iberian forum post-event report 2010

www.mergermarket.com/events

Iberian M&A and Private Equity ForumPost-event report15 June 2010 | Westin Palace | Madrid

Lead strategic partners: Strategic partners: Communication partners:

IberIan M&a and PrIvate equIty ForuM 2

The opening panel, which focused on corporate M&A, was moderated by Fernando Torrente, a Partner with Cuatrecasas, Gonçalves Pereira. Ignacio Aranguren, the Chief Strategy Officer of NH Hoteles, said that the hotel company has been hit hard by the financial crisis. He explained that the company now prioritised debt reduction. A new model for future deals which illustrates this debt reduction strategy has come off the back of the recent Hesperia deal, which focused on managing assets rather than buying property. He added that joint ventures are becoming increasingly common in the sector.

Meanwhile, Marcos Íñiguez, Indra’s Director of Business Development and M&A, revealed that the technology company would look to continue to grow through acquisitions. He said that Indra will focus on deals that improve profitability, adding that cash-flow is highly important, as is attracting talent. Pablo Blanco Juárez, Corporate Strategy Director of Prosegur, continued this theme, stating that the highly acquisitive security company would continue to look for bolt-on deals in the current fragmented market and that it will focus on small deals in overseas markets where it is already present, particularly in Latin America.

José Antonio de Tomás, Santander Global Banking & Markets’ Head of Corporate Finance, commented that the M&A market is a global one rather than a local one, but that clients are being more prudent when it comes to entering new markets, given that these deals require a greater commitment in terms of research and financing more lawyers.

Juan Rivera, Senior Director of Llorente & Cuenca, welcomed attendees to mergermarket’s Iberian M&A and Private Equity Forum in the Westin Palace, Madrid. He introduced the keynote speaker, Luis de Guindos, who is currently a Director of IE Centre for Finance.

The economist, who was a minister for the Popular Party (PP) before the Socialists gained power, said that public finances remain weak. He said that the main risk facing Spain is a ‘vicious cycle’, as markets increase the cost of financing to the point that the debt cannot be financed, leading to a bailout. Even if the country does not reach that point, competitiveness is declining and a huge number of jobs have been destroyed.

He said the collapse of the construction market and an inflexible labour market are the main villains. De Guindos welcomed the government’s decision to cut the public deficit to 3% by 2013 from 9.3% this year, he went on to say that Spain has conquered crises in the past and this recent situation will be no different.

LuIS DE GuINDOS, FORMER SECRETARy OF STATE FOR FINANCE; DIRECTOR, IE CENTRE FOR FINANCE

Keynote: outlooK For busIness In sPaIn

Panel: CorPorate M&a In sPaIn IGNACIO ARANGuREN, CHIEF STRATEGy OFFICER, NH HOTELESMARCOS ÍñIGuEz, DIRECTOR OF BuSINESS DEvELOPMENT AND M&A, INDRAPABLO BLANCO JuáREz, CORPORATE STRATEGy DIRECTOR, PROSEGuRJOSé ANTONIO DE TOMáS, HEAD OF CORPORATE FINANCE, SANTANDER GLOBAL BANkING & MARkETSFERNANDO TORRENTE, PARTNER, CuATRECASAS, GONçALvES PEREIRA (MODERATOR)

After a short networking break, Iñaki Miguel, a Financial Correspondent with mergermarket, led a panel on financing acquisitions. Pablo urgoiti, Santander Global Banking & Markets’ Head of European Loans, said that banks are queuing up to lend money to Telefonica, which has launched an aggressive takeover of vivo in Brazil.

The discussion continued with Luigi Bartone, Investment Director of Intermediate Capital Group, mentioning that private equity funds still have enormous liquidity, despite the lack of deals in the sector and that funds will need to put more equity in leveraged buyouts (LBOs) going forwards. On this point, Arturo Alonso, Societe Generale’s Head of Global Finance for Iberia, noted that there are only around 15 banks that are able to fund LBOs.

Gonzalo zurita, Nomura’s Managing Director, concluded the discussion, stating that banks have to innovate now to be able to finance acquisitions. He highlighted a recent uS deal by Grifols as an example. The blood-plasma products specialist will issue shares without voting rights as part of the deal financing.

The forum continued with mergermarket’s Spanish bureau chief, Rupert Cocke, leading a debate on opportunities in the Infrastructure market.

The discussion began with Francisco Javier Falces, COO of Globalvia, stating that the Spanish government needs to privatise infrastructure companies, such as Renfe, ADIF and Aena, in order to continue market development. He also said that pension funds could enter the market directly.

