<article>The three countries of Singapore, Malaysia and Indonesia recorded a 732 deals valued at $73.8 billion in the first 11 months of the current calendar year, American Appraisal, a firm that provides valuation and related advisory services for business, said in a report.</article>

The three countries of Singapore, Malaysia and Indonesia recorded a 732 deals valued at $73.8 billion in the first 11 months of the current calendar year, American Appraisal, a firm that provides valuation and related advisory services for business, said in a report.
Singapore with 346 deals, accounted for nearly 50 per cent of the total transactions, bulk of which were from the real estate segment. The total value of M&amp;As in Singapore in the first 11 months 2014 is has risen significantly higher, when compared to the previous year.
The report said that M&amp;A activity in Malaysia had witnessed a material pickup in the last two quarters led by its energy sector that accounted for two of the top three deals in the country.
Ditto with Indonesia which recorded a pickup in deal activity in the second half of this year after a prolonged slump. Its energy sector contributed about 50 per cent of the M&amp;A deal values this year.
Of the total number of deals, 24 were regional deals, 66 were in the PE and venture capital segment while 55 were IPOs. The rest were categorised as M&amp;A transactions.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/deal-summary-2014-e1418460844936.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/deal-summary-2014-e1418460922461.jpg" alt="Regional deal summary- Transaction Trail" width="550" height="242" /></a>
Singapore
Going country specific, American Appraisal said real estate deals gathered the majority of deal value in Singapore in 2014. “Notable real estate transactions during 2014 include <a href="http://www.dealstreetasia.com/stories/gic-to-buy-blackstones-indcor-for-8-1b/" target="_blank">GIC Pte Ltd’s acquisition of Indcor Properties Inc for $8.1 billion</a>, CapitaLand Ltd’s privatisation of CapitaMalls Asia Ltd, and Fraser Centrepoint Ltd’s acquisition of Australand Property Group,” it wrote in its 2014 annual report of the regional deal space.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/singapore-MA-trend-deals.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/singapore-MA-trend-deals.jpg" alt="Singapore half years M&amp;A trend for deals: Transaction Trail Annual Issue 2014" width="550" height="236" /></a>
GIC’s Indcor Properties acquisition was the largest outbound deal from Singapore to the United States (US), while the largest outbound deal from Singapore to Malaysia was <a href="http://www.dealstreetasia.com/?s=Ascott+" target="_blank">Ascott Residence Trust’s </a>acquisition of Somerset Ampang (Malaysia) Sdn Bhd.
In the PE space, the Industrial sector attracted more than half of the investments at about 58 per cent in deal value terms for Singapore, whereas the technology sector witnessed the highest deal volumes for PE investments.
<a href="http://www.dealstreetasia.com/?s=Real+estate+investment+trusts+" target="_blank">Real estate investment trusts (REITs)</a> and business trusts continue to dominate the largest IPO deals in Singapore, representing four out of the five top IPO deals during 2014, the report noted.
Malaysia
In Malaysia, the energy sector was the most active in 2014, spurring all deal spaces.
M&amp;A activity fell significantly in the first half of the year in the country, vis-a-vis the same period in 2013. However, the activity picked up again in the second half of this year, where the energy sector contributed 30.8 per cent of total M&amp;A deal value, making up two of the three top deals in the country.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/malaysia-quaterly-trends-deals.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/malaysia-quaterly-trends-deals-e1418471779813.jpg" alt="Graphics:Transaction Trail- Annual Issue 2014" width="550" height="198" /></a>
Within the PE landscape, energy deals contributed the most by value at 73.8 per cent. Technology deals were the largest by volume at 23.1 per cent.
“The energy sector took up the majority of IPO deal values in Malaysia, due to the listings of both Reach Energy Bhd and Icon Offshore Bhd, each exceeding $100 million in capital raised.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/malaysia-sector-trends-deals-e1418471986241.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/malaysia-sector-trends-deals-e1418471986241.jpg" alt="Malaysia sector trends for deals in 2014: Transaction Trail Annual Issue 2014" width="550" height="385" /></a>
Total IPO deal values for Malaysia exceeded $1 billion during the year in 2014 compared to $2.6 billion in 2013,” the reported noted.
