Read on...
Scroll down to read deal descriptions. Your suggestions and comments support the democratisation of M&A data. If you'd like to contribute to the future editions, drop us a line
AMERICAS
LeddarTech, an electronics company, agreed to go public via a merger with Prospector Capital, a special purpose acquisition company, in a $348m deal.
“We are pleased to partner with Prospector to solidify our position as a leading force in the nascent automotive software sector. This collaboration is expected to provide us with the necessary capital and resources to invest in our exceptional team, and take the company to the next level by positioning the company to secure customer wins and drive growth in our business. I am excited that LeddarTech has achieved this important milestone, which we believe will make LeddarTech one of the rare public companies in the pure-play ADAS/AD software space,” Charles Boulanger, LeddarTech CEO.
LeddarTech is advised by Stikeman Elliott and ICR (led by Kevin Hunt). Prospector Capital is advised by Current Capital, TD Cowen, Osler Hoskin & Harcourt and White & Case. Financial advisors are advised by Goodwin Procter.
Transom Capital, an operations-focused middle market private equity firm, completed the acquisition of aden + anais, a global designer and manufacturer of infant products. Financial terms were not disclosed.
"We are thrilled to welcome the HALO and aden + anais brands into the Transom Capital family. We believe the juvenile products space has significant opportunity for innovation and HALO/aden + anais are two of the strongest brands to foster creative product development, marketing, and consumer loyalty. We recognize the tremendous potential that the company holds, and we are committed to supporting its growth as a market leader in the premium baby and parenting industry," Russ Roenick, Transom Managing Partner.
aden + anais was advised by Robert W Baird and Gibson Dunn & Crutcher. Transom was advised by Kirkland & Ellis and 35th Avenue Partners (led by Sam Butler). Debt financing was provided by MidCap Financial Services.
Brookfield Renewable, one of the world's largest owners and operators of renewable power and climate transition assets, agreed to acquire the utility-scale Commercial Renewables business of Duke Energy, an American electric power and natural gas holding company, for $2.8bn.
"As one of the country's largest renewable energy operators, Brookfield has the resources to support the continued growth and success of the Commercial Renewables' portfolio. This sale is an important step in our transition into a purely regulated company with significant grid and clean energy investment plans that will deliver benefits to our customers and stakeholders," Lynn Good, Duke Energy Chair, President and CEO.
Duke Energy is advised by Morgan Stanley, Wells Fargo Securities and Skadden Arps Slate Meagher & Flom (led by Pankaj Sinha and Katherine Ashley).
Goldman Sachs Asset Management, a capital market company, agreed to invest $300m in Madhive, an advertising software platform engineered for modern TV advertising.
"Since inception, Madhive has been on a mission to modernize and simplify the ad-tech ecosystem. We purpose-built the Madhive platform in anticipation of the growth of streaming TV — investing in engineering, technology, and infrastructure. Our growth stems from collaborating with partners to solve a host of their unique requirements. Through our fully end-to-end tech stack for TV advertising, media sellers and advertisers have the flexibility and tools to reach streaming audiences efficiently at scale," Adam Helfgott, Madhive Founder and CEO.
Madhive is advised by Latham & Watkins and Fabric Media (led by Mike Gasbara). Goldman Sachs is advised by Weil Gotshal and Manges.
Redwood Trust, a specialty finance company focused on making credit-sensitive investments in residential mortgages and related assets, and Oaktree Capital Management, an asset management company, agreed to form a joint venture to invest in business purpose bridge loans. Financial terms were not disclosed.
"We are pleased to be partnering with Oaktree, a premier global investment manager, in a joint venture that will enhance our ability to provide solutions to a broad spectrum of real estate investors at an important point in the housing cycle," Dash Robinson, Redwood Trust President.
F2 Strategy, a wealthtech management consulting firm helping complex RIA, wealth, bank/trust and family office firms, agreed to acquire Oakbrook Solutions, a consulting and services firm for the Wealth Management industry serving banks and trust companies, RIAs, single and multi-family offices, private banks, retirement plan providers, custodians and other industry service providers, from Renovus Capital, a lower middle market private equity firm specializing in the Knowledge and Talent industries. Financial terms were not disclosed.
