AMERICAS
Sempra Energy received all required governmental authorizations for the sale of the Luz Del Sur, a distributor of electricity, to State Grid Corporation of China, a power utility corporation, for $3.6bn in cash.
"Receiving all required governmental authorizations for the sale of our Peruvian businesses is another important step in strengthening Sempra Energy's strategic mission to be North America's premier energy infrastructure company. We're pleased that in spite of travel and logistics restrictions, all parties involved have been working closely together and we look forward to closing in April," Dennis V. Arriola, Sempra Energy Group President.
SGCC is advised by Deloitte, Citigroup, Baker McKenzie, and Tian Yuan Law Firm. Sempra Energy is advised by Bank of America Merrill Lynch, Lazard, Sullivan & Cromwell and White & Case.
Carey Watermark Investors 1 and Carey Watermark Investors 2 announced that the stockholders of each company approved the proposed $4.6bn merger to create Watermark Lodging Trust, a self-managed non-traded REIT with increased scale and operating efficiencies.
"We believe the strategic combination of CWI 1 and CWI 2 creates meaningful benefits for all shareholders and is even more compelling amid today's economic backdrop. As a combined company with a more simplified structure, we will have a larger balance sheet with greater financial flexibility and are better positioned to improve value as we work through this challenging period in the lodging industry. We will continue to work on behalf of our shareholders to execute on our strategy and create long-term growth," Michael Medzigian, CWI 1 and CWI 2 CEO.
CWI 1 is advised by Barclays and Hogan Lovells. CWI 2 is advised by Duff & Phelps, Morgan Stanley, Clifford Chance, Pepper Hamilton, Morrison & Foerster, and Ross & Lawrence.
PowerTeam, a provider of integrated infrastructure services to the natural gas and electric industries across 20 states, completed the acquisition of MVerge, a natural gas distribution and transmission pipeline contractor, from CenterPoint Energy, an energy delivery company, for $850m.
"The close of this transaction is a significant step in streamlining CenterPoint Energy's operations and driving our strategy of growing our core utility operations, John W. Somerhalder II, CenterPoint Interim president and CEO.
PowerTeam was advised by Credit Suisse, Harris Williams & Co, UBS, Debevoise & Plimpton, and Abernathy MacGregor Group. CenterPoint was advised by JP Morgan and Latham & Watkins.
Bridgepoint-backed Fishawack Health, a healthcare communications agency, completed the acquisition of Skysis, a boutique consulting firm providing integrated market access and commercial strategy solutions. Financial terms were not disclosed.
“In partnering with Bridgepoint, we have made a step-change in our ambition. We’re delighted to add Skysis to the group. They bring strategy and market access across the entire commercial life cycle, making them an important addition to our strategic consulting capabilities,” Oliver Dennis, Fishawack Health Co-founder and CEO.
Skysis was advised by KPMG, Fairmount Partners, and Ulmer & Berne. Fishawack was advised by KPMG, Addleshaw Goddard, Sheppard Mullin Richter & Hampton, and Blue Latitude Health.
The shareholders of Anixter approved the $4.5bn takeover with WESCO International, a multinational electronics distribution and services company. WESCO stockholders will own 84%, and Anixter stockholders 16%, of the combined company. WESCO and Anixter currently anticipate completing the transaction during the third quarter of 2020.
Approximately 99.42% of the votes cast at the special meeting voted in favour of the merger, which represented approximately 82.26% of the total outstanding shares of Anixter common stock as of February 28, 2020, the record date for the special meeting.
Anixter is advised by Centerview Partners, Wells Fargo Securities, and Sidley Austin. WESCO is advised by Barclays and Wachtell Lipton Rosen & Katz. Debt Financing is provided by Barclays.
Stern Group, comprised of Gary Stern and Ricky Stern, agreed to acquire Asta Funding, a diversified financial services company, for $75m. Each share of outstanding common stock will be purchased for $11.47 in cash. The purchase price represents a premium of c. 36.9% to Asta's closing stock price on April 7, 2020.
The deal is expected to close in Asta's third fiscal quarter of 2020 and is subject to the satisfaction of customary closing conditions as well as the approval by Asta's stockholders other than the Stern Group.
Asta Funding is advised by Lincoln International, Pepper Hamilton and Tannenbaum Helpern Syracuse & Hirschtritt. Debt financing is provided by Bank Leumi.
Creative Planning, a registered investment adviser, agreed to acquire Coe Financial Services, a provider of comprehensive financial planning and investment management. Financial terms were not disclosed.
