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EMEA
Boston Scientific to acquire BTG plc for £3.3bn ($4.2bn).
Boston Scientific reached an agreement on the terms of a recommended offer to acquire BTG plc., a company which develops and commercializes products used in minimally-invasive procedures targeting cancer and vascular diseases, as well as acute care pharmaceuticals.
Under the terms of the transaction, holders of BTG's common shares would receive cash consideration of 840 pence per share. The total cash consideration for 100% of BTG's equity is approximately £3.3bn ($4.2bn).
The transaction is intended to be effected by way of an English court-sanctioned scheme of arrangement and is expected to close in the first half of 2019.
"Boston Scientific shares our commitment to transforming patient care and has a sustained track record of innovation, clinical expertise, and global commercial capabilities. The combined organization will be well positioned for success, enabling our valuable products to make a real difference to more people around the world" said Dame Louise Makin, chief executive officer, BTG.
Goldman Sachs, JP Morgan, Rotshild & Co, and Allen & Overy adviced BTG plc. Barclays, Arnold & Porter, Shearman & Sterling and Travers Smith advised Boston Scientific.
EU approved Takeda’s Shire takeover.
The European Commission approved the $62bn takeover, which was announced in May, subject to the divestment of a Shire drug in development. The Commission said Takeda had agreed to the sale in order to ensure that the drug in Shire’s product pipeline aimed at treating inflammatory bowel disease would continue its way to the market, where it is expected to compete with Entyvio, Takeda’s biggest-selling drug.
Previously Takeda secured clearance for the transaction from the US, Japan, China and Brazil.
Takeover of Asda could harm British agricultural sector.
Sainsbury’s recent takeover of Asda could lead to a further price squeeze and reduce choice and innovation of products, according to National Farmers’ Union, an industry association for farmers in England and Wales. The £7.3bn ($9.4bn) takeover, which was announced in April, could overtake Tesco as UK’s biggest supermarket group. The Competition and Markets Authority is currently probing the deal and seeking views from interested parties.
Sainsbury’s and Asda’s key argument is that the deal would lower prices and improve the customer offer of both brands while allowing suppliers to grow their businesses. The CMA said last month it expected to issue provisional findings early next year, ahead of a final report in March.
Goldman Sachs selected to advise Kuwait Projects Co on potential OSN sale.
Kuwait Projects Co, the Gulf state’s largest investment company, has hired Goldman Sachs to advise it on the sale of its majority stake in pay-television operator OSN.
OSN, which this year signed the first partnership deal in the region with Netflix, posted a 71% drop in income in the three months to Sept. 30, according to KIPCO’s latest financial results. Dubai-based OSN has been facing fierce competition in a changing entertainment landscape that has involved a move away from traditional paid television providers.
OSN faces subdued demand in its core markets due to piracy, geopolitical factors and fiscal reforms by governments which have led to sizeable expatriate populations leaving some of its core markets, said Anuj Rohtagi, director of group financial control at KIPCO in KIPCO’s third-quarter earnings conference call on Nov. 15. He added OSN was taking action to cut costs and attract new customers.
Tradeshift offers to acquire Arrowgrass-backed Basware. (FS)
Tradeshift made the offer last month, according to the people, who asked not to be identified because the information is private. Espoo-based Basware hasn’t received any confirmation that bid financing has been secured, and there’s no certainty a transaction will be made at a certain price, it said in the statement. A deal could help Tradeshift better compete with software giants such as SAP SE and Oracle Corp.
Basware, which is backed by hedge fund Arrowgrass Capital Partners, makes software that helps businesses manage expenses, run analytics on cost and sales, issue invoices and procure supplies.
AMERICAS
KKR entered into an agreement to acquire GeoStabilization International from CAI Capital Partners. This transaction marks KKR’s third acquisition of a middle-market business in the industrials sector this year. GSI is a leading provider of landslide repair and rockfall mitigation services in the United States and Canada, developing and implementing innovative solutions that remediate geo-hazards in order to restore the safe operability of impacted infrastructure. The financial details of the deal were not disclosed.