"This strategic deal marks a pivotal moment in our journey, as we combine our strengths with Oakbrook and add the support of Renovus Capital. Together, we will leverage our collective capabilities to uncover new opportunities, expand market reach, and deliver unparalleled results for our clients. I am honored to lead this unified team and couldn’t be more excited for the transformative impact we will have on the industry,” Doug Fritz, F2 Strategy Co-Founder and CEO.
F2 Strategy is advised by Broadhaven Capital Partners and StreetCred PR (led by Jimmy Moock).
The Riverside Company, a global private investor focused on the smaller end of the middle market, completed the acquisition of LightHouse Business Information Solutions, a provider of comprehensive outsourced IT services primarily to businesses across professional services, industrials, healthcare and non-profit verticals. Financial terms were not disclosed.
"LightHouse aligns well with ProVelocity and IronEdge, offering similar one-stop-shop IT outsourcing services with excellent customer service. LightHouse is a natural fit across all aspects of the business. As a result of this investment, there is substantial opportunity for continued growth in New Mexico," Loren Schlachet, Riverside Managing Partner.
The Riverside Company was advised by Jones Day (led by Chuck Hardin).
Pernod Ricard-backed Corby, a marketer and distributor of spirits and wines company, agreed to acquire a 90% stake in Ace Beverage Group, a beverage alcohol company, for C$165m ($124m).
“With ABG, Corby becomes a key player in the Canadian RTD market, giving the scale and synergies needed in this category. It is well aligned with our ambition of building a global RTD business and capture our fair share,” Fredrik Syrén, Pernod Ricard Global Managing Director of RTD and Convenience.
Petauri, a New York–based, purpose-built pharmaceutical services platform, completed the acquisition of The Kinetix Group, a strategic advisory, access marketing, and medical affairs agency. Financial terms were not disclosed.
"John, Sarah, and the TKG team have a stellar reputation for designing critical solutions for new and mature brands, and should continue to positively impact healthcare, now and in the future. Their best-in-class market access expertise and deep customer relationships across the healthcare ecosystem make TKG the ideal first acquisition for Petauri," Dan Renick, Petauri CEO.
GM, SDI will build $3bn battery manufacturing plant in Indiana.
General Motors and Samsung have selected New Carlisle as the site of a new electric vehicle battery cell plant in Indiana. The companies announced in April the joint venture to build the more than $3bn electric vehicle battery cell plant without specifying the location.
The plant will create 1.7k manufacturing jobs, said Governor Eric Holcomb. The project is GM’s fourth joint venture battery cell factory. It has announced three others with South Korea’s LG Energy Solution. A 900-worker factory near Warren, Ohio, is starting to build cells, while plants in Spring Hill, Tennessee, and Lansing, Michigan, are in the works.
The new Indiana plant will house production lines to build nickel-rich prismatic and cylindrical cells and is expected to help significantly increase the accessibility and affordability of electric vehicles. The facility will have more than 30 GWh of capacity once finished.
CubicPV receives first stage of $103m in equity financing to support US factory plans and tandem development. (FS)
Solar manufacturing innovator, CubicPV secured new firm equity commitments in excess of $100m in support of its US factory plans and tandem product roadmap. The investment will be split into two tranches, with the first $33m released immediately. The second tranche investment is tied to specific project milestones. Cubic’s strong shareholder base, led by SCG Cleanergy, a wholly owned subsidiary of SCG, with contributions from Hunt Energy and Breakthrough Energy Ventures, committed the capital to further accelerate the company’s growth strategy. Guggenheim Securities is acting as a financial advisor to Cubic.
“Today’s announcement underscores the considerable progress we’ve made, the depth of our engineering competence and the strength of our technologies to deliver a more powerful solar future. We thank SCG Cleanergy for their confidence in our manufacturing goals and product roadmap,” Frank van Mierlo, CubicPV CEO.
