IFLR Asia M&A Forum: acquisition finance key takeaways

Author: | Published: 28 Feb 2013
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In case you missed day two of the IFLR Asia M&A Forum, here are the key takeaways from the acquisition finance panel.

  • Outside of Japan and Australia, leveraged buyouts (LBOs) are somewhat patchy. Asia saw only two to three last year. But the management-led LBO and take-private of Focus Media, an offshore holding company with business primarily in China, might inspire new deals.
  • Panelists haven't often seen private equity funds utilise high-yield for buyouts, because Asia lacks the investor-base of the US and Europe. The region may, however, see more following the implementation of Basel III.
  • There are three types of financings for Chinese companies looking to go private. The first is corporate financings, in which deals are backed and guaranteed by a strong corporate name. The second is sponsor-guaranteed financings. The third sees banks are getting more comfortable lending to offshore-domiciled holding companies whose main business is located in China, although it is still difficult to obtain onshore guarantees.
  • Expect to see more LBOs in emerging jurisdictions, such as Indonesia, Philippines and Malaysia, although it can be difficult to get deals done in these markets.

For more coverage from the IFLR Asia M&A Forum:

China outbound M&A to enter new phase http://www.iflr.com/Article/3161685/Corporate/China-outbound-M-A-to-enter-new-phase.html

Protecting ChinaCo take-privates from US litigation http://www.iflr.com/Article/3161697/Protecting-ChinaCo-take-privates-from-US-litigation.html?edit=true