Indonesia
Like in the case for Malaysia, Indonesia’s deal activity was largely driven by the energy sector as well. “There was a pick up in deal activity during the second half of 2014 compared to the previous several quarters, with the energy sector accounting for almost half of the M&amp;A deal values during the year,” American Appraisal said.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/Indonesia-quaterly-trends-deals.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/Indonesia-quaterly-trends-deals-e1418472576418.jpg" alt="Quarterly trend analysis of deals done in Indonesia for 2014: Transaction Trail Annual issue 2014" width="550" height="211" /></a>
Top deals include the acquisition of Kaltim Prima Coal for $ 950 million.
The IT and IT enabled service sector accounted for the largest share of deal values in the PE space at 43 per cent, mainly due to the $ 100 million investment by <a href="http://www.dealstreetasia.com/stories/indonesias-takopediaa-raises-100m-from-softbank-sequoia/" target="_blank">Softbank Ventures and Sequoia Capital into PT Tokopedia</a>.
<a href="http://www.dealstreetasia.com/wp-content/uploads/2014/12/Indonesia-sector-trends-deals.jpg"><img loading="lazy" decoding="async" src="http://www.dealstreetasia.com/wp-content/uploads/2014/12/Indonesia-sector-trends-deals-e1418472369220.jpg" alt="Indonesia_sector_trends_deals" width="550" height="355" /></a>
Other significant deals during the year include KKR’s investment in Tiga Pilar Sejahtera Food Tbk. “The Indonesian capital markets witnessed an overall listing activity of 19 IPO deals during the year, with the consumer discretionary sector landing the majority of deal values totaling $ 243.2 million,” the report cited, adding that the total IPO deal values for the year was $ 635.5 million.
Global
Globally over the last 12 months (ending September 2014), there was a total of 16,456 transactions representing aggregate deal value of $2.811 trillion were recorded.
This is among the highest levels of activity, buoyed by the improving fundamentals, higher levels of confidence and cash reserves and large consolidations to improve competitive positioning.
The financials sector proved to be the most acquisitive over the past 12 months, the report noted, with half the global deals volume coming from here and making up 23 per cent of the global deal value. This was followed by consumer discretionary (by value), and the healthcare sector (by value).
Looking at regions, the United States and Canada contributed approximately 54 per cent of all global M&amp;A activity in value terms and 45 per cent in volume terms over the period.
Europe contributed to 27 per cent of M&amp;A activity in value terms followed by Asia-Pacific with 14 per cent but Asia-Pacific contributed to 27 per cent of M&amp;A activity in volume terms was higher as compared to 22 per cent contributed by Europe.
What lies ahead
American Appraisal noted that consolidation across various industries is expected to increase deal volumes and values as cash-rich corporates begin to use M&amp;A to strengthen their market positions and move into new geographies and product lines.
Within the region, other positive factors supporting a robust dealscape was that many sovereign wealth funds have been investing heavily into regional and global businesses, with substantial investments in asset heavy concerns.
“The dry powder available with global funds have significantly increased, to approximately $1.14 trillion at June 2014, compared to $940 billion according to Preqin, WSJ,” the report said. This was due to several funds in Southeast Asia having closed fund raising rounds, top deals being buyouts and the notable exits by funds.
The report also said there are significant pipeline deals for the region worth over $26 billion.
However, the report cautioned that the growth rates in the region remained lower than expected and current years momentum has only been driven primarily by one asset class, being real estate.
Also, most of the larger deals have been initiated by state owned corporations in the regions such as GIC, Temasek and Ekuinas rather than by the private sector.
There has also been a reduction in capital raised through IPOs in the region, as demand for traditional offering diminish. Other reasons are the QE Taper, listings being delayed and that foreign listers were chasing other Asian markets that have picked up momentum.
Image: <a href="http://www.freedigitalphotos.net/" target="_blank">Freedigitalimages.com</a>

Regional M&A activity climbs with 732 deals worth $73.3b

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Regional M&A activity climbs with 732 deals worth $73.3b

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief