Zephyr Monthly M&A Report › BvD › media › General › Eastern Europe... · 2014-07-05 ·...

Zephyr Monthly M&A ReportRussia/CEE, October 2013

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Zephyr is a database of M&A, IPO, private equity and venture capital deals with links to detailed financial information on companies. For more information visit www.zephyrdealdata.com.

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Page 1 © Zephyr

The following report details mergers and acquisitions activity in Russia/CEE in October 2013 using data from the Zephyr database.

It focuses on deal activity by target company.

Click here to access the raw data in an Excel spreadsheet.

M&A value rebounds against weaker volume

The value of mergers and acquisitions (M&A) targeting companies based in Central and Eastern Europe (CEE) advanced 35 per cent in October 2013 after slipping in the previous month.

The value of M&A transactions during the period under review was EUR 10,456 million compared to EUR 7,717 million in September, halting a two-month decline (July 2013: EUR 12,087 million; August 2013: EUR 10,016 million). The result was also better than 12 months ago, when just EUR 4,314 million of deals were signed off.

On the other hand, volume took another tumble: there were 529 announced transactions during October 2013, 32 per cent fewer than in September and marked the third decrease in a row (July: 916; August: 779; September: 778). In a year-over-year comparison, the result was lower than the 618 transactions announced in October 2012.

In Russia the picture was broadly similar, as M&A value rose 25 per cent to EUR 7,963 million, bringing an end to a consecutive two-month decline while volume weakened for the third month in a row to 103 transactions.

CEE deals by volume and value

Announced date No of deals Total deal value (mil EUR)

Oct-13 529 10,456

Sep-13 778 7,717

Aug-13 779 10,016

Jul-13 916 12,087

Jun-13 738 8,913

May-13 576 14,416

Apr-13 852 25,025

Mar-13 742 10,389

Feb-13 565 17,763

Jan-13 599 12,738

Dec-12 783 23,475

Nov-12 601 14,206

Oct-12 618 4,314

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Deals by volume and value

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Russian deals by volume and value


Oct-13 103 7,963

Sep-13 158 6,355

Aug-13 178 9,272

Jul-13 213 9,948

Jun-13 199 5,210

May-13 174 13,266

Apr-13 252 22,010

Mar-13 217 6,362

Feb-13 212 14,156

Jan-13 177 8,339

Dec-12 350 18,941

Nov-12 221 13,255

Oct-12 217 1,971









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Two deals boost value

Two transactions were worth EUR 1,000 million or above during October, and collectively accounted for 43 per cent of overall value for the CEE region.

Rosneft’s offer to buy out minority shareholders in RN Kholding, formerly known as TNK-BP Kholding, the oil and gas venture jointly owned by BP and a group of oligarchs, for EUR 3,516 million was the month’s highest value deal. Rosneft is offering stockholders a 5 per cent premium to RN Kholding’s close on 17th October, the day before it was announced.

The number two deal by value was worth exactly EUR 1,000 million and involved private equity group KKR buying Serbian cable television and broadband internet service provider SBB, which includes the Telemach business, from Mid Europa Partners.

While the majority of M&A dealmaking was within the region, acquirors from the US, France, Germany, the Netherlands and Luxembourg featured in the top 20 transactions by value.

Russia top by value, Bulgaria by volume

Russia-based companies were targeted in the highest value transactions during October, with EUR 7,963 million-worth of dealmaking recorded, up by a quarter on the previous month and significantly more than at the same time a year ago (September 2013: EUR 6,355 million; October 2012: EUR 1,971 million).

Serbia was ranked second with EUR 1,101 million, virtually entirely down to the SBB transaction, and marked the country’s best result of the last 12 months under review. Bulgaria once again topped the region by volume with 123 transactions, although this was a 54 per cent decline on September’s 266.

RN Kholding deal lifts primary sector

Transactions targeting companies operating in the primary sector – which spans agriculture, mining and other natural resources – were the most valuable in October, as dealmaking was worth EUR 4,334 million. A significant amount of this was down to the Rosneft-RN Kholding transaction which accounted for 81 per cent. The result was the sector’s best since November 2012 when EUR 4,925 million was recorded.

