In the first quarter of 2015, the average size of offshore M&A deals and IPOs was among the highest on record, according to a report from offshore legal, fiduciary and administrative services provider Appleby.
The latest edition of Offshore-i, an Appleby report that provides data and insight on corporate transaction activity in the major offshore financial centres, shows that while there was a significant drop in the number of transactions when compared to the previous quarter, total deal value remained level due in part to three megadeals each worth in excess of US$5bn.
"At more than $68bn for the first quarter of the year, cumulative deal value remains at the same high level as the preceding quarter, despite there being more than 150 fewer transactions," said Cameron Adderley, Partner and Global Head of Corporate. "The result, clearly, is a bumper average deal size, which has been topped in only two quarters over in the past decade."
With regard to the Channel Islands, in the first quarter of the year, Jersey recorded a total deal value of $5.37bn, which marked a 17 per cent spike over Q4 2014. The rise was fuelled in part by the $1.5bn share buyback of Jersey-incorporated motor vehicle parts manufacturer Delphi Automotive, which was among the 10 biggest offshore deals of the quarter.
Like most of the offshore jurisdictions, Jersey saw a decrease in the number of transactions in Q1 2015, when compared to the previous quarter. However, its 55 deals represented just a four per cent drop against the preceding quarter and a 17 per cent increase over Q1 2014.
Overall, there were 537 deals in Q1 2015, down 24 per cent from the previous quarter. Deal value in the first three months of year, however, registered at $68.3bn, which matches the previous quarter and is among the highest in the last decade.
This quarter’s average deal size came in at $127m, fuelled by 14 deals worth more than a billion dollars each, including three $5bn-plus deals and an additional two deals worth more than $4bn each.
The Offshore-i report can be viewed here.