Eastern European Think & Act Tank Conference

M&As and Private Equity in CEE

Pete Chatziplis, CFA, ACCA, CF

3 West Club, New York

April 24, 2008

2Eastern European Think & Act Tank, Pete Chatziplis: M&As and Private Equity in CEE, Conference, 3West Club, New York, April 24, 2008

Topics

Global M&A activity

M&A trends in Europe

M&A and Private Equity activity in CEE

CEE Private Equity Outlook

War Stories

3Eastern European Think & Act Tank, Pete Chatziplis: M&As and Private Equity in CEE, Conference, 3West Club, New York, April 24, 2008

Top 2007 Deals Globally

• RBS-Fortis-BSCH/ABN Amro €71bn Banks

• Altria Group/Kraft $61 bn Consumer

• Enel&Acciona/Endesa €48 bn Energy

• Providence,Madison,Teachers/BCE $44 bn Telecoms

• KKR,TPG,GS/TXU Corp $44 bn Energy

• Rio Tinto/Alcan €32 bn Industrials

• Unicredit/Capitalia €22 bn Financials

• KKR&Pessina/Alliance Boots €18 bn Consumer

• KKR/First Data $27 bn Business Services

• TPG,GS/Alltel $27 bn Telecoms

• Blackstone/ Hilton $25 bn Leisure

• Bank of America/LaSalle €15 bn Financials

4Eastern European Think & Act Tank, Pete Chatziplis: M&As and Private Equity in CEE, Conference, 3West Club, New York, April 24, 2008

Main PE buyouts in CEE (2007)

Targets Buyers Price(€ m) Sector

• Bulgarian Telecom (BTC) AIG Capital Partners 1,080 Telecoms

• Bite Group (Baltics) MidEuropa Partners 450 Telecoms

• Lattelecom (Latvia) Blackstone 425 Telecom

• Antenna Hungaria TPG/Axa/Charterhouse 327 Telecoms

• SBB Kablovkse (Serbia) Mid Europa Partners 170 Cable TV/ISP

• Zabka Polska (Poland) Penta Investments 131 Retail

• UAB Palink (Lithuania) CVCI 113 Food retail

• Expander (Poland) Innova Capital 115 FSI

• SC Digital Cable (Romania) AIG Capital Partners 45 Video Trsm.

• Grupa Jaan/Nordglass Enterprise Investors 82 Manuf’g

• Komfort (Poland) Enterprise Investors 64 RetailCentral European Private Equity Confidence Survey, Deloitte, January 2008 and June 2007.