There was also substantial increase in the value of deals targeting the banking sector, which rose 47 per cent from EUR 795 million in September to EUR 1,167 million.

One sector for which a sizeable drop in value was recorded was chemicals, rubber and plastics, which fell from EUR 2,159 million to EUR 235 million in October.

In terms of volume, the wholesale and retail sector was placed second despite declining from 101 to 69 transactions.

As expected, volume weakened across most sectors, with only chemicals, rubber and plastics, metals and metal products and wood, cork and paper increasing.









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Top 20 deals by value

Deal value (mil EUR) Deal type Target Target

country Acquiror Acquiror country Deal status

1. 3,519 Acquisition increased from 85% to 100%

RN Kholding OAO RU Neftyanaya Kompaniya Rosneft OAO RU Announced

2. 1,000 IBO 100% SBB doo RS Kohlberg Kravis Roberts & Company LP US Announced

3. 666 Acquisition 100% Mezhdunarodnoye Logisticheskoye Partnerstvo OOO RU Undisclosed bidders Announced

4. 590 Acquisition increased from 35% to 100%

Taas-Yuryakh Neftegazodobycha OOO RU RN-Vostochnaya Sibir OOO RU Completed

5. 474 Acquisition 72% MMBF Foldgaztarolo Zrt HU Hungarian National Asset Management Inc.; Magyar Szenhidrogen Keszletezo Szovetseg

HU Announced

6. 349 Acquisition 85% Zaramagskie GES OAO RU Federalnaya Gidrogeneriruyushchaya Kompaniya - Rusgidro OAO

RU Announced

7. 320 Acquisition 69% Aktsionernyi Kommercheskii Bank Yugra OAO RU Ms MS Alandzhii; Ms VV Esionova; Ms EB Laikova; Ms NN Ivanova; Ms EG Belousova; Ms IN Lyubeznova; Mr ME Grebeshev; Mr AI Korshunov; Ms AL Lebedeva; Mr DA Maksimov; Mr AA Mizgarev; Ms IG Cherkashina; Mr VY Chertilin; Mr IM Burdaev; Mr AA Lemeshko

RU Announced

8. 310 Minority stake TFK-Finans OAO RU Region Esset Menedzhment ZAO; Lider ZAO; Upravlyayushchaya Kompaniya Transfingrup ZAO; Upravlyayushchaya Kompaniya Kapital OOO; Upravlyayushchaya Kompaniya Trinfiko ZAO; TKB BNP Paribas Investment Partners OAO

RU Announced


Aktsionernyi Kommercheskii Bank Rosbank OAO RU Société Générale FR Announced

10. 266 IBO 40% Mezhdunarodnoye Logisticheskoye Partnerstvo OOO RU Gruppa Kompanii Renova ZAO RU Completed









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Top 20 deals by value

Deal value (mil EUR) Deal type Target Target

country Acquiror Acquiror country Deal status

11. 185 Acquisition Logopark Tolmachevo ZAO; Logopark Pyshma OOO RU Faktor Enerhohrup TOV UA Completed

12. 178 Minority stake 8% Moskovskaya Obyedinennaya Energeticheskaya Kompaniya OAO RU MOEK-Finans OOO RU Completed

13. 175 Minority stake 2% Otkrytoe Aktsionernoe Obshchestvo Mezhdugorodnoi i Mezhdunarodnoi Elektricheskoi Svyazi Rostelekom

RU Deutsche Bank AG; Upravlyayushchaya Kompaniya Rossiiskii Fond Pryamykh Investitsii OOO

DE Completed

14. 166 Acquisition 81% Polski Holding Nieruchomosci SA Sp kA PL Budexpo Sp zoo; Warszawski Holding Nieruchomosci SA

PL Completed

15. 138 Minority stake 9% Novorossiiskii Morskoi Torgovyi Port OAO RU Undisclosed bidder Completed

16. 115 Minority stake 34% Ufimskoe Motorostroitelnoe Proizvodstvennoe Obyedinenie OAO RU Obyedinennaya Promyshlennaya Korporatsiya Oboronprom OAO