"It has been a tremendous privilege to serve our wonderful clients. I am delighted that our clients will now have the benefits of Creative Planning's distinguished approach to both planning and investment management out of their new Wichita office," Richard Coe, Coe Financial Services Managing Principal.
Coe Financial Services is advised by Succession Resource Group. Creative Planning is advised by JConnelly.
Accenture, a multinational professional services company, completed the acquisition of Revolutionary Security, a provider of cybersecurity for information technology and operational technology environments. Financial terms were not disclosed.
"The acquisition of Revolutionary Security is another demonstration of our continued commitment to invest in areas to keep our clients safe from cyber threats. Revolutionary Security's service offerings are a perfect complement to Accenture's portfolio, and the acquisition furthers our mission of helping clients better protect and defend their organizations across their entire ecosystem," Kelly Bissell, Accenture Head of Security.
EagleTree Capital-backed FuseFX, a visual effects services provider, is set to merge with Folks VFX, a VFX production house. Financial terms were not disclosed.
"We're very pleased to be joining together with FuseFX. Not only do we share common DNA with our approach to visual effects work, but also our combined goal is to offer VFX services wherever clients want services offered. We know this partnership is the right next step for us in achieving that shared vision," Sébastien Bergeron, Folks VFX President.
Boeing taps investment banks as it weighs government aid.
Boeing tapped investment banks to help secure a financial lifeline after the coronavirus grounded most of the world's flights and deepened the aerospace giant's troubles. Analysts estimate Boeing may need to raise as much as an additional $20bn this year to cover debt service, customer and supplier support and costs to complete joint ventures with Embraer, WSJ reported.
Lazard and Evercore will help Boeing analyze government aid and potential funding from the private market. The US Treasury Department earmarked up to $17bn of federal aid for Boeing and its suppliers as part of a larger rescue of the airline industry in the roughly $2tn stimulus package.
Boeing Chief Executive David Calhoun balked at the idea of giving the US government an equity stake as part of a deal, a possibility the stimulus bill envisions.
Canoe Financial to acquire Fiera Investments mutual funds. (FS)
Canoe Financial and Fiera Capital, and its wholly-owned subsidiary, Fiera Investments, reached an agreement under which Canoe Financial will acquire the rights to manage Fiera Investments' retail mutual funds, representing c. $1.14bn in assets. The transaction is expected to close about the end of the second quarter of 2020, subject to receipt of all necessary approvals.
"We are very pleased to have reached an agreement to acquire Fiera Capital's high-quality mutual fund line-up, and look forward to continuing to offer their investors industry-leading and award-winning active portfolio management. This proposed transaction builds upon our continued partnership with Fiera Capital, which has not only been beneficial to our respective firms but also and most importantly to our investors," Darcy Hulston, Canoe Financial President and CEO.
Carlyle-backed Apex files for bankruptcy. (FS)
Carlyle-backed Apex Parks Group, an amusement-park company whose operations are closed due to the coronavirus pandemic, filed for bankruptcy with plans to be acquired by a lender group led by Cerberus Capital Management.
Apex Parks expects its senior lenders to provide a baseline bid against which the court may seek better offers in a court-supervised auction for almost all of its assets ranging from $50m to $100m and liabilities between $100m and $500m.
US banks prepare to operate oil and gas fields amid potential loan losses.
JP Morgan, Wells Fargo, Bank of America and Citigroup are preparing to become operators of oil and gas fields across the country for the first time in a generation to avoid losses on loans to energy companies that may go bankrupt, Reuters reported.
Each bank is in the process of establishing independent companies to own oil and gas assets. The banks are also looking to hire executives with relevant expertise to manage them.
StepStone closes $2.1bn secondary private equity fund. (FS)
StepStone Group, a global private markets firm, held the final closing of its secondary private equity fund, StepStone Secondary Opportunities Fund IV, raising $2.1bn of commitments. The fund surpassed its original target of $1.25bn. Together with capital from separately managed accounts, StepStone Group raised over $2.4bn for its differentiated secondary private equity strategy.
"We are pleased to have welcomed to our final close limited partners prior to the recent market disruption. With significant fresh capital to deploy from this new fund, we believe our investors in secondaries will benefit from a greater need for liquidity and a more favourable pricing environment than we have seen in the recent past," Thomas A Bradley, StepStone Group Partner.
