ISSUE 4 | 2021
48
SOUTH EAST ASIA HEAT CHART BY SECTOR
TMT
131 26%
Industrials & Chemicals
81
16%
Business Services Financial Services
68 13% 54 11% 52 10% 39 8% 38 7% 28 6% 18 4%
It’s also worth mentioning that South East Asia remains an attractive region for international investors, with 60% of the top 20 deals involving overseas bidders from outside the region.
South East Asia’s top three M&A deals in terms of value were as follows: • TMT: the acquisition of EdgePoint Infrastructure in Malaysia by Abu Dhabi Investment Authority from United Arab Emirates (UAE) for a purchase consideration of USD 500m
Consumer
Real Estate
Energy, Mining & Utilities
Pharma, Medical & Biotech
Leisure TOTAL
OUTLOOK
509
Following the outbreak of the COVID-19 pandemic in March 2020, deal numbers have been sluggish as transactions were either put on hold or delayed due to the increased scrutiny of deal terms arising from market uncertainty. However, in the past three quarters deal-making activity has started to pick up with deal numbers steadily improving. This suggests that investor confidence in the region is returning amidst improving economic conditions as a result of falling numbers of COVID-19 cases and the easing of lockdown restrictions. It is also clear that South East Asia continues to be an attractive M&A destination as the number of overseas buyers in the top 20 deals increased from 40% in both Q1 2021 and Q2 2021 to 60% in Q3 2021. This improvement could be down to a combination of South East Asia’s location, its economic prospects and a business-friendly environment. For the remainder of 2021, M&A activities in South East Asia will still be largely dependent on factors such as the region’s economic recovery, the ongoing management of the COVID-19 virus, the success of vaccination rollout programmes and the transition from the pandemic stage to the endemic stage of COVID-19.
• TMT: the acquisition of
Telekomunikasi Selular PT in Indonesia by DayaMitra Telekomunikasi PT from Indonesia for a purchase consideration of USD 435m • Financial Services: the acquisition of a 30.0% stake in PRASAC Microfinance Institution Limited in Cambodia by KB Financial Group Inc. from South Korea for a purchase consideration of USD 322m. The total value of the top 20 deals was USD 4.4bn, which represented 72.1% of the quarter’s total deal value of USD 6.1bn. Looking at the make-up of the top 20 deals, Malaysian and Singaporean companies were popular targets for M&A deals, accounting for 70% of the region’s top 20 deals.
CHINA MIDMARKET VOLUMES BY SECTOR SOUTH EAST ASIA
2020
2021
36
46
14
17
9
7
4 14
60
57
16
WONGWING SEONG EXECUTIVE DIRECTOR, ADVISORY
15
41
24
wswong@bdo.my
23
15
45
32
Technology & Media
Financial Services
Energy, Mining & Utilities
Pharma, Medical & Biotech Real Estate
Consumer
Business Services
Leisure
Industrials & Chemicals
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