AMERICAS
Cincinnati Bell announced that its shareholders approved all proposals related to its agreement to be acquired by Macquarie for $2.9bn.
"Today's favorable vote supports our view that the acquisition by MIP is in the best interest of our shareholders and our company, and represents maximum value. We look forward to completing the remaining necessary conditions to finalize this transaction," Lynn A. Wentworth, Cincinnati Bell Chairman of the Board of Directors.
Cincinnati Bell is advised by Citigroup, Moelis & Co, Morgan Stanley, BosseLaw, Cravath Swaine & Moore, and Morgan Lewis & Bockius. Debt financing to Macquarie is provided by ASOF Holdings and Ares Management. Legal advice to debt providers is provided by Sullivan & Cromwell.
Shandong Gold Mining, a gold mining firm, is set to acquire TMAC Resources, an explorer and miner of gold, for $149m.
“The transaction is the culmination of the strategic review process we announced earlier this year. Over the past several months, SD GOLD has completed a significant due diligence review of TMAC, including a site visit to Hope Bay earlier this year. SD GOLD, as one of the world’s largest gold producers, has the financial strength, technical capability and long-term vision to maximize the value of the Hope Bay camp,” Jason Neal, TMAC President and CEO.
TMAC Resources is advised by BMO Capital Markets, CIBC, Cassels Brock & Blackwell, and Longview Communications. Shangdong Gold Mining is advised by Jingtian & Gongcheng, McCarthy Tetrault, Ernst & Young, and Golder Associates.
Pure Acquisition, an oil and gas exploration and production focused special purpose acquisition entity, agreed to merge with HighPeak Energy, an oil and natural gas company. The business combination is expected to close in the third quarter of 2020.
“We are extremely excited about this transaction as this area provides for one of the best on-shore domestic US opportunities in regards to accelerated near-term cash flow growth, single well economics due to the high oil production content, industry-leading full-cycle operating margins and the economies of scale we expect to achieve in cost savings attributable to drilling and completion operations, production facilities and infrastructure due to the contiguous nature of the asset base. After reviewing our drilling success over the last six months, the HighPeak management team is confident in our ability to successfully implement the proposed development drilling program and achieve the anticipated growth profile of the company," Jack Hightower, HighPeak Energy’s Chairman and CEO.
HighPeak Energyis advised by Vinson & Elkins. Pure Acquisition is advised by EarlyBirdCapital, Jefferies & Company and Hunton Andrews Kurth. Jefferies & Company is advised by Latham & Watkins.
Rayonier, a timberland real estate investment trust, completed the acquisition of Pope Resources, which owns or manages acres of timberland and development property, for $656m.
"The completion of this transaction significantly expands and enhances our Pacific Northwest timberland and real estate portfolio. We’re very excited about the opportunity to integrate our complementary assets and to welcome the Pope employees who will become part of Rayonier. We share compatible cultures and a long history of dedication to value maximization, and we are eager to share best practices and capture synergies across our combined organization," David Nunes, Rayonier President and CEO.
Pope Resources was advised by Centerview Partners, Davis Wright Tremaine, and Munger Tolles & Olson. Rayonier was advised by Credit Suisse and Wachtell Lipton Rosen & Katz.
Thoma Bravo-backed software developer Apttus agreed to acquire Conga, a database management software developer. Financial terms were not disclosed.
"Apttus and Conga are people-first businesses with core values that fit together seamlessly, and both are fueled by an inherent drive to succeed. Combined, we'll continue to deliver the same dedication to customer service, innovation and culture as we have in the past. Our mission remains resolute -- to ensure customer success and unmatched world-class products and services. Now, we'll do it together," Frank Holland, Conga CEO.
Conga is advised by Qatalyst Partners and Willkie Farr & Gallagher. Apttus is advised by Kirkland & Ellis. Debt financing is provided by Deutsche Bank.
The Carlyle Group and GIC are backing away from a deal to acquire a 20% stake in American Express Global Business Travel, igniting a legal battle over a deal that would have valued the pandemic-hit company at $5b, FT reported.
The two investment groups were due to consummate the transaction at a virtual signing ceremony, but indicated they would not attend, according to a note to lenders who had signed up to provide financing for the transaction. The sellers filed a lawsuit in Delaware, demanding that a court take urgent action to enforce the deal ahead of a June 30 deadline.
“The sellers violated several terms of the purchase agreement and as a result we are seeking a judicial confirmation that we have no obligation to close the transaction,” Carlyle.
