Whilst interest in acquiring Asian targets or Asian assets has not waned in light of the global financial crisis, particularly in emerging markets such as Vietnam and Cambodia, it is clear that the mergers and acquisitions (M&A) landscape is shifting.
Due to changes in the global economy, leveraged buyouts and other forms of M&A are now finding it more difficult to source for funds while the wide choice of alternative investments has led to investors not only expecting higher returns, but being more cautious in their due diligence.
In the fast-changing economic climate, M&A professionals now have to be more proactive in assisting clients in moving ahead in their business strategies as well as be more actively involved in deal structure, negotiation of key terms and valuation considerations, even as they work against tight deadlines.
“We’re definitely seeing the emergence of more M&A work that requires lawyers to step beyond merely giving textbook legal advice. We have to be very aware of our client’s business needs, and mindful of their cost considerations in the current climate,” says Mr Tan Chong Huat, Managing Partner of KhattarWong and Head of its Corporate & Securities Laws Department.
“KhattarWong is fortunate to have a team of very business savvy lawyers on board – we’ve always prided ourselves on our ability to take our client’s business strategies into consideration and even facilitate networking amongst clients whom we know can leverage on each other’s capabilities. Our Corporate and Commercial Practice Group features a team of dedicated and highly-trained lawyers who specialise in M&A, private equity, joint ventures and commercial work. This is further augmented by our strong alliances in Greater China, Vietnam, Indonesia, India, Malaysia, Japan, the Middle East and our global network in the American and European continents,” he added.
Notably, in 2008, the Group handled a wide spread of M&A and Joint Venture work amounting to approximately $700 million, including a highly profiled joint venture transaction involving the Asian Development Bank.
The Corporate and Commercial Practice Group draws on the strengths of KhattarWong’s various specialist groups and provides a range of services in the domestic and cross border markets as well as foreign ventures. The Group’s expertise covers the divestment and acquisition of shares and businesses, local and international joint ventures, fund management, corporate reorganisation and reconstruction, business strategic alliances, capital restructurings, private equity investments and placements, and a comprehensive range of business expansion structures, such as franchising and distribution models.
“Our value-add lies in our strict adherence to good values and corporate governance principles and our ability to mobilize new deal teams imbued with such qualities within a very short turnaround time,” says Senior Partner Rajan Menon, a veteran practitioner of more than 36 years.
“Clients tell us that once they work with KhattarWong, they never look back because the level of dedication and expertise we bring to the table is unrivalled by other larger firms. In the case of SMRT’s acquisition of a 49% equity interest in Shenzen Zona Transportation, our clients tell us that even the Chinese counterparts were impressed by our service and cross-border knowledge,” adds Mr Tan.
The Firm has been particularly successful in Takeovers, having advised King’s Safetywear in a voluntary cash offer by Safe Step Group Limited and the purchase of the entire issued and fully paid-up share capital of China Dongyuan Environment Pte. Ltd. by the SGX Catalist listed Gates Electronics Limited.
“We’re very comfortable with cross border, complex deals, having the size, reach and expertise within our Firm to leverage on” says Corporate Partner Dennis Lui.
“This year, we expect even more complex deals that require cross border advice. Considering the present difficulty for companies to source for funds, many investors are looking at a much lower price earning ratio and higher internal rate of returns. Continued consolidation in the industries of financial services, property, energy, healthcare, media and infrastructure is likely. Given that KhattarWong’s Corporate & Commercial Practice Group draws expertise from various departments working closely together in areas that call for joint expertise, I am confident we are able and ready to deliver end-to-end legal services for any potential clients in the year to come and beyond.”
“We’re actually looking forward to 2009 being an even better year, as clients look to us in supporting their various ventures”, Dennis added.
The Partners of the Firm’s Corporate and Commercial Practice Group include Partners Anne Chua, Winston Seow and Nicholas Lim. Together with Senior Partner Rajan Menon, Managing Partner Tan Chong Huat and Corporate Partner Dennis Lui, KhattarWong’s Corporate & Commercial Practice Group continues to be one of Asia’s leading M&A specialists.
Established since 1974, KhattarWong is one of Asia’s leading law firms with strong global alliances. With more than 150 lawyers, the Firm has an international practice with collaborations and clients in countries in South East Asia, Indochina, Asia Pacific, Greater China, Middle East, Africa, Europe and the United States of America. KhattarWong’s clientele include Fortune 500 and listed companies, private and public non-listed companies, Government Ministries and authorities, Government-linked companies, local and international banks, financial institutions and insurance companies representing a wide range of industry and interests.