42014429 - Horizons Q1 2022_v06

ISSUE 1 | 2022

50

SOUTH EAST ASIA HEAT CHART BY SECTOR

TMT

125 24% 87 17% 78 15% 64 13% 46 9%

Business Services

Industrials & Chemicals

Financial Services

Looking at the region’s top 20 deals, Indonesian, Singaporean andVietnamese companies were the top targets, accounting for 80%of the quarter’s top 20. Overall in 2021, Indonesia, Malaysia, Singapore andVietnamwere the top target countries for M&A activities, accounting for 80%of the year’s top 20 deals.

In 2021, TMT was the region’s leading sector with a total of 66 deals (2020: 36 deals). This was followed by Industrials & Chemicals with 63 deals (2020: 61 deals) and Business Services with 40 deals (2020: 45 deals). The three biggest deals inQ4 2021 were as follows: • TMT: the acquisition of PT Aplikasi Karya Anak Bangsa in Indonesia by Abu Dhabi Investment Authority of United Arab Emirates (purchase consideration: USD 400m);

Consumer

Energy, Mining & Utilities

42

8% 7%

Real Estate

37

Pharma, Medical & Biotech

20 4% 13 3%

Leisure TOTAL

512

OUTLOOK

CHINA MID-MARKET VOLUMES BY SECTOR SOUTH EAST ASIA

The overall performance of M&A deal- making in South East Asia for 2021 was better than the previous year, as shown by the total deal value of USD 27.0bn, the highest recorded since 2014. This resulted in an average deal value of USD 98.6m in 2021, also the highest recorded since 2008. The average value per deal in 2019 and 2020 was USD 73.7m and USD 72.9m respectively. Going into 2022, M&A activities in South East Asia will still largely be dependent on factors such as the severity of the spread of the COVID-19 virus, the speed of the region’s economic recovery, the ongoing management of the COVID-19 virus, the reopening of borders by the respective countries and the investment climate.

2020

2021

• Energy, Mining &Utilities: the

36

acquisition of Eastern Cogeneration Co Ltd inThailand by Univenture BGP Co Ltd of Thailand (purchase consideration: USD 373m); • Consumer: the acquisition of a 4.27% stake inThe CrownX Corporation inVietnam by TPGCapital LP, Temasek Holdings Pte. Ltd and Abu Dhabi Investment Authority of USA, Singapore and UAE respectively (purchase consideration: USD 350m). The total deal value for the top 20 deals was USD 4.1bn, which represented 93.2% of the quarter’s total deal value of USD 4.4bn.

66

14

17

10

7

6 16

61

63

16

WONGWING SEONG EXECUTIVE DIRECTOR, ADVISORY

21

41

31

wswong@bdo.my

23

21

45

40

Technology & Media

Financial Services

Energy, Mining & Utilities

Pharma, Medical & Biotech Real Estate

Consumer

Business Services

Leisure

Industrials & Chemicals

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