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Cayman Asia M&A Report H1 2018

October 2018 David LambRichard HallFlora WongAnna W.T. ChongTeresa TsaiChristopher W.H. BickleyKevin C. Butler

We are pleased to present this Cayman Asia M&A Market Report which recaps merger & acquisition activity involving Cayman public companies listed on the Stock Exchange of Hong Kong (“SEHK”) for the first half of 2018.

Volume of Acquisitions Decreases, Value Increases

Conyers is particularly active in this space and leads the Asian market in advising on Mergers & Acquisitions. Following a slow 2017, the first half of 2018 displayed signs of a similar pattern, with 43 Cayman company acquisitions reported in H1 2018, compared with 73 from the previous year. However, the aggregate deal value reached HK$47.3 billion (US$6.028 billion) for this period, more than double the value when compared with the first half of last year.

Notable transactions for the first six months of 2018 include the US$3.94 billion hostile bid for China Biologic; Shenzhen Investment Holdings Co., Ltd.’s acquisition of a 66.69% stake in Hopewell Highway Infrastructure Limited for HK$9.865 billion (approximately US$1.26 billion) and its purchase of a further 24.5% stake for HK$3.6 billion (US$461.34 million). Country Garden Holdings Company Limited also completed its spin-off and subsequent listing of Country Garden Services Holdings Company Limited for HK$24.4 billion (approximately US$3.1 billion).

Cayman Public Company Listings Increases

Cayman public companies listed on the SEHK grew to 1,170 in the first half of 2018, representing a 10% increase since the end of 2017. Conversely, the market cap was HK$12.25 trillion (US$1.56 trillion), a decrease of HK$250 billion (US$31.8 billion) since 2017. Despite this, for the end of the first half of 2018, 50% of all SEHK listings were Cayman companies (2% increase on 2017), with an average market cap of HK$11 billion (US$1.4 billion).

Whilst growth in Asian M&A activity remains slow, with deal volume declining. The first half of 2018 displayed an upwards trajectory in both deal value and number of Cayman public companies listed on the SEHK.

This report provides details of transactions and statistical information about the size and growth of the Cayman public companies market in Asia, which we hope will be of interest to our clients and Cayman market followers.

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Cayman Asia M&A Report H1 2018