Cathie Wood funds buy shares of Meta for first time since 2021. (FS)
Cathie Wood is warming up to Meta Platforms. Two exchange-traded funds managed by Wood's ARK Investment Management — her flagship ARK Innovation ETF and the Ark Next Generation Internet ETF — scooped up shares of Meta, the company behind Facebook.
A website that tracks ARK trades shows that a number of the firm's ETFs last held shares of Facebook at the end of 2021, when the company still traded under the ticker FB, Bloomberg reported.
Arex Capital pushes Enhabit to consider company sale. (FS)
Hedge fund Arex Capital Management is urging Enhabit to put itself up for sale and wants the home health and hospice provider to begin a strategic review to help reverse a 50% slide in its share price. Enhabit is already interviewing two board directors proposed by Arex, which owns a 4.5% stake in the company, but the hedge fund wants more drastic action as the share price has been cut nearly in half since it went public a year ago, Reuters reported.
Enhabit was spun off from post-acute healthcare services provider Encompass Health on July 1, 2022 and since then its shares have dropped 47%, compared with a 16% gain in the S&P 500 index and an 11% increase in the Russell 2000 index. Since January the share price has fallen 7% to close at $12.11 on Monday, valuing the company at $607m. Arex wants the company to commit immediately to start a review before the end of the year and close any potential transaction after the two-year anniversary of the spinoff to avoid tax complications.
Towerbrook Capital-backed Kevin's Natural Foods explores sale. (FS)
Kevin's Natural Foods, which sells refrigerated entrées like pastas and curries, is exploring a sale. The company, backed by investment firm Towerbrook Capital Partners, is seeking to be valued at about $700m to $800m. Kevin's Natural Foods, which is working with an adviser, has attracted interest from financial sponsors on the potential transaction, Bloomberg reported.
Co-founded by Kevin McCray, the company raised capital from Towerbrook and NewRoad Capital Partners in 2021 to expand its production capacity and fuel marketing, according to a statement at the time.
EMEA
NIBE Industrier, a global group that develops and manufactures intelligent, energy-efficient indoor comfort solutions for all types of properties, agreed to acquire Climate for life, a developer, producer and seller of energy-efficient solutions in the areas of heating and cooling, hot water, ventilation and control technology, from Parcom Capital, a private equity firm, for €640m ($688m).
"CFL and NIBE are both household names in climate solutions with a strong heritage, similar business values and culture, as well as a long-term commitment to the industry. The two businesses have an overarching geographical footprint and will together be one of the larger climate solutions providers in Europe. This allows the combined companies to better serve a larger customer base with innovative, sustainable and affordable quality products," Gerteric Lindquist, NIBE Industrier CEO.
Climate for life is advised by Morgan Stanley. NIBE is advised by ABN Amro, Mazars Corporate Finance, Delphi and Lexence.
Bunge, an agribusiness and food company, agreed to acquire Viterra, an agriculture company, from Glencore, a multinational commodity trading and mining company, for $18bn.
"The merger of Viterra with Bunge is expected to realise significant value for Glencore. Our investment in the agriculture sector dates back over 40 years and has grown from being a small grains trader to being part of a world leading, fully integrated global agriculture network. The combined group would be a premier pure-play agribusiness solutions company, well placed to meet increased global demand as well as the ongoing challenge of providing sustainable, traceable food and feed products to customers around the world. This would be underpinned by a rigorous focus on creating value for all stakeholders," Gary Nagle, Glencore CEO.
Zensho, the premier food service company in Japan, agreed to acquire The Snowfox Group, a multi-channel and international Japanese food business, from Mayfair Equity Partners, a private equity firm, for $621m.
"This is an exciting moment for the Snowfox Group, and, having had seven successful years owned by Mayfair Equity Partners, this proposed transaction represents the next natural step for us as a business," Richard Hodgson, Snowfox CEO.
Snowfox is advised by Headland Consultancy. Mayfair Equity is advised by The One Nine Three Group.
Morgan Stanley Infrastructure Partners, an infrastructure investment platform focused on the acquisition of private infrastructure assets, agreed to acquire Valoriza Servicios Medioambientales, a waste management firm, from Sacyr, a Spanish infrastructure operator and developer company based in Madrid, for €734m ($789m).
