EMEA
Sunrise Communications’ $6.3bn deal to buy US cable giant Liberty Global’s Swiss assets, immediately hit an obstacle as a key shareholder said it would shun a planned rights issue to finance the acquisition.
Sunrise agreed to buy UPC Switzerland from John Malone’s Liberty Global and finance the transaction with a $4.1bn rights issue.
The acquisition will bolster Sunrise’s position against Switzerland’s dominant mobile and internet provider Swisscom and comes as Malone is cashing out of some of his European investments.
Sunrise is advised by PwC, Deutsche Bank, Morgan Stanley, UBS, Latham & Watkins, Lenz Staehelin, Meyerlustenberger Lachenal, NautaDutilh, Slaughter & May, and Deloitte. Liberty Global is advised by Credit Suisse, JP Morgan, and Lion Tree Advisors.
Livingbridge acquired FluidOne, a leading data connectivity aggregator, from Rigby Group, a holding for several family-owned businesses. Financial terms were not disclosed.
FluidOne provides a range of quality data connectivity services to UK businesses across the construction, hospitality, hotels, professional services, and retail sectors. The business helps to securely connect any device to business-related data and applications through its integrated technology platform.
“We have demonstrated impressive growth over recent years and have significant ambition for the future, so it’s very pleasing to have Livingbridge’s support as we look to exploit the numerous opportunities and develop a strong M&A pipeline in this expanding market.” Russell Horton, FluideOne CEO.
German Finance Minister skeptical about the merits of Commerzbank-Deutsche Bank merger.
A merger between Deutsche Bank and Commerzbank does not make economic sense according to an advisor to Germany’s Finance Ministry.
Joerg Rocholl, the deputy chairman of a council of outside experts who advise the Finance Ministry, said Deutsche Bank should be given time to continue to improve profitability.
“Deutsche Bank has just made its first profit in several years and even exceeded its cost targets. One should give the bank and its management time to continue along this path,” he told Reuters.
ABB rules out large acquisitions for near future.
ABB will not be making significant acquisitions in the near future, Chief Executive Ulrich Spiesshofer said, saying money raised from the near-$8bn gained from the sale of its power grids business will go to shareholders.
Management will be busy with the company’s restructuring for the next year and a half, Spiesshofer told Reuters on the sidelines of a press conference. Future acquisitions would depend on ABB having the management capacity to integrate the target company.
“You should not expect acquisitions in the tens of billions,” Spiesshofer said, adding smaller technology purchases could still be possible in areas like measurement technology.
Canada's OMERS eyes a stake in Brussels Airport as the bid deadline looms. (FS)
Canada’s pension fund, OMERS, has moved out as a strong contender for a 36% stake in Brussels Airport ahead of final bids due in mid-March.
OMERS, the former owner of London City Airport, will compete with a consortium formed by Dutch pension fund manager APG and Australian infrastructure fund QIC and a second consortium led by CPPIB which includes Dutch pension fund PGGM and local Belgian insurance player AG, part of Ageas.
Macquarie has backed Brussels Airport for around 10 years but hired JP Morgan in early 2017 to help it exit as this is the last remaining asset of its first European infrastructure fund.
AMERICAS
Activist investor Starboard Value became the latest investor to publicly criticize Bristol-Myers Squibb’s $90bn takeover of Celgene, putting in jeopardy one of the largest pharmaceutical deals in history.
Starboard said it would vote against BMS’s acquisition of Celgene, a day after the drugmaker’s largest shareholder came out against the blockbuster deal, arguing it had overpaid for the biotech group.
“We believe the risks inherent in this acquisition paired with the long-term poor results at Bristol-Myers make it untenable to support such a transaction,” the investor said in a letter to Bristol-Myers shareholders.
Carillon Tower increased its ownership stake to 100% in ClariVest Asset Management. The move follows Eagle’s purchase of an initial 45% stake in ClariVest in 2012. Financial terms were not disclosed.
ClariVest, which has $7.3bn in assets under management, provides investment services to clients including mutual funds and other pooled vehicles, corporate and public pensions, foundations, and multiemployer defined benefit plans. The firm invests across a range of equities strategies, including US large and small cap, international and emerging markets equities.
“We deeply value the partnership we have built with ClariVest in recent years, and we look forward to achieving an even stronger connection between Carillon Tower’s distribution capabilities and ClariVest’s unique investment products. ClariVest’s distinctive approach and experienced team continue to offer attractive solutions that address the needs of institutional investors globally.” Cooper Abbott, Carillon Tower President.
Pathnostics specializes in diagnostic tests and services across a range of therapeutic areas, including urology, women’s health, gastroenterology, and cancer. Financial terms were not disclosed.
“Their (Water Street) industry expertise and network of resources will give us the ‘lift’ we need to take Pathnostics to the next level to benefit our customers and achieve our long-term vision of building Pathnostics into a diagnostic solutions leader.” Dave Pauluzzi, Pathnostics co-founder and CEO.
Windjammer Capital Investors acquired Hermetic Solutions Group, a leading global provider of a mission-critical, highly engineered component and protection solutions. Financial terms were not disclosed.
