Mergermarket India M&A Round-up Q1 2013

Press Contact: Jessica Chan jessica.chan@mergermarket.com Tel: +852 2158 9706

Deal Submissions: Fidelia Liu fidelia.liu@mergermarket.com Tel: +852 2158 9723

OVERVIEW
Deal making in India slumped to US$ 2.9bn last quarter, down 83.1% from Q1 2012 (US$ 17.2bn). Even excluding the US$ 10.3bn merger between Sesa Goa and Sterlite Industries in Q1 2012 results in a decrease of 58%, underscoring the weight of concerns regarding the countrys econom y on M&A activity Likewise, M&A activity in the Asia-Pacific region as a whole dropped to US$ 72.9bn, a decline of 26.1% by value from Q1 2012 (US$ 98.6bn) A total of 55 deals were announced in India last quarter, far less than the 77 in Q1 2012. Deal count in the Asia-Pacific region this quarter too fell to 560 from 590 in Q1 2012 Inbound M&A activity by value slackened for the second straight quarter to US$ 2.2bn. An aggregate 30 targets were snapped up by foreign buyers, the smallest number since Q4 2011 (27 deals) Indian buyers were remarkably reticent in acquiring overseas targets this quarter. Outbound deals totaled US$ 0.6bn, the weakest performance since Q3 2010 (US$ 0.6bn). The deal count also fell to nine, the lowest since Q3 2009 (eight deals) M&A deal value in the Pharma, Medical & Biotech space was one of the few silver linings more than tripled from Q1 2012 (US$ 0.4bn), making it the biggest contributor to Indian M&A by value this quarter. It was one of the few silver linings in what has been a very sluggish quarter for M&A in India M&A in the bellwether Energy, Mining & Utilities sector dropped to US$ 0.4bn this quarter, a staggering 96.3% decline from Q1 2012 (US$ 10.5bn). Also, Business Services activity nearly vanished, a far cry from the US$ 3.1bn-worth of deals the sector attracted in Q1 2012 Mylans offer for two of Strides Arcolabs subsidiaries was the largest deal this quarter and, at US$ 1.6bn, accounted for 55.1% of the aggregate deal value in India. It was therefore, instrumental in determining the Financial & Legal Advisor rankings by value Morgan Stanley retained first place in the Financial Advisor League Table by value, advising on an aggregate US$ 2.1bn-worth of deals. Ernst & Youngs four deals topped the rankings by deal count The Legal Advisor League Table by value was dominated by the nine law firms that advised on the Mylan-Strides Arcolab transaction. AZB & Partners meanwhile, chalked up 13 mandates to finish as the most active legal advisor by deal count

Contents
2 3 4 Overview Asia-Pacific Country Breakdown India M&A Trends and Top 5 Deals Industry Analysis India League Tables Notes

5 6-7 8

Asia-Pacific Country Breakdown

Regional M&A Trend by Value
400
Americas

Regional M&A Trend by Number of Deals

1,600
Americas

Europe Asia-Pacific

Europe Asia-Pacific

350

1,400

300

1,200

Value of Deals (US$bn)

200

Number of Deals
Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13

250

1,000

800

150

600

100

400

50

200

0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13

Asia-Pacific M&A by Country Inbound

Country Australia China & Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Thailand Vietnam Q1 2013 Value Number (US$m) of Deals 5,049 37 6,216 2,205 208 1,058 775 427 11 3,773 532 37 216 38 30 6 10 6 5 1 8 12 3 2 Q1 2012 Value Number (US$m) of Deals 8,733 34 1,668 3,824 2,324 3,143 369 14 481 297 95 274 1,367 39 39 11 19 4 3 2 14 6 4 4 Q1 2011 Value Number (US$m) of Deals 2,701 37 5,275 13,155 534 2,509 13 485 3,739 189 620 79 51 39 9 15 2 7 4 15 7 6 6

Asia-Pacific M&A by Country Outbound

Country Australia China & Hong Kong India Indonesia Japan Malaysia New Zealand Philippines Singapore South Korea Thailand Vietnam Q1 2013 Value Number (US$m) of Deals 828 21 17,198 624 85 4,409 2,911 49 30 2,876 3,177 34 40 9 1 41 3 2 1 12 13 2 Q1 2012 Value Number (US$m) of Deals 2,703 14 11,569 638 57 20,085 358 82 3,536 4,742 939 39 20 1 57 6 2 22 12 5 Q1 2011 Value Number (US$m) of Deals 4,977 20 11,606 2,346 11,557 1,510 1,675 1,851 2,962 722 43 22 2 50 2 6 20 16 5 -