This divestment process is framed in Sacyr's strategy to drastically reduce its net recourse debt and focus on infrastructure P3 projects as its core business.
Levine Leichtman Capital Partners, a global private equity firm, agreed to invest in cleversoft, a pan-European provider of mission-critical regulatory software solutions to the financial services industry. Financial terms were not disclosed.
"We are thrilled to partner with Florian and his leadership team to support cleversoft as the Company continues to aggressively scale worldwide, both organically and through select acquisitions. As LLCP's first platform investment in the DACH region since opening our Frankfurt office last year, this is a crucial moment in the continued development of our business in Europe," Matthias Tabbert, LLCP Head of DACH.
Levine Leichtman Capital Partners is advised by Gasthalter & Co (led by Mark Semer).
Dürr Group, a global mechanical and plant engineering firm, agreed to acquire BBS Automation, a premier global supplier of automated assembly and test services, from EQT Partners, a global private equity firm, for €480m ($516m).
"With BBS Automation, we are establishing ourselves as one of the most powerful centers of competence for automation solutions in mass and high-speed production. We are investing in a strongly growing sector with above-average earnings prospects," Jochen Weyrauch, Dürr CEO.
EQT is advised by UBS.
Eiffage, a French civil engineering construction company, agreed to acquire the remaining 49% stake in the Millau Viaduct from Banque des Territoires, one of the five businesses of Caisse des Dépôts, for €236m ($254m).
This is a sign of Eiffage's attachment to this major work of 21st-century architecture, built by the Group in just three years as part of a concession contract ending in 2079. Eiffage has operated the Millau Viaduct since it was commissioned in 2004.
Manchester United shares soar after tweet spurs sale speculation.
Manchester United shares surged after a tweet from a Qatari newspaper spurred speculation that the Premier League football club is closer to being sold. The stock soared as much as 15%, the biggest one-day jump since February. Al-Watan's tweet referred to "press reports" that a bid for the club from Qatari businessman Sheikh Jassim was a "success," Bloomberg reported.
The tweet was published at 9:41 p.m. Qatar time on Monday and went on to be cited by international newspapers such as the Daily Mail. Sheikh Jassim and Ineos head Jim Ratcliffe are battling for control of Manchester United, which is currently owned by the Glazer family. Earlier this month, Jassim submitted his fifth and final bid for club.
Berlusconis’ MFE rises amid M&A speculations on succession plan.
MFE-MediaForEurope rose for a second day with investors speculating that Silvio Berlusconi's successors could pave the way for potential M&A scenarios for Italy's largest commercial broadcaster. MFE Class B shares advanced 7% as of 2:20 p.m. in Milan, giving the company a market value of €1.79bn ($1.93bn), while Class A shares rose 8.1%, Bloomberg reported.
Led by the former PM's son Pier Silvio Berlusconi it has pursued European expansion from its Italian roots to try to hold its own against the US streaming giants that take a growing chunk of viewers. In a fast-changing media landscape, some investors bet that his heirs may be more open to seeking a partner for MFE, or selling to a larger rival. MFE's second-biggest shareholder, French media group Vivendi is widely seen in the industry as the main candidate. But a standstill accord the two companies reached in 2021 to settle a years-long legal war prevents Vivendi from raising its 23% stake until 2026.
JP Morgan sees $3.2bn valuation for Thyssenkrupp Nucera.
Thyssenkrupp Nucera, which on Monday announced its intention to list on the stock exchange, is valued by JP Morgan at around € 3bn ($3.2bn), according to a research note by the brokerage. Nucera's listing could potentially become one of Europe's biggest this year and finding the right valuation is key to determine how much investors will own as part of the planned primary offering of €500m ($538m) to €600m ($645m) in new shares. A valuation of €3bn ($3.2bn) could give new investors a stake of 17%-20% and leave Thyssenkrupp with a comfortable majority, in line with the German group's target to remain a majority shareholder of Nucera, Reuters reported.
