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AMERICAS
Elon Musk pledged an additional $6.25bn in equity financing to fund the $44bn offer for Twitter, an American microblogging and social networking service, reducing the billionaire's margin loan against Tesla shares to zero, Reuters reported.
The disclosure signaled Musk is working to complete the deal even though he had linked its progress to Twitter last week, presenting proof that spam bots accounted for less than 5% of the total users.
Twitter is advised by Allen & Company, Goldman Sachs, JP Morgan, Simpson Thacher & Bartlett, Wilson Sonsini Goodrich & Rosati and Joele Frank. Financial advisors are advised by Sullivan & Cromwell. Elon Musk is advised by Bank of America, Barclays, Morgan Stanley, McDermott Will & Emery and Skadden Arps Slate Meagher & Flom. Debt financing is provided by BNP Paribas, Bank of America, Barclays, Mitsubishi UFJ Financial Group, Mizuho Securities, Morgan Stanley and Societe Generale. Debt providers are advised by Davis Polk & Wardwell.
Broadcom, a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions agreed to acquire VMware, an innovator in enterprise software, from Silver Lake, a private equity firm, for $69bn.
"Building upon our proven track record of successful M&A, this transaction combines our leading semiconductor and infrastructure software businesses with an iconic pioneer and innovator in enterprise software as we reimagine what we can deliver to customers as a leading infrastructure technology company. We look forward to VMware's talented team joining Broadcom, further cultivating a shared culture of innovation and driving even greater value for our combined stakeholders, including both sets of shareholders," Hock Tan, Broadcom President and CEO.
VMware is advised by Goldman Sachs, JP Morgan, Gibson Dunn & Crutcher and Sard Verbinnen & Co. Broadcom is advised by Bank of America, Barclays, Citigroup, Credit Suisse, Morgan Stanley, Wells Fargo Securities, Cleary Gottlieb Steen & Hamilton, O'Melveny & Myers, Wachtell Lipton Rosen & Katz and Joele Frank. Silver Lake is advised by Simpson Thacher & Bartlett.
Preferred Apartment Communities, a real estate investment trust, announced that Institutional Shareholder Services, a proxy advisory firm, recommended that stockholders vote "for" acquisition by Blackstone Real Estate Income Trust, a real estate investment platform, at PAC's upcoming special meeting of stockholders.
PAC stockholders are reminded that their vote is crucial, no matter how many shares they own. To follow the recommendations of ISS and PAC's Board of Directors, stockholders should vote "for" the proposed acquisition of PAC by BREIT.
PAC is advised by Goldman Sachs, KeyBanc Capital Markets, King & Spalding, Vinson & Elkins and Longacre Square Partners. BREIT is advised by Bank of America, JLL Corporate Finance, Lazard, Wells Fargo Securities, Simpson Thacher & Bartlett and Joele Frank.
H.I.G. Capital, a private equity firm, agreed to acquire Terra Millennium, a provider of outsourced industrial maintenance services, from Court Square Capital, a private equity firm. Financial terms are not disclosed.
"I am proud of Terra Millennium's success to date. The investment by H.I.G. is recognition of all that the team has accomplished, and we are excited to partner with H.I.G. to support our next phase of growth," Mark Stutzman, Terra Millennium Executive Chairman.
Terra is advised by Dechert, Harris Williams & Co and Evercore. H.I.G. Capital is advised by Macquarie Group, Stifel and McDermott Will & Emery. Debt financing is provided by Stifel and Macquarie Group.
AMD, a firm that designs microprocessors for the computer and consumer electronics industries, completed the acquisition of Pensando, an operator of a distributed services platform, for $1.9bn.
“Pensando’s leadership DPU complements our data center product portfolio, enabling AMD to offer solutions that can significantly accelerate data transfer speeds while providing additional levels of security and analytics that will play a larger role in defining the performance of next-generation data centers," Lisa Su, AMD Chairman and CEO.
Pensando was advised by Centerview Partners and Wilson Sonsini Goodrich & Rosati. Centerview Partners was advised by Simpson Thacher & Bartlett. AMD was advised by DBO Partners and Latham & Watkins. DBO Partners was advised by Morgan Lewis & Bockius.
