Wednesday 23 April 2014, Amsterdam
The new report: “Power Quarterly Deals Analysis: M&A and Investment Trends - Q4 2013” report is an essential source of data and trend analysis on the mergers and acquisitions (M&As) and financing in the power industry. The report provides detailed information on M&As, equity/debt offerings, private equity, venture financing and partnership transactions registered in the power industry in Q4 2013. The report discloses detailed comparative data on the number of deals and their value in the past five quarters, categorized into deal types, segments, and geographies. The report provides information on the top private equity, venture capital and advisory firms in the power industry.
The company derived the data presented in this report from proprietary in-house Power deals database and primary and secondary research.
Asset Financing Investments Increased In The Power Industry In Q4 2013
Asset financing, including project financing, self-funded, tax equity, lease and bond financing, and bridge loans for new build, acquisition and refinancing of assets, registered a decrease in the number of deals and an increase in deal value with 241 deals worth $54.2 billion in Q4 2013, as compared to 291 deals worth $39.5 billion in Q3 2013. On a year-on-year basis, asset financing recorded a decrease in the number of deals and deal value from 295 deals worth US$87.2 billion in Q4 2012.
The wind energy market registered a decrease in the number of deals and an increase in investments with 61 deals worth $13.1 billion in Q4 2013, as compared to 74 deals worth $7.5 billion in Q3 2013. The solar energy market registered an increase in the number of deals and investments with 83 deals worth $10.1 billion in Q4 2013, as compared to 81 deals worth $4.7 billion in Q3 2013.
Government of Pakistan completing project financing of US$6.5 billion for the construction and development of nuclear power plant in Karachi, Pakistan and Dong Energy A/S, a power generation company, announcing to invest €2.2 billion (US$2.97 billion) in the construction and development of Gode Wind I and II offshore wind farms situated in the German part of the North Sea, are some of the high value asset financing deals reported in Q4 2013.
M&A Deals Decreased In Q4 2013
M&As or corporate acquisitions in the power industry recorded a decrease in number with 137 deals in Q4 2013, as compared to 154 deals in Q3 2013. Deal value also registered a decrease from $28.2 billion in Q3 2013 to $18.3 billion in Q4 2013. On a year-on-year basis, M&As recorded a decrease in the number of deals and deal value from 146 deals worth US$18.5 billion in Q4 2012.
North America accounted for 36% of the total number of deals and 35% total deal value in Q4 2013, followed by Europe with 35% of the number deals and 50% of total deal value. M&As in North American power market recorded a decrease in number and deal value with 50 deals worth US$6.4 billion in Q4 2013, as compared to 60 deals worth US$11.9 billion in Q3 2013.
Capital Raising Through Issuance Of Equity Reported Deccrease In Q4 2013
Equity offerings, including IPOs, secondary offerings, and PIPEs, registered a decrease of 5% in the number of deals and 51 in deal value with 136 deals worth $11.5 billion in Q4 2013, as compared to 143 deals worth $23.7 billion in Q3 2013. On a year-on-year basis, in equity offerings, the number of deals and deal value decreased from 185 deals worth US$12.6 billion in Q4 2012.
Capital raising, through secondary offerings, registered an increase in the number of deals from 32 in Q3 2013 to 36 in Q4 2013. Deal value also registered an increase of 60% from $3.8 billion in Q3 2013 to $6 billion in Q4 2013. Besides, 97 PIPE deals worth $5 billion were reported in Q4 2013.
IPOs in the power industry reported a substantial decrease in number and deal value with three deals worth $554.5m in Q4 2013, as compared to 10 deals worth $2.7 billion in Q3 2013, indicating a decrease of 70% in the deals and 79% in deal value.
Capital raising, through issuance of debt instruments, including public debt offerings and private debt placements, registered a decrease in the number of deals and deal value with 91 deals worth $31.8 billion in Q4 2013, as compared to 94 deals worth $34.2 billion in Q3 2013. On a year-on-year basis, debt offerings recorded a decrease in the number of deals and deal value from 118 deals worth US$57.4 billion in Q4 2012.
Venture Capital Deals Increased In Q4 2013
Venture capital financing in the power industry registered an increase in the number of deals and a decrease in the deal values in Q4 2013. The market recorded 65 deals worth $313.4m in Q4 2013, as compared to 56 deals worth $433.1m in Q3 2013. On a year-on-year basis, venture financing deals recorded a decrease in the number of deals and deal value from 71 deals worth US$839.4m in Q4 2012.
Intel Capital Corporation topped the VC ranking table, with five financing deals worth $77.6m between Q1 2013 and Q4 2013. In deal value, International Finance Corporation stood at the top with four deals worth $177.8m.
Deals In North America Decreased In Q4 2013
North America registered a decrease in the number of deals and deal value with 388 deals worth $45.1 billion in Q4 2013, as compared to 406 deals worth $48.9 billion in Q3 2013. On year-on-year basis, the number of deals and deal values registered a decrease from 389 worth US$57.4 billion in Q4 2012.
Europe registered a decrease of 6% in deal value from $42 billion in Q3 2013 to $39.7 billion in Q4 2013. The number of deals also registered a marginal decrease of with 250 in Q4 2013, as compared to 251 in Q3 2013. On year-on-year basis, the number of deals registered an increase and deal value reported a decrease from 236 deals worth US$46.5 billion in Q4 2012.
Asia-Pacific registered a decrease in the number of deals and deal value with 178 deals worth $24.8 billion in Q4 2013, as compared to 246 deals worth $31.7 billion in Q3 2013. On year-on-year basis, the number of deals and deal value registered in Q4 2013, as compared to 252 deals worth US$48.2 billion in Q4 2012.
