AMERICAS
Alstom, a French transport infrastructure company, stated that it would take into account Bombardier's weak results earlier this month as it continues with plans to acquire the Canadian company's rail business.
"Alstom remains convinced of the strong strategic rationale for the acquisition of Bombardier Transportation and is confident in its ability to restore in the medium term the profitability and commercial performance of the business. Alstom will take into account the consequences of these operating and financial developments in forthcoming discussions with Bombardier, and will update the market as required," Alstom.
Bombardier is advised by Citigroup, National Bank Financial, Rockefeller Capital Management, UBS, Jones Day, Norton Rose Fulbright and Joele Frank. CDPQ is advised by HSBC, Freshfields Bruckhaus Deringer and McCarthy Tetrault. Alstom is advised by Mazars Corporate Finance, Rothschild & Co, Societe Generale, Cleary Gottlieb Steen & Hamilton and Davies Ward Phillips & Vineberg. Debt financing is provided by Credit Agricole, HSBC and Societe Generale.
Canadian Natural Resources, a company engaged in hydrocarbon exploration, agreed to acquire Painted Pony Energy, a publicly-traded natural gas company based in Western Canada, for $461m. The price includes the assumption of Painted Pony's total debt of approximately $350m.
"This acquisition further strengthens Canadian Natural's natural gas assets and production base in key operating areas and complements the company's diversified portfolio. This transaction also allows us to further insulate against natural gas costs in our oils sands operations and has minimal impact on the company's low overall corporate decline rate. We look forward to working together with the staff currently employed by Painted Pony," Tim McKay, Canadian Natural President.
Painted Pony Energy is advised by Gryphon Advisors, RBC Capital Markets, Raymond James, TD Securities and Blake Cassels & Graydon. Canadian Natural Resources is advised by Bennett Jones.
Infinedi Partners, a private equity firm focused on long-term partnerships with founder-owned businesses, completed the investment in Cultural Experiences Abroad, a provider of study abroad educational programs for US university students. Financial terms were not disclosed.
"Over the last decade, we have been incredibly impressed with Brian's and CEA's mission of partnering with leading US universities to provide their students with high-quality academic programs, internships and study abroad experiences that drive personal growth, intercultural development and employability. This mission-first focus has positioned CEA as a leader in study abroad, and we are excited to be a part of its next chapter," Carter Harned, Infinedi Partner.
Cultural Experiences Abroad is advised by DLA Piper. Infinedi Partners is advised by Dechert, Dickinson Wright and BackBay Communications.
Mill Road Capital, a private investment firm, offered to acquire Huttig Building Products, a distributor of millwork, building materials and wood products, for $71m.
"Given our experience in the public markets, we recognize the inherent difficulties of creating value for shareholders as a public, micro-cap company. There is very little sell-side analyst coverage and minimal demand for micro-cap stocks. Institutional investors avoid stocks like Huttig; it is difficult to accumulate a position and any attempt to sell large blocks can materially depress the share price for months. As a result, microcaps often attract short-term shareholders who look for "quick wins" and actively dissuade management from making sensible investments in long-term value-creation. We hope that the Board of Directors finds this proposal compelling for the company's shareholders and we look forward to working with you in connection with a transaction," Mill Road Capital.
Mill Road Capital is advised by Foley Hoag.
IAC, a media and Internet company, agreed to acquire a 12% stake in MGM Resorts, an American global hospitality and entertainment company, for $1bn.
"MGM Resorts presents a unique opportunity for IAC to own a meaningful piece of a preeminent brand in a large category with immense potential to move online. We will be a minority investor and a long-term strategic partner, and would welcome the opportunity to contribute to MGM's success in any way that MGM's Board would look favorably on our involvement," Joey Levin, IAC CEO.
Brown & Brown, a provider of insurance and reinsurance products and services, agreed to acquire Hauser, a provider of insurance solutions for private equity groups. Financial terms were not disclosed.
"Mark and James have built an incredible team at Hauser which provides best-in-class services for private equity firms and their portfolio companies. The ability to provide a continuum of services from initial due diligence to risk management solutions allows the Hauser professionals to provide an incredibly high level of understanding, service and outcomes for their customers. We are excited to join the expertise and private equity focus of the Hauser team with the capabilities of Brown & Brown to benefit our collective customers," Barrett Brown, Brown & Brown Retail Division President.
Hg Capital-backed Intelerad Medical Systems, a provider of enterprise workflow solutions, completed the acquisition of Radius, a private cloud platform provider based in Nashville. Financial terms were not disclosed.
"The combination of our two organizations creates a major step forward in improving radiology delivery and patient care in our industry. By joining Intelerad, we unify our mission to deliver maximum productivity, reduce complexity, and produce better outcomes for all," Ken Nelson, Radius CEO.
Roper in talks to acquire Vertafore from Vista Equity and Bain Capital for $5.5bn. (FS)
Roper Technologies, an American diversified industrial company that produces engineered products, is in talks to acquire Vertafore, a provider of enterprise software solutions, from private equity firms Vista Equity Partners and Bain Capital for $5.5bn,
Bloomberg reported.
The acquisition would be the biggest ever for the Sarasota, Florida-based maker of industrial equipment. An agreement could be announced as early as August.
The purchase would be in line with Roper's strategy of buying software companies in niche markets with recurring revenues, it said, adding that Vertafore's focused on the property and casualty insurance industry.
Microsoft faces complex technical challenges in TikTok carveout.
