AMERICAS
Pamlico Capital, a private equity firm, completed an investment in Protera, a provider of public cloud-centric application management and migration services for SAP software, as well as other enterprise IT outsourcing services. Financial terms were not disclosed.
“Protera has a tremendous opportunity to serve our clients as they migrate SAP and other enterprise workloads to the public cloud, and we are extremely well-positioned with the market’s leading team and technology platform. We are excited to welcome Pamlico as our first institutional investor. Pamlico deeply understands our business and brings resources and a breadth of experience scaling founder-owned companies to help us achieve our vision for Protera,” Dean Adamopoulos, Protera CEO.
Protera was advised by Holland & Knight. Pamlico was advised by Alston & Bird.
Audax Private Equity, an alternative investment manager, is set to invest in Global Nephrology Solutions, a physician-led nephrology organization focused on the quadruple aim of improving outcomes, reducing the cost-of-care, and enhancing both patient and physician experience. Financial terms were not disclosed.
"Global Nephrology Solutions has built a strong track record for excellence and has successfully partnered with some of the largest, most well-respected nephrology practices in the US. We look forward to supporting GNS as it continues to empower nephrologists with the clinical, operational, and financial expertise needed to improve the quality of life for their patients," Adam Abramson, Audax Managing Director.
GNS is advised by Oppenheimer & Co and Holland & Knight.
Naturgy, a Spanish multinational natural gas and electrical energy utilities company, completed the acquisition of Hamel Renewables, a solar and energy storage development platform in the US. Financial terms were not disclosed.
"This transaction is a considerable step forward towards achieving our strategic objectives. In addition to this, we incorporate a portfolio of excellent projects in different stages of maturity, as well as a first-class team with a proven track record in the development of projects," Francisco Reynés, Naturgy Executive Chairman.
OCA Acquisition prices $130m US IPO.
OCA Acquisition, a special purpose acquisition company, announced the pricing of its initial public offering of 13m units at a price of $10 per unit. The units will be listed on The Nasdaq Capital Market under the ticker symbol "OCAXU".
Each unit issued in the offering consists of one share of the company's Class A common stock and one-half of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.5 per share. Once the securities comprising the units commence separate trading, the shares of Class A common stock and redeemable warrants are expected to be respectively listed on Nasdaq under the symbols "OCAX" and "OCAXW". No fractional warrants will be issued upon separation of the units, and only whole warrants will trade.
Stifel and Nomura are acting as joint book-running managers for the offering.
Harness reaches $1.7bn valuation with $115m financing. (FS)
Harness, a software delivery platform, raised $115m from financing, reaching a $1.7bn valuation in three years from launch.
Alkeon Capital led the $85m Series C round, together with new investors Battery Ventures, Citi Ventures, Norwest Venture Partners, Sorenson Capital, and Thomvest Ventures. The total funding includes the $30m Series B-1 funding round led by existing backers Menlo Ventures, IVP, and Unusual Ventures.
Canadian minister persuades businesses of support after unsuccessful Couche-Tard and Carrefour talks.
François-Philippe Champagne, Canadian Minister of Industry, talked to Alain Bouchard, Alimentation Couche-Tard founder, and persuaded him of support for Canadian businesses after the company dropped plans to buy Carrefour, a European retailer.
Couche-Tard, a Quebec-based convenience store operator, rejected talks to buy Carrefour for $20bn after French Finance Minister Bruno Le Maire raised concerns about food and job security. Instead, the two companies decided to work on partnership opportunities, according to
Reuters.
Champagne said that the government will support Canadian businesses here and abroad, adding the two-way trade benefits businesses both sides of the Atlantic.
Zoom CFO suggests equity raise instead of debt sale to hold options open.
Zoom Video Communications’ finance chief opted for an equity raise rather than a debt sale since the software company sought additional funding to build out its operations,
WSJ reported.
A california-based communications technology company, which has seen higher demand for its videoconferencing services during the coronavirus pandemic, had closed its stock offering after selling $2bn in shares priced at $340 each.
The company initially planned to collect $1.5-$1.75bn from investors, but ended up raising more on solid demand for its shares, the fundraising, which was the company’s first since its IPO in 2019, brutally doubled the amount of cash Zoom is holding, according to Kelly Steckelberg, Zoom CFO. The proceeds likely will be spent on expanding the company’s sales force and marketing, and for building out its data centers. Some of the cash could also be used for mergers and acquisitions. Zoom will provide more details on its spending plans when it releases earnings on March 1.
