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Baker Botts L.L.P, a leading international law firm, announced this week that through the first half of 2015, firm lawyers advised clients on 35 major merger & acquisition transactions valued at a total of $65.6 billion.

The firm’s M&A activity for the first half of 2015 is up approximately 16% ($9 billion) compared to the first half of 2014 when the firm worked on transactions totaling $56.6 billion. The increase marks the second year in a row in which the firm’s numbers for the first half of the year have risen, with 2015 representing a more than 205% increase when compared to 2013.

Baker Botts lawyers represented clients in a number of notable transactions over the past six months, including:

Regency Energy Partners LP in the $18 billion merger with Energy Transfer Partners L.P. Dallas partner Neel Lemon and Houston partner A.J. Ericksen led the transaction.

Liberty Broadband Corporation in the $5 billion acquisition of New Charter Class A Common Stock as part of Charter’s $75 billion acquisition of Time Warner Cable and $10.4 billion acquisition of Bright House Networks. New York partners Buzz McGrath and Renee Wilm led the transaction.

Conflicts Committee of Williams Partners L.P. in the proposed $13.8 billion acquisition by The Williams Companies Inc. The transaction was led by Houston partners Josh Davidson and Tull Florey.

MeadWestvaco Corporation in the $16 billion merger with Rock-Tenn Company. Washington, D.C. partner Joseph Ostoyich provided antitrust advice in connection with the transaction.

Depomed, Inc. in the $1.05 billion acquisition of the U.S. rights to the NUCYNTA franchise from Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson. Palo Alto partners John Martin and Brian Lee led the transaction.

“During the first half of the year we saw the trend carry forward from 2014, with a high volume of big-ticket M&A work on behalf of our clients – the work ranged from Energy, to Media/Telecoms, to Technology as well as activity in other sectors,” said David Kirkland, Co-Chair of the firm’s Corporate Department.

“Based on discussions with clients, we expect to see continued significant activity in our M&A practice for the balance of the year,” continued Kelly Rose, also Co-Chair of Baker Botts' Corporate Department.

International technology, media and telecoms law firm Olswang has advised nominated adviser SP Angel Corporate Finance LLP and broker Beaufort Securities Limited in supporting Myanmar’s internet-based mobile service company MySQUAR on its 1 July admission to trading on the Alternative Investment Market (AIM) of the London Stock Exchange.

MySQUAR began operations in 2013 and has since expanded its services to include a suite of products for local users, such as mobile messaging applications, including social networks, digital content and mobile games, which feature in-app advertising, news aggregation, transaction-based monetisation and ecommerce. Its principal product, MyCHAT, is a free, local-language mobile messaging application and, as at 31 May 2015, there were approximately 392,400 monthly active users of MySQUAR products and 774,636 total users in Myanmar.

Ahead of its AIM admission MySQUAR raised a total of £1.67 million and had a market capitalisiaton on admission of approximately £18.5 million. The company intends to secure a firm footprint in the Myanmar youth market and to take advantage of commercial opportunities arising from the increasing internationalisation of Myanmar and rising penetration of mobile technologies.

“It was a pleasure to advise SP Angel and Beaufort, both of which helped realise MySQUAR’s AIM admission,” said Olswang Corporate Partner Azlinda Ariffin-Boromand. “It was particularly rewarding to play a role in supporting the future of a tech company that is strengthening Myanmar’s emerging economy, and we wish it continued success in the future.”

The Olswang team was led by Corporate Partner Azlinda Ariffin-Boromand, with support from Associate Nicole Gyring-Nielsen, Trainee James Johnson and Paralegal Becky Gash.

“We have enjoyed working with Olswang again on the admission to AIM of MySQUAR. Corporate partner Azlinda Ariffin-Boromand and Corporate associate Nicole Gyring-Nielsen advised us in our role as Nomad to MySQUAR and provided us with timely in-depth legal advice. It was the support and attention to detail that was necessary for this transaction as it progressed. We were very pleased with their advice and hope that there will be an opportunity to work together again soon.”

