AI Issue 10 2017

Acquisition International - October 2017 11 Number and Aggregate Value (mil USD) of M&A Deals Globally: 2006-2017 YTD (as at 27 September 2017) Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) Q3 2017 19,913 967,534 Q2 2017 23,688 1,123,661 Q1 2017 23,441 1,046,868 Q4 2016 23,971 1,350,768 Q3 2016 23,501 1,175,689 Q2 2016 23,978 1,002,093 Q1 2016 25,781 935,126 Q4 2015 25,822 1,451,252 Q3 2015 23,309 1,246,328 Q2 2015 23,620 1,260,878 Q1 2015 20,951 1,113,438 Q4 2014 22,048 1,026,639 Q3 2014 21,576 1,007,447 Q2 2014 20,761 1,143,580 Q1 2014 20,712 763,701 Q4 2013 21,645 765,579 Q3 2013 19,314 862,107 Q2 2013 18,786 774,538 Q1 2013 17,355 590,663 Q4 2012 18,894 881,098 Q3 2012 16,766 591,550 World region (target) Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Far East and Central Asia 6,641 6,973 6,303 7,104 5,984 North America 5,894 5,855 6,477 6,178 5,256 Western Europe 6,847 6,950 6,497 6,106 5,211 Eastern Europe 2,002 2,166 2,171 2,280 1,691 Oceania 1,057 974 889 947 819 South and Central America 499 569 500 561 472 Africa 284 327 353 317 249 Middle East 280 173 211 168 184 Number of M&A Deals by Region: 2015 - 2017 YTD (as at 27 September 2017) Q3 Round-up The third quarter of 2017 has been impressive in terms of the value of deals targeting telecommunications companies. In all there have been 338 deals worth a combined USD 41,619 million announced over the course of the three months, according to Zephyr, the M&A database published by Bureau van Dijk. Despite Q3’s volume proving to be disappointing, value reached one of the highest levels of any quarter in recent years. The USD 41,619 million injected over the three months represented an improvement on both Q2 2017 (USD 23,855 million) and Q3 2016 (USD 21,034 million), although it was surpassed by Q4 2016’s USD 59,546 million. A number of large deals contributed to the impressive value result in Q3 as nine deals broke the USD 1,000 million-barrier during the three months. The most valuable was worth USD 9,253 million and took the form of a private placing by Chinese firm China United Network Communications to investors including Suning Commerce Group and Hangzhou Ali Venture Capital, among others. This was followed by a USD 7,100 million buyout of US fibre network services holding company LTS Group Holdings by Crown Castle International, which was announced in July. Other deals worth in excess of USD 1,000 million in Q3 featured targets based in Brazil, the British Virgin Islands, Colombia, India and South Africa. To sum up, Q3 has been an impressive quarter in terms of the value of deals with targets in the telecommunications sector and signs are extremely encouraging in the run up to the end of the year as thus far all three quarters have surpassed the corresponding period of 2016 by value. Telecommunications Number of M&A Deals Globally by Target Sector: 2015 - 2017 to date (as at 27 September 2017) Number and Aggregate Value (Mil USD) of M&A Deals Globally by Deal Type: 2006-2017 to date (as at 27 September 2017) Deal type Number of deals Aggregate deal value (mil $) Acquisition 290,474 22,610,379 Minority stake 426,918 9,896,343 Capital increase 118,110 6,770,684 Institutional buy-out 18,180 3,320,038 Management buy-out 5,200 110,339 Merger 89 42 Major sector (target) Q2 Q3 Other services 8,620 7,457 Machinery, equip- ment, furniture, recycling 2,435 2,017 Wholesale & retail trade 1,454 1,296 Publishing, printing 1,257 1,059 Chemicals, rubber, plastics, non-metallic products 1,230 1,024 Metals & metal products 1,149 935 Construction 859 743 Primary Sector (agri- culture, mining, etc.) 668 469 Food, beverages, tobacco 521 455 Banks 539 411 Education, Health 414 399 Transport 430 376 Gas, Water, Elec- tricity 474 334 Insurance compa- nies 326 253 Hotels & restaurants 299 232 Post and telecommu- nications 297 231 Textiles, wearing apparel, leather 235 166 Deal half yearly value (Announced date) Number of deals Aggregate deal value (mil $) Q3 2017 338 41,619 Q2 2017 419 23,855 Q1 2017 419 29,164 Q4 2016 423 59,546 Q3 2016 375 21,034 Number and Aggregate Value (Mil USD) of Telecommunications Deals Globally: 2006-2017 to date (as at 27 September 2017)