Nucera is a 66:34 joint venture of Thyssenkrupp and Italy's De Nora. Sources previously told Reuters that Nucera could be valued at up to €5bn ($5.4bn) in a listing. In a research note, JP Morgan said it saw "modest value unlock potential" for Thyssenkrupp shareholders as part of the listing. Thyssenkrupp is expected to sell some of its Nucera shares as part of the IPO in a secondary offering.
HSBC's new technology arm primed for expansion, CEO Quinn says.
HSBC Holdings is considering further expansion at its new technology unit after buying the UK arm of Silicon Valley Bank, according to CEO Noel Quinn. HSBC Innovation Banking was formally launched on Monday with more than 700 staff, including 650 in the UK and Scandinavia, as well as 40 in the US, 20 in Israel, and around a dozen in Hong Kong. The number of employees could grow, Bloomberg reported.
Quinn said the bank was considering expanding its technology operation across France, Germany and other markets in continental Europe, as well as potentially growing in Asia. Quinn and the HSBC board will be in Paris next week as the French government prepares to host a climate finance summit. The UK arm of HSBC Innovation Banking is led by Erin Platts, the CEO of Silicon Valley Bank UK, which HSBC bought in March in the wake of the collapse of its US parent. Quinn personally led the negotiations with the British authorities during the weekend rescue.
Odey Asset Management freezes funds as clients pull money, prime brokers flee. (FS)
Odey Asset Management is closing one fund and restricting money clients can pull from another just as the hedge fund was scrambling to keep its prime brokers from ending vital relationships with the firm. These developments follow allegations of sexual misconduct by its founder, Crispin Odey, reported by the Financial Times and Tortoise Media last week. Odey denies the allegations. Odey Asset Management has closed its Odey Swan Fund and is restricting the money clients can pull from its Brook Developed Markets Fund, Reuters reported.
JP Morgan, one of three prime brokerages that offer vital leverage for the hedge fund, had served notice on its service agreements, cutting ties with OAM. Goldman Sachs had also served notice on its service agreements with OAM funds. OAM board said it took the decision to close the Odey Swan Fund and gate the Brook Developed Markets Fund after it faced "redemption requests in excess of ten per cent of the net asset value," prompting the company to restrict more withdrawals. The board of Odey Asset Management also decided to suspend the issue, conversion and redemption of Swan Fund shares in order to "efficiently manage the redemptions and in the best interests of Shareholders."
Next and Warburg Pincus in talks about £500m Reiss sale. (FS)
The high street clothing giant Next is in talks about a sale of Reiss, the fashion chain it controls, as part of a deal that could value it at more than £500m ($627m). Raymond James, the investment bank, is overseeing the sale process. The auction is in its second round, with a number of buyers circling, Sky News reported.
The process being run by Raymond James is understood to be soliciting offers for the entirety of Reiss's share capital, although Next could also opt to retain its 51% stake alongside a new equity investor.
Kenya Airways seeks strategic investor as debt burdens state.
Kenya Airways is seeking a financial adviser as part of a process to find an investor to take a stake in the loss-making carrier. The adviser will develop an investor memorandum before the process of identifying a potential backer begins, according to a document presented by the company to lawmakers on Monday. The process of selecting the adviser is expected to be completed by December, Bloomberg reported.
An investor is being sought after the government decided that an International Monetary Fund-backed turnaround program, known as Project Kifaru, was too expensive. The plan envisaged the state contributing $493m of budgetary support to the carrier over three years. Once a preferred investor has been identified, "the risk and cost exposure to the government of Kenya is reduced," the company said. KQ, as the carrier is known, reported a loss of $274m in the year through December, more than double the loss a year earlier. The carrier, which is 48.9% state-owned, was losing money even before the Covid-19 pandemic in early 2020 caused it to seek bailouts from the government. It is projecting an operating profit in 2024, which would be the first in seven years.
Arm courts Intel as anchor investor in upcoming IPO.
Intel is in talks with SoftBank Group's Arm to be an anchor investor in the chip designer's initial public offering. Arm plans to sell its shares on Nasdaq later this year, seeking to raise $8-$10bn. UK-based Arm has held talks with other companies about participating in the IPO, Bloomberg reported.