Index Ventures raised $2bn in fresh funds. (FS)
Index Ventures, a venture capital firm, secured a fresh $2bn in capital amid fears over a fundraising freeze for tech start-ups, Financial News reported.
The money will be divided into two funds, with Index Ventures 10 and Index Growth 5 getting $800m and $1.2bn respectively. The funds will invest across the start-up spectrum, from pre-launch firms to growing businesses seeking international expansion.
EMEA
Working groups at car makers Fiat Chrysler Automobiles and Peugeot’s owner Groupe PSA are speeding up work on closing their alliance deal despite the coronavirus crisis. Carlos Tavares, Groupe PSA Chief Executive Officer, also said that the working groups were also speeding up work on synergies.
The crisis triggered by the new coronavirus has virtually wiped out demand for new vehicles, pushing automakers to temporarily halt most production and leaving them needing cash, Reuters reported.
FCA is advised by Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JP Morgan, UBS, d'Angelin & Co, Darrois Villey Maillot Brochier, De Brauw Blackstone Westbroek, Legance, Loyens & Loeff, Sullivan & Cromwell, Cleary Gottlieb Steen & Hamilton, Macfarlanes, Community Group, Image Sept, and Sard Verbinnen & Co. BPIFrance is advised by Willkie Farr & Gallagher. Peugeot family is advised by Zaoui & Co. PSA Group is advised by Mediobanca, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, Bredin Prat, Cabinet Bompoint, Linklaters, Stibbe. Exor is advised by Lazard.
Naspers has $8bn for deals with online education.
Naspers Group remains on the lookout for acquisitions even as economies around the world grind to a halt in the face of the coronavirus pandemic, with online education proving a hit as schools close and lockdowns keep people at home, Bloomberg reported.
Africa's biggest company, an e-commerce investor with assets from Brazil to India and China, has access to c. $8bn in cash and debt for deals, Chief Executive Officer Bob van Dijk stated.
"People are forced to be at home in many instances at the moment, and online education platforms are dong very well. There is a lot of activity going on, and we are seeing initial opportunities. You could see us grab some of them, but we will continue to be diligent to make sure we catch the right ones," Bob van Dijk.
Brisa receives binding bids as road traffic slumps. (FS)
Several infrastructure investors made binding bids for Portuguese toll road operator Brisa, even as the coronavirus lockdown triggers a slump in traffic, Bloomberg reported.
Spanish toll-road operators Abertis Infraestructuras and Globalvia are among the suitors that submitted bids by last week's deadline. APG Groep, a Dutch asset manager, and a consortium led by government-backed China State Construction Engineering have also been competing for a stake in the business.
Brisa's owners, Arcus Infrastructure Partners and Portugal's family-run Jose de Mello Group, are considering divesting an 80% stake in Brisa and have been seeking c. $3.3bn for the holding.
Egypt delays Banque du Caire stake sale due to coronavirus.
Egypt postponed its plans to divest a minority stake in state-owned Banque du Caire in an IPO starting mid-April due to the spread of the coronavirus, Reuters reported. In March Chairman Tarek Fayed stated that the plan remained to sell the stake, worth about $500m, provided investor interest held up in the face of the virus.
“Plans to offer a share of the bank on the Egyptian Stock Exchange are currently deferred due to the spread of the new coronavirus globally and locally, and the impact on both local and global stock markets,” Tarek Fayed, Banque du Caire Chairman.
UK accounting watchdog delays break-up of Big Four.
The UK's accountancy watchdog suspended its plans to separate the Big Four accountancy firms, as the profession tackles the disruptions caused by the Covid-19 downturn, Financial News reported.
In a statement from the Financial Reporting Council on April 9, the watchdog said it would stop all "demands on, requests from and meetings with audit firms on operational separation". The pause will be reviewed in one month.
Cairn and Pharos to advance in a deal for Shell Egypt assets.
A consortium of Cairn Energy, Pharos Energy and Egypt's Cheiron Petroleum proceeded to a second round of bidding for Royal Dutch Shell onshore assets in the Egypt, in a deal that could value the business at as much as $1bn, Bloomberg reported.
Shell is proceeding with the planned sale for now despite the coronavirus crisis hampering deal-making globally. Egypt's East Gas is also among suitors that have been invited to the next round of bidding.
Saudi Arabia acquires stakes in four big European oil firms. (FS)
The Public Investment Fund, a Saudi Arabia sovereign wealth fund, accumulated stakes in four major European oil companies. The four are Royal Dutch Shell, France's Total, Norway's Equinor and Italy's Eni. The combined value was not disclosed, but the stakes may be worth up to $1bn.
