KUALA LUMPUR (April 20): Malaysia took pole position as Southeast Asia's (SEA) most active country in terms of the number of merger and acquisition (M&A) deals in the first quarter of 2017 (1Q17), with a total of 26 deals worth US$1.9 billion, according to Mergermarket.

However, Thailand took the largest deal value with US$2 billion for 12 deals, surpassing the historical key player, Singapore with 19 deals worth US$1 billion in 1Q17.

"M&A activity targeting SEA in 1Q17 stayed quiet, recording 92 deals worth US$7.3 billion, a 43.5% decline by value with two more deals compared with the same period last year," said Mergermarket in its SEA trend report for 1Q17, which was released today.

It was the slowest first quarter since 2010 according to Mergermarket record, it added.

The report also revealed that buyout activity in SEA totalled US$851 billion with five deals in 1Q17. "While the deal value was up by 34.8%, there were two fewer deals compared with 1Q16," said Mergermarket.

It noted that two of these buyout deals involved a significant minority stake in Malaysian telecommunication infrastructure player edotco Group Sdn Bhd being acquired by Innovation Network Corp of Japan and Khazanah Nasional Bhd for a combined US$600 million. "The deal propped the technology, media, and telecommunications sector to the forefront of buyouts," it added.

Meanwhile, exit transactions in the region actively started this year with six deals in 1Q17, which was a historical high number of deal making over 1Q based on Mergermarket record.

Mergermarket said two deals in the transportation sector made it the second largest in exit value by sector – Malaysia-based UMW Oil & Gas Corp Bhd's acquisition of domestically-owned offshore vessel provider Icon Offshore Bhd and 95.5% stake of petroleum products transporter Orkim Sdn Bhd for a combined deal value of US$385 million.

"Towards the second half year of 2017, SEA’s M&A activity is expected to spring back in terms of the number of private equity deals such as US$500 million to US$600 million worth exit of Philippine-based SPi Global, which might be announced within the year and several consolidations especially in telecommunication industry that are in the pipeline," said Mergermarket.