RU Announced

17. 113 Minority stake 7% Aviatsionnaya Kholdingovaya Kompaniya Sukhoi OAO RU Federalnoe Agentstvo Po Upravleniyu Gosudarstvennym Imushchestvom

RU Announced

18. 94 Acquisition 100% Bashneft - Servisnye Aktivy OOO RU Sistema Aktsionernaya Finansovaya Korporatsiya OAO

RU Completed

19. 92 Acquisition 100% Kinopoisk OOO RU Yandex NV NL Completed


Synthos SA PL FTF Galleon SA LU Completed









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Top 20 private equity deals by value

Deal value (mil EUR) Deal type Target Target country Equity provider Deal status

1. 1,000 IBO 100% SBB doo RS Kohlberg Kravis Roberts & Company LP Announced

2. 70 Acquisition majority stake Voltair-Prom OAO RU One Equity Partners LLC; Upravlyayushchaya Kompaniya Rossiiskii Fond Pryamykh Investitsii OOO

Completed

3. 4 Minority stake LitRes OOO RU Third Rome GmbH Completed

4. 3 IBO Vdolg.Ru OOO RU Runa Capital; Skagit Investments Ltd Announced

5. 1 Minority stake Roket OOO RU Runa Capital Completed

6. 1 Minority stake 22% Oupen Riteil OOO RU Prostor Invest Grupp OOO Completed

7. 1 Minority stake Anews RU Completed

8. 1 Minority stake Svezhie Resheniya OOO RU Imperious Group Completed

9. 1 Minority stake Intersoft Evraziya OAO RU Fond Razvitiya Tsentra Razrabotki i Kommertsializatsii Novykh Tekhnologii Skolkovo

Completed

10. 1 Minority stake Yudo OOO RU Flint Kapital OOO Completed

11. 1 Minority stake Serdityi Grazhdanin OOO RU Runa Capital Completed

12. 1 Minority stake Virtual Call Center Telekommunikacios es Szolgaltato Kft

HU DBH Investment Kockazati Tokealap-kezelo Zrt Completed

13. 0 Minority stake RoboSiVi OOO RU LETA Capital Completed

14. 0 Minority stake Choos UA Imperious Group Completed

15. 0 Minority stake Pinka Kft HU Szechenyi Tokealap-Kezelo Zrt Completed

16. 0 Minority stake 15% SimZirok UA Imperious Group Completed

17. 0 Minority stake ARTABO Ruhatervezo-gyarto es Kereskedelmi Kft

HU Szechenyi Tokealap-Kezelo Zrt Completed

18. 0 Minority stake Roket OOO RU Completed

19. 0 Minority stake 15% Hashtago UA Imperious Group Completed

20. 0 Minority stake 15% Bazilla UA Imperious Group Completed









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PE value soars

Reflecting the overall M&A picture, private equity and venture capital (PE and VC) investment value rose while volume slipped back.

There were 27 transactions worth a combined EUR 1,085 million in October, compared to EUR 33 million invested across 32 transactions in September. In monetary terms, this was the third highest result in the last 12 months.

In Russia, both value and volume were up as 14 deals worth a collective EUR 84 million were recorded compared to 8 worth a total of EUR 30 million the previous month. In a year-over-year comparison, however, volume was 40 per cent higher while value was down 28 per cent (October 2012: 10 transactions worth EUR 116 million).

A single deal accounted for the majority of the region’s PE and VC value, which was the KKR buyout of SBB, representing 92 per cent.

Private equity deals by volume and value


Oct-13 27 1,085

Sep-13 32 33

Aug-13 21 130

Jul-13 16 99

Jun-13 20 179

May-13 15 96

Apr-13 18 1,241

Mar-13 36 4,526

Feb-13 16 488

Jan-13 12 79

Dec-12 32 195

Nov-12 17 23

Oct-12 25 206









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Russian private equity deals by volume and value


Oct-13 14 84

Sep-13 8 30

Aug-13 8 89

Jul-13 6 2

Jun-13 11 175

May-13 4 8

Apr-13 7 1,162

Mar-13 10 2,918

Feb-13 7 478

Jan-13 2 50

Dec-12 11 191

Nov-12 4 1

Oct-12 10 116









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Private equity deals by volume and value in CEE

