ASEAN Region M&A Review

Contents
ASEAN M&A Snapshot
I. ASEAN Losing Momentum to USA and Europe Since 2010
II. Singapore, Malaysia, Indonesia, and Thailand Account for 90.0% of M&A
Activity
III. Five Most Active Sectors: Construction/Real Estate, Finance,
Materials/Processed Materials, Food/Consumer Products, and Transport
Services
Construction/Real Estate
I. Singapore: Low Yields and Oversupply Signal Consolidation
II. Malaysia: Domestic Buyers Drive Industry Consolidation
Transportation Services
I. Singapore: Foreign Buyers Active in Industry M&A
II. Indonesia: Private-Company M&A Dominate Industry Consolidation
Food/Consumer Products
I. Indonesia: Strong M&A Deal Flow from Foreign Investors
II. Malaysia: Foreign Investor Presence Strong Despite Domestic Buyer
Leadership

Contents
Material/Processed Material
I. Malaysia: M&A Driven by Foreign Inbound Investments (Focused Equally
on Private and Listed Companies)
II. Indonesia: Private Company M&A Dominate Industry, with Marginal
Involvement from Foreign Entities
Finance I. Malaysia and Singapore Lead Finance Industry M&A

Key Takeaways
4
➢ The ASEAN region started losing its M&A momentum to the USA and Europe in 2011. According to data from
the Institute for Mergers, Acquisitions and Alliances (IMAA), M&A transaction volume in ASEAN as a
percentage of the global aggregate fell to 5.2% in 2016 from 6.2% in 2011.
➢ Singapore, Malaysia, Indonesia, and Thailand accounted for 90.0% of M&A activity in ASEAN; Singapore
accounted for close to half of this (2007–16).
➢ Construction/Real Estate, Finance, Materials/Processed Materials, Food/Consumer Products, and Transport
Services were the five sectors with the highest M&A values, accounting for over 73% of M&A value on
average (2007–16).

Summary
5
Key Figures for 2016
➢ Total M&A Transaction
Value 46 69 %billion
➢ Share of Private Company
Transaction Value
4246 %
➢ Share of Foreign Inbound
M&A
USD
➢ Singapore’s Share of Total
ASEAN M&A Value During
2007–16 %

I. ASEAN M&A Snapshot
*IMAA data was used for consistency in comparing European, North American, and ASEAN data
Source: IMAA
7
ASEAN Losing Momentum to USA and Europe Since 2010
5.5% 5.9% 6.5% 6.7% 6.2% 5.6% 5.4% 5.3% 4.8% 5.2%
38.9% 40.0%
38.0%
39.9% 41.0%
38.8% 37.4% 37.0% 37.0% 36.9%
34.9%
31.1% 29.7% 29.6% 30.5% 31.6% 32.7% 32.7%
30.6% 30.8%
4.0%
9.0%
14.0%
19.0%
24.0%
29.0%
34.0%
39.0%
44.0%
-
10,000
20,000
30,000
40,000
50,000
60,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
DealVolumeasa%ofWorld
NumberofDealsCompleted
Total M&A Volume in ASEAN Trending Down Since 2010
Number of Deals ASEAN Europe North America

➢ The peak in 2013 resulted from a number of mega
deals in the food/consumer products industries in
Singapore, Thailand, and Indonesia. The
acquisition of F&N by Thai Beverages PCL —
completed in 2013 at a final deal value of
USD 11.2 billion — was the biggest M&A
transaction in ASEAN that year.
Source: SPEEDA M&A Database
8
Total Transaction Value in ASEAN M&A Stagnant Since 2011, Despite the Peak in 2013
-
10
20
30
40
50
60
70
80
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USDbillion
ASEAN M&A Flow Recovers post 2009 Financial Crisis
Total M&A (Value USD billion)

➢ Singapore was the most active country in ASEAN
for M&A during 2007–16, accounting for 42.0%
of M&A on average.
➢ Singapore, Malaysia, Indonesia, and Thailand
were the most active countries in ASEAN in terms
of M&A value during 2007–16, accounting for
more than 90% of M&A value on average during
the period.
9
Singapore, Malaysia, Indonesia, and Thailand Account for 90.0% of M&A Activity
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Singapore Remains the Most Active M&A Hub in ASEAN
Singapore Malaysia Thailand Indonesia
Vietnam The Philippines Other ASEAN

10
M&A Activity Concentrated in Five Sectors
0%
20%
40%
60%
80%
100%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Top 5 Sectors Top 10 Sectors Top 5 Sector Average Top 10 Sector Average
Top 5 Sectors Account for 74.0% of M&A Value on Average; Top 10 Sectors Account for 95.0% of M&A Value on Average

