Grant Thornton awarded 2017 Best M&A Transaction Service Provider

On August 11, Grant Thornton was awarded “Best M&A Transaction Service Provider” by the China M&A Association for assisting HSF Investment Holdings Group Co., Ltd. (HSF) in acquiring 45% Shares of PT Kirana Megatara (KM), the largest producer of crumb rubber in Indonesia.Wu Jianyong, advisory partner of Grant Thornton, was invited to attend the award ceremony. In this transaction, Grant Thornton had provided financial advisory and project management services to HSF, and this influential award represented a high remark of Grant Thornton’s advisory service capability by the profession.

As the largest crumb rubber production corporation in Indonesia, KM owns 230,000 acres of natural rubber plantation with processing capability of 720,000 tons per year,capturing over 18% market share in Indonesia, the leading natural rubber country in the world. It has also been certified by 13 of the world's top 20 tire manufacturers, including Michelin, Bridgestone and Goodyear. Seeking overseas cooperation through a way of mergers and acquisitions is conducive to strengthening the competitiveness of China’s natural rubber industry—a national strategic material for China, and also in line with China’s “One Belt, One Road” initiative that encourages enterprises to strengthen economic cooperation with countries along OBOR.

As the leading financial advisor to HSF in this acquisition, Grant Thornton assisted HSF in accomplishing the negotiation of transaction structure and valuation, preparing and reviewing transaction documents, discussing and finalizing the transaction structure (including taxstructure), designing and confirming the financial scheme. Serving as the project manager, Grant Thornton supported HSF to coordinate and manage domesticand oversea intermediary (including financial DD team, audit team, valuationteam and lawyer team), manage and review the working result and timetable,ensure adequate consideration in the process of deal negotiation and transaction structure about the key findings and risks reported by each intermediary. Grant Thornton also helped HSF communicate with and report torelated domestic and foreign regulatory authorities, assisting HSF to eventually obtain relevant approvals from SASAC, NDRC, MOFCOM and SAFE.

The then-ongoing process of the IPO by KM also added to the complexity of the transaction structure. After the SPA was duly signed and executed, Grant Thornton had conducted a thorough communication and coordination spanning 6 months with the oversea IPO lead broker, management team and lega lcounsel of the target company, to ensure the successful and smooth execution of this transaction with all efforts.

In July 2017, HSF acquired 45% shares of PT Kirana Megatara (KM), which is another key investment by Chinese enterprises incountries along OBOR, improving HSF’s competitiveness in tire rubber industry. “The efficient decision-making by the HSF leadership team as well as their trust placed on us has contributed greatly to success of this transaction. In addition to Indonesia Grant Thornton is helping Chinese enterprises to carry out M&A deals in more countries along OBOR such as Thailand, Malaysia and India. We help our clients conduct cross-border acquisitions successfully while effectively controlling risks. In addition to negotiation support, design of transaction structure and execution of the deal, we always invite the buyer inthe very beginning of the process to assess and reflect on the synergy that could be possibly achieved by the deal and how to achieve it, so as to maximize the possibility of a successful post-merger integration.”