Case Studies 1: Build Your Presence in ASEAN with Us
Investment Banking | Taking the role as financial adviser in a landmark investment by a multinational conglomerate in Malaysia
Our client was a multinational conglomerate aiming to start its Southeast Asia venture by making an investment in Malaysia.
With this investment, our client would get a 90% stake in a local conglomerate, along with another 90% equity interest in its subsidiary from an investment firm and other minority shareholders.
We at CIMB managed our client as well as the two target companies. This was a complex task, as each company had a different management team and set of minority shareholders. As this was our client’s inaugural investment in Malaysia, we also helped them navigate the cultural considerations in arranging a deal between partners from different cultural backgrounds. We navigated the due diligence processes and negotiations, and managed and aligned the requirements and deal terms of the three groups, in order to make sure that they successfully completed the transactions.
Case Studies 2: We Are No Strangers to Cross-border Deals
Investment Banking | Helping a Korean conglomerate divest its equity interest from its local arm in Southeast Asia
Our client was a Korean conglomerate with a local arm that was experiencing a decrease in margins and profits. This was because of challenging industry conditions, including the increase in crude oil prices driven by the US-China trade war.
Our client wanted to bring in a new equity partner to provide part of the funding for a high-profile project in Indonesia. This would reduce the amount of debt funding needed, allow our client’s local arm to better manage its debt-to-equity ratio, and help to mitigate the risks related to the project. In order to bring in this new partner, our client decided to sell a significant equity stake in its local arm.
This was a highly complex deal which required a high level of scrutiny and due diligence, along with a robust deal rationale and structure. As advisers, we at CIMB managed various stakeholders, including regulators, in an extremely challenging landscape in order to make sure the deal was successful.
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