American Express is advised by Cleary Gottlieb Steen & Hamilton.
Unity Technologies, a platform for creating and operating interactive, real-time 3D content, completed the acquisition of Finger Food Advanced Technology Group, a professional services organization specializing in building industry-first solutions for global companies. Financial terms were not disclosed.
“Whether we’re designing AR/VR, mobile applications, or tackling complex industrial challenges, Unity is foundational in helping us deliver usable RT3D applications as well as the tangible business value that our clients expect. By joining the Unity family, we will have more access to Unity’s extensive engineering team to help shape the future of their platform by sharing the trends and needs that we’re seeing across our customer base,” Ryan Peterson, Finger Food Advanced Technology Group CEO.
Unity Technologies was advised by Morrison & Foerster.
Uber Technologies led a $170m funding round in bike-sharing service provider Lime. Other investors included Alphabet, Bain Capital Ventures and GV.
“Micromobility will be vital to the new world affected by Covid-19 and we are already seeing this as cities begin to move again. With our new financing and expanded offerings, we are strongly positioned to meet the needs of riders in a safe and reliable way,” Wayne Ting, Lime CEO.
RESPEC, an engineering consulting firm, completed the acquisition of PDC Engineers, an engineering services provider. Financial terms were not disclosed.
“The collective and complementary know-how of the RESPEC/PDC entity creates a unique offering of technical services within the architectural and engineering industry. We are excited about expanding our services within and outside of Alaska and advancing the integration of technology,” Matt Emerson, PDC President.
Creation Technologies, an electronics product manufacturer, completed the acquisition of Applied Technical Services, an end to end electronic manufacturing services provider. Financial terms were not disclosed.
“We are investing to broaden our capabilities and reach with the addition of the ATS team, who share our values of providing exceptional customer service and outstanding quality. We are delighted to welcome ATS’ talented employees and loyal customers to our Global team," Stephen P. DeFalco, Creation Technologies Chairman & CEO.
Brookfield reveals $5bn program for retail businesses. (FS)
Brookfield Asset Management unveiled plans for a $5bn program focused on providing capital to retail businesses that are struggling in the economic turmoil caused by the coronavirus pandemic.
"This initiative is being designed to assist medium-sized enterprises in getting back on their feet. We believe this is a critical component to getting the economy moving again, and we would like to partner with companies and entrepreneurs that can draw on our capital and expertise to stabilize and grow their business," Ron Bloom, Brookfield Managing Partner and Vice Chairman of Private Equity division.
Warburg Pincus considers selling multiple international oil and gas assets. (FS)
Private equity firm Warburg Pincus is considering selling five of its eight international oil and gas investments because of a lack of demand in the wake of the coronavirus, Reuters reported.
The assets potentially up for grabs include the firm's stakes in Africa-focused Delonex Energy and liquids storage firm Zenith Energy. The company said that these assets are no longer seen as core to its strategy.
The firm has yet to hire advisers and could wind down the bulk of its international energy assets if they do not draw interest from potential buyers.
Dow considers sale of its ports, storage and rail businesses.
Dow, an American commodity chemical company, is considering the sale of its ports on the US Gulf Coast and six railway hubs as it refocuses on chemicals, Bloomberg reported. The company tapped a financial adviser to solicit prospective suitors.
Dow’s marine and storage operations, known as its Mars unit, includes 136 chemical and liquid hyrdocarbon tanks with 200m gallons of capacity, as well as 11 marine docks. The terminals—including ones in Freeport, Texas, and St. Charles and Plaquemine in Louisiana—are located near railway lines operated by Union Pacific. Open land and unused tank capacity may also be included in a transaction.
Brookfield invests $950m into public firms. (FS)
Brookfield Asset Management invested more than $950m in public companies since the sell-off began to gain a toehold for bigger deals down the road, Bloomberg reported.
Brookfield Infrastructure Partners, the asset manager’s infrastructure arm, invested $450m in a handful of publicly listed infrastructure firms since the market swoon caused private market deals to dry up. Brookfield Business Partners invested about $500m in public companies with the goal of potentially taking some of them private.
Manna Tree Partners closes debut fund at $141m. (FS)
Manna Tree Partners, an asset management firm committed to providing consumers with a more transparent food supply chain from production to plate, exceeded a target $100m to close its fund at $141m.
Manna Tree Partners Fund I has a three-year investment window and will focus its strategy on primary production, processing, and distribution of healthy food, related consumer and retail companies.