Offshore law firm, Appleby, advised oxide gold miner and developer CIC Gold Group Limited (CIC Gold) a Seychelles registered company headquartered in Beijing, China in relation to its flotation on the Main Market of London’s Stock Exchange (LSE) on 23 June 2015. The initial offering makes CIC Gold the only Seychelles Company on the Main List.

CIC Gold’s market cap is valued at GBP3.1m. The Company intends using the listing funds raised to make acquisitions in undervalued gold properties, where gold is the principle commodity or gold mining is the principal activity. Its focus will be on quoted and private companies with strong underlying fundamentals suitable for producing substantial increases in value by funding and applying de-risking strategies and other corporate actions.

Appleby, as dedicated Seychelles counsel, advised on all Seychelles regulatory and structuring aspects of the listing Appleby Seychelles Managing Partner, Malcolm Moller, and Counsel, Anjana Ramburuth, jointly lad on the deal. 

Commenting on the transaction, Anjana Ramburuth said: “Assisting CIC Gold on its successful debut listing was a real honour and gives the Seychelles a significant boost in profile in The City. Completing this deal was a substantial achievement for all concerned and a major milestone in the positioning and development of our client CIC Gold.”

One of the Manchester's leading criminal defence law firms has grown its staff by 13 per cent over the past year, and plans to increase its workforce further with the support of a £75,000 overdraft facility from Lloyds Bank Commercial Banking.

Crime specialist Olliers Solicitors, based in Manchester city centre, has continued to grow over recent years, taking on a number of high-profile cases. The practice, which turned over more than £2 million last year, was acquired by Matthew Claughton and David Abbott in 1995 and now has a headcount of 35.

With the support of the five figure overdraft, which it received in April, it now plans to increase staff levels further by investing in specialist regulatory and inquest law solicitors and expanding its services.

The firm, which expects a turnover of £2.5 million this year, has seen such demand in the last 12 months that it has already paid back £40,000 of the short-term funding.

Matthew won Manchester Legal Awards Partner of the Year in March and was commended by the judges for recruiting key players, his personal case load and his proactive approach to securingnew clients.

Matthew Claughton, partner at Olliers Solicitors, said: “This year we’ve experienced phenomenal growth and increased the number of cases on our books. Although criminal law is an increasingly competitive industry, we’ve worked hard to raise the profile of Olliers, and have invested in top candidates to meet demand and offer more specialist services.

“Olliers has been with Lloyds Bank since 1965, even before we acquired it, and it has been there throughout the years to support the business’ vision. The new overdraft facility has meant that we have the opportunity to invest in key players when they become available on the market.”

Karen Vernazza, relationship manager at Lloyds Bank Commercial Banking, said: “Olliers has built a solid reputation in Manchester and further afield for its criminal law services.The short-term overdraft facility has supported the practice in achieving its ambitions.

“At Lloyds Bank, we are able to tailor funding to suit the individual needs of a business. That’s why as part of our 2015 SME Charter the bank will be lending an additional £1 billion this year to help small and medium firms across the UK to prosper.”

Olliers is currently ranked as a Top Tier Crime/Fraud Firm in both the Legal 500 2014 and Chambers Guide 2015.

The Institute of Professional Willwriters (IPW) has become the first body within the sector to ensure their members are already signed up to the Professional Paralegal Register (www.ppr.org.uk) ahead of the launch to the consumer market on the 6th July.

 

Founded in 1991, the IPW is a self-regulatory body that has worked hard over the years to safeguard consumers from unqualified willwriting practitioners and unethical business practices within England, Wales, Scotland and Northern Ireland. In a bid to keep on top of industry standards and ensure their members are the best within the industry, the IPW have requested all members apply to be a member of the PPR to become recognised paralegals.

 

The PPR has been set up by the National Association of Licensed Paralegals (NALP) and the Institute of Paralegals (IoP) in order to regulate paralegals for the first time and only recognise those who provide the highest of standards. The PPR will be made available to Paralegals, employers and consumers on 6th July, meaning consumers can be happy with the security and peace of mind that the paralegal they’re using has been approved and will be able to assist them to the best of their abilities.