Arm's designs are used to manufacture chips made by most of the world's major semiconductor companies, including Intel, AMD, Nvidia, and Qualcomm. It was not immediately clear what impact any IPO investment by one or more of those companies would have on Arm's commercial relationships. The chip designer had filed with regulators confidentially for a US stock market listing in April, setting the stage for this year's largest IPO.
APAC
The merger of India’s most valuable lender and the country’s largest mortgage financier, which could create the world’s fifth most valuable bank, is nearing completion, with only one key step remaining that investors are eyeing.
The so-called ‘record date’ – or scheduled cut-off day for investors – to swap shares of Housing Development for HDFC Bank is expected to be announced within three weeks. The merged entity is likely to trade under the HDFC Bank ticker before July 20, ending the process that began in April 2022. The merger is unprecedented in India, creating a $168bn bank and impacting crores of customers and shareholders of both the companies apart from the group insurance and asset management businesses.
HDFC Bank is advised by Deloitte, Harsh Chandrakant Ruparelia, BNP Paribas, Citigroup, Edelweiss Capital, Goldman Sachs, HSBC, ICICI Bank, JP Morgan, Morgan Stanley, Nomura, Cravath Swaine & Moore (led by Philip Boeckman), Wadia Ghandy (led by Gopal Bankar and Ashish Ahuja). Financial advisors are advised by Freshfields Bruckhaus Deringer (led by Arun Balasubramanian). Housing Development is advised by Bansi S. Mehta, Ambit, Arpwood Capital, Axis Capital, Bank of America (led by Raj Balakrishnan), Credit Suisse, IIFL, JM Financial, Jefferies & Company, Kotak Investment Banking, Motilal, AZB & Partners (led by Ashwath Rau and Zia Mody), Argus Partners, Singhi Advisors and Nova Dhruva Capital. Financial advisors are advised by Sullivan & Cromwell (led by Stephen M. Kotran).
Invesco-backed Zee Entertainment Enterprises's planned merger with a subsidiary of Sony Group may face further delay after India's capital markets regulator said the Mumbai-based media house faked the recovery of loans to cover for private financing deals by its founder Subhash Chandra.
The Securities and Exchange Board alleged late Monday that the firm funneled money through several entities to make it seem like it had recovered money owed by Chandra's private entities. The founder and his son, Punit Goenka — Zee's chief executive — "abused their position" and siphoned off funds "for their own benefit," Sebi said in an interim order that bars them from holding any executive or director positions in listed companies, Bloomberg reported.
Hong Kong's HKBN ends buyout talks with HGC Global's parent. (FS)
Hong Kong's HKBN said it had ended buyout talks with I Squared Asia Advisors, the parent company of internet service provider HGC Global Communications. The telecom company had in March confirmed that it had received a non-binding letter of interest from I Squared, but did not disclose an offer price or any other details, Reuters reported.
HKBN, which offers broadband network and Wi-Fi services, has also attracted interest from other firms. Reuters in April reported that telecom giant China Mobile was looking at buying the company. HKBN currently has a market capitalisation of $854m. Its stock is down nearly 9% since the talks were revealed on March 2. I Squared's HGC was spun off from conglomerate CK Hutchison Holdings in 2017.
TSMC hits $500bn value as investors clamor for AI, chips
Taiwan Semiconductor Manufacturing regained its $500bn market capitalization after investors ramped up bets on tech leaders best-placed to ride an anticipated AI boom. Asia's most valuable company gained more than 3% Tuesday, fueled also by hopes that a post-Covid chip downturn is nearing an end. That took its 2023 gain to 32%, cementing its position amongst the world's 10 most valuable corporations after overtaking Visa in May, Bloomberg reported.
The AI frenzy accelerated after Nvidia wowed the market last month with a set of sales targets that surpassed the most upbeat analyst forecasts. Morgan Stanley this week raised TSMC's price target, citing higher demand for energy-efficient and low-cost AI custom chip designs. TSMC, while touting its own potential role in the rollout of AI, has expressed caution over the outlook for the smartphone market that still comprises a significant chunk of its revenue.