EMEA
AbbVie, a researcher and developer of pharmaceutical products, completed the $63bn acquisition of Allergan, a manufacturer of speciality pharmaceuticals. Allergan shareholders received 0.8660 AbbVie shares and $120.30 in cash for each Allergan share, for a total consideration of $193.23 per Allergan share.
"We are pleased to reach this important milestone for the company, its employees, shareholders and the patients we serve. Our new Allergan colleagues should be commended for all their efforts, along with those of our own employees, to achieve this turning point for our company. I am proud of both organizations and look forward to the opportunities ahead," Richard A. Gonzalez, AbbVie CEO.
Allergan was advised by Evercore, JP Morgan, Arthur Cox, Slaughter & May, Wachtell Lipton Rosen & Katz, Weil Gotshal and Manges, Sard Verbinnen & Co. AbbVie was advised by Morgan Stanley, PJT Partners, Kirkland & Ellis, Matheson, McCann FitzGerald, and Abernathy MacGregor Group. Legal advice to the financial advisors was provided by Davis Polk & Wardwell.
Jupiter Fund Management cleared a potential hurdle in its $547m takeover of rival money manager Merian Global Investors when influential investor advisory firms gave their qualified support to the deal. Institutional Shareholder Services and Glass Lewis both advised Jupiter’s shareholders to support the purchase.
“Overall, we see no reason to doubt the strategic or financial aspects of the transaction, which would create a larger active fund management company and provide opportunities to achieve operating efficiencies and economics of scale. Based on these factors and the support of the board, we believe the proposed transaction is in the best interests of shareholders,” Glass Lewis.
Merian is advised by Macfarlanes. Jupiter Fund is advised by Numis Securities, Fenchurch Advisory Partners, JP Morgan, and Powerscourt.
Germany still considering a potential stake in TenneT.
Germany contacted the Netherlands about collaborating over power grids but has not decided whether it might acquire a stake in TenneT, a Dutch state-owned power transmission grid operator, Bloomberg reported.
German Finance Minister Olaf Scholz from the co-governing Social Democrats was backing buying a majority stake in TenneT’s German division, while Economy Minister Peter Altmaier from Chancellor Angela Merkel’s Christian Democrats supported a stake of less than 50%.
TenneT has been in talks with its owner for a while over how to plug a $2.2-$3.3bn equity funding gap to secure its ambitious 10-year spending plan.
Anima Holding mulls the acquisition of a smaller rival abroad for $433m.
Italian asset manager Anima Holding is exploring the acquisition of a smaller rival abroad for $433m to expand in Europe, Reuters reported.
“We are looking at asset managers in the UK, France, Netherlands and Belgium,” Alessandro Melzi D’Eril, Anima Holding Chief Executive.
Cathay Life Insurance to invest $92m in CVC Capital’s latest fund. (FS)
Cathay Life Insurance, a subsidiary of Taiwanese financial services group Cathay Financial Holdings, invested $92m in CVC Capital Partners’s latest private equity fund.
CVC Capital Partners Fund VIII will seek to invest in businesses mostly in Europe and North America. The size of the fund could close between $19bn and 22bn, depending on investor appetite.
APAC
Financial technology provider WEX said it could walk away from the $1.7bn deal to acquire travel payment services providers eNett and Optal because of the impact of the coronavirus outbreak on their business, Reuters reported.
“The purchase agreement, which was executed on January 24, after Covid-19 had already publicly begun its spread across the globe, expressly excludes the effects of a pandemic from the definition of MAE,” Optal and eNett.
Optal is advised by Financial Technology Partners and Herbert Smith Freehills. eNett is advised by Credit Suisse, LionTree Advisors, and Wachtell Lipton Rosen & Katz. WEX is advised by Bank of America Merrill Lynch, Grant Samuel, Clifford Chance and WilmerHale.
Scienjoy, a live entertainment mobile streaming platform, completed the merger with Wealthbridge Acquisition, a special purpose acquisition company. Financial terms were not disclosed.
"We commend Victor and his team at Scienjoy for their success to date in building a vibrant live streaming ecosystem in China. As the mobile entertainment live streaming market continues to grow both in China and abroad, we are excited to work with Scienjoy to capitalize on these emerging opportunities," Winston Liu, Wealthbridge Chairman and CEO.
Wealthbridge was advised by Chardan and Loeb & Loeb. Scienjoy was advised by Fengyu Law Firm, Jun He Law Offices, Maples Group, and ICR.
Bain Capital agreed to acquire Nichii Gakkan, a healthcare services provider, for $698m.