EnLink Midstream, a natural gas transmission company, agreed to acquire the North Texas gathering and processing assets of Crestwood Equity Partners, a private equity firm, for $275m.
"We are very pleased to announce the agreement to acquire this gathering and processing system in North Texas, which is composed of assets that are highly complementary to EnLink's, both in North Texas and in our other areas of operation," Barry E. Davis, EnLink Chairman and CEO.
EnLink Midstream is advised by Baker Botts. Crestwood Equity is advised by Citigroup, RBC Capital Markets, Locke Lord and Vinson & Elkins.
iCapital, a fintech platform, agreed to acquire SIMON Markets, a securities product and services provider. Financial terms were not disclosed.
“We have long-admired iCapital and everything it has accomplished in the alternative investing space. After a highly collaborative exploratory process over recent months, it became abundantly clear that together we can create an unrivaled experience for our clients and set the stage for iCapital’s continued expansion of investment opportunities and support services for advisors. Together we’re delivering something the wealth management industry has wanted for a very long time – access to all alternative solutions under one, centralized platform," Jason Broder, SIMON CEO.
SIMON is advised by Goldman Sachs. iCapital is advised by Morgan Stanley, UBS, Skadden Arps Slate Meagher & Flom, and The Neibart Group.
Abry Partners, a private equity firm, completed an investment in CCS Fundraising, a philanthropic fundraising services provider. Financial terms were not disclosed.
"This investment gives us additional tools and resources to continue to provide our clients with exceptional services and bolsters our ability to continue hiring best-in-class professionals committed to delivering transformational change for nonprofits," Rick Happy, CCS Fundraising Chairman.
CCS Fundraising was advised by William Blair & Co, Shearman & Sterling and Berlin Rosen. Abry Partners was advised by BrightTower and Kirkland & Ellis.
Westwood, an investment management boutique and wealth management firm, agreed to acquire the asset management business of Salient Partners, an investment firm, for $60m.
“These additional investment strategies are designed to provide solutions that we believe investors are increasingly seeking, including alternative sources of income, real assets with inflation protection, low correlation to traditional asset classes and volatility mitigation. Incorporating these strategies will allow us to capitalize on the substantial investments we have made in our distribution platform over the last several years and will position us to serve a broad range of client needs and accelerate the growth of our business. This transaction provides a genuine cultural fit, aligns with our strategic objectives and strengthens our business moving forward. The many opportunities for product extensions across the combined range of investment capabilities, including multi-asset, real assets and alternative strategies, have energized our teams,” Brian O. Casey, Westwood President and Chief Executive Officer.
Westwood is advised by RBC Capital Markets, Willkie Farr & Gallagher and Hewes Communications. Salient Partners is advised by Jefferies & Company.
Shadowbriar Capital Partners, a private equity firm, completed the acquisition of a majority stake in Benada Aluminum Products, an aluminum supplier, from private equity firms Big Shoulders Capital and ABGB Capital. Financial terms were not disclosed.
"Our management team is delighted to partner with Shadowbriar given its expansive vision for our Company and deep experience in both industrials and manufacturing. We would also like to thank Big Shoulders and ABGB for their support while we grew significantly under their ownership," Jim Piperato, Benada CEO.
Shadowbriar was advised by McDonald Hopkins. Debt financing was provided by White Oak Commercial Finance. Big Shoulders was advised by Livingstone Partners and Bryan Cave Leighton Paisner.
TransDigm, a manufacturer of aircraft components, completed the acquisition DART Aerospace, a provider of highly engineered, unique helicopter mission equipment solutions, from Greenbriar Equity, a private equity firm, and First Aviation Services, a provider of component repair and overhaul, for $360m.
"We are excited about the acquisition of DART Aerospace. DART is an industry leader in helicopter mission equipment and its unique helicopter solutions fit well with our proprietary and aftermarket-focused value generation strategy. The Company has established positions on a diverse range of new and existing rotary-wing platforms, strong aftermarket content and an outstanding reputation with its customers. As with all TransDigm acquisitions, we expect the DART acquisition to create equity value in-line with our long-term private equity-like return objectives," Kevin Stein, TransDigm President and CEO.
