Appleby reports positive Offshore M&A activity

The second quarter of 2013 has shown positive signs of a gradual return to more stable transactional activity following several years of volatility. Renewed confidence in offshore transactions and an increase in deals between Q1 and Q2 2013, have been highlighted in the latest Offshore-i Report released today by Appleby, one of the world's largest providers of offshore legal, fiduciary and administration services.

The latest edition of Appleby‘s quarterly report, which provides data and insight on merger and acquisition activity in major offshore financial centres, focuses on the second quarter of 2013, shows that the Crown Dependencies enjoyed a positive quarter with deal volumes in Jersey up by 14% on Q1 to 41 transactions. This includes the sale of 30.877% of Jersey incorporated, UK based building materials manufacturer Breedon Aggregates Ltd, for USD108.39m.

In the global IPO market, Jersey companies were involved in 1 of the 17 completed IPOs which was the USD460m listing on the London Stock Exchange of CVC Credit Partners European Opportunities, a Jersey-based closed-ended investment company. The Appleby report shows that M&A activity offshore in the second quarter of 2013 presents a relatively positive picture, with both the number of deals completed and their value remaining broadly consistent compared with Q1, suggesting that there may be some stabilisation of transactional activity levels after the volatility of the last few years.

Wendy Benjamin, Practice Group Head for the Corporate & Commercial department in Jersey said:"It is really encouraging to see a continued rise in deal levels in Q2 and a stability and general robustness returning to Jersey which continues to attract investors from a range of sectors including financial services, mining and construction and UK fund management. The team at Appleby has been particularly busy this quarter and we welcome the renewed mood of confidence in the Jersey market.”

Cameron Adderley, Partner & Global Head of Appleby's Corporate & Commercial department comments: "The number of deals has started to form a pattern averaging out around 500 per quarter in five of the last six quarters and so far this year we have seen 493 deals in Q2 and 491 in Q1. We feel comfortable asserting that business confidence is at last returning to the markets.”

Once again, it was financial services and insurance deals that powered the offshore M&A markets. In Q2 2013 there were 168 deals in that sector with a combined worth of USD10bn, up from Q1, when there were 147 deals worth USD6.5bn. The largest financial services deal in Q2 2013 saw Platform Acquisition Holdings list on the London Stock Exchange in an IPO raising USD905m - the company is a special purpose acquisition vehicle incorporated in the BVI.

The Crown Dependencies  all enjoyed a positive quarter with deal volumes up 16% in Guernsey to 66 just slightly ahead of the 14% rise in Jersey. In the Isle of Man, while the volume of deals fell from 20 to 18 in Q2 2013, the value of those deals was considerably higher, rising 46% compared to Q1.

For a full copy of the report or for any further information, please contact: Sarah Stone, Global Communications Manager, Appleby sstone@applebyglobal.com or Paul Jaffa, Myddleton Communications, London paul.jaffa@myddleton.com