deals M&A London - right on target Hong Kong hit stop press Success in a nutshell i 2 What's NewS Issue 2 March 2000 Our London M&A team recently acted as co-Iead adviser to the 3i Group in its EUR 330 million acquisition of onc of the UK's leading independent express delivery companies, Target Worldwide Express Limited. 3i Group is the leading European venture capital company and its invest- ment in Target Worldwide is the largest ever in the com- pany's history as well as one of the largest secondary huy-outs in the UK to date. Target Worldwide, which has annual sales in excess of EUR 170 million and operating profits of EUR 30 million, specializes in business to business express deliveries in the UK and Ireland. Target Worldwide was anxious to cxpand into Continental Europe and the founding shareholders concluded that the time was right to sell their remaining shares, using an auction process. 3i approached the Rl logistics team carly on in the process to guide them on Target Worldwide's potential, both in terms of business operations and transaction pricing. 'Careful appraisal by the Rabobank team, coupled with an in-depth knowledgc of Our Hong Kong branch recently concluded a HK 1.8 billion (EUR 240 million) five-year term loan facility for the Hong Kong-based cliënt, COSCO-HIT Terminals, which operates a major container terminal in the former colony with a capacity of TEU 1.6 million. Says Alex Cheung, head of the corporate commercial banking division: 'Rabobank was the only foreign player invited to take part in the transaction, in which we acted as arrangcr and underwriter, and which also included Hang Seng Bank and the Bank of China Group. Our participation was largely the result of our solid performance in the Hong Kong syndicated loan market the logistics market, meant that we were able to advise the 3i Group on the poten tial risks, on the hidden value within some of the business areas, and on a likely medium-term exit strategy for the company,' says Nicolas Thum of London M&A. 3i has syndicated a small portion last year as well as our intimacy with COSCO, the trading house Hutchison Whampoa, and Hong Kong International Terminals Limited (HIT). Finally, we engaged in an intensive three-month marketing effort and were able to move quickly once the client's decision was made. COSCO is a 50/50 joint venture between HIT, a Hutchison Whampoa-affiliated Hrm, and COSCO Pacific, a subsidiary of COSCO Beijing, of the Target Worldwide equity to Gresham Trust, a recognized co-investor in the logistics sector. RI's logistics team gave extensive pre-syndica- tion advice. This is the second transaction that our logistics team has completed with 3i in as many months; the earlier deal being the sale of EPS Limited for a price that set new sectoral benchmarks. 'As a result of these two deals, wc have become an advisor of choice to 3i, front a standing start less than a year ago,' says Henrik Tuxcn, another member of the team that also includes Andrew Robinson and Robert Rattray. 'What this means is that we'vc effectively been able to break the strangle- hold of the investment banks and Big Fivc accountancy firms in order to obtain a recognized position in this field.' the government-eontrolled group which is China's leading shipping enterprise.' Besides Alex Cheung and his team, people working on the deal team included May Wong Tung, head of corporate finance for NE Asia and Berry Marttin, head of international corporates in Hong Kong, as well as senior relationship manager Keivin Ho, and team leader Brian But of syndication (NE Asia). 3i's targetted team - Robert Rattray, Nic Thum, Henrik Tuxen and Andrew Robinson London's M&A team has done it again. As we went to press, JohnCripps, Roger Barr, Christoph Friedrich and George Stephen, were busily faxing through the details of their latest signing - the disposal by the UK financial services ED&F Man Group of their US peanut shelling business to the Birdsong Corporation. Working with our people in New York, the London team were mandated as advisor to the vendor, ED&F Man. This was the second divestment in recent weeks by the international financial services group which is refocussing on asset management and brokerage. The disposal is valued at US1) 100 million.

Rabobank Bronnenarchief

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