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AMERICAS
Broadcom, a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions, completed the acquisition of VMware, an innovator in enterprise software, from Silver Lake, a private equity firm, for $69bn.
"We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams as we take another important step forward in building the world's leading infrastructure technology company. With a shared focus on customer success, together we are well positioned to enable global enterprises to embrace private and hybrid cloud environments, making them more secure and resilient. Broadcom has a long track record of investing in the businesses we acquire to drive sustainable growth, and that will continue with VMware for the benefit of the stakeholders we serve," Hock Tan, Broadcom President and CEO.
VMware was advised by Goldman Sachs (led by Stephan Feldgoise and Sam Britton), JP Morgan (led by Madhu Namburi), Axinn Veltrop & Harkrider (led by John Harkrider), Gibson Dunn & Crutcher (led by Barbara Becker), Sullivan & Cromwell (led by Michael Rosenthal), and FGS Global (led by Paul Kranhold). Financial advisors were advised by Debevoise & Plimpton (led by Michael Diz) and Sullivan & Cromwell (led by John L. Savva). Broadcom was advised by Bank of America (led by Kevin Brunner and Ron Eliasek), Barclays (led by Richard Hardegree, Gary Posternack, and Laurence Braham), Citigroup (led by Tyler Dickson), Credit Suisse (led by David Wah), Morgan Stanley (led by Anthony Armstrong), Santander, Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers (led by Adit Khorana), Wachtell Lipton Rosen & Katz (led by Ronald Chen, Viktor Sapezhnikov, and David Karp), Brunswick Group (led by Simon Sporborg) and Joele Frank (led by Joele Frank). Financial advisors were advised by Cooley (led by Ben Beerle). Silver Lake was advised by Simpson Thacher & Bartlett (led by Atif Azher).
Curi Capital, a registered investment advisory firm with approximately $1.6bn in assets under advisement, agreed to merge with RMB Capital, a registered investment advisory firm. Financial terms were not disclosed.
"Curi is dedicated to being the trusted partner that our clients instinctively call on to drive success in their professional and personal lives, with a continued focus on physicians and the healthcare community," Jason Sandner, Curi CEO.
RMB Capital is advised by William Blair & Co, Vedder Price and Greenhouse Partners. Curi is advised by Piper Sandler and Kilpatrick Townsend.
The US Federal Trade Commission is investigating whether Roark Capital's purchase of Subway for $10bn is legal under antitrust law, given that the private equity firm already owns Jimmy John's and Arby's, Reuters reported.
The probe highlights the fact that the Biden administration's antitrust enforcers are focusing their efforts on basic consumer goods. Private equity acquisitions have been another focus. The FTC is investigating whether buying Subway would give Roark too much power in fast food. Roark controls Inspire Brands, the owner of restaurant chains including Jimmy John's, Arby's, Baskin-Robbins, and Buffalo Wild Wings.
OpenGate Capital, a global private equity firm, agreed to acquire Player One Amusement Group, a Canadian arcade game distributor, from Cineplex, an entertainment and media company, for CAD155m ($113m).
"Player One represents a dynamic investment and opportunity to enter the resilient and growing amusement solutions market. As corporate carve-out specialists, we are ready to bring the full force of our operations team to support the business and management team in this next stage of growth," Andrew Nikou, OpenGate Capital Founder and Managing Partner.
OpenGate Capital is advised by Prosek Partners. Cineplex is advised by Scotiabank, TD Securities and Goodmans.
New Mountain Capital, an alternative investment manager, and CapitalG, a private equity firm under Alphabet, agreed to acquire Broadcast Music, the world's largest music performing rights organization. Financial terms were not disclosed.
"Today marks an exciting new chapter for BMI that puts us in the best possible position to stay ahead of the evolving industry and ensure the long-term success of our music creators. New Mountain is an ideal partner because they believe in our mission and understand that the key to success for our company lies in delivering value to our affiliates. We are excited about the many ways New Mountain will accelerate our growth plan, bringing new vision, technological expertise and an outstanding track record of strengthening businesses, all of which will help us build an even stronger future for BMI and our songwriters, composers and publishers," Mike O'Neill, BMI President & CEO.
New Mountain Capital is advised by Moelis & Co and Simpson Thacher & Bartlett. Broadcast Music is advised by Goldman Sachs and Fried Frank Harris Shriver & Jacobson.
Actis, a global investor in sustainable infrastructure, agreed to acquire a stake in the Peruvian generation assets of Enel, an Italian multinational manufacturer, for $1.4bn.
The transaction is in line with the Enel's strategic priorities, which envisage the repositioning of Enel on countries where the group has higher growth potential as well as an integrated presence, namely Italy, Spain, the United States, Brazil, Chile and Colombia.