Fernando Bernad, a Partner with Cuatrecasas, Gonçalves Pereira who specialises in project finance, said that the financing model needs to change and that infrastructure projects could potentially issue bonds in the future as a new source of financing.

The discussion continued with Joao Simao, Santander Global Banking & Markets’ Head of Financial Sponsors Group, stating that although infrastructure funds are still very young, they have already begun to be serious players in the market. Simao suggested that these funds would be very interested in Spain, despite there being few deals, because of the gap between prices and risk premiums.

Panel: aCquIsItIon FInanCe

Panel: oPPortunItIes In InFrastruCture

FRANCISCO JAvIER FALCES, COO, GLOBALvIAJOAO SIMAO, HEAD OF FINANCIAL SPONSORS GROuP, SANTANDER GLOBAL BANkING & MARkETSFERNANDO BERNAD, PARTNER, CuATRECASAS, GONçALvES PEREIRARuPERT COCkE, BuREAu CHIEF – SPAIN, MERGERMARkET (MODERATOR)

GONzALO zuRITA, MANAGING DIRECTOR, NOMuRAPABLO uRGOITI, HEAD OF EuROPEAN LOANS, SANTANDER GLOBAL BANkING & MARkETSARTuRO ALONSO, MANAGING DIRECTOR, HEAD OF GLOBAL FINANCE IBERIA, SOCIETE GENERALELuIGI BARTONE, INvESTMENT DIRECTOR, INTERMEDIATE CAPITAL GROuPIñAkI MIGuEL, FINANCIAL CORRESPONDENT – SPAIN, MERGERMARkET (MODERATOR)


Adolfo Ramírez-Escudero, Executive Managing Director of Capital Markets for CB Richard Ellis, was next to take the podium at the Iberian forum to discuss the developments in the Real Estate sector.

Ramírez-Escudero began by noting that some people see the Spanish property market as being a glass half-full, while others see it as half-empty. Following the recent collapse in the sector, there is still excess capacity and banks have begun to enter as co-promoters. He said that efficiency measures, such as sale and leasebacks, as well as property spin offs, are becoming increasingly important and concluded by stipulating that property deals can bring extra profits to M&A, adding that it is important to conduct property due diligence alongside conventional due diligence.

CARMINA GANyET CIRERA, CORPORATE MANAGING DIRECTOR, INMOBILIARIA COLONIAL S.AEMILIO CASTAGNA, DIRECTOR, IMPROvENJAvIER MATA, zóBELTONALExANDER WIT, PARTNER, PHI INDuSTRIALRuPERT COCkE, BuREAu CHIEF – SPAIN, MERGERMARkET (MODERATOR)

PresentatIon: real estate In FoCus

Panel: PortFolIo ManageMent & turnaround

ADOLFO RAMÍREz-ESCuDERO, ExECuTIvE MANAGING DIRECTOR CAPITAL MARkETS, CB RICHARD ELLIS

Beginning this panel, Emilio Magnasco, Projects Director with Improven, said that when companies are in crisis, it is important to be agile enough to make quick decisions. Javier Mata, an executive with zóbelton, said that it is sometimes worthwhile calling in an interim manager to make the tough decisions, to give an unbiased opinion when the owners are too close to the business.

During the course of the discussion, Alexander Wit, a Partner with PHI Industrial, said that selling the business is an alternative to restructuring, but said that in these cases it is important to make very quick decisions and start the sale process as early as possible. Carmina Ganyet Cirera, Inmobiliaria Colonial’s Corporate Managing Director, said that the property company was able to successfully restructure because of a collegiate atmosphere involving all the stakeholders. Even so, she said the process was still painful and difficult at times.



mergermarket’s Iñaki Miguel led the final debate of the day about private equity. Alex Wagenberg, Partner with The Carlyle Group, stated that secondary buyouts (SBOs) are now coming into focus for exits. He also said that big companies should return to their core business, as this will create opportunities for private equity funds.

During the discussion, Carlos Mallo, a Partner with Permira, pointed out that a good asset can always be sold. Ramón Cerdeiras, a Partner with Ibersuizas, said that all the traditional exit strategies are still possible, although IPOs are still difficult.

According to Jesús González Nieto-Marquez, Business Development Director of Bolsas y Mercados Españoles (BME), there are windows of opportunity for IPOs, but that they can close quickly, and that BME’s new Alternative Stock Market is a good option for smaller exits.

Eduard Saura, a Partner with Accuracy, indicated that advisers should focus on giving comfort on the business plan rather than on historical figures, given the current uncertainty and volatility in the markets. Finally, victor xercavins, a Partner with Cuatrecasas, Gonçalves Pereira, concluded by saying that he is optimistic that private equity funds will be able to buy non-core divisions from large companies going forwards.

