Exits rise in Asia, soar in Japan

The value of private equity exits and buyouts in Asia rose significantly in the first half, and in Japan exit value spiked 53%, according to Mergermarket.

In the first half of the year, the value of private equity exits in Asia excluding Japan totaled $11.8 billion, a 34 percent increase compared to the same period last year, according to a Mergermarket report on private equity activity. 

The number of exits was 57, up from the 42 during the first half of 2012.

Nearly all divestments ($11.4 billion across 54 deals) were through trade sales. 

The industrials & chemicals sector had the largest exit value ($3 billion) followed by the consumer sector ($2.5 billion).

Private equity buyouts also increased. In the first half, in Asia excluding Japan, buyouts totaled $13.9 billion, 21 percent above the first half of 2012, according to Mergermarket. 

The total represented 95 deals compared to 110 in the same period last year.

In Japan, exits soared 53 percent to $ 2.6 billion across 22 transactions, the highest first half tally since Mergermarket began keeping records in 2001, the report said.

Technology and leisure companies accounted for the largest number of exit deals. “Improving consumer sentiment and a desire for consolidation among operators is expected to spur greater M&A activity in the sector,” the report said. 

Buyouts in Japan, however, decreased. In the first half, buyout value totaled $1.8 billion across 17 deals, “the lowest opening half of any year since H1 2010” when value totaled $1.5 billion across 19 deals, the report said.

PE exits in Asia (ex-Japan)

   1H 2013 1H 2012 
Value   $11.8   $8.8
Number      57     42

Source: Mergermarket