DART Aerospace was advised by Houlihan Lokey. TransDigm was advised by Jones Day.
Kelso & Co, a private equity firm, completed the acquisition of a majority stake in Inovar Packaging Group, a provider of pressure-sensitive labels, shrink sleeves and flexible, from AEA Investors, a private equity firm. Financial terms were not disclosed.
“Kelso is the perfect partner to support Inovar’s next stage of growth. We are fully aligned on the near and long-term vision for Inovar, which will provide increased value for our customers and more opportunities for our people, while strengthening our position as the partner of choice for other label and packaging companies seeking to join a premier, nationwide platform,” Jeff Brezek, Inovar Chairman and CEO.
Inovar was advised by Raymond James. Kelso & Co was advised by Profile Advisors.
HealthEdge and 424 Capital-backed itrac, a healthcare solutions organization, completed the acquisition of SmartBox Dental, an online dental marketing company. Financial terms were not disclosed.
"SmartBox customers will not see any disruption in deliverables, but rather an increased investment in the technology, services, and growth tools we can offer them," Colin Receveur, SmartBox Founder CEO.
SmartBox was advised by KPMG and Wyatt Tarrant & Combs.
The Riverside Company, a private equity firm, completed the acquisition of Granite Garage Floors, a franchise company that provides garage floor coatings for residential and commercial customers. Financial terms were not disclosed.
“GGF represents an attractive opportunity to expand the business into garages – a complementary area to Threshold’s existing concepts that further extends its reach across areas of the home. This business benefits from high margins and attractive economics, which are important factors for our franchise partners," Loren Schlachet, Riverside Managing Partner.
Riverside was advised by Jones Day.
US official warns significant issues remain on China audit talks.
Several hurdles remain to be resolved in an impasse over audits on US-listed Chinese firms to avoid forcing companies such as Alibaba Group Holding and Baidu off American exchanges as early as next year, a Securities and Exchange Commission official said.
“While there has certainly been progress in the discussions on audit inspections in China and Hong Kong, significant issues remain, it will only be a first step,” YJ Fischer, SEC Director of the Office of International Affairs.
SEC proposes more disclosure requirements for ESG funds.
Regulators proposed new disclosure and naming requirements for investment funds that tap into public angst regarding climate change or social justice, in an effort to address concerns about “greenwashing” by asset managers seeking higher fees.
The Securities and Exchange Commission voted to issue two proposals that aim to give investors more information about mutual funds, exchange-traded funds and similar vehicles that take into account ESG or environmental, social and corporate-governance factors. One of the proposed rules, if adopted, would broaden the SEC’s rules governing fund names, while the other would increase disclosure requirements for funds with an ESG focus, WSJ reported.
NEA passes $5bn for latest fundraising pair. (FS)
Venture capital giant New Enterprise Associates has hauled in more than $5bn across its latest pair of hefty fundraises.
NEA is a global venture capital firm partnering with entrepreneurs to build transformational businesses across multiple stages and sectors. NEA focuses investment stages ranging from seed stage through growth stage across an array of industry sectors. With approximately $25bn in committed capital.
EMEA
European Commission approved the acquisition of the company by Volkswagen, Attestor, an asset management company, and Pon Holdings, a mobility group, for $3.4bn.
With the last remaining condition precedent of the offer now fulfilled, the contemplated acquisition is entering its final phase, with the closing date of the initial tender offer period set by the French financial market authority on June 10, 2022.
Europcar is advised by Guggenheim Partners, Rothschild & Co, Darrois Villey Maillot Brochier, Latham & Watkins, White & Case, Willkie Farr & Gallagher and Publicis Consultants. Pon Holdings is advised by AyacheSalama, Clifford Chance, De Brauw Blackstone Westbroek and Confidant Partners. Attestor is advised by Cleary Gottlieb Steen & Hamilton. Volkswagen is advised by BNP Paribas, Bank of America and Freshfields Bruckhaus Deringer.
Goldman Sachs Asset Management agreed to acquire a majority stake in Norgine, a European specialty pharmaceutical company, from Stein Family for $1.9bn.