RAMóN CERDEIRAS, PARTNER, IBERSuIzASCARLOS MALLO, PARTNER, PERMIRAJESúS GONzáLEz NIETO-MARquEz, BuSINESS DEvELOPMENT DIRECTOR, BOLSAS y MERCADOS ESPAñOLESEDuARD SAuRA, MANAGING PARTNER, ACCuRACyALEx WAGENBERG, MANAGING DIRECTOR, THE CARLyLE GROuPvICTOR xERCAvINS, PARTNER, CuATRECASAS, GONçALvES PEREIRAIñAkI MIGuEL, FINANCIAL CORRESPONDENT – SPAIN, MERGERMARkET (MODERATOR)

Panel: PrIvate equIty

AF GRAFICA MERGEMARKET 1/6/10 11:46 P�gina 1

MADRIDVelázquez, 63 28001 MadridSpainTel.: +34 915 247 100Fax: +34 915 247 [email protected]

BARCELONAPaseo de Gracia 11108008 BarcelonaSpainTel.: +34 932 905 500Fax: +34 932 905 [email protected]

“Iberian M&A Law Firm of the Year 2008 and 2009”(Mergermarket-Financial Times)

The Cuatrecasas, Gonçalves Pereira M&A and Private Equity Group comprises over 150 lawyers with extensive experience advising Spanish, Portuguese and international companies on the largest and most complex transactions of acquisition processes.

“The top quality service at Cuatrecasas, Gonçalves Pereira exceeds expectations”

(European Legal 500, 2010)

“The fi rm has been present on many of the market’s headline M&A deals”

(Chambers, 2010)

“Perfect service that’s always on time” “Dynamic, proactive and

superbly well-prepared team”(European Legal 500, 2010)

LONDONTower 42, 20th fl oor25 Old Broad StreetLondon EC2N 1HQ, UKTel.: +44 20 7382 0400 Fax: +44 20 7382 0401 [email protected]

LISBONPraça Marquês de Pombal, 21250-160 LisboaPortugalTel. +351 21 355 38 00 Fax. +351 21 353 23 62 [email protected]

SPAIN & PORTUGAL : Al icante | Barcelona | Bi lbao | Girona | Lisbon | Lle ida | Madrid | Palma de Mal lorca | Porto

San Sebastián | Seville | Tarragona | Valencia | Vigo | Vitoria | Zaragoza | BELGIUM | CHINA | FRANCE | MOROCCO | UK | USA

www.cuatrecasas.com

Cualquier compañía puede proclamarse líder.

Gracias a nuestros clientes por hacer posible nuestro éxito.

1) Company financial filings; CBRE 2008 revenue: $5.1 billion; CBRE 2008 normalized EBITDA: $601 million; CBRE normalized net income: $209 million; CBRE 2008 normalized EBITDA margin: 11.7%. 2) 2009 Global Outsourcing 100, International Association of Outsourcing Professionals. 3) “Top 25 Brokerages,” National Real Estate Investor, July-August 2009. 4) The Lipsey Company Brand Survey, 2009, 8th consecutive year. 5) “Global Advisor of the Year,” Euromoney Liquid Real Estate Awards, Issue 07, 3 of last 4 years. 6) “Top 25 Property Managers,” National Real Estate Investor, July-August 2009. 7) Real Capital Analytics, July 2009. 8) U.S. Environmental Protection Agency 2009 ENERGY STAR Partner of the Year, 2nd consecutive year; U.S. Green Building Council Leadership Award for Organizational Excellence, 2008. CB Richard Ellis has been awarded the Leadership in Energy and Environmental Design (LEED) for commercial interiors Gold rating by the USGBC in relation to its office premises in Madrid, Spain. This Gold rating for commercial interiors is the first project certification awarded inSpain and in Europe. 9) Fortune, May 4, 2009. 10)

“BusinessWeek 50,” BusinessWeek, April 6, 2009.

• en resultados financieros1

• en servicios de outsourcing en todo el mundo2

• en asesoramiento en inversión inmobiliaria3

• como empresa más valorada4

• en servicios de consultoría5

• en asset management6

• en inversiones en USA, Europa y España7

• en sostenibilidad8

Fortune 500 - la única consultora inmobiliaria en el ranking9

“Best-in-class” la única consultora inmobiliaria galardonada101MADRID BARCELONA MÁLAGA MARBELLA VALENCIA PALMA ZARAGOZA

T. MADRID: 91 598 19 00 T. BARCELONA: 93 444 77 00 www.cbre.es

Pero sólo hay una consultora inmobiliaria nº 1 en el mundo.

