By Anjuli Davies
LONDON, Feb 3 (Reuters) - Fees from ChemChina's agreed $43billion bid for Swiss seeds and pesticides group Syngenta could provide a $166 million payday for the advisors,according to estimates from Thomson Reuters and FreemanConsulting.
For the largest ever foreign purchase by a Chinese firm,ChemChina was advised by HSBC and China CITIC BankInternational.
They could share spoils of between $65 to $95 million infees, according to the estimates.
On the other side of the table, Syngenta was advised byDyalco, the one-man business of former Goldman Sachs investmentbanking co-chairman Gordon Dyal, alongside JP Morgan,Goldman Sachs and UBS.
Their fees could range from between $59 and $71 million,with the lion's share going to lead advisors.
"Our deal fees are based on similar transactions of the samesize range, but we do take into account the deal specifics suchas cross-border versus domestic acquisitions, and the fact thisis a Chinese company making a mega acquisition outside ofChina," said Lam Nguyen, director at Freeman Consulting.
"Those two made our estimates higher than a normal domesticacquisition."
In general fees for those advising a buyer are typicallyless than for those banks advising the seller, but Freemanestimates that because this is a cross-border acqusition withseveral hurdles to clear before a deal is closed, fees could behigher.
For deal financing, ChemChina would need to pay around 0.4to 0.8 percent of the amount to be borrowed either via bondissuances, loan packages or a combination of both, according toFreeman estimates.
ChemChina has secured financing commitments from HSBC, ChinaCitic and other Chinese banks sufficient to acquire 100 percentof Syngenta, a source with direct knowledge of the deal hassaid.
The deal would be the biggest ever Chinese-involvement M&Adeal, as well as the biggest outbound M&A deal on record, andthe biggest targeting Europe, according to Thomson Reuters data. (Editing by Greg Mahlich)
HSBC Holdings (HSBA)
