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2012 Was a Record Year for the Number of Private Equity-Backed Buyout Deals in Asia - August 2013

by Jessica Hull

  • 01 Aug 2013
  • PE

According to Preqin’s Buyout Deals Analyst, 2012 was a record year for the number of private equity-backed buyout deals in Asia in the period from 2006 to present, with 297 buyouts valued at an aggregate $24.6bn. The aggregate deal value in the continent was on par with 2011, which was only surpassed in the same time period by 2007, in which 251 private equity-backed buyout deals were valued at $26.4bn. In 2012, the high aggregate deal value was boosted by the two largest private equity-backed buyout deals in Asia that year; the $3.7bn privatisation of China-based Focus Media by a large consortium of investors which included, Carlyle Group, China Everbright Ltd., CITIC Capital, Fosun International and FountainVest Partners and the $1.9bn investment into the Alibaba Group by Boyu Capital Advisory, China Development Bank Capital, CITIC Capital, DST Global, Silver Lake and Temasek Holdings. Putting into perspective the worth of these deals in the continent, Focus Media is the largest private equity-backed buyout deal in Asia from 2006 to present, and Alibaba Group also slots into the top ten buyout deals in Asia in the same time frame.

So far this year there have been 139 private equity-backed buyout deals in Asia with an aggregate value of $7.0bn, which currently supposes that deal-flow is likely to be on similar level to 2012, yet the aggregate deal value may dip from the high witnessed in 2012. However, there is a chance this may pick up in the remaining five months of the year, with prospective private equity-backed buyout deals including the acquisition of ING’s South Korean insurance unit, which is currently receiving bids from private equity investors and private equity-backed companies for approximately 2tn Won. Other bids which may boost the aggregate deal value for the year if they are to go through could be the potential acquisition of Japan-based Panasonic Healthcare for approximately $1bn.

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