11
Five Most Active Sectors: Construction/Real Estate, Finance, Materials/Processed
Materials, Food/Consumer Products, and Transport Services
Source: SPEEDA M&A Database,
Statista, World Bank, ASEAN Stat, ASEAN Economic Integration Brief
➢ During 2007–16, ASEAN M&A has tended to be
concentrated in five sectors. Although the five main
sectors have changed over time, they have tended
to include Construction/Real Estate, Finance,
Materials/Processed Materials, Food/Consumer
Products, and Transport Services due to a higher
economic growth rate and expansion in per capita
income.
➢ Post 2009, GDP in the ASEAN region grew at an
average of 5.4% YoY vs. 2.9% YoY globally, while GDP
per capita grew at a 6.1% CAGR over 2007–16 vs. a
2.1% CAGR for the world.
0
2
4
6
8
10
Numberofoccurancesintop10
sectors,from2007-2016
Five Sectors Dominate M&A Landscape (2007–16)

12
Food/Consumer Products, Finance, and Construction/Real Estate Industries Amongst
Industries with Highest Deal Volumes
-
400
800
1,200
1,600
2,000
NumberofM&Adeals
Consolidated M&A Transaction Volume (2007–16)

Note: Data for 2007–16
13
Singapore, Malaysia, Thailand, and Indonesia Account for over 87% of Top Five Industries’ M&A
Transactions, based on Value
➢ Singapore has seen an increase in M&A in the
construction/real estate, food/consumer
products, finance, and transportation services
sectors. The five main sectors under discussion
accounted for close to 50% of the countries’
M&A during 2007–16.
➢ Malaysia and Thailand both saw healthier M&A
flow in the finance and food/consumer products
industries than in other industries.
91%
82% 85% 82%
95%
70%
80%
90%
100%
Constructi
on/Real
Estate
Materials/
Processed
Materials
Food/Con
sumer
Products
Finance
Transport
ation
Services
-
5,000
10,000
15,000
20,000
25,000
USDmillion
Consolidated M&A Transaction Value (2007–16)
Singapore Malaysia

Note: Data for 2007–16
14
Based on Volume, Singapore, Malaysia, Thailand, and Indonesia Account for over 85% of Top Five
Industries’ M&A Transactions
➢ Similar to the experience of other countries,
Indonesia saw a large number of M&A
transactions during 2007–16 (although the
country posted a lower M&A transaction value).
-
100
200
300
400
500
600
700
800
900
Construction/Real
Estate
Materials/Processed
Materials
Food/Consumer
Products
Finance
Transportation
Services
TransactionVolume
Consolidated M&A Transaction Volume (2007–16)

2. Construction/Real Estate
15

II. Construction/Real Estate
Note: *2017 data is up to October
16
Singapore the Main Country Driver in Construction/Real Estate M&A
In 2011, Malaysian M&A was driven by UEM Group’s acquisition of Plus Expressways for over USD 5 billion and Sunway’s acquisition
of Sunway City and Sunway Holding for USD 1.2 billion.
-
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Singapore Consistently Posts M&A Values over
USD 1 billion Starting 2011
-
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Singapore and Malaysia Lead in M&A Deal Volume

II. Construction/Real Estate
17
Construction/Real Estate M&A in Singapore Led by Listed-Company Transactions; Driven by
ASEAN Buyers
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Listed Companies Lead M&A
Listed Private
-
500
1,000
1,500
2,000
2,500
3,000
3,500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Inbound-ASEAN Leads M&A
Inbound - ASEAN Inbound - Foreign

II. Construction/Real Estate: Singapore
Source: SPEEDA M&A Database and Singstat
18
Low Yields and Oversupply Lead to Consolidation
-
500
1,000
1,500
2,000
2,500
3,000
3,500
0
20
40
60
80
100
120
140
160
180
USDmillion
PriceIndex
Private Listed Property Price Index - All Residential
Listed Company M&A Grow Alongside Falling Property Prices➢ Singapore has seen a boom in the real estate market post
2009, which has also led to a pick up in Construction/Real
Estate M&A transactions (2011), mostly between listed
companies.
➢ The peaks seen in 2014 and 2015 in construction/real
estate M&A resulted from increased industry consolidation
due to oversupply and low yield rates in the industry.
➢ Post the global financial crisis, real estate prices for
apartments and residential property in Singapore have
increased; during 2013–16, the Singapore government
implemented a number of measures at different stages in
order to control the rise in property prices.

