This tracker covers possible deals reported by media across Asia-Pacific over a certain period. The information is gathered from various news sources, excludes confirmed deals and is limited to potential acquisitions or sales involving companies or operations in the region. Click here to read the previous month's report.
Potential deal activity in the Asia-Pacific financial sector remained strong in November, thanks in part to growing interest in Indian nonbanking financial companies and buzz around two possible insurance deals in Australia and Thailand.
A unit of U.S.-based Avenue Capital Group LLC plans to acquire an additional 44.6% stake in Asset Reconstruction Co. (India) Ltd. from ICICI Bank Ltd., Punjab National Bank, IDBI Bank Ltd. and ICICI Home Finance Co. Ltd. for nearly 8.40 billion Indian rupees, The Economic Times reported, citing sources. The global investment firm already holds a 25% stake in the bad bank, which reported an AUM of 138.33 billion rupees as of March 31.
Meanwhile, Indiabulls Housing Finance Ltd. promoters are said to be looking to cut their stake in the nonbanking financial company to below 10% from 21.69%, possibly through a qualified institutional placement or an offer for sale exercise. Among other potential deals in the South Asian nation, Shriram Capital Ltd. is said to be nearing a deal to merge with its Shriram Transport Finance Co. Ltd. and Shriram City Union Finance Ltd. units, Bloomberg News reported.
In the Asia-Pacific insurance sector, two possible deals emerged in November, with Australia's QBE Insurance Group Ltd. said to be in talks to acquire the local general insurance unit of Zurich Insurance Group AG, excluding the travel insurance arm. The Australian reported the sale process for bidders was already into the second round and that the business could be worth about A$500 million. In addition, Insurance Australia Group Ltd. is seen as a possible bidder for the business.
Further, the controlling shareholders of Thailand-based Syn Mun Kong Insurance PCL are considering selling their majority stake in the company, in a deal that could be valued at about $200 million, Bloomberg News reported, citing people familiar with the matter. Assicurazioni Generali SpA and Liberty Mutual Holding Co. Inc. are among the bidders initially selected for the potential transaction, which could include a fresh investment of about $100 million, the sources told the outlet.
In the banking sector, potential deal activity remained limited to small lenders, with suitors circling targets in Indonesia and Pakistan. Indonesian media conglomerate PT Elang Mahkota Teknologi Tbk is seeking to acquire a 93% stake in PT Bank Fama International for 908 billion rupiah, The Jakarta Post reported. In Pakistan, MCB Bank Ltd. has shown interest in buying a 55% in Telenor Microfinance Bank Ltd. from Telenor Pakistan BV. MCB Bank said its board gave in-principle approval to conduct due diligence on the microfinance bank.
In addition, U.S.-based Blackstone Inc. has stopped its search for a buyer for its controlling stake in Australia's La Trobe Financial Group, The Australian Financial Review reported. The alternative asset management firm reportedly decided that the timing of the divestment was not right amid valuation concerns after receiving indicative offers for the stake.
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