 

Sally Brown, Chief Executive of the Institute of Professional Will Writers, commented:

 

“The Institute of Professional Willwriters are very pleased to achieve recognised status as a membership body with the Professional Paralegal Register. Our members already adhere to a strict code of practice approved by the Chartered Trading Standards Institute under their Consumer Codes Approval Scheme and they are keen that they are now recognised as Professional Paralegals and to take advantage of the additional support that membership of the PPR will bring”

 

Rita Leat, Director of the Professional Paralegal Register, commented:

 

“We are delighted to welcome IPW into the fold of the Paralegal Profession. IPW have demonstrated the highest standards required by membership bodies, which means that its members are able to apply to be regulated under the PPR. This is good news for its members who can now be recognised as paralegals and great news for consumers who can now use the register to search for professional will writers in the knowledge that they will be protected.”

Bond Dickinson has advised Gentoo Genie Limited on the entry into a new £40m funding agreement with the Greater London Authority. The funding will be made available in connection with the launch of the Genie Home Purchase Plan product in London as Gentoo seeks to deliver 2000 new homes in the capital. Trowers and Hamlins LLP acted on behalf of GLA.

Genie is a 30 year homeownership plan which doesn't require a mortgage or deposit and is targeted at helping first-time buyers and long-term renters into home ownership. Following a successful pilot in the North East, Genie is looking to work with London developers to acquire new build properties, development land and joint venture opportunities. Philip Withey, Banking and Financial Services partner, led the Bond Dickinson team which also included Tom Fitzpatrick, Corporate partner, and Ian Dunn, Senior Counsel.

Steve Hicks, Managing Director of Gentoo Genie Ltd, commented: 'We are extremely pleased with the support that Bond Dickinson has provided in helping us to take this transaction through from the initial negotiation of the term sheet to the execution of the final agreement.'

Philip Withey (pictured), Banking and Financial Services partner at Bond Dickinson, commented: "The team from Gentoo Genie Limited has put a lot of hard work into the London launch and it has been a privilege for us to have been able to support them on the legal aspects of the funding arrangements for this innovative product. We are really looking forward to seeing the first properties being made available to customers"

NELSONS Solicitors has expanded its dispute resolution team in Nottingham to 16 members following the hire of James Beat (pictured) as an associate.

Originally from the East Midlands, James moved to Child & Child in London where he qualified in 2007. He then gained 8 years’ post qualification experience with the firm, predominantly in property litigation.

James’ arrival at Nelsons is part of an ongoing growth strategy for the firm. His role will again focus on property litigation, including party wall and rights of light disputes. He will also use his wide experience to assist Nelsons’ dispute resolution team with commercial disputes including landlord and tenant issues, contractual disputes, rights of way, planning appeals, boundary disputes, disrepair and nuisance claims, and injunction applications.

James said: “The Nottingham dispute resolution team is ranked in tier one in the Legal 500 and is well respected across the region. It took the right role to persuade me to make the move from the south, and this position very much suits my expertise.

“I’m excited about developing the property litigation services for a firm of Nelsons’ standing and I very much look forward to meeting and assisting the firm’s existing clients. I will also continue to work with clients and contacts from London, including developers, surveyors and property consultants with whom I have worked for a number of years.”

Nottingham dispute resolution partner, Chris Adams said: “James will bring significant experience to the team which will build on and strengthen the range of services which we offer.

“I welcome James not only to Nelsons but also back to the East Midlands and look forward to working with him.”

James is a member of a number of professional bodies including the Property Litigation Association, the Pyramus &Thisbe Club and the Professional Negligence Lawyers Association.

Nelsons has offices throughout the East Midlands in Nottingham, Leicester and Derby.

Tayside’s leading law firm Thorntons has appointed seven trainees this month.

The new recruits will undertake a two-year traineeship and will train under senior staff. They will learn from a comprehensive programme which covers many of Thorntons' specialist teams.

The seven trainees are  Megan Paterson, Sarah Matheson, Victoria McLaren, Zoe Irving, Saima Ali, Cara McGlynn and Lee Corr.

Lee, Megan, Sarah and Victoria were already previously employed by Thorntons.

Megan said: “I am excited to have the opportunity to train with such a progressive and diverse firm.  I am looking forward to gaining an insight into the wide variety of departments and learning from the large number of supportive and experienced employees firm wide.”