Enel is advised by JP Morgan.
Forbes' parent company has called off its acquisition by Luminar Technologies CEO Austin Russell, as the billionaire could not come up with the financing, Reuters reported.
Forbes Media CEO Mike Federle told staff the cancellation will not affect day-to-day operations and that the company will continue to "consider other opportunities".
FGS Global, a provider of strategic communications and public relations services to clients worldwide, completed the acquisition of Longview Communications, a company that provides services in financial and corporate communications and government relations. Financial terms were not disclosed.
"Longview has always been about doing great work for our clients. This transaction furthers that goal and provides an exceptional platform for the future. We have been impressed by the quality and thoughtfulness of what FGS is building and are delighted to become part of this leading global platform as we embark on this next chapter of our growth. Together with FGS, we are better equipped than ever to guide our clients through an increasingly complex world and a rapidly evolving stakeholder, financial, regulatory and political environment," Josh Pekarsky, Longview Founder and Managing Partner.
Arthur J. Gallagher & Co, an American global insurance brokerage and risk management services firm, completed the acquisition of Hughes Insurance Agency, a provider of comprehensive commercial, personal and life & health insurance services. Financial terms were not disclosed.
"Hughes Insurance Agency's strong growth record, reputation for client service and market expertise will enhance our capabilities in the region. I am delighted to welcome Linda, Joe and their associates to Gallagher," J. Patrick Gallagher, Jr., Chairman, President and CEO.
Labrador Gold exercises the option to acquire 100% of the Hopedale property. (RE)
Labrador Gold has fulfilled the requirements of the Hopedale option agreement dated December 7, 2020 and has exercised its option to acquire 100% of the four licenses covering 695 claims comprising the Hopedale property. The Hopedale Project remains subject to a 2% net smelter return royalty.
The district scale Hopedale property covers a 43km strike length of the Florence Lake greenstone belt. The belt is typical of greenstone belts around the world but has been underexplored by comparison. Work to date by LabGold has resulted in the discovery of three gold occurrences, which together with the previously known Thurber Dog occurrence, stretch over a 3-kilometre section of the northern portion of the greenstone belt.
Citi is in talks to start new private credit strategy by early 2024.
Citigroup is in discussions to start a new direct-lending strategy by early January, the latest in a series of bank efforts to gain a foothold in the booming $1.6tn private credit market, Bloomberg reported.
The initiative would complement the bank’s existing broadly syndicated leveraged finance business. It could include teaming up with one or more outside partners that would provide capital for loans, which the bank would originate.
Goldman alums set up matchmaking platform for private credit.
Two former Goldman Sachs bankers want to take the $1.6tn private credit revolution from Wall Street to Main Street, Bloomberg reported.
George van Dorp and Koen van Vlijmen, who both worked in the American bank’s London office, have built a product that matches small businesses with alternative lenders. The idea behind the new platform, Fundflow, is to help democratize the industry by giving overlooked smaller companies access to a larger pool of potential lenders, including commercial banks, venture capital firms and debt funds.
Bankrupt WeWork enters financing agreements with certain lenders. (FS)
Coworking spaces startup WeWork said it had secured commitments for up to $683m in debtor-in-possession financing from some of its lenders, weeks after the shared office space provider filed for bankruptcy protection, Reuters reported.
The SoftBank-backed company is seeking to address more than $4bn in debt and unsustainable future rent costs through a bankruptcy plan.
Wyndham board deems Choice Hotels' new offer "a step backwards".
US budget hotel operator Wyndham Hotels and Resorts said a new letter from Choice Hotels "represents a step backwards" and the terms outlined are not in the best interests of Wyndham or its shareholders, Reuters reported.
After months of negotiation between the budget hotel owners, Wyndham's board received a letter from Choice CEO Patrick Pacious on November 14, seeking a restart to talks. Choice in the letter has not boosted its cash-and-stock offer, currently worth $86 a share, which is down from $90 per share offer after a decline in Choice's shares since the takeover offer was made public in October.
Rite Aid bankruptcy judge sets March 1 deadline to reorganize.
Bankrupt pharmacy chain Rite Aid has until March 1 to complete its turnaround under a timeline approved by a federal judge on November 21, Bloomberg reported.
US bankruptcy judge Michael Kaplan scheduled a final hearing that day to decide the fate of the company’s reorganization proposal. The ruling comes after complaints that the case was moving so fast it threatened to harm lower-ranking creditors, including people who claim Rite Aid wrongly sold addictive pain killers.
53 Stations launches inaugural $190m fund. (FS)
53 Stations, a venture capital firm that invests in early-stage companies across a range of industries, today announced its flagship $190m Fund I.