"I am delighted to announce this transformative investment by Goldman Sachs Asset Management which ensures that Norgine can accelerate its growth plans and develop and launch further innovative medicines for the benefit of patients. Norgine has been delivering on this crucial mission for over a century. With Goldman Sachs Asset Management's support, Chris and the entire Norgine team will be able to expand upon this proud heritage. I am particularly pleased that, in partnership with Goldman Sachs Asset Management, my family will be able to continue its long association with the Company and I look forward to supporting Norgine in this exciting next phase of development," Peter Stein, Norgine Chairman.
Goldman Sachs Asset Management is advised by Deloitte, Goldman Sachs, Jefferies & Company and White & Case. Norgine is advised by PricewaterhouseCoopers, Jamieson, Moelis & Co, Rothschild & Co and Latham & Watkins.
The UK will review Altice's increased stake in BT Group, a British multinational telecommunications holding company, after Kwasi Kwarteng, Business Secretary, exercised new takeover powers focusing on national security, Bloomberg reported.
Altice, an American cable television provider, increased its stake in BT Group from 12.1% to 18% in December 15, 2022. The company now is BT's largest shareholder and the investment has raised concerns in government.
Altice was advised by Herbert Smith Freehills.
Saudi Aramco shows interest in buying Valvoline's commercial unit.
Oil giant Saudi Aramco has approached motor oil and lubricant maker Valvoline to buy its segment that caters to commercial customers, Reuters reported.
Valvoline, which is valued at $5.4bn, had last year decided to separate its retail services and global products division, following a strategic review.
Russia prepares to seize western firms looking to leave.
Russia is advancing a new law allowing it to take control of the local businesses of western companies that decide to leave in the wake of Moscow’s invasion of Ukraine, raising the stakes for multinationals trying to exit, Reuters reported.
The law, which could be in place within weeks, will give Russia sweeping powers to intervene where there is a threat to local jobs or industry, making it more difficult for western companies to disentangle themselves quickly unless they are prepared to take a big financial hit.
Citi and FAB among banks set to share $30m from Borouge IPO.
Banks including Citigroup, First Abu Dhabi Bank, HSBC Holdings and Morgan Stanley are set to share up to $30m in fees for working on the initial public offering of chemical producer Borouge in Abu Dhabi, Bloomberg reported.
The share sale is seeking to raise $2bn , set to be the biggest listing in the United Arab Emirates’ capital. Borouge said the joint bookrunners would receive a 1.25% underwriting commission as well as a discretionary fee of up to 0.25% of the deal size.
Saudi Arabia’s Al Othaim family pulls IPO for malls unit.
Saudi Arabia’s Al Othaim family has shelved plans for an initial public offering of its malls business, in a sign the global IPO market malaise is spreading to the Middle East.
Abdullah Al Othaim Investment decided to reschedule the roadshow and bookbuilding process for the IPO, Bloomberg reported.
Klarna in talks with investors to raise more money. (FS)
Swedish payments firm Klarna is in talks with investors to raise more money and has no plans to go public this year, Chief Executive Sebastian Siemiatkowski said in an interview two days after the firm laid off 700 staff.
Klarna investors include Silver Lake, BlackRock, GIC, and Permira and was valued about $46bn it got in June last year. The company made about 10% of its workforce redundant, citing rampant inflation and the war in Ukraine worsening business sentiment.
Synthesis Capital launches dedicated food technology Venture Capital Fund. (FS)
Synthesis Capital, a global food technology and alternative protein investor, today announces Synthesis Capital Fund I. With over $300m in assets under management, Synthesis now represents the largest Fund ever raised for the sector.
“We are now at an inflection point in the industry where real innovation is coming to bear in the food system, driven by a confluence of factors including capital markets readiness, prioritisation of sustainability and climate goals by governments and corporates, and consumer choice shifting towards healthier and animal-free foods. With deep experience in this sector, we are ready to take advantage of this significant investment opportunity, and are confident that alternative proteins will no longer be considered “alternative” in the near future. We are incredibly grateful for the support of our investor partners who share our belief in the significant potential of harnessing alternative protein technologies and platforms to transform our ailing and antiquated food system," Rosie Wardle, Synthesis Capital Partner and Co-Founder.
