Programme

Tuesday, 8 December 2009
08:15 / Registration and networking breakfast
08:50 / Welcome remarks
09:00 /

Key learnings for a manufacturing company from the great recession

Pierre E. Cohade, President, Asia Pacific Region, THE GOODYEAR TIRE & RUBBER COMPANY
09:30 / Greater China: Changing the landscape of global and local M&A
The prominence of the greater China region in M&A is growing increasingly. In 2008, for example, the largest M&A deal in Asia was the US$23.8 billion merger between China Netcom and China Unicom. Despite the shadow cast by the global financial crisis, China’s economy shows strength. But the state’s stimulus package in trillion yuan might have made assets more expensive than acquirers have expected. A senior panel debates:
  • The future role of the Greater China region in cross-border M&A
  • The appetite of multinational players in inbound acquisition going forward
  • Opportunities and challenges of domestic M&A in fast growing sectors
  • The prospects unveiled by the new cross-Strait policies

Moderator
Jing Huang, Managing Director, BAIN CAPITAL
Panelists
Elizabeth Knup, President, PEARSON EDUCATION LIMITED (CHINA)

Alex Xu, Strategic Investment Director, GIANT INTERACTIVE GROUP
Scott Spirit, China Strategy Director, WPP

10:30 / Coffee / tea networking break
11:00 / Financial acquisitions: The evolving role of private equity in China M&A
From the acquisition of investment stakes to TPG-Shenzhen Development Bank-type arrangements (in which TPG is currently the only foreign investor to hold a controlling stake in a Chinese bank through an agreement that will expire in 2009), private equity’s role in China M&A continues its evolution. Meanwhile a significant number of Chinese companies will soon be under capital pressure from bond issues made in more buoyant times, presenting new opportunities for financial buyers. What does the future of private equity in China M&A hold?
  • Will foreign private equity firms be successful in China?
  • Where do private equity firms add value over corporate buyers?
  • Private equity as partner
  • Renminbi funds: Their future role in China M&A

 

Moderator
Andr Loesekrug-Pietri, Chairman, Private Equity and Strategic Mergers & Acquisition Working Group, EUROPEAN CHAMBER OF COMMERCE, CHINA
Panelists
Ji Zou, Partner, ALLEN & OVERY LLP
Ken Chen, Partner, L.E.K. CONSULTING
Kei W. Chua, Partner & Head of Greater China, UNITAS CAPITAL
12:00 / Inbound M&A and local consolidation plays
Inbound M&A transactions totaled $6.9 billion through 75 announced deals in Q1/2009. Sentiment remains favourable, as evidenced by Bain Capital’s recent agreement to invest in Chinese retailer Gome, and further growth in inbound deals is expected as the government looks to see consolidation in the airlines, mining and oil refining industries through the implementation of some new policies.
  • Consolidation: Is the SOE market ready for it?
  • Creating win-win situations
  • Inbound M&A policy and regulatory update
  • Overcoming challenges to integration
Moderator
Youming Ye, Managing Director, THE JORDAN COMPANY (CHINA)
Panelists
Forrest X. N. Zhang, Vice Chairman & Secretary-General, CHINA COUNCIL FOR INTERNATIONAL INVESTMENT PROMOTION INVESTMENT AND FINANCING COMMITTEE
Guoping Fei, Vice Chairman, CHINA MERGERS & ACQUISITIONS ASSOCIATION
Krzysztof Werkun, Partner, CHINA RENAISSANCE PARTNERS
Fernando Bensuaski, Managing Director, GOSHAWK CORPORATE OPPORTUNITIES LTD
13:00 / Luncheon
Keynote address
Cultural understanding of China market: Transformation in progress
Andrew Y. Wu, Group Director, LVMH CHINA
14:30 / Strategic acquisitions: A catalyst for corporate growth in China?
M&A is generally believed to be an important vehicle for achieving corporate growth in China. Ping An Insurance Group, the nation’s second largest insurance firm, for example, is reportedly aiming to branch into banking through its current attempt to acquire Shenzhen Development Bank. But while many corporates may accept expansion via M&A, integration and post-acquisition management are a whole different kettle of fish. Panelists consider:
  • Is M&A a realistic tool for sustainable growth in China?
  • How can companies fully capitalise on the advantages and opportunities that arise through the newly merged entity?
  • Post M&A management challenges and how to deal with them
  • M&A vs JV vs strategic investment
  • The role of M&A in creating the national champions of tomorrow for China
Moderator
James Mi, Managing Director, LIGHTSPEED VENTURE PARTNERS
Panelists
Karsten Eller, BASF
Alex Koi, General Manager, COOPER TIRE CHINA
Andrew (Xueli) Hou, Executive Director & Vice President of Corporate Finance, PERA GLOBAL HOLDINGS INC.
Haifa Zhu, Sr. Vice President & CIO, SHANDA INTERACTIVE ENTERTAINMENT
15:30 / Coffee / tea networking break
16:00 / New policies update and future ramifications
While the blockage of the Coca-Cola-Huiyuan deal was a disappointment to the M&A market, recent government policies in China are believed to be positive for future deal-making: The Ministry of Commerce and State Administration of Foreign Exchange have delegated authority to local branches to approve certain foreign investment procedures. A new facility for M&A tax deferrals has been created. And the long standing restriction on granting bank loans for equity investments has been overturned by the China Banking Regulatory Commission.
  • Successful structures for cross-border and domestic deals
  • The Central Government’s attitude towards foreign/domestic buyers
  • Implications of the Coca-Cola-Huiyuan blockage to future inbound acquisitions
  • The new policies and regulations: The impact on Chinese M&A
Speaker
Simon F. Huang, Director, Department of Foreign Investment Administration
SHANGHAI MUNICIPAL COMMISSION OF COMMERCE
16:30 / Outbound deals: New opportunities amid changing deal dynamics
In Q1/2009 China was the largest acquirer among the Asia-Pacific nations, investing some $353 million in 18 announced deals in Asia, according to AVCJ Research. For acquisitions to support overseas expansion strategies by Chinese companies, the milestone remains the 2007 investment in a 20% stake of South Africa’s Standard Bank Group by Industrial and Commercial Bank of China. Yet the failure of the Ping An-Fortis and Chinalco-Rio deals to close have raised some red flags among Chinese firms looking to emulate the ICBC success.
  • What are the favoured sectors for outbound deals?
  • New emerging markets for M&A—e.g. Africa and the Middle East
  • Government policies and regulatory issues
  • Common mistakes by Chinese firms in international acquisitions and how to avoid them
Moderator
Andr Loesekrug-Pietri, Chairman, Private Equity and Strategic Mergers & Acquisition Working Group, EUROPEAN CHAMBER OF COMMERCE, CHINA
Panelists
Roberto Dumas Damas, Chief Representative,
BANCO ITAU BBA SHANGHAI REPRESENTATIVE OFFICE
Yan Xiong, Chairman, CHINA BEIJING EQUITY EXCHANGE
Erik Bethel, Founding Partner & CEO, SINO LATIN CAPITAL
17:30 / Conference concludes

17:40 / Cocktail reception

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