"Our founding team has firsthand experience as founders, investors and leaders of high growth teams; collectively, we favor collaborating with entrepreneurs in the earliest days to help identify market opportunities and the best paths to pursue them. Our investments to date share the potential to change how their industries operate and reflect a desire to channel the Pritzker legacy into cultivating a new era of lasting businesses," Jason Pritzker, 53 Stations Co-Founder and Managing Partner.
Sam Altman returns as OpenAI CEO. (People)
Sam Altman will return to lead OpenAI less than five days after he was pushed out of one of the world’s most valuable startups, setting off a shock back-and-forth drama that transfixed Silicon Valley and the global AI industry, Bloomberg reported.
Altman is returning as chief executive officer and the initial board will be led by Bret Taylor, a former co-CEO of Salesforce. The other directors are Larry Summers, the former US Treasury Secretary, and existing member Adam D’Angelo, the co-founder and CEO of Quora. OpenAI is now working “to figure out the details,” the company said in a post on X, formerly Twitter.
Tiger Global’s private equity boss Shleifer to step down. (FS, People)
Scott Shleifer, the head of the $30bn-plus private equity business at Chase Coleman’s $58bn hedge fund firm Tiger Global, is to step down from his role at the end of this year.
Shleifer will remain as a senior adviser to Tiger, while his private equity role will be replaced with an investment committee chaired by Coleman and consisting of Shleifer and partners Evan Feinberg, Eric Lane and Griffin Schroeder.
EMEA
A consortium led by private equity firms Permira and Blackstone offered to acquire Adevinta, a European online classifieds company, for NOK141bn ($13.2bn).
"We believe our offer provides attractive value and certainty for shareholders, whilst helping Adevinta take advantage of its long-term growth opportunities in a rapidly changing landscape. Access to flexible capital in a private context will ensure Adevinta remains competitive in this environment. We believe we can drive forward Adevinta's strategy in the interest of the company and its stakeholders," Lionel Assant, Blackstone Head of European Private Equity.
Blackstone Group, an American alternative investment management company, agreed to acquire Civica, a provider of cloud software solutions, from Partners Group, a private equity firm. Financial terms were not disclosed.
"At Civica, our aspiration is to be a 'GovTech' champion, providing software that supports the needs of citizens and those that serve them. In partnership with Partners Group, we have significantly transformed our offering and increased growth momentum across cloud, digital enablement, software innovation, and data analytics. We have also cemented our position as an innovation leader. We now have over two decades of growth to build on and look forward to the next phase of our journey," Lee Perkins, Civica CEO.
Civica is advised by Arma Partners, Wyvern Partners and Travers Smith. Blackstone Group is advised by Barclays and DC Advisory. Partners Group is advised by Arma Partners and Clifford Chance.
SigmaRoc, a building material company, agreed to acquire the European lime operations of CRH, a provider of building materials solutions, for $1.1bn.
"The decision to divest at an attractive valuation follows a comprehensive review of the Business and demonstrates CRH's active approach to portfolio management. The proceeds from the divestment will provide us with significant additional capital allocation opportunities to deliver further growth and value creation for our shareholders," Albert Manifold, CRH CEO.
Bregal Unternehmerkapital, a global private equity firm, agreed to acquire a majority stake in Netrics, a Swiss cloud and modern workplace provider, from Waterland Private Equity, an independent private equity investment company. Financial terms were not disclosed.
"We have developed rapidly in recent years. We would like to thank Waterland for their many years of support and are delighted to have found an experienced partner in BU for our next stage of growth. The acquisition by BU opens a wide range of opportunities, to expand our service offering and respond even better to the needs of our customers. Together, we will continue to deliver best-in-class technology solutions, maintain a clear focus on service quality, and contribute to the digital transformation," Pascal Kocher, Netrics CEO.
Smith+Nephew, the global medical technology company, agreed to acquire CartiHeal, developer of Agili-C, a novel sports medicine technology for cartilage regeneration in the knee, for $330m.
"The acquisition of this disruptive technology supports our strategy to invest behind our successful Sports Medicine business. Agili-C's superior clinical performance makes it highly complementary to our existing knee repair portfolio and with our proven commercial expertise in high-growth biologics, we are confident that we will drive further success with this compelling treatment option," Deepak Nath, Smith+Nephew CEO.
UK minded to intervene on Telegraph sale to Abu Dhabi-backed RedBird. (FS)
British media minister Lucy Frazer said on November 22 that she was "minded to" intervene in a proposed debt repayment deal that could see Abu Dhabi-backed RedBird IMI take ownership of the Daily Telegraph, saying she had concerns.
