenta AG

Goldman Sachs & Co

JPMorgan Chase & Co
N+1 Swiss Capital AG
UBS Group AG
Br & Karrer AG
Cleary Gottlieb Steen & Hamilton LLP
Cravath, Swaine & Moore LLP
Davis Polk & Wardwell LLP

Strategic Hotels & Resorts Inc

Simpson Thacher & Bartlett LLP

MultiPlan Inc

Evercore Partners Inc

JPMorgan Chase & Co
Fried, Frank, Harris, Shriver & Jacobson LLP
Kirkland & Ellis LLP
Proskauer Rose LLP

Supercell Oy

Mizuho Financial Group Inc

Morgan Stanley
The Raine Group LLC
Fenwick & West LLP
Hannes Snellman Advokatbyr AB
Morrison & Foerster LLP
White & Case LLP

Asciano Ltd

Goldman Sachs & Co

Grant Samuel & Associates Pty Ltd
King & Wood Mallesons LLP

SF Holdings (Group) Co Ltd

China Development Bank Securities Co Ltd

Goldman Sachs & Co
Morgan Stanley

2nd Quarter 2016

Buyer
Financial Advisor
Legal Advisor

Transaction
Value**
($Mil)

Seller Sector

China National Chemical Corp

$43,738.2

Process Industries

$7,772.0

Finance

$7,500.0

Finance

$7,300.0

Technology Services

$6,818.1

Transportation

$6,569.9

Finance

CCB International Capital Ltd

China International Capital Corp Ltd
CITIC Ltd
Credit Suisse
HSBC Holdings Plc
Clifford Chance LLP
Homburger AG
Linklaters LLP
Simpson Thacher & Bartlett LLP

Anbang Insurance Group Co Ltd

Skadden, Arps, Slate, Meagher & Flom LLP

Multiplan Inc Consortium

Barclays Plc
Goldman Sachs & Co
Simpson Thacher & Bartlett LLP

Tencent Holdings Ltd

Bank of America Merrill Lynch
Covington & Burling LLP
Slaughter & May Ltd

Asciano Ltd Consortium

Credit Suisse
Allens Services Nominees Ltd
Herbert Smith Freehills LLP
Jones Day LP

Maanshan Dingtai Rare Earth & New Materials Co Ltd

China Merchants Securities Co Ltd
CITIC Securities Co Ltd
Huatai United Securities Co Ltd

Wanda Media Co Ltd

Wanda Cinema Line Co Ltd

$6,130.0

Consumer Services

Ingram Micro Inc

Tianjin Tianhai Investment Co Ltd

$6,021.9

Distribution Services

$5,855.2

Distribution Services

$5,400.0

Consumer Durables

Morgan Stanley
Davis Polk & Wardwell LLP
Gibson, Dunn & Crutcher LLP

Toshiba Medical Systems Corp

Blake, Cassels& Graydon LLP

Nishimura & Asahi

General Electric Appliances Inc

10

Goldman Sachs & Co

Arnold & Porter LLP
Sidley Austin LLP

Bravia Capital Hong Kong Ltd

China International Capital Corp Ltd
Weil, Gotshal & Manges LLP

Canon Inc
Morgan Stanley
Mori Hamada & Matsumoto

Qingdao Haier Co Ltd

Bank of America Merrill Lynch
PricewaterhouseCoopers
UBS Group AG
King & Wood Mallesons Ltd
Stikeman Elliott LLP
White & Case LLP

Total Market Value of Top 10 Deals YTD

FactSet.com

$103,105.3

Copyright 2016 FactSet Research Systems Inc. All rights reserved.