Scott Milne, Joint Managing Partner at Thorntons said: "Our trainee programme has developed over many years. We have a diverse range of clients and work. Because of this, our trainees receive the opportunity to gain crucial experience in a wide range of areas of the law. They have the chance to experience working from many of our office locations and departments."

Thorntons has offices in Dundee, Perth, Edinburgh, St Andrews, Arbroath, Anstruther, Cupar and Forfar.

Scott continued: "Within our departments, trainees will learn from our specialist teams. For example, they will gain valuable experience in teams such as personal injury, family law, corporate, IP, media, agriculture and commercial property.   As well as learning the law and progressing a transaction, the new recruits will also receive guidance in the importance of excellent client care and effective communication – something the firm takes great pride in.

“We believe this is one of the most varied traineeships in the sector. Our seven will enjoy a strong foundation for the start of a career in the legal profession. We hope that many will continue their career development with the firm upon completion.”

  • Global M&A to exceed USD3.4 trillion by 2017
  • Stand out markets for predicted high transactional growth in next 5 years include developed economies The Netherlands, UK and Sweden; BRIC nations China/Hong Kong and India; and emerging markets Mexico, Egypt and Vietnam
  • Most active sectors will be Healthcare, Pharma, Consumer Goods, Telecoms and Financials
  • Emerging markets-related M&A to increase by more than half by 2018
  • Major risks to forecast include Grexit, Brexit, a Chinese hard landing and the US hiking interest rates faster than expected

The fundamental drivers of global transactions are pointing to a continued strong upturn in M&A and IPOs over the next three years, reveals a unique new forecast by global law firm, Baker & McKenzie.

After a long and stuttering recovery from the global financial crisis, the forecast in association with Oxford Economics, predicts an uptick in transactional activity, based on global economic activity increasing to an average growth rate of 2.9% per year over the next three years, compared to an annualized 2.5% since 2012.

Global equity markets are projected to rise 18% (or USD12 trillion) over the next three years.

Developed economies will underpin the collective growth in transactions, bolstered by easy monetary policy and lower oil prices, while many smaller or emerging economies will show the most dramatic growth in deal activity.

"Many US and European companies have accumulated large cash balances available for acquiring new businesses," explains Tim Gee, Baker & McKenzie's global head of M&A.

"Financial sponsors also have the potential to boost global transactions, with private equity firms sitting on a record USD1.1 trillion in uninvested capital. Cross-border transactions will play a significant role as companies look to gain market presence in high growth markets."

Top 10 Countries by Forecast M&A Activity Growth, 2015-2020

Country Percentage
China 153%
Hong Kong 118%
The Netherlands 110%
Mexico 89%
India 72%
United Kingdom 70%
Germany 65%
Indonesia 56%
Saudi Arabia 53%
United Arab Emirates 50%

Top 10 Countries by Forecast IPO Activity Growth, 2015-2020

Country Percentage
Egypt 324%
Spain 232%
Vietnam 208%
Sweden 171%
France 139%
Nigeria 99%
Belgium 90%
Thailand 84%
United Kingdom 83%
The Netherlands 64%

Sectors and peaks

The most active sectors over the next five years are forecast to be Healthcare, Telecommunications and Financials for structural reasons, with Consumer Goods & Services, Technology and Pharmaceuticals also boosted, primarily by cyclical trends.

The forecast predicts that transaction peaks in 2017 and 2018 will not be as high as those before the global financial crisis, as the global economy is not experiencing the same bubble-like conditions as prior to 2007.

Transaction Attractiveness

The report also includes a transactional attractiveness index by country based on past transactional activity and a weighted average of 10 key economic, financial and regulatory drivers of M&A and IPO activity.

Transaction Attractiveness Indicator: Top 12 Countries

Rank Country Score
1 Hong Kong 9.3
2 Singapore 8.9
3 Switzerland 7.7
4 The Netherlands 7.3
5 Sweden 7.1
6 United Kingdom 6.8
7 = Belgium 6.5
7 = Canada 6.5
9 United Arab Emirates 6.2
10 = Australia 6.0
10 = United States 6.0
10 = Japan 6.0

Downside risks

The report also highlights the potential downside risks to the forecast:

  • Greece exiting the Eurozone
  • The UK leaving the European Union
  • A Chinese economic 'hard landing'; and
  • The US Federal Reserve raising rates faster than expected

The Global Picture for M&A

The forecasts show completed global M&A transactions rising to USD2.7 trillion in 2015 before accelerating to USD3 trillion in 2016 and USD3.4 trillion in 2017.