GEMS Education founder in talks to sell stake in school operator.
The founder of Dubai-based GEMS Education held talks to divest some of his majority stake in the private-school operator to raise as much as $200m, DealStreetAsia reported.
Sunny Varkey, who transformed GEMS into one of the world's largest private education providers, is working with Rothschild & Co to find potential investors.
Realterm closes its €100m European logistics fund. (FS)
Realterm, a real estate private equity firm, closed its Realterm Europe Logistics Fund at a hard cap of €100m ($109m) to invest in the high flow through logistics real estate sector in Europe. RELF is the ninth fund raised across the Realterm platform and the firm's first value-added fund in Europe.
"Our successful fundraise is a testament to the team that we have built and our investors' belief in our ability to create value through our differentiated investment approach and market insights," Peter Lesburg, Realterm's Managing Director of Capital Markets.
APAC
FWD, a life and medical insurance agent, completed the acquisition of Vietcombank-Cardif Life Insurance, a life insurance joint venture between Vietcombank and BNP Paribas Cardif. Financial terms were not disclosed.
“Vietnam is one of the fastest-growing insurance markets in Asia and we are excited to expand our presence through this significant acquisition. I’m thrilled that we can finally begin this new exciting chapter and I’d like to personally welcome all the staff, salesforce and customers of VCLI to FWD and look forward to working together to grow our business, bring fresh and positive experiences to our customers and ultimately change the way people feel about insurance,” Huynh Thanh Phong, FWD Group Chief Executive Officer.
FWD Group was advised by Sard Verbinnen & Co.
KB Financial Group, a financial services company, is set to acquire the South Korean unit of Prudential Financial, an insurance firm, for $1.9bn.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals, and is expected to occur by the end of 2020. Proceeds of the transaction are expected to be used for general corporate purposes.
VIG Partners, a Korean buyout fund, is set to acquire a majority stake in Preedlife, a funeral service provider. Financial terms were not disclosed.
The deal is expected to close during the third quarter of 2020 after receiving regulatory approvals by the buyout fund.
“VIG believes, despite its robust profile of over 6m subscribers and cumulative advance payments of $4.6m, the domestic funeral service industry has been highly fragmented and markedly undervalued. Capitalizing on the acquisition of Preed and the eventual merger with Joun Life, VIG plans to further enhance customer perception and public trust towards the pre-paid funeral service business, thereby providing the necessary tailwinds to accelerate an industry-wide growth,” VIG Partners.
Senvion to divest India wind energy operations.
Insolvent German wind turbine maker Senvion decided to exit India operations by selling its local manufacturing operation to a strategic investor. The company entered into a binding agreement with a strategic investor to sell and transfer its fully operational Indian entity. Details of the bidder were not disclosed.
"The parties have now entered in the final closure stage where legal documentations and agreements are being discussed. We expect, subject to any regulatory approvals, the transaction to close before June 2020. Further details will be published in due course,” Senvion.
Senvion is advised by Rothschild & Co.
Johnson & Johnson abandons deal for Takeda's TachoSil surgical patch.
Johnson & Johnson abandoned plans to acquire Takeda Pharmaceutical's surgical patch product TachoSil, Reuters reported. Takeda, Japan's biggest drugmaker, announced the sale of TachoSil, a surgical patch to control bleeding, to Johnson & Johnson's subsidiary Ethicon for $400m last May.
"Ethicon and Takeda have mutually decided to terminate the TachoSil transaction, agreeing that it was the right decision given the regulators' concerns," Johnson & Johnson representative.
Huagai Capital closes third healthcare fund at $434m. (FS)
Huagai Capital, a China-focused private equity firm, closed its third healthcare fund at $434m, bringing the total assets managed by the firm's healthcare unit to nearly $991m.
Marubi ties up with Jinding Capital to launch a $141m industrial fund. (FS)
Guangdong Marubi Biotechnology, a Guangzhou-headquartered cosmetic products company, teamed up with consumption-oriented investment management firm Jinding Capital to launch an industrial fund of $141m, DealStreetAsia reported.
The fund is called Marubi Jinding Cosmetics Industrial Fund Management. Marubi will be its limited partner, and Jinding is set to be the general partner and fund manager.
Marubi claimed that the fund will ramp up its business development in the cosmetics industry, as well as spruce up its industrial ecosystem. The fund will be deployed in skincare, beauty products and supply chain.
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