EMEA
Shares in Stellantis rose as much as 7.5% on their first trading day on Monday, after the world’s fourth-largest carmaker was created with the completion of the $48bn merger between Fiat Chrysler and Peugeot maker PSA,
Reuters reported.
Milan-listed shares of Stellantis started trading at €12.758 and were up 7.5% at of €13.51. The Paris-listed shares traded around the same level. That compares with Fiat Chrysler’s close on Friday at €12.57.
Over the weekend, PSA shares were exchanged into new FCA shares. All FCA shares were then renamed as Stellantis. The stock will debut in New York, when chief executive Carlos Tavares will also hold its first press conference as the head of Stellantis.
Fiat Chrysler 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, Community Group, Image Sept, and Sard Verbinnen & Co. Financial advisors are advised by Cleary Gottlieb Steen & Hamilton and Macfarlanes. Bpifrance is advised by Willkie Farr & Gallagher. Peugeot Family is advised by Zaoui & Co. PSA Group is advised by China International Capital, Mediobanca, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, BonelliErede, Bredin Prat, Cabinet Bompoint, Clifford Chance, Cravath Swaine & Moore, Linklaters, NautaDutilh, and Stibbe. Exor is advised by Lazard.
A consortium of private equity firms had agreed the terms of a recommended cash acquisition of Calisen, a smart meter company. It is intended that the acquisition will be effected by means of a Scheme.
Following recently enacted amendments to the Foreign Acquisitions and Takeovers Act 1975 (Cth) in Australia, foreign investment approval in Australia is no longer required in connection with the Acquisition and accordingly Condition 3(f) set out in Part Three of the Scheme Document has been satisfied.
Calisen is advised by Citigroup, HSBC, Allen & Overy and Finsbury Glover Hering. WSIP is advised by Sullivan & Cromwell. BlackRock and Mubadala are advised by Goldman Sachs, Clifford Chance and Freshfields Bruckhaus Deringer. Goldman Sachs is advised by Norton Rose Fulbright. Debt financing is provided by BNP Paribas, Goldman Sachs, Credit Agricole and NatWest Markets.
Akzo Nobel, a Dutch multinational company that creates paints and performance coatings, offered to acquire Tikkurila, a manufacturer of paints and lacquers, for $1.69bn.
“The natural combination of AkzoNobel and Tikkurila would build on centuries of industry experience and a shared European heritage to create significant value for customers, employees, shareholders and other stakeholders. Bringing together our premium brands and leading portfolios would provide customers with a wider range of innovative products and services, including the most sustainable paints and coatings solutions,” Thierry Vanlancker, Akzo Nobel CEO.
Tikkurila is advised by SEB Corporate Finance and Hannes Snellman. Akzo Nobel is advised by HSBC, JP Morgan, De Brauw Blackstone Westbroek and Roschier Attorneys. PPG Industries is advised by PJT Partners, DLA Piper and Wachtell Lipton Rosen & Katz.
Following an assessment of the undertakings offered by Tronox, the CMA considers that the undertakings are not a clear-cut solution to the competition concerns identified as arising from the merger with TiZir Titanium and Iron, a producer of a titanium slag. Accordingly, the CMA has decided not to exercise its discretion under section 73(2) of the Enterprise Act 2002 to accept undertakings in lieu of reference. The CMA will proceed to refer the merger to a phase 2 investigation.
Tronox is advised by Credit Suisse, Cleary Gottlieb Steen & Hamilton and Wikborg Rein. Eramet is advised by HSBC, Clifford Chance and Image Sept.
SPX FLOW, a provider of process solutions for the food, beverage and industrial markets, completed the acquisition of UTG Mixing Group, a provider of mixing solutions for the chemical, food, metallurgical and fertilizer, environmental technology, water treatment and pharmaceuticals markets. Financial terms were not disclosed.
"Bringing UTG Mixing Group and its well-known product brands into the SPX FLOW family strengthens the sales network of the combined company, offering customers a greater breadth of solutions for a wider range of applications," Marc Michael, SPX FLOW Chief Executive Officer.
SPX FLOW was advised by KPMG and Dittmar & Andrenius.
Carlyle Group-backed Memsource, an AI-powered translation management system, completed the acquisition of Phrase, a software localization platform. Financial terms were not disclosed.