The value of cross-border transactions will rise by 17% in 2015 to USD1.03 trillion. This will represent 38% of total deal activity in 2015, although this share is projected to subsequently drop back slightly in 2016.”

M&A activity relating to emerging markets will grow dramatically, rising by 56% to USD678 billion by 2018, up from USD435 billion in 2014.

However, as the global economic recovery continues, central banks will begin to raise interest rates in developed markets, leading equity markets to decline. As the world then adjusts to higher benchmark interest rates and the end of easy credit, there will likely be a moderate slowdown in global deal-making activity in 2018 through to 2020.

But just as the peak will be less bubble-like than 2007, the downturn will also be less dramatic.

"For corporates, the window of opportunity for strategic cross-border M&A is now," said Mr. Gee. "The structural drivers, cyclical trends such as equity prices and economic conditions such as GDP growth are ripe for deals until 2017. Perhaps most importantly, positive business sentiment is back - CEOs have the confidence to pursue their strategies and the equity markets are rewarding those who deliver."

And for IPOs

The outlook for IPO transactions follows a similar pattern to M&A transactions, reflecting their shared fundamental drivers but with some key differences. Regulatory changes, particularly pension reforms that encourage funds to diversify out of bonds into equities, should continue to encourage firms to raise capital on equity markets. Emerging economies are also likely to encourage pension growth, broadening and deepening domestic institutional investment bases.

The forecast suggests that overall IPO activity will peak in 2017 with a split of USD233 billion and USD89.7 billion between domestic and cross-border activity.

The forecast also predicts a continued rise of emerging markets-based companies pursuing cross-border listings as they seek to raise capital in deeper, better capitalized markets in the US and UK.

"IPO levels will follow a slightly different pattern to M&A due to political uncertainty and the higher volatility that inevitably comes with liquid markets" said Koen Vanhaerents, global head of capital markets at Baker & McKenzie. "But overall stock markets are high and this provides boards with the confidence to pursue M&A deals, so the two areas of transactions are fundamentally linked. The current environment is broadly positive."

The projections are part of a unique 6-year forecast of global transactional activity, developed in partnership with Oxford Economics. The comprehensive report, The Impact of Macro Trends on Future M&A and IPO Activity sets out predictions across regions, sectors and individual countries worldwide until 2020, linking economic outlook with corporate activity.

DLA Piper acted for Essence Corporate Finance (Hong Kong) Limited as the sole sponsor,  Essence International Securities (Hong Kong) Limited as the sole global coordinator, Essence International Securities (Hong Kong) Limited and Haitong International Securities Company Limited as the joint bookrunners and joint lead managers and SBI China Capital Financial Services Limited as the co-lead manager on the listing of China Greenfresh Group Co. Ltd. (Stock Code: 6183) on the Main Board of the Stock Exchange of Hong Kong.

China Greenfresh Group Co., Ltd., a leading PRC integrated supplier of edible fungi products and manufacturer of processed food products, listed on 18 June with gross proceeds estimated at about HK$ 707 million (US$ 91 million).  The Group is also a manufacturer of processed food products such as canned food and other processed food products in the PRC.

Mike Suen, Partner in the Corporate team said: "There have been some instances of companies with biological assets listed on the Stock Exchange of Hong Kong, however,  China Greenfresh is the only company engaged in the edible fungi business to list in recent years. The IPO deal was completed with the hard work of all parties involved".

The DLA Piper Corporate team advising were Mike Suen (Partner), Clark Chen (FRL), Amy Kong (Associate), Maisie Yeung (Trainee) and Jiang Tuo (Paralegal).  Christina Loh (Of Counsel), Simei Huang (Legal Officer), Cesarine Chan (Paralegal) and Cherry Wang (Paralegal) also supported.

Jun He Law Offices advised the issuer and RSM Nelson Wheeler was the reporting accountants.

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