La consultora inmobiliaria nº1 en el mundo

Anuncio CBRE 2009 A4.indd 1 06/05/2010 16:44:06

En Accuracy, tenemos otra concepción del asesoramiento fi nanciero: exclusividad en cada operación, ausencia de confl ictos de interés y especialización en nuestras áreas de negocio.

www.accuracy.eu

¿Es razonable hacer de todo y para todos?

La primera consultoría de comunicación de habla hispanatambién es líder en comunicación financiera

Resultados para el negocio de nuestros clientes

BARCELONA | BEIJING | BOGOTÁ | BUENOS AIRES | LIMA | MADRID | MÉXICO | PANAMÁ | QUITO | RÍO DE JANEIRO

www.amo-global.com

Excellence in Global Financial & Corporate Communications

The Abernathy MacGregor GroupMaitland

Euro RSCG C&OHERING SCHUPPENER LLORENTE & CUENCA

Hirzel.Neef.Schmid.Counselors S.P.J.

2010 SABRE Awards “Outstanding Individual Achievement in Public Relations”, Angus Maitland

2009 SABRE Awards, “Financial Consultancy of the Year”

2009 SABRE Awards, “Iberian Consultancy of the Year”

2010

€ 135.000 m.

Creación de SIP de las cuatro entidades

Primera emisión de cuotas participativas en España

€ 292 m.

Adquisición deUnión Fenosa

€ 16.757 m.

Adquisición del 51%de Treasureware (China)

Venta del 5% de Enagas a OOC

€ 155,2 m.

Venta del 50% de BarclaysVida y Pensiones a CNP

€ 140 m.

Fusión Caixa Catalunya, CaixaTarragona y Caixa Manresa

€ 81.020 m.

2010

20082008

20092009

Anuncio de integración

2009

Debt equity swapUSP Hospitales

€ 500 m.

2009

Adquisición del 26,66%de Atrium NV

€ 400 m.

2010

Desinversión de activos en Méxicoa Mitsui & Co. y Tokyo Gas

$ 1.225 m.

2010

Asesoramiento a Posibilitum Business en la adquisición de

Grupo Marsans

€ 600 m.

2010

La fuente fiablepara el intercambio de información fundamental

Para IntraLinks es un honor ser patrocinadores

del Foro Ibérico de Fusiones y Adquisiciones y Private Equity.

¿Está buscando una manera mejor para llevar a cabo su trabajo? Las empresas de todo el mundo confían en nosotros para compartir información y documentos online de una forma fiable y segura, en cualquier lugar y en cualquier momento. Intralinks mejora la conexion entre empresas, agiliza el flujo de trabajo y racionaliza los procesos. En otras palabras: contribuimos a cerrar acuerdos de forma más rápida y sencilla.

Desde nuestra aparición, hemos apoyado proyectos y operaciones con más de 750.000 usuarios, que representan a más de 90.000 organizaciones. Esta clase de experiencia en los distintos sectores, unida a un servicio al cliente que ha obtenido numerosos premios, ha contribuido a generar verdadera confianza entre nuestros clients.

© 2010 IntraLinks, Inc. All rights reserved. IntraLinks and the IntraLinks logo are registered trademarks of IntraLinks, Inc. in the United States and/or other countries.

IL_IberianForum_A4ad_v5.indd 1 19/05/2010 19:26

Cee M&a and PrIvate equIty ForuM 2010

Remark, the events and publications arm of The Mergermarket Group, offers a range of publishing, research and events services that enable clients to enhance their own profile, and to develop new business opportunities with their target audience.

www.mergermarket.comRemark, Part of The Mergermarket Group

80 StrandLondon, WC2R 0RLUnited Kingdom

t: +44 (0)20 7059 6100f: +44 (0)20 7059 [email protected]

11 West 19th Street, 2nd fl.New York, NY 10011USA

t: +1 212 686-5606f: +1 212 [email protected]

Suite 2401-3Grand Millennium Plaza181 Queen’s Road, CentralHong Kong

t: +852 2158 9700f: +852 2158 [email protected]

Disclaimer

This publication contains general information and is not intended to be comprehensive nor to provide financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, and it should not be acted on or relied upon or used as a basis for any investment or other decision or action that may affect you or your business. Before taking any such decision you should consult a suitably qualified professional adviser. Whilst reasonable effort has been made to ensure the accuracy of the information contained in this publication, this cannot be guaranteed and neither Mergermarket nor any of its subsidiaries nor any affiliate thereof or other related entity shall have any liability to any person or entity which relies on the information contained in this publication, including incidental or consequential damages arising from errors or omissions. Any such reliance is solely at the user’s risk.

iberian forum post-event report 2010

Documents