ASEAN Private Equity and Venture Capital 2016 Summary

Total private equity and venture capital investments in ASEAN nations came up to US$ 21 billion in 2016.

By Betty Ho

Of the nations, Indonesia and Singapore received the highest investments. Brunei’s figures were highly skewed given there were only 2 deals and one of the deals worth US$ 0.8 billion involved Hengyi Industrial (Brunei) Co., Ltd, an infrastructure deal.

ASEAN 2016 – PEVC Investment Values (US$m)

Private equity and venture capital deals in Philippines and Cambodia were low given the hype they have received about their respective economies.

ASEAN 2016 – Deal Count (US$m)

Malaysia and Thailand under performed Singapore in terms of number of deal counts and invested dollars even though they were much larger nations. Deal counts were lowest in Brunei.

ASEAN 2016 – PEVC Average Deal Size (US$m)

The average PEVC deal size in ASEAN were varied. Indonesia’s figures were skewed by 2 deals, PT. Wijaya Karya Bangunan Gedung (US$ 3.4 billion) and Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara (US$ 1.8 billion). The former is a construction company and the latter, an infrastructure company.

The average deal size for Brunei was skewed by Hengyi Industrial (Brunei) Co., Ltd. The firm offers petrochemical project construction and engineering services. The company was founded in 2011 and is based in Bandar Seri Begawan, Brunei. Hengyi Industrial (Brunei) Co., Ltd. operates as a subsidiary of Hong Kong Tianyi International Holding Co., Ltd.

PEVC deals in ASEAN 2016

VC deals in in ASEAN outweighed PE deals during the year in 2016. This is consistent for emerging markets in ASEAN region.

ASEAN PEVC Deal League Tables

Top 10 deals in ASEAN

Date Target/Issuer Transaction Status US$m Value   Buyers/Investors Type
September-16 PT. Wijaya Karya Bangunan Gedung Closed                          3,422 PT Wijaya Karya (Persero) Tbk (JKSE:WIKA) PE
June-16 Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara Closed                          1,769 Republic of Indonesia PE
November-16 Hengyi Industrial (Brunei) Co., Ltd. Announced                             803 Hong Kong Tianyi International Holding Co., Ltd.; Damai Holding Limited VC
September-16 GrabTaxi Holdings Pte Ltd Closed                             750 Honda Motor Co., Ltd. (TSE:7267); Tokyo Century Corporation (TSE:8439); SB Group US, Inc. VC
November-16 SingTel Asian Investments Pte Ltd Closed                             696 Singapore Telecommunications Limited (SGX:Z74) PE
April-16 RHB Bank Berhad (KLSE:RHBBANK) Closed                             640 RHB Capital Berhad PE
April-16 Singapore Telecom International Pte Ltd. Closed                             566 Singapore Telecommunications Limited (SGX:Z74) PE
August-16 PT Go-Jek Indonesia Closed                             550 Warburg Pincus LLC; KKR & Co. L.P. (NYSE:KKR); Farallon Capital Management, L.L.C.; Sequoia Capital India; Northstar Group; DST Global; Rakuten Ventures; NSI Ventures; Capital Group Private Markets, Inc.; Formation Group PE
April-16 CPF (Thailand) Public Company Limited Announced                             500 Charoen Pokphand Foods Public Company Limited (SET:CPF) VC
April-16 Lazada South East Asia Pte. Ltd. Announced                             500 Alibaba Group Holding Limited (NYSE:BABA) VC

Lazada, Go-Jek, Grab Taxi are among the most famous deals concluded in 2016.

In April 2016, Alibaba Group Holding Limited (NYSE:BABA) entered into an agreement to acquire 21.5% stake in Lazada South East Asia Pte. Ltd. from Tesco PLC (LSE:TSCO), Investment AB Kinnevik (OM:KINV B), Rocket Internet SE (XTRA:RKET) for approximately US$ 320 million.

In August 2016, PT Go-Jek Indonesia announced that it has received US$ 550 million in funding from Warburg Pincus LLC; KKR & Co. L.P. (NYSE:KKR); Farallon Capital Management, L.L.C.; Sequoia Capital India; Northstar Group; DST Global; Rakuten Ventures; NSI Ventures; Capital Group Private Markets, Inc.; Formation Group. PT Go-Jek Indonesia owns and operates a fleet of motorcycle taxi fleet and provides delivery services. The company was founded in 2011 and is based in Jakarta, Indonesia.

In December 2016, GrabTaxi Holdings Pte Ltd announced that it has received US$ 750 million in funding from SoftBank Internet and Media, Inc., Honda Motor Co., Ltd., Tokyo Century Corporation (TSE:8439), and other investors.

