TMT Remained Active with 19 Deals Closed
BEIJING, Nov. 9 /Xinhua-PRNewswire/ -- Zero2IPO Research Center, the research arm of Zero2IPO Group, recently released "Zero2IPO-China Merger & Acquisition Report Q3 2007." According to the report, Q3 witnessed a total of 28 transactions closed in TMT, Bio/healthcare and Energy sectors. Of these, eighteen deals disclosed an aggregate value of US$534.00M. In addition, there were eighteen cross-border M&A deals, of which nine deals disclosed the transaction value of US$1.65B.
Cross-border M&As Slightly Dropped Quarter-on-Quarter;
While the Average Value Increased from the Previous Quarter
There were eighteen cross-border M&A deals, of which nine deals disclosed a transaction value of US$1.65B. Though the total deal number was slightly decreased quarter-on-quarter and year-on-year, the average value was increased to US$182.85M from US$176.97M in a quarter a year ago and US$141.84M in the previous quarter.
Moreover, based on the statistics from Zero2IPO Research Center, foreign capital was active in China M&A market. Of the nineteen cross-border deals, twelve were launched by foreign companies.
Table 1 Distribution of Cross-border Transactions by Quarter (1)
(Please click the link at the bottom of the page)
(1) Notes: Cross-border M&A deals refer to those where one of the two
parties is a Chinese mainland company.
Figure 1 Distribution of Average Value by Quarter (US$M)
(Please click the link at the bottom of the page)
TMT Remained Active but on a Smaller Scale
Among the transactions in TMT, Energy and Bio/healthcare sectors we focus on, TMT remained active with nineteen deals closed. Of them, ten deals disclosed the value of US$123.73M and averaged US$12.37M. Two deals in Energy disclosed US$133.90M in total and achieved US$66.95 on average, far higher than that of other sectors. In contrast, Bio/healthcare garnered the largest value by seven deals. Of these, six deals disclosed a combined US$276.46M with an average value of US$46.08M closed. Notably, among the seven Bio/healthcare deals, six were transacted between two domestic enterprises and one was cross-bordered.
Figure 2 M&As(2) in the TMT Sector by Quarter
(Please click the link at the bottom of the page)
(2) Notes: Total M&A value refers to the sum of all the deals with
a disclosed value within our research scope.
Table 2 Industrial Distribution of M&As (by Target)
(Please click the link at the bottom of the page)
Figure 3 Industrial Distribution of Average Value(3) (by Target; US$M)
(Please click the link at the bottom of the page)
(3) Notes: Average value refers to the average amount for those deals
with a disclosed value.
VC/PE-related Deals were Mostly Distributed in TMT
Within the Zero2IPO research scope, there were six VC/PE-related M&As closed in Q3'07. Of these deals, five were closed in TMT and one in Bio/healthcare sector. In the breakdown of sectors, the five TMT deals were distributed in Internet (1) and Software (4), and the only Bio/healthcare deal was in Medical Services.
Table 3 Industry Distribution of VC/PE-related M&As
(Please click the link at the bottom of the page)
Figure 4 Industry Distribution of VC/PE-related M&As
(Please click the link at the bottom of the page)
According to the statistics, there were 29 VC/PE-backed Chinese enterprises debuting on overseas and domestic markets. Comparatively, VC/PE funds are cautious to adopt M&A as their exit option.
Anti-Trust Laws enacted in Q3 will bring considerable influence for the China M&A market. In general, China's domestic M&A market will experience a rapid development with the involvement of large-size state-owned enterprises. Moreover, foreign capital will continue to play an active role in the China M&A market, which is full of opportunities.
Note: The research scope of Zero2IPO Research Center adopted covers the following aspects:
a. At least one party(4) involved in the deal is a mainland-based company.
(4) Here "party" refers to either the target company or the acquirer.
b. Deals where acquirers take 20.0% and above of the target companies'
stake
c. Cross-border M&A transactions
d. Transactions backed by VC/PE funds: At least one party involved in the
deal is invested in by at least a VC/PE fund
e. Deals closed in industries of Technology, Media and Telecom (TMT)
f. Deals closed in Energy
g. Deals closed in Bio/healthcare
In addition, an equity transaction is included into our M&A research scope if it is between two enterprises and both of them are non-financial investors, with at least one party invested in by at least a VC/PE. The transactions between two parties where at least one party is a VC or PE fund are categorized into VC/PE research field.
For more information please click:
http://www.zero2ipo.com.hk/china_this_week/detail.asp?id=5186
About Zero2IPO Research Center
Established in Nov. 2001, Zero2IPO Research Center aims to provide professional research reports and custom researches for relevant professionals in the Greater China Region. Our research ranges from venture capital, private equity, IPO, M&A to TMT industries. Today, Zero2IPO Research Center has become the most prestigious research institute in China VC and PE fields.
Note about Citation
For any quotation, please note it is quoted from "Zero2IPO-China Merger & Acquisition Report Q3 2007" and send two copies of your newspaper to:
Aileen Huang
Suite 1203, Tower A, Eagle Plaza, No. 26,
Xiaoyun Road, Chaoyang District, Beijing, 100016, China
Tel: +86-10-8458-0476 x8037
Email: aileenhuang@zero2ipo.com.cn