India M&A Trends and Top 5 Deals

M&A Trend by quarter (target only)
20 18 16 14
Value
Number of Deals

Cross-border M&A by quarter

90 20
18
Inbound Value

50
45

Outbound Value

80

Inbound Number of Deals

Outbound Number of Deals

70

16 14

40 35 30 25
20

Value of Deals (US$bn)

Value of Deals (US$bn)

60

Number of Deals

12 50 10 40
8

12 10
8

30 6 4 2 0 20

6
4

15
10

10

2 0

5 0

Ann. Date 27-Feb-13

Bidder Company Mylan Inc

Target Company Agila Specialties Private Limited; and Agila Specialties Asia Pte Limited

Seller Company Strides Arcolab Limited

Buy-side Advisory FA: Morgan Stanley LA: Morgan Lewis & Bockius; Osler, Hoskin & Harcourt; Platinum Partners; Skadden Arps Slate Meagher & Flom; Slaughter and May FA: Morgan Stanley; Rand Merchant Bank LA: Webber Wentzel

Sell-side Advisory FA: Jefferies & Company LA: DSK Legal; Haynes and Boone; Herbert Smith Freehills; Pinheiro Neto Advogados

Value (US$m) 1,600

28-Feb-13

Cipla Ltd

Cipla Medpro South Africa Ltd GMR Energy (Singapore) Pte Ltd (70% Stake) GMR Group

FA: LA: FA: Macquarie Group; Standard Chartered LA: White & Case FA: LA: FA: Barclays; Sawaya Segalas & Co LA: -

548

4-Mar-13

First Pacific Company Limited; and Manila Electric Company Shriram Group Pvt Co

FA: Rothschild LA: Milbank Tweed Hadley & McCloy

537

22-Feb-13

Orient Green Power Company Limited (60.99% Stake) Lornamead Group Limited Jatania Family

FA: Axis Capital LA: FA: LA: -

337

13-Jan-13

Li & Fung Limited

190

Number of Deals

Industry Analysis
Sector Industrials & Chemicals Technology Pharma, Medical & Biotech Financial Services Media Business Services Energy, Mining & Utilities Construction Transport Consumer Telecommunications Agriculture Real Estate Leisure Defence Total Value (US$m) 439 28 1,659 135 48 390 102 77 26 2,904 Q1 2013 Market Share 15.1% 1.0% 57.1% 4.6% 1.7% 13.4% 3.5% 2.6% 0.9% Number of Deals 17 7 6 5 5 3 2 2 2 2 2 1 1 55 Value (US$m) 652 18 412 642 395 3,093 10,539 100 158 353 792 10 35 17,199 Q1 2012 Market Share 3.8% 0.1% 2.4% 3.7% 2.3% 18.0% 61.3% 0.6% 0.9% 2.1% 4.6% 0.1% 0.2% Number of Deals 23 2 9 8 2 7 7 5 3 4 2 2 1 2 77 Value (%) -32.7% 57.1% 302.6% -79.0% -100.0% -98.4% -96.3% 1.8% -51.5% -92.7% -100.0% -100.0% -100.0% -83.1% Change Number of Deals -6 5 -3 -3 3 -4 -5 -3 -1 -2 -1 -2 -22

M&A Sector Breakdown by Value

Technology 1.0% Consumer 0.9%

M&A Sector Breakdown by Number of Deals

Real Estate 1.8% Agriculture 1.8% Telecommunications 3.6% Consumer 3.6% Technology 12.7% Industrials & Chemicals 30.9%

Transport 2.6% Construction 3.5%

Industrials & Chemicals 15.1%

Energy, Mining & Utilities 13.4%

Pharma, Medical & Biotech 57.1%

Transport 3.6%

Construction 3.6%
Energy, Mining & Utilities 3.6% Business Services 5.5%

Pharma, Medical & Biotech 10.9% Media 9.1%

Business Services 1.7%

Financial Services 4.6%

Financial Services 9.1%

India Financial Advisor League Tables

Financial Advisors by Value Q1 2013
Rank Q1 2012 1 11 21 10 7 19 24 8 Q1 2013 1 2 3 4 5 6 7 8= 8= 10 11 12 13 14 15 House Morgan Stanley Jefferies & Company Macquarie Group Rand Merchant Bank Rothschild Standard Chartered Axis Capital Barclays Sawaya Segalas & Co Avendus Capital Arden Partners BNP Paribas JM Financial SMC Capitals Ernst & Young Value (US$m) 2,148 1,600 688 548 537 537 408 190 190 161 151 148 84 71 58 Number of Deals 2 1 2 1 3 1 3 1 1 2 1 1 2 2 4 % Value Change -81.8% 305.1% 483.7% -56.2% -82.7% 54.8% 95.3% -94.3%