"Windjammer offers an additional level of professional resources that will enhance our efforts of putting the customers at the center of everything we do – from operational excellence to identification of new growth opportunities that complement our existing businesses – we are well positioned to meet and exceed customer expectations. I’m extremely proud of what HSG has accomplished and look forward to our bright future.” William J. Hubbard, Hermetic Solutions President, and CEO.
Disney in talks with AT&T to buy WarnerMedia's Hulu stake.
Walt Disney is actively pursuing the purchase of WarnerMedia’s nearly 10% stake in Hulu. The transaction would value AT&T's stake close to $1bn and give Disney up to a 70% ownership in Hulu.
Disney, Comcast and Twenty-First Century Fox each had a 30% stake in the video streaming service Hulu, as of September 2018. In November last year, AT&T committed to cutting its heavy debt load in 2019 through a variety of measures, including a review of all of its non-core assets such as its stake in Hulu for a possible sale.
OMPE exits Perennials and Sutherland. (FS)
OMPE, a business unit of ORIX Corporation, which has partnered with Acacia Partners for the investment in Perennials and Sutherland in December of 2015, is now looking for exit.
Perennials and Sutherland is a leading designer and manufacturer of solution-dyed acrylic performance fabric and rugs for indoor and outdoor use, as well as luxury outdoor furniture. The Dallas-based company also manages a number of showrooms, studios, and boutiques across the country.
“We are very pleased with the outcome of our investment. Perennials and Sutherland, along with Acacia Partners, worked incredibly hard to increase the value of the brand, invest for growth and solidify its position as a leader within its market. We are thankful for their effort and dedication to making this a great equity investment.” Jeff Sangalis, OMPE head.
APAC
Bingo Industries acquired fully integrated NSW waste and recycling business Dial A Dump Industries for $578m and received regulatory approval for its planned acquisition.
It comes as Bingo Industries released its full-year results. According to an ASX statement, consideration for the acquisition will comprise $378m in cash and $200m in Bingo shares to be issued to vendors of Dial A Dump Industries Group (DADI Group) after the acquisition is completed.
"This acquisition will allow us to realize our vision for our world-class Recycling Ecology Park at Eastern Creek. This multi-million dollar development will expand our waste processing capability, increasing recovery rates for customers and producing more recycled products," reported Bingo Industries.
Dial A Dump is advised by Arnold Bloch Leibler. Bingo Industries is advised Herbert Smith Freehills.
China’s car trading platform Chehaoduo raised $1.5bn from SoftBank Vision Fund. (FS)
Chinese car trading platform Chehaoduo lifted $1.5bn in fresh funding from SoftBank Vision Fund.
The parent company of Guazi and Maodou allows customers to buy and sell used and new cars. Its investors include Sequoia Capital, Tencent Holdings, Bluerun Ventures, Matrix Partners and Singapore’s sovereign wealth fund GIC.
Chehaoduo said it will use the capital infusion for technology innovation and to develop new products and services. It also intends to expand its marketing capabilities and open offline stores.
“The global automotive industry is experiencing unprecedented change and with this change comes great opportunities. The application of big data and artificial intelligence is the key to fundamental reform of automotive retail in China,” Mark Yang, Chehaoduo Group CEO.
Abu Dhabi fund partners with Kotak to launch a $500m distressed assets vehicle in India. (FS)
Abu Dhabi Investment Authority set up a distressed assets fund in India, anchoring it with a $500m commitment. The sovereign wealth fund is partnering with Kotak Investment Advisors for the Kotak Special Situations Fund, which will target non-performing loan opportunities in the South Asian nation.
The fund will target both pre-stress and distressed opportunities, with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency.
“With a broad mandate to invest across asset types and sectors, our new partnership with Kotak will contribute to this process and help to ease the burden of NPLs on the Indian financial system,” Hamad Shahwan Aldhaheri, executive director of the private equities department at ADIA.
KKR looks at Indian NBFCs aquisition and is considering the partnerships with local lenders. (FS)
KKR is looking to lend in partnership with Indian banks and buy more local non-bank financiers as a funding squeeze in the world’s fastest-growing economy creates opportunities for US private equity giants.
“We are in dialogue with banks to see if there are creative ways to partner” to lend to small-to-midsized companies, B V Krishnan, chief executive officer of KKR India Financial Services, said in an interview in Mumbai. KKR is also looking for acquisitions of Indian non-bank lenders, according to Krishnan, in line with what people with knowledge of the matter said in October.
Singapore’s GIC said to invest in US crypto exchange Coinbase. (FS)
GIC invested in US cryptocurrency exchange Coinbase. Coinbase raised $300m last year.
While Coinbase said it garnered investment in its October funding round from firms including Tiger Global Management, Wellington Management, and Andreessen Horowitz, GIC’s participation hasn’t previously been disclosed.
With the foray into digital assets, possibly its first, GIC joins a select group of large, sophisticated investors including Yale University willing to dip their toes into the crypto industry.
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