Singapore snares 17 M&As

Seventeen merger and acquisitions (M&As) involving Singapore and Indian companies were concluded in the first half of this year, according to a report Duff & Phelps, an independent global valuation and corporate finance advisory firm.

Almost all of them were transactions, with a combined investment of US$940 million, involved acquisition by Singapore companies with target being from India, said Duff & Phelps managing director Srividya Gopalakrishnan.

The deals included Government Investment Corporation (GIC) acquisition of a stake in Viviana Mall, and Singapore Technologies Telemedia taking a controlling stake in Tata Communications Data Centre business.

There were four M&A deals of USD95 million between Malaysian and Indonesia companies and Indian enterprises.

Malaysia’s Tenaga Nasional Bhd took a 30 per cent stake in GMR Energy Ltd Energy US$300 million, according to the consultancy which released this week a report “Transaction Trail”, on mergers, acquisitions, private equity deals and initial public offerings in Singapore, Malaysia and Indonesia.

Some of the acquisitions are by investment funds, she added.

“As any other investors, their drive is to make good return on their investments,” she pointed out.

“India has been a key destination for inbound M&As, foreign companies acquiring Indian businesses, over the years across different segments,” observed Gopalakrishnan.

India offers a huge domestic markets for local consumption. It also offers several capabilities and benefits for export-oriented units including but not limited to technology & manufacturing set ups, she noted.

“International companies have managed to successfully make acquisitions or enter into joint ventures in India. M&A has been one of the ways in which they have expanded their India footprint,” she said. fii-news.com