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Deal types by volume

Deal type Oct-12 Sep-13 Oct-13

Acquisition 284 474 283

Minority stake 327 298 236

IBO 7 3 5

MBO 0 1 2

Demerger 0 3 2

Merger 1 0 1

Deal types by volume in October

Deal types by value in October Deal types by value

Deal type Oct-12 (mil EUR)

Sep-13 (mil EUR)

Oct-13 (mil EUR)

Acquisition 3,047 3,720 7,659

Minority stake 1,146 3,996 1,528

IBO 121 1 1,269

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Target sectors by value

Target sector Oct-12 (mil EUR)

Sep-13 (mil EUR)

Oct-13 (mil EUR)

Primary sector 101 1,849 4,334

Other services 727 1,098 2,439

Banks 286 795 1,167

Transport 587 263 818

Gas, water, electricity 807 144 561

Machinery, equipment, furniture, recycling 251 492 293

Chemicals, rubber, plastics 652 2,159 235

Insurance companies 27 235 99

Food, beverages, tobacco 43 61 74

Construction 252 43 68

Metals & metal products 292 236 64

Wholesale & retail trade 240 167 24

Wood, cork, paper 36 2 22

Education, health 0 1 21

Hotels & restaurants 0 73 13

Publishing, printing 8 72 7

Textiles, wearing apparel, leather 0 11 4

Post and telecommunications 0 0 0

Public administration and defence 0 0 0

Target sectors by volume

Target sector Oct-12 Sep-13 Oct-13

Other services 152 258 169

Wholesale & retail trade 59 101 69

Banks 66 64 52

Construction 46 50 33

Primary sector 29 37 29

Machinery, equipment, furniture, recycling 57 48 28

Chemicals, rubber, plastics 34 19 27

Transport 36 39 19

Gas, water, electricity 41 36 18

Food, beverages, tobacco 33 33 17

Metals & metal products 15 15 16

Publishing, printing 14 19 11

Insurance companies 8 17 10

Hotels & restaurants 10 18 9

Textiles, wearing apparel, leather 6 8 7

Wood, cork, paper 7 3 5

Education, health 4 10 4

Post and telecommunications 1 1 0

Public administration and defence 0 1 0









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Top countries by volume

Target country Oct-12 Sep-13 Oct-13

Bulgaria 15 266 123

Russia 217 158 103

Poland 127 107 88

Ukraine 95 78 62

Belarus 38 23 28

Estonia 24 27 27

Latvia 20 20 20

Lithuania 6 10 14

Czech Republic 5 12 13

Hungary 10 21 12

Romania 27 28 11

Moldova 0 5 8

Serbia 13 9 7

Slovenia 8 1 4

Bosnia And Herzegovina 6 4 3

Croatia 7 5 3

Macedonia 2 2 2

Montenegro* 0 0 1

Slovakia 3 1 1

Top countries by value

Target country Oct-12 (mil EUR)

Sep-13 (mil EUR)

Oct-13 (mil EUR)

Russia 1,971 6,355 7,963

Serbia 9 1 1,101

Poland 890 144 497

Hungary 2 381 478

Ukraine 627 366 162

Croatia 2 0 75

Czech Republic 5 98 55

Romania 22 127 52

Slovenia 190 0 43

Bulgaria 108 144 41

Estonia 52 37 21

Belarus 8 11 20

Lithuania 0 19 12

Moldova 0 0 6

Latvia 0 1 3

Bosnia And Herzegovina 0 10 2









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Notes to editors

Activity is based on the activity of the target company

Deal status is announced within the time period

The sector breakdown uses targets’ activities as defined to be ‘Major Sectors’ by Zephyr

The Russia/CEE region covers target companies in Albania, Belarus, Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.

The date range is 01/10/2013 - 23/10/2013 inclusive





Zephyr Monthly M&A Report › BvD › media › General › Eastern Europe... · 2014-07-05 ·...

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Transcript of Zephyr Monthly M&A Report › BvD › media › General › Eastern Europe... · 2014-07-05 ·...