II. Construction/Real Estate: Singapore
Source: Singstat
19
Low Yields and Oversupply Lead to Consolidation
0
1,000
2,000
3,000
4,000
5,000
6,000
2011Jan
2011Apr
2011Jul
2011Oct
2012Jan
2012Apr
2012Jul
2012Oct
2013Jan
2013Apr
2013Jul
2013Oct
2014Jan
2014Apr
2014Jul
2014Oct
2015Jan
2015Apr
2015Jul
2015Oct
2016Jan
2016Apr
2016Jul
2016Oct
SGDmillion
Total Public and Private Sector Construction Investment
in Singapore Falls post 2014
➢ These measures succeeded in lowering property
prices by 11.0% between June 2017 and June 2013, or
at a 2.6% CARC over 2013–17. Although investment in
public and private construction increased in 2014 and
at the beginning of 2015, demand for property
remained weak, resulting in an oversupply of office
and industrial properties.
➢ According to Thompson Reuters, in 2015, 27 of the 35
Singapore-listed real estate investment trusts (REITs)
tracked were trading below book value.

II. Construction/Real Estate: Malaysia
Source: SPEEDA M&A Database,
Valuation and Property Service Department - Malaysia (JPPH)
20
Domestic Buyers Drive Industry Consolidation
➢ The real estate market in Malaysia has slowed since
2014, with residential property transactions falling at
a 7.0% CARC over 2012–16. This has led contractors in
the residential market to hold back on new builds,
causing residential completions to fall at a 26.0%
CARC over 1H2014–1H2016 and new planned supply
to fall at a 33.0% CARC.
➢ Lower house prices and falling rental yields have led
to M&A, which should remain buoyant due to
industry consolidation.
-
20
40
60
80
100
120
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
TransactionVolume
Malaysia Sees Stable M&A Transaction Flow in
Construction/Real Estate

II. Construction/Real Estate: Malaysia
21
Domestic Buyers Drive Industry Consolidation
➢ Further, foreign participation in the industry has
remained low or non-existent due to strict
government regulations on foreign ownership.
-
2,000
4,000
6,000
8,000
10,000
12,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Inbound-ASEAN Leads M&A
Inbound - Foreign Inbound - ASEAN

III. Transportation Services
23
Singapore Leads Consolidation of Shipping Liners in ASEAN
➢ Singapore is a key shipping hub in world cargo trade. In
2015, the country ranked second in the world in terms of
traffic, with 30.9 million TEUs, behind Shanghai’s
36.5 million TEUs. The global slowdown in trade, driven
by China’s economic slowdown, has led shipping lines to
operate at overcapacity.
➢ The peaks in M&A activity during 2008 and 2014–16
resulted from overcapacity in the industry that led many
shipping companies to consolidate in order to survive.
Further, the bulk of M&A involved foreign shipping
companies, some of which were amongst the largest in
the industry.
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Shipping Line and Terminal Operator M&A Dominate in
Transportation Services Industry in Singapore

III. Transportation Services: Singapore
24
Foreign Buyers Active in Transportation Services Industry M&A
➢ 2008: Dubai Drydocks World acquired Labroy Marine for
USD 1.6 billion.
➢ 2014: Kohlberg Kravis Roberts acquired Goodpack for USD 1.1. billion.
➢ 2015: Kintetsu World Express acquired APL Logistics for
USD 1.2 billion.
➢ 2016: CMA-CGM acquired Neptune Orient Lines for USD 2.4 billion.
➢ According to ShippingWatch, as sourced from Alphaliner, as of July
2017, Singapore has had four shipping liners that were not part of
any major shipping alliances and were most likely acquisition
candidates, with Pacific International Lines at the forefront.
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Contribution by Inbound-Foreign and Inbound-ASEAN

III. Transportation Services: Indonesia
25
Private-Company M&A Dominate Industry Consolidation
➢ Indonesia has seen a large increase in shipping and terminal
operators due to industry consolidation following
overcapacity and slow growth, similar to Singapore.
However, most deals were either between ASEAN regional
operators or between domestic operators, with significantly
lower deal values than Singapore’s.
➢ For instance, Indonesia recorded a median deal value of
USD 2.0 million for transactions that occurred during 2007–
16, compared with a median of USD 32.0 million for
Singapore. Source: SPEEDA M&A Database
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Contribution by Listed and Private Companies to M&A
Listed Private