“Since Carlyle’s investment in Memsource in July 2020, we have focused on growing the business organically while exploring compelling acquisition opportunities. Phrase is a leading software localization platform bootstrapped by an incredibly talented team. As leaders in their respective fields (enterprise TMS and software localization respectively), Memsource and Phrase are determined to create the next generation of translation automation for the full range of enterprise localization use cases,” David Canek, Memsource Founder and CEO.
Investment firms Ardian and Global Infrastructure Partners made an offer to Suez, a French waste and water management company that is fighting the hostile takeover from rival Veolia. Veolia currently owns 29.9% of Suez and intends to receive full ownership of the target.
Ardian and GIP were interested in Suez in the past but now there is more evidence about the possible bid. Bertrand Camus, Suez CEO said the potential offer from private equity firms did not raise jobs or antitrust problems.
"It's the implementation of a friendly solution ... with scenarios that could be different, but that could lead to an offer for all of it (Suez)," Bertrand Camus.
inRiver, a product information management solutions provider, agreed to acquire Detail Online, an AI-powered analytics solution to help brands monitor product information across multiple online channels. Financial terms were not disclosed.
"The addition of Detail Online is an exciting move for our two organizations and offers exceptional analytics capabilities to the inRiver solution," Thomas Zanzinger, inRiver CEO.
Medicom, a manufacturer of surgical and respiratory masks and other infection control products, agreed to acquire Loser, a European dental distributor. Financial terms were not disclosed.
"This strategic acquisition allows Medicom to expand and solidify our position in Europe. We are excited that the team at Loser will help significantly enhance our presence in the European dental market. We continue to focus on expanding our presence around the world to create value through both organic and acquisition-driven growth," Ronald Reuben, Medicom CEO.
Marubeni considers a sale of North Sea oil and gas fields.
Marubeni could exit the UK North Sea, as it plans to sell its main oil and gas fields in the region,
Bloomberg reported.
The Tokyo-based company is working with Jefferies Financial Group to sell its non-operated stake in the MonArb area. A disposal would follow the retreat of other Japanese firms and several international oil majors from the aging basin to focus on larger operations elsewhere. Binding bids are supposed to due in March.
Barclays plans £3bn IPO of Very Group. (FS)
Barclay family is at the early stages of exploring whether to take Very, a multi-brand online retailer, to the public markets to capitalise on exploding investor interest in digitally-led retailers. The family had started evaluating this move prior to Sir David Barclay's unexpected death, according to
Sky News.
A decision about an IPO of Very Group is not thought to be imminent. UBS, which has advised the company in the past was likely to be involved.
If the owners decide to pursue a public listing, it would expose a Barclay-owned business to the light of public equity markets, marking a significant departure for a family that has always tried to protect its privacy.
Huuuge plans to raise $150m in Warsaw IPO.
Huuuge, a mobile games application provider, plans to raise up to $150m from a new share issue as part of its planned initial public offering in Warsaw.
Huuuge, which submitted an IPO prospectus in August, intends to use the IPO proceeds on potential acquisitions and investments. It expects its free float to be more than 25% of the company.
Billionaire Vladimir Evtushenkov considers IPO of paper producer.
Russian billionaire Vladimir Evtushenkov is weighing an initial public offering of Segezha Group, a wood, paper and packaging producer, after an e-commerce operator, he holds a stake in notched the most successful Russian debut in nearly a decade last November.
Evtushenkov’s Sistema is preparing Segezha for a listing in 2021. A formal decision to sell shares hasn’t been made yet, according to
Bloomberg.
Segezha may be valued at about $808m.
Sabic Basic Industries to shortlist Citigroup and Morgan Stanley for an IPO.
Saudi Basic Industries has shortlisted banks, including Citigroup and Morgan Stanley, to participate in an IPO of its specialty chemicals unit.
The banks and others bid for the deal and Sabic is still finalizing the group. Though Sabic hasn’t decided on a venue for the sale, Saudi Arabia needs to deepen its stock market by getting more local companies to list.
Any deal would help support Sabic’s balance sheet. It said plans to suspend new capital expenditure following the slump caused by coronavirus in demand for its products.
Sabic had hired NCB Capital to work on the unit’s IPO and finalize foreign banks' appointments.
London Stock Exchange investigates accelerated IPOs in listing review.