APAC
ECARX, a global mobility tech company, agreed to go public via a SPAC merger with COVA Acquisition, a special purposes acquisition vehicle, in a $3.8bn deal.
"The global auto industry is experiencing the fastest transformation in its history – the era of internal combustion engines and horsepower is over. We believe vehicle DNA will transform more in the next decade than it has in the past hundred years, and this shift will drive an extensive change in OEM vehicle development, calling for all-new platforms, advanced computing power and continuous over-the-air software updates. ECARX's vertically integrated, full-stack automotive computing platform and underlying core technologies are designed to help meet this evolving demand head-on. COVA's leadership team has an exceptional track record backing high growth ventures, and we look forward to unlocking partnerships and paths for collaboration to accelerate development of next-generation technologies," Ziyu Shen, Co-founder, ECARX Chairman and CEO.
ECARX is advised by Morgan Stanley, UBS and Skadden Arps Slate Meagher & Flom. COVA is advised by Cantor Fitzgerald and Orrick Herrington & Sutcliffe.
Toyota Tsusho, the trading arm of Toyota, agreed to acquire the remaining 40% stake in Eurus Energy, a wind energy producer, from Tokyo Electric Power, an electric utility holding company. Financial terms were not disclosed.
Toyota Tsusho has positioned “renewable energy” as one of its most important business strategies for its mid-term business plan. The initiative by Eurus trailblazed and developed, in particular, the wind power projects as early as late 1980s, and has continued its expansion further in the overseas and domestic markets. Furthermore, last November “Carbon Neutral Roadmap 2030” became a concrete action, one of core businesses of which is the renewable energy business, and going forward, this line of business is to be even more accelerated and expanded.
Mercer, an investment advisory services provider, to acquire asset management services providers Advance Asset Management and BT personal and corporate from Westpac, an Australian bank and financial services provider. Financial terms were not disclosed.
“This is a further step in the simplification of Westpac and supports the Group’s focus on banking in Australia and New Zealand. It also provides significant benefits for BT Super members, new opportunities for our people and redefines the landscape of superannuation in Australia. Since the formation of Westpac’s Specialist Businesses Division around two years ago we have made significant headway on our portfolio simplification agenda, having announced eight business sales, of which five have now completed," Jason Yetton, Westpac CEO.
Yancoal Australia parent explores a $1.8bn potential buyout bid. (FS)
Coal producer Yancoal Australia, parent and major shareholder Yankuang Energy Group was planning to acquire the remaining shares of the company that the Chinese group does not already own.
The bid was worth $1.8bn at $3.6 a share, would give Yankuang control of the remaining 37.7% stake in Yancoal, resulting in its delisting from Hong Kong and Australian bourses. The acquisition will be funded through issuance of convertible bonds for Yancoal's Hong Kong-listed shares, Reuters reported.
Yankuang already owns 62.3% stake, while Yancoal’s other major shareholders include China Cinda Asset Management (15.89%), Glencore (6.4%) and China Shandong Investments Limited (5.41%). About 10% of the company is in free float.
HSBC considers an IPO of business in Indonesia.
HSBC Holdings has been examining an initial public offering of its Indonesian business to tap buoyant investor demand in the world’s fourth-most populous country.
Plans for a share sale in Jakarta are at an advanced stage. It has yet to file a formal IPO application but the local regulator is aware of its intention. A spokesman for HSBC declined to comment. A spokesperson at Indonesia’s Financial Services Authority said the regulator doesn’t comment on corporate actions, Bloomberg reported.
Japan's Toshiba brings in M&A adviser and activists in board overhaul. (People)
Toshiba nominated an executive from M&A advisory firm Houlihan Lokey as chairperson and activist shareholders as outside directors on Thursday, in a board overhaul that could intensify pressure to take the conglomerate private, Reuters reported.
Ahead of its annual shareholders' meeting on June 28, Toshiba nominated Akihiro Watanabe, the founder of Japanese M&A advisory firm GCA, which was recently acquired by US investment bank Houlihan Lokey.
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