Top ten deals in Singapore

Date Target/Issuer Transaction Status US$m Value Buyers/Investors Type
September-16 GrabTaxi Holdings Pte Ltd Closed     750 Honda Motor Co., Ltd. (TSE:7267); Tokyo Century Corporation (TSE:8439); SB Group US, Inc. VC
November-16 SingTel Asian Investments Pte Ltd Closed     696 Singapore Telecommunications Limited (SGX:Z74) PE
April-16 Singapore Telecom International Pte Ltd. Closed     566 Singapore Telecommunications Limited (SGX:Z74) PE
April-16 Lazada South East Asia Pte. Ltd. Announced     500 Alibaba Group Holding Limited (NYSE:BABA) VC
December-16 DBS Bank Ltd. Closed     449 DBS Group Holdings Ltd (SGX:D05) PE
June-16 Wan Hai Lines (Singapore) Pte Ltd. Announced     313 Wan Hai Lines Ltd. (TSEC:2615) PE
September-16 Terumo Capital Management Pte. Ltd Announced     300 Terumo Corporation (TSE:4543) VC
November-16 Lite-On Mobile Pte. Ltd. Announced     219 Lite-On Technology Corporation (TSEC:2301) PE
August-16 CM International Holding Pte. Ltd. Closed     200 Korea Exchange Bank, Investment Arm VC
November-16 Singapore Telecom International Pte Ltd. Closed     186 Singapore Telecommunications Limited (SGX:Z74) PE

In November 2016, Singtel Asian Investments Pte Ltd announced that it has received S$ 985.09 million in funding from Singapore Telecommunications Limited.

In the same month of November, Lite-On Mobile Pte. Ltd. announced that it has received S$ 309.21 million in funding from Lite-On Technology Corp.

Top 10 deals in Malaysia

Date Target/Issuer Transaction Status US$m Value  Buyers/Investors Type
April-16 RHB Bank Berhad (KLSE:RHBBANK) Closed     640 RHB Capital Berhad PE
June-16 Proton Holdings Bhd. Announced     427 DRB-HICOM Berhad (KLSE:DRBHCOM); GovCo Holdings Berhad PE
December-16 edotco Group Sdn. Bhd. Announced     399 Innovation Network Corporation of Japan VC
March-16 LONGI (Kuching) Sdn. Bhd. Effective       60 LONGI (H.K.) Trading Limited VC
June-16 ELPION Silicon Sdn Bhd Closed       31 OCI Specialty Co., Ltd. VC
April-16 OM Materials (Sarawak) Sdn Bhd. Closed       28 Samalaju Industries Sdn Bhd VC
March-16 RedCap Pharmacy Sdn Bhd Closed       25 Creador PE
September-16 FFM Further Processing Sdn Bhd Closed       15 BRF Foods GmbH PE
July-16 NEP Holdings (Malaysia) Berhad Closed       14 V.S. Industry Berhad (KLSE:VS) PE
June-16 IPark Development Sdn. Bhd. Closed       12 Fujiplates Manufacturing Sdn. Bhd.; AME Properties Sdn Bhd. VC

In Malaysia, top 10 PEVC deals were dominated by consumer companies. In the case of Singapore, technology deals dominated the scene.
Top 10 deals in Indonesia

Date Target/Issuer Transaction Status US$m Value Buyers/Investors Type
September-16 PT. Wijaya Karya Bangunan Gedung Closed  3,422 PT Wijaya Karya (Persero) Tbk (JKSE:WIKA) PE
June-16 Perusahaan Perseroan (Persero) PT Perusahaan Listrik Negara Closed  1,769 Republic of Indonesia PE
August-16 PT Go-Jek Indonesia Closed     550 Warburg Pincus LLC; KKR & Co. L.P. (NYSE:KKR); Farallon Capital Management, L.L.C.; Sequoia Capital India; Northstar Group; DST Global; Rakuten Ventures; NSI Ventures; Capital Group Private Markets, Inc.; Formation Group PE
December-16 PT Duta Alam Ekapratama Closed     375 PT Andalan Satria Lestari VC
December-16 PT Nusantara Sejahtera Raya Announced     261 GIC Pte. Ltd. VC
September-16 Lembaga Pembiayaan Ekspor Indonesia Announced     242 Indonesia Ministry Of Finance,  Investment Arm PE
March-16 PT Sarana Multi Infrastruktur (Persero) Announced     152 Republic of Indonesia PE
June-16 Perum Bulog Closed     151 Republic of Indonesia VC
June-16 PT Angkasa Pura II (Persero) Closed     151 Republic of Indonesia PE
June-16 PT Hutama Karya (Persero) Closed     151 Republic of Indonesia PE

 

Top 10 deals in Thailand

Date Target/Issuer Transaction Status US$m Value  Buyers/Investors Type
April-16 CPF (Thailand) Public Company Limited Announced     500 Charoen Pokphand Foods Public Company Limited (SET:CPF) VC
April-16 Synnex Global Ltd. Closed     100 Synnex Technology International Corporation (TSEC:2347) PE
August-16 Siam Food Services Limited Announced       91 Siam Makro Public Company Limited (SET:MAKRO) PE
September-16 Yuanta Securities (Thailand) Company Limited Announced       87 Yuanta Securities Asia Financial Services Limited PE
October-16 Startex Rubber Co., Ltd. Closed       74 Sri Trang Agro-Industry Public Company Limited (SET:STA) PE
September-16 Red Planet Hotels Limited Closed       70 Goldman Sachs Private Capital Investing PE
November-16 The One Enterprise Company Limited Announced       54 VC
May-16 Makro ROH Co., Ltd. Announced       46 Siam Makro Public Company Limited (SET:MAKRO) VC
March-16 Mono Production Co.,Ltd. Closed       43 Mono Technology Public Company Limited (SET:MONO) PE
November-16 Sikarin Hadyai Holding Company Limited Closed       42 VC