Over the past seven years, KKR’s Industrials team has focused on employee engagement as a key driver in building stronger businesses. The cornerstone of the strategy has been to allow all employees to take part in the benefits of ownership by granting them the opportunity to participate in the equity return directly alongside KKR.
Fully committed financing has been led by lead arrangers UBS Securities LLC and KKR Capital Markets.
KKR was advised in the transaction by Kirkland & Ellis LLP. GSI and CAI were advised by William Blair and Perkins Coie LLP.
CVS looks to close Aetna deal after Thanksgiving.
CVS Health Corp said on Tuesday that it expects to close its $69bn purchase of health insurer Aetna Inc after Thanksgiving. The transaction was first announced in December of 2017. The pharmacy chain and benefits manager had previously expected the transaction to close by Nov. 22.
CVS said in a filing that it had received approval from 26 of the 28 state departments of insurance and was in the final stages of the approval process with the two remaining states.
Amazon and Blackstone bid for 22 Disney sports channels.
Disney disinvests the regional sports network, including New York-focused Yes Network, as part of its agreement with the US Department of Justice, regarding its recent acquisition of Fox. The assets could be worth as much as $20bn. An unnamed sovereign wealth fund and the New York Yankees are also bidding for the New York network.
Moreover, Fox Executive Chairman Lachlan Murdoch had hinted earlier this month that it could buy back the regional sports networks it sold to Disney. The second round of bids are expected before the year ends and due diligence on the bids begin next week.
Uber expresses interest in acquiring Careem.
Dubai Middle East ride – hailing firm Careem has been working with Jefferies as an adviser on investment options and fundraising with Uber Technologies Inc.
Uber is interested in a deal providing them with a majority, controlling stake in Careem.
Chief Executive Dara Khosrowshahi has said Uber would not consider additional deals with international rivals that give it only a minority stake.
Careem said in October it had secured $200m in a new funding round from existing investors, and that is expected to raise more to finance expansion plans. That investment, combined with previous fundraising and company growth into new markets and segments, gave Careem an estimated valuation of over $2bn.
Elliot Management keeps pressuring Mitek. (FS)
Elliott said on Tuesday that it asked the company to allow the hedge fund to buy more stock. Mitek, a software company that specializes in digital identity verification and mobile capture built on artificial intelligence algorithms, has been an object of takeover interest from Elliott since August.
Elliott said Mitek was adopting a “path of entrenchment” and had not properly engaged with the hedge fund. It noted that director Bruce Hansen sold Mitek stock at $8.66 earlier in the year, which prompted it to question, in its letter, why a deal at $10 a share would undervalue the company. Elliott also said a number of board members were stretched thin by serving on too many boards.
Mitek’s share price has climbed 8.64% over the past month and was trading at $9.48 on Tuesday.
APAC
SoftBank to invest $2bn in Korean E-Commerce site Coupang. (FS)
SoftBank Group Corp’s Vision Fund is investing $2bn in South Korea’s top e-commerce firm Coupang, as the loss-making startup girds for battle against rivals backed by the country’s cash-rich chaebol.
Coupang is a major player in the country’s e-commerce market. However, it has suffered significant losses, as it poured money into building new technology and its logistics infrastructure.
“The $2bn we are receiving now is exciting because we can invest in more technology platforms that enable this innovation,” said Coupang founder and chief executive Bom Kim.
Tata to go slow on a deal to acquire debt-laden Jet Airways.
Indian conglomerate Tata Sons Ltd will go slow on a deal to buy Jet Airways Ltd after some directors expressed reservations at an inconclusive board meeting last Friday.
Tata Sons said last Friday it was in preliminary talks with struggling Jet Airways but had not made a proposal to buy a stake. “You can’t rush into a complex situation that could cost the group up to $2bn without doing serious homework,” – as one source said.
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