Taiwan Mobile in early talks on possible investment in local crypto platform.
Telecommunications company Taiwan Mobile is exploring opportunities for collaboration with local crypto platforms, including potentially investing in one of the businesses. The government-licensed wireless service provider is in early-stage talks with crypto firms about strategic partnerships, Bloomberg reported.
Taipei-based XREX, which describes itself as a blockchain-enabled financial institution, is among the companies in the conversations. No decisions have been made and a deal may not materialize. Taiwan Mobile said it's "open to any potential opportunities" but didn't comment further. XREX's co-founder Wayne Huang declined to say whether his firm is in discussions with the island's second-largest telecom company. Huang said he expects larger institutions to enter the web3 sector as the latter matures and regulatory clarity emerges, adding that XREX looks forward to partnering with telecom enterprises to drive adoption.
Sanjeev Gupta's Australian steel business tests bond investor interest.
Sanjeev Gupta's Australian steel business has been sounding out investors about a bond sale, in a big test of whether institutions are willing to lend to the metals magnate in spite of ongoing criminal investigations of his business empire. Executives from metal recycling and distribution business InfraBuild met bond fund managers in New York last week, the first time one of Gupta's companies has met a broader group of investors since the collapse of his main lender Greensill Capital plunged his businesses into crisis in 2021, Financial Times reported.
While the investor meetings — which continue in London this week — are not a formal bond roadshow, the company and its bankers at Jefferies have been informally sounding out investors on a potential bond issue. Investors have been asked whether they would consider buying a new US dollar bond at a yield of about 14% with the company targeting a deal as large as $670m. They said the higher yields were being offered to compensate for the reputational risks of lending to a company owned by Gupta, whose GFG Alliance group of companies is under criminal investigation in the UK and France. InfraBuild has told investors it does not believe it is a target of these investigations.
HSBC to close New Zealand wealth and personal banking business.
HSBC has decided to wind down its wealth and personal banking business in New Zealand as it exits from less profitable businesses globally to focus on expanding in certain Asian markets. The process, as a result of a strategic review, will happen over several years in a phased manner. The London-headquartered lender can "no longer justify investing into this business given the changing operating requirements in the market and scalability of the business," Reuters reported.
HSBC is helping its local customers to switch to other personal and wealth service providers. The decision comes after the bank last year said it was reviewing its retail banking business in the market with a view to selling it. New Zealand is the latest market on the map the London and Hong Kong dual-listed bank decided to withdraw from. Europe's largest lender is reviewing a possible exit from about one in five of the markets it operates in to sharpen its focus on Asian expansion. Its pivot to Asia has already triggered planned sales of its businesses in France, Greece, Russia and Canada. The bank said it continues to operate and is committed to expanding its wholesale banking business in New Zealand - mostly serving international clients - which includes commercial banking and financial institutions and government, as well as markets and securities services businesses.
SoftBank prepares new round of layoffs at Vision Fund. (FS)
SoftBank Group is planning a fresh round of layoffs at its Vision Fund investment arm, the latest cost-cutting move at the Japanese conglomerate. The layoffs, which could be announced in the next two weeks, may impact up to 30% of its staff at the unit, including employees in the US. SoftBank's Vision Fund unit, which has booked heavy investment losses, had a headcount of 349 at the end of March, according to a company report. If finalized, this would follow the elimination of about 150 jobs globally at the investing arm and SoftBank Group International in September, Reuters reported.
SoftBank, an aggressive investor in tech companies such as fintech giant Klarna and TikTok owner ByteDance, has seen the valuation of its portfolio drop amid sharp interest rate hikes and rising US-China tensions. The group reported an annual net loss of $7.2bn for the year ended March 31. It cushioned the investment loss at the Vision Fund unit by selling down its stake in Alibaba Group. Vision Fund 2's portfolio was worth $31bn at end-March compared with an acquisition cost of $50bn.
SoftBank has radically scaled back its investing activity and Son has withdrawn from public presentations to focus on the listing of chip designer Arm.
|