Financial Advisors by Number of Deals Q1 2013

Rank Q1 2012 2 15 10 1 14 26 19 9 Q1 2013 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 House Ernst & Young Rothschild Axis Capital Morgan Stanley Macquarie Group Avendus Capital JM Financial SMC Capitals PwC Jefferies & Company Rand Merchant Bank Standard Chartered Barclays Sawaya Segalas & Co Arden Partners Value (US$m) 58 537 408 2,148 688 161 84 71 31 1,600 548 537 190 190 151 Number of Deals 4 3 3 2 2 2 2 2 2 1 1 1 1 1 1 Number of Deals Change -1 1 1 -3 2 1 2 2 1 1 -1 1 1

India Legal Advisor League Tables

Legal Advisors by Value Q1 2013
Rank Q1 2012 8 12 3 5 22 Q1 2013 1= 1= 1= 1= 1= 1= 1= 1= 1= 10 11= 11= 13 14 15= 15= House Barbosa, Mussnich & Aragao DSK Legal Haynes and Boone Herbert Smith Freehills Morgan Lewis & Bockius Pinheiro Neto Advogados Platinum Partners Skadden Arps Slate Meagher & Flom Slaughter and May Webber Wentzel Milbank Tweed Hadley & McCloy White & Case AZB & Partners Trilegal Lawrence Graham Norton Rose Value (US$m) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 548 537 537 510 188 151 151 Number of Deals 1 1 1 1 1 1 1 1 1 1 1 1 13 8 1 1 % Value Change 73.7% 305.1% -84.4% -76.3% 22.1% -

Legal Advisors by Number of Deals Q1 2013

Rank Q1 2012 5 8 3 2 1 9 52 7 6 4 13 21 Q1 2013 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 House AZB & Partners Trilegal Khaitan & Co Amarchand & Mangaldas & Suresh A Shroff & Co Desai & Diwanji MNK Law Offices J Sagar Associates DLA Piper Nishith Desai Associates Argus Partners K Law Barbosa, Mussnich & Aragao DSK Legal Haynes and Boone Herbert Smith Freehills Morgan Lewis & Bockius Pinheiro Neto Advogados Platinum Partners Skadden Arps Slate Meagher & Flom Slaughter and May Value (US$m) 510 188 67 107 26 59 25 45 41 11 0 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 Number of Deals 13 8 6 4 4 3 3 2 2 2 2 1 1 1 1 1 1 1 1 1 Number of Deals Change 6 5 -4 -8 -11 3 1 -3 2 -4 1 -7 1 -1 1 1 1 1

Notes
All data is based on announced transactions over US$ 5m. Deals with undisclosed deal values are included where the targets t urnover exceeds US$ 10m. Deals where the stake acquired is less than 10% will only be included if their value is greater than US$ 100m. Activities excluded include property transactions and restructurings where the ultimate shareholders interests are not changed. All data exclude s minority stake deals (10% 30%) where the dominant target geography is Asia-Pacific and the deal value is less than US$ 100m. M&A Trend: Based on the dominant geography of the target company being India. Excludes lapsed and withdrawn bids. Cross-border M&A: Inbound refers to cross-border M&A where the dominant geography of the target company is India. Outbound refers to cross- border M&A where the dominant geography of the bidder company is India. Excludes lapsed and withdrawn bids. Top Announced Deals: Based on the dominant geography of the target, bidder or seller company being India. Excludes lapsed and withdrawn bids. FA refers to Financial Advisor and LA refers to Legal Advisor. Industry Analysis: Based on the dominant geography of the target company being India. Industry sectors represent the primary industry sector of the target company only. Excludes lapsed and withdrawn bids. League Tables: Based on the dominant geography of the target, bidder or seller company being India. The financial advisor tables exclude lapsed and withdrawn bids and the legal advisor tables include lapsed and withdrawn bids. Previous period changes refer to the period Q1 2012 unless specified otherwise. All values are in US$.

Criteria: http://www.mergermarket.com/pdf/deal_criteria.pdf All data correct as of 09 April 2013.

Press Contact: Jessica Chan jessica.chan@mergermarket.com Tel: +852 2158 9706

Deal Submissions: Fidelia Liu fidelia.liu@mergermarket.com Tel: +852 2158 9723