Bain Capital's deal would see the group’s shares delisted from the Tokyo Stock Exchange, with an agreement already in place to buy a 44% stake held by the surviving relatives of the group’s late founder and the family’s asset management group.
Bain Capital is advised by Ropes & Gray. Debt financing for Bain Capital is provided by Mitsubishi UFJ Financial Group, Mizuho Securities, Nomura, and SMBC Nikko.
Bain Capital led a $147m Series E funding round in Judo Bank, a banking service provider. Other investors included Myer Family Investments, Abu Dhabi Capital Group, SPF Investment Management, OPTrust, Ironbridge Capital and Tikehau Capital.
“The support we’ve received for our third round, at an increased valuation to our second round capital raise last year, underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets, that has impacted all bank valuations,” David Hornery, Judo Bank Co-Founder and CEO.
Private equity firm Taikang Asset Management led a $113m Series B round in Sanbo Brain Hospital, a neurology specialist. Chinese investment bank CEC Capital, healthcare fund Park Road Medical Investment, Beijing-based equity investment firm Broadhi Capital, and Beijing Puhong Investment Fund Management participated in the financing.
“The neurology field has a market of massive demand as well as a high technical barrier. Taikang will actively explore cooperation opportunities with Sanbo in the fields of health insurance and healthcare management to bring better service experience to insurance customers," Xu Jun, Taikang Partner.
PIF, General Atlantic and Vista Equity consider buying a stake in Jio Platforms. (FS)
The Public Investment Fund, General Atlantic and Vista Equity Partners are considering a potential investment in Jio Platforms, an Indian telecommunications company and subsidiary of Reliance Industries, Bloomberg reported.
PIF is considering purchasing a minority stake and General Atlantic intends to invest about $850m to $950m in the Mumbai-based company. Vista Equity Partners will buy a 2.3% stake in Jio Platforms for $1.5bn, making the private-equity firm the largest investor in the digital arm after the parent and Facebook.
Japan tightens rules on foreign investments, citing national security.
Japan announced a list of its firms subject to tighter foreign ownership rules, including majors such as Toyota Motor and Sony, as the United States and Europe step up scrutiny of industries key to national security. The tighter rules cover foreign investment in a dozen sectors crucial to national security, such as oil, railways, utilities, arms, space, nuclear power, aviation, telecoms and cybersecurity.
Japan identified 518 of its roughly 3.8k listed firms as having operations core to national security, making them targets for stringent regulations, a list released by the Ministry of Finance.
“The revised law is aimed at accelerating foreign direct investment in Japan. As we have explained our intention overseas, misdirected criticism such as that we may limit foreign investment in Japan has disappeared," Taro Aso, Finance Minister.
AMP cancels divestment of New Zealand wealth management unit.
Australia’s AMP, a financial services company, cancelled plans to divest its New Zealand wealth management arm after offers for the unit fell short of its expectations due to disruption caused by the coronavirus pandemic on the economy and financial markets.
AMP held talks with several parties on selling the business, once valued at between $183m and $303m. But the company said with offers failing to meet its target, it would instead focus on expanding the unit in existing markets.
Kingsoft Cloud raises $510m in US IPO.
DealStreetAsia reported that Kingsoft Cloud, a Chinese cloud computing company, raised $510m in first Chinese IPO in the US since the coronavirus pandemic outbreak sent markets to collapse. The shares closed at $23.84 in New York trading Friday, giving the company a market value of $4.8bn.
“Given the context regarding China ADR, it’s actually good for quality companies. The capital has to be deployed and quality long-only investors will pay more attention to quality companies like us,” Henry He, Kingsoft Cloud CFO.
Jinko Power seeks $367m IPO in Shanghai.
Jinko Power Technology, a debt-ridden Chinese company that develops and operates solar power plants, is seeking an IPO on the Main Board of the Shanghai Stock Exchange to raise nearly $367m.
The company already issued over 535m shares to individual investors through an online offering on May 6, DealStreetAsia reported. The remaining 59m shares, or 10% of the total issued shares in the IPO, will be available for subscription among institutional investors.
After the IPO, JinkoSolar will remain the controlling shareholder holding 30.86% stake. Jade Sino Ventures and MEGCIF Investments 6 will hold 11.78% and 9.95% equity, respectively.
China Merchants Capital sets up a $225m private equity fund. (FS)
China Merchants Capital, an associated asset management firm between Chinese state-owned China Merchants Group and Singapore-based GLP, co-launched a $255m private equity fund to invest in growth-stage startups in China.
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