IV. Food/Consumer Products
27
Indonesia and Malaysia Dominate Food/Consumer Products Industry
➢ M&A in the food and consumer products industry in
Singapore were driven by a few mega deals that occurred
during 2012–14. The largest deal in Southeast Asia, Thai
Beverages PCL’s acquisition of F&N, was completed in 2013
at a final deal value of USD 11.2 billion.
➢ Further, during 2012–14, Heineken’s acquisitions of majority
stakes in APIPL (Indonesia; 2012) and APB (2013) were
closed at over USD 2.0 billion.
-
2,000
4,000
6,000
8,000
10,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Singapore and Indonesia Record Mega Deals in
Food/Consumer Products Industry in 2012 and 2013

IV. Food/Consumer Products: Malaysia and Indonesia
28
Indonesia and Malaysia Post the Most Transactions in Food/Consumer Products Industry
➢ Indonesia and Malaysia have seen a large number of M&A
transactions in the food/consumer products industry, driven
mainly by high growth within the industry. In Indonesia, retail
sales grew at a 13.2% CAGR over 2011–16, followed by Malaysia
at 5.3%, leading the rest of the ASEAN countries.
➢ Growth in retail sales in the two countries was driven mainly by
growing disposable income that has led to high affordability.
Malaysia posted the highest annual disposable income growth
during 2009–14, according to Euromonitor: 41.0% in real terms,
implying a 7.1% CAGR. Indonesia is the biggest consumer market
in ASEAN, with a population of 259.0 million in 2016. According
to Euromonitor, in 2016, the country had the fourth-largest
middle class in the world, numbering 19.6 million, compared
with nearly 17 million in 2014.
-
10
20
30
40
50
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Food/Consumer Product Industry M&A Transaction Volume

IV. Food/Consumer Products: Indonesia
29
Strong M&A Deal Flow from Foreign Investors
-
500
1,000
1,500
2,000
2,500
3,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion

IV. Food/Consumer Products: Malaysia
30
Foreign Presence Strong in M&A Despite Domestic Buyer Leadership
-
500
1,000
1,500
2,000
2,500
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion

5. Material/Processed Material
31

IV. Material/Processed Material
32
Malaysia and Indonesia Dominate Material/Processed Material Industry M&A
Similar to the food/consumer product industry, an expanding consumer base in Malaysia and Indonesia has driven
industry growth and M&A transactions.
-
5
10
15
20
25
30
35
40
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Material/Processed Material Industry Transaction Volume
-
500
1,000
1,500
2,000
2,500
3,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Material/Processed Material Industry Transaction Value

IV. Material/Processed Material: Malaysia
33
M&A Driven by Foreign Inbound Investments (Focused Equally on Private and Listed Companies)
-
200
400
600
800
1,000
1,200
1,400
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
-
500
1,000
1,500
2,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Listed Private

IV. Material/Processed Material: Indonesia
34
Private Company M&A Dominate Industry, with Marginal Involvement from Foreign Entities
-
100
200
300
400
500
600
700
800
900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
-
100
200
300
400
500
600
700
800
900
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
USDmillion
Private Listed

V. Finance
36
Malaysia and Singapore Lead Finance Industry M&A
➢ Most M&A in the finance industry were generated in Malaysia
and Singapore, with the occasional mega deal. In 2013 and 2014,
the industry witnessed such large deals in Thailand (2013) and
Singapore (2014);
➢ 2013: Mitsubishi UFJ Financial Group acquired a 72.0% stake in
Bank of Ayudhya for USD 5.3 billion (Indonesia)
➢ 2014: DBS Group Holdings increased its investment in DBS Bank
by USD 4.8 billion (Singapore)
➢ Malaysia and Singapore saw high levels of M&A activity during
2007–16, driven mainly by sector consolidation and also
encouraged by the governments to create a stronger and more
efficient banking system.
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
USDmillion
Finance Industry Transactions Mainly Involved Banks
and Insurance Company M&A

V. Finance: Indonesia and Malaysia
37
Malaysia and Singapore Lead Finance Industry M&A
➢ Singapore have the most developed banking system in ASEAN,
with high credit penetration (113% in 2016, vs. 53% in Malaysia,
41% in Indonesia and 29% in Thailand) and strong Net Interest
Margins (2% in 2016 vs. 2-3% in Malaysia and 5.6% in Indonesia)
despite their low interest rates (0.9% in 2016, vs. 3.0% in
Malaysia, 4.8% in Indonesia). Most of the M&A were between
domestic entities with low foreign buyer presence.
➢ Despite having promoted consolidation, the Malaysian
government could not maintain the M&A momentum of 2012
and 2013, as most banks feared realising cost synergy measures,
as branches closed and staff were trimmed due to political
pressure.
-
2
4
6
8
10
12
14
16
18
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017*
Finance Industry Transaction Volume

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