London Stock Exchange Group is pushing the UK government to shorten the process for companies to go public as part of a review of its listing rules.
IPOs in London take five weeks from publication of the registration document to a stock’s trading debut, after the UK market regulator tacked on an extra seven days in 2018 to allow unconnected analysts, from banks not working on the deal, earlier access to information.
The LSE has proposed shorter timetables to the government review, the results of which are expected early this year. The offers would still give unconnected analysts enough time to form a view about the IPO candidate and deliver it to investors,
Bloomberg reported.
APAC
Total, a broad energy company, agreed to acquire a 20% stake in Adani Green Energy, an Indian renewable energy company, from Adani Group, an Indian multinational conglomerate company, for $2.5bn.
“This agreement is an important step in our alliance with the Adani Group in India and our common vision and goals with respect to the importance of access to low carbon energy in India. Our entry into AGEL is a major milestone in our strategy in the renewable energy business in India put in place by both parties. Given the size of the market, India is the right place to put into action our energy transition strategy based on two pillars: renewables and natural gas," Patrick Pouyanne, Total Chairman and CEO.
Investment firms CPE Capital and Macquarie Infrastructure and Real Assets offered to acquire Bingo Industries, a waste collection company, for $2.5bn.
Reportedly, firms offer $3 a share and Bingo is expected to confirm the discussions on Tuesday. The proposal from CPE and MIRA values the company at $2.5bn, including debt.
Institutional Investors completed the acquisition of a 5.9% stake in China Telecom, a state-owned telecommunication company, from BlackRock for $206m.
BlackRock sold 818m shares at the price 12% lower than stock's closing price. After the deal, the asset manager possesses 0.2% stake in the company. The concrete reason for the disposal was not disclosed but could be related to the rush to divest stocks that have connections China's military.
Tencent led a $100m Series C round in Jiliguala. (FS)
Tencent, a Chinese multinational technology conglomerate, led a $100m Series C round in Jiliguala, an online English learning platform, with participation from Trustbridge Partners, a private equity firm.
With the fresh proceeds, Jiliguala will seek to launch more products.
Tata Capital Growth Fund II hits final close at $170m. (FS)
Tata Capital Growth Fund II, the second growth capital private equity fund of the group’s financial services business, has raised $170m for the fund's final close.
The capital was raised from existing and new investors such as global and European funds, reputed Japanese institutions and a leading Asian development financial institution. The fund is sponsored and managed by Tata Capital.
The funds raised will be invested across strategic services, urbanisation, and discrete manufacturing, continuing the investment strategy pursued by Tata Capital Growth Fund I,
DealStreetAsia reported.
Grab weights US IPO this year.
Grab, a Singapore-based ride-hailing and food delivery company, is exploring a listing in the United States this year, supported by strong investor support for IPOs.
The IPO could raise at least $2bn, which would likely make it the largest overseas share offering by a Southeast Asian company.
The plans, including the size of the issue and timing, have not been finalised and are subject to market conditions. The IPO plans would come after merger discussions with Indonesian rival Gojek were dropped.
Nazara Technologies becomes first Indian gaming firm to file IPO.
Rakesh Jhunjhunwala-backed Nazara Technologies became the first Indian gaming technology company to seek a market debut,
DealStreetAsia reported.
Mumbai-based mobile gaming company had received approval from the Securities and Exchange Board of India for its initial public offering in 2018. According to the draft papers of listing, Nazara’s public issue will see sale of 5,543,052 equity shares.
“The listing will also provide a public market for equity shares in India", Nazara Technologies.
Pizza Hut to squeeze out Domino’s in the Australian market as owners mull IPO. (FS)
Pizza Hut, a fast-food chain, has revealed ambitions to dismiss rival Domino’s as the nation’s dominant pizza chain, as its private equity owner Allegro Funds explores a possible ASX float of the business.
Pizza Hut, which has fallen in popularity, has been buoyed by recent investor desire for the burgeoning fast-food space. The chain’s Australian operations were sold by US-based Yum! Brands in 2016 to Allegro, which made major changes to the business to allow the brand to compete in the UberEats-driven delivery market.
“We’re in a very, very strong position because of the technology that we put into place and also our operational excellence, which has meant our cash flows over the course of Covid has increased 60%. Our ambition is very clear: get Pizza Hut Australia right back to number one,” Phil Reed, Pizza Hut CEO.
