India, China are Asia's top M&A destination - Are you surprised??

India & China are top M&A destination...havn't we heard this often enough. India is a party destination for the Financial services industry, and everyone wants to cover this party.

PWC has come out with a survey reiterating the above. “China and India still remain the top two targets for M&A in the region due to underlying economic growth conditions,” an annual report presented by the financial advisory firm said, as reported by Mint.

The survey which polled 230 senior financial executives in Asia, Europe, North America and the Middle East, showed interest in India had increased slightly from 37% in 2005 to 39% in 2007.
By comparison, 47% of executives answered that they expected to execute a merger or buyout in China over the next five years.

Taiwan, Pakistan and Vietnam were also fast emerging as M&A hot spots, the report said.
Managers also signalled particularly strong expectations for Hong Kong, Singapore and Indonesia over the next five years.

Among those surveyed, nearly three quarters predicted that their companies would undergo a significant merger or acquisition some time in the next five years, up from 68% last year. Already, transaction value in Asia last year totalled $64 billion (Rs2,59,711 crore), a jump of 66% from 2005.

The sun is shining...and we all know whos making hay

The Blackstone Group invests $275 mn in Hyderabad-based media company Ushodaya Enterprises

The Blackstone Group, one of the world’s biggest private equity firms, has invested $275 mn in Ushodaya Enterprises Limited (UEL). UEL owns Eenadu, ETV and Ramoji Film City. The investment in the Hyderabad-based media house is touted to be the biggest in the Indian media sector. Blackstone will get board representation in Ushodaya. The investment is a part of the fundraising that Ushodaya has initiated upon. The company intends to raise $465 mn of which Blackstone has made an initial investment of $275 mn while the balance $190 mn will be by way of bank financing. The transaction is now subject to regulatory approvals from the Foreign Investment Promotion Board (FIPB) and the Ministry of Information and Broadcasting. Kotak Investment Banking was the sole investment banking advisor to the transaction.

Read the press release here.