Vietnam M&A activities have been more active than ever. We noted that for 15 month period from January 2011 to March 2012, total M&A deal value amounted to US$8.3bn with 331 deals concluded. Japan and Greater China ranked the Top 2 countries in terms of deal value and volume. Food & Beverages, Financials and Technology were most favoured sectors by foreign firms.
The report comprises of 90 pages and will provide you a comprehensive analysis of the current distressed valuations of Vietnamese companies from both marco and micro economic perspectives. Vietnamese equities are currently trading at only 11x of their latest earnings. 75% of stocks are trading at below their book values and 60% stocks are under par value. In terms of M&A deals, on average foreign investors paid PE of 14.1x and P/B of 2.1x. In some transactions, P/E valuations were as low as 5x.
The report also include a summary factsheet for each of the 74 inbound deals such as transaction description, seller, buyer, value and valuations etc.
We believe the current market condition has created excellent oppotunities for foreign firms and cash rich investors to acquire local businesses at attractive valuations, pressure to exit non-core businesses by large companies and the need to raise additional capital to survive. In addition, as the investment terms come to an end, asset managers will have to liquidtate their portfolios to return money to their investors. You will find valuable information and insights in this report.
We have also analysed in the report M&A oppotunities in the financial sector due to the urgent need for recapitalisation of local banks and the Goverment restructuing programme to reduce the number of banks and potential removal of foreign ownership limit.
In a contribution from Indochine Counsel – a Hochiminh city based law firm to Part 7, the Report also provides concise review of M&A regulations, and practical guidance and tips to assist foreign investors in getting their M&A deals through in Vietnam – from deal exploration, due diligence onto target company and assets, deal structuring, contractual arrangements, to deal approval, registration and completion.
EXECUTIVE SUMMARY 4 – 5
1. VIETNAM ECONOMIC ENVIRONMENT 6 – 14
2. KEY M&A THEMES 15 – 21
3. VIETNAM M&A ACTIVTITY 2011-2012 REVIEW 22 – 34
4. WHY M&A NOW? AN INSIDE-OUT VIEW 35 – 43
5. M&A OPPORTUNITIES IN THE FINANCIAL SECTOR 44 – 50
6. WHAT DEAL VALUATION EXPECTED 51 – 55
7. M&A REGULATORY ROUNDUPS AND PROCEDURAL GUIDANCE 56 – 70
8. OUR METHODOLOGY 71 – 73
Annex 1: Full List of Inbound M&A Transaction Factsheet 74 – 87
Annex 2: Key Macro Economic Indicators 88
Annex 3: 2012 Forward PE Valuation of Vietnamese Stock Markets 88
Important Disclosures 89
About the Authors, StoxPlus Corporation and Indochine Counsel 90 - 91
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