Despite the jump in valuations in Asian M&A over the past six months, there are still arbitrage opportunities in China between private and public companies, according to Stephen Seelbach of Morgan Stanley.
The executive director, investment banking, was speaking at the IFLR Asia M&A Forum in Hong Kong – on a panel discussing the negotiation of valuations in a volatile market.
“The arbitrage has been reduced, but it’s still there,” said Seelbach. “And that’s rare for countries anywhere. That’s what makes China so attractive for private equity. Until it disappears, you’re still going to find people flocking to make 20% investments there.”
The extent of the arbitrage depends very...