The sale of Telegraph Media Group and The Spectator magazine was paused from November 20 until December 4 to give Lloyds Banking Group time to consider a £1.2bn ($1.5bn) debt repayment plan put forward by previous owners, the Barclay family, backed by Redbird IMI. Under the plan, RedBird IMI, which is led by former CNN executive Jeff Zucker, could end up owning the titles through a debt-for-equity swap, Reuters reported.
Thyssenkrupp posts $2.3bn impairment on steel division.
Germany's Thyssenkrupp announced a $2.3bn impairment on its steel unit due to a "gloomy" outlook for the sector, highlighting the challenge in efforts to win Czech energy group EPH as a co-owner for the business, Reuters reported.
Still the industrial conglomerate posted its first positive free cash flow before mergers and acquisitions, a key gauge for investors, in seven years, sending its shares to a 7-week high.
UK to weigh retail share offer of NatWest stock.
The UK government is weighing selling shares it holds in retail and commercial bank NatWest Group to retail investors for the first time, as it looks to hasten its exit from the lender, Bloomberg reported.
Any move would take place in the next 12 months and would be “subject to market conditions and achieving value for money,” Jeremy Hunt, Chancellor of the Exchequer.
Activist investors pile pressure on Ladbrokes owner Entain. (FS)
Entain faces growing investor unrest after two more US activist hedge funds voiced concern over the gambling group’s languishing share price and the ability of chief executive Jette Nygaard-Andersen to revive the FTSE 100 company’s performance, FT reported.
New York-based funds Sachem Head Capital Management and Dendur Capital have built positions in the owner of Ladbrokes and Coral brands. They join Eminence Capital.
African Bank plans pre-IPO for shareholders, eyes 2025 listing.
African Bank, the lender rescued by the South African government almost a decade ago, plans a pre-sale by March as it gears up for a full initial public offering in 2025, Bloomberg reported.
The pre-IPO could allow South Africa’s central bank — which usually doesn’t hold such investments — to reduce the 50% shareholding it took in 2016 to prevent a collapse of what was then the nation’s biggest unsecured lender. Other owners include the Government Employees Pension Fund with 25% and a consortium of local lenders including Standard Bank and FirstRand.
APAC
Turn Capital, a venture capital firm, agreed to acquire the Thailand business of Flash Coffee, a tech-enabled coffee chain. Financial terms were not disclosed.
"We are impressed by what the team has built in Thailand over the past years and are excited to play a major role in the company's next growth phase. Turn Capital's focus and expertise is on the consumers, building digital-enabled and loyal consumer ecosystems by creating exciting products and services. We are excited to partner with Flash's management team to bring the tech-driven Flash Coffee brand to profitability, and to work with the young and energetic Thailand team to grow the company over the next few years," Shang Koo, Turn Capital Partner.
East Buy plans to sell its education business to parent.
East Buy, an online education services subsidiary of Chinese private education giant New Oriental, is moving ahead with a plan to sell its education business to the parent group for $211m amid restructuring efforts in the years following Beijing’s crackdown on the industry, DealStreetAsia reported.
Hong Kong-listed East Buy, previously known as “Koolearn Technology,” disclosed in a stock exchange filing on November 22 that its board approved the sale of its education business to New Oriental for an aggregate of $211m in cash.
Jack Ma reverses plan to trim stake after Alibaba share tumble.
Alibaba Group founder Jack Ma is walking back plans to trim his stake after the Chinese e-commerce heavyweight suffered its biggest selloff in more than a year last week, Bloomberg reported.
Ma has not sold a single share in Alibaba, as the stock price has not reached the level the billionaire was seeking.
IDBI Bank share sale unlikely before 2024 federal elections.
The Indian government will likely complete the sale of its majority stake in IDBI Bank only after the country's general elections in mid-2024, stretching out a process that began in October 2022, Reuters reported.
The Reserve Bank of India, also the country's banking regulator, has not yet completed "fit and proper" vetting on the interested bidders, who include Emirates NBD and Canadian billionaire Prem Watsa, after which the bidders can do their due diligence and place their financial bids.
Yuxiao Fund seeks to oust chairman of Northern Minerals. (FS)
A China-linked fund that is a major shareholder in Australia’s Northern Minerals has filed a motion to oust the rare earth developer’s chairman after the fund’s move for a higher stake was rejected on national interest grounds early this year, DealStreetAsia reported.
Singapore-based Yuxiao Fund, which owns a near 10% stake in Northern Minerals, proposed a shareholder’s resolution that Chairman Nicholas Curtis be immediately removed as a director.
CATL said to explore Hong Kong listing.
China’s EV battery maker Contemporary Amperex Technology is studying a potential second listing in Hong Kong, Bloomberg reported.
A potential share sale in Hong Kong could come after the battery maker put a plan to sell global depository receipts in Switzerland on hold. It’s too early to tell the fundraising size of the Hong Kong listing.
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