Microsoft's bid to carve out parts of TikTok, a video-sharing social networking service, from ByteDance, a Chinese multinational internet technology company, will be a technically complex endeavour that could test the patience of President Donald Trump’s administration,
Reuters reported.
Trump has given Microsoft until September 15 to put together a blueprint for an acquisition that safeguards the personal data of Americans stored on the short-video app, and he has issued an order to ban it if there is no deal by then.
Mubadala discloses a 7.08% stake in Virgin Galactic. (FS)
Mubadala Investment, an Emirati state-owned holding company, disclosed a 7.08% stake, or 14.9m shares, in Virgin Galactic, which develops commercial spacecraft and aims to provide suborbital spaceflights to space tourists and suborbital launches for space science missions.
The disclosure comes after Virgin Galactic offered 23.6m shares priced at $19.50 each last week,
PE News reported.
Virgin Galactic intends to use the proceeds from the share offering mainly for general corporate purposes, including working capital, general and administrative matters and capital expenditures.
Western Union seeks acquisitions.
Western Union, a digital money-moving platform, intends to use opportunities arising from the coronavirus crisis to acquire weaker rivals.
"I'm quite active on the M&A front. Our financial situation is much better than that of all of our competitors. We have a good cash position even with Covid-19, and some competitors are struggling, "Hikmet Ersek, Western Union CEO.
FTAC Olympus Acquisition files for a $750m IPO.
FTAC Olympus Acquisition, the fourth blank check company formed by management of The Bancorp, a bank holding company, filed with the SEC to raise up to $750m in an initial public offering.
The company plans to raise $750m by offering 75m units at $10. Each unit consists of one share of common stock and one-third of a warrant, exercisable at $11.50. At the proposed price, FTAC Olympus Acquisition would command a market value of $965 m.
EMEA
EssilorLuxottica, a Franco-Italian eyewear company, said that GrandVision's actions during the coronavirus crisis could provide grounds for ending its $8.5bn takeover of the Dutch eyewear stores operator,
Reuters reported.
EssilorLuxottica told a court hearing in Rotterdam that GrandVision had breached agreements by suspending payments to store owners and suppliers and by applying for state aid, without seeking its approval.
"GrandVision agreed to a contractual obligation to not change course. But it changed course drastically. We need to know which measures where taken and when, and what their effects were. To see how material their breaches of the agreements were and whether that gives EssiLux the right to rethink the deal," Jeroen Kortmann EssiLux lawyer.
GrandVision is advised by ING Bank, Bredin Prat and De Brauw Blackstone Westbroek. EssilorLuxottica is advised by BNP Paribas, Citigroup, Goldman Sachs, BonelliErede, Latham & Watkins, Stibbe, Sullivan & Cromwell, Brunswick Group, Community Group. Debt financing is provided by Credit Agricole and HSBC. Debt providers are advised by Hogan Lovells. HAL Holding is advised by NautaDutilh.
Private equity firm Marlin Equity Partners agreed to acquire Unifaun, which provides cloud delivery orchestration solutions to the logistics ecosystem, from Vitruvian Partners. Financial terms were not disclosed.
"We look forward to working with Unifaun's outstanding management team to help realize the company's organic and inorganic growth plans. Unifaun is clearly a leader within its space, and we are excited to help Unifaun continue to create efficiencies for all stakeholders in its ecosystem by leveraging our deep domain expertise in supply chain management, logistics, and eCommerce technologies," Peter Chung, Marlin Equity Partners Managing Director.
Marlin Equity Partners is advised by UBS and Plesner. Unifaun and Vitruvian Partners are advised by Goldman Sachs, Kirkland & Ellis and Instinctif Partners.
Advent International agreed to acquire a 75% stake in Hermes UK and a 25% stake in Hermes Germany, two consumer delivery companies, from Otto Group, a German mail order company. Financial terms were not disclosed.
"This is fantastic news for Hermes UK as we continue our upwards trajectory in the fast-growing and capital-hungry home delivery sector. The investment will enable us to remain independent and be agile and responsive to future market requirements. It will help to expedite the development of our capacity and technology, supporting the introduction of new innovative products and services that will greatly benefit our retail clients and their customers," Martijn de Lange, Hermes UK CEO.
Hermes is advised by Weston Partnership. Advent is advised by Tulchan Communications. Otto Group is advised by Rothschild & Co.
Private equity firm Marlin Equity Partners completed the investment in Pentalog, a global provider of software development and digital services. Financial terms were not disclosed.
"Pentalog's rapid growth and outstanding reputation in the market are testaments to its ability to conceive, design and build best-in-class products and solutions for customers. Digital transformation is driving exponential demand for product design, software engineering and digital consulting globally, and modern service providers like Pentalog will play a critical role in satisfying this demand. We are excited to partner with an exceptional management team and support to Pentalog in driving even higher levels of customer service and accelerated international expansion," Roland Pezzutto, Marlin Principal.
PKN seeks EU approval for the acquisition of PGNiG.
PKN Orlen, a Polish oil refiner and petrol retailer, will ask for European Commission approval for its planned acquisition of gas company PGNiG this year.
Since 2018 PKN Orlen has announced
plans to acquire smaller rival Lotos,
bought utility Energa and most recently said it wants to purchase PGNiG. The plan is in line with the ruling Law and Justice party's policy of building big national players and taking more control over the economy.
"We are moving very fast - we will prepare a concentration notification and it will be submitted by the end of the year," Daniel Obajtek, PKN Orlen CEO.
CureVac seeks up to $213m in US IPO.
CureVac, a biopharmaceutical company, which is in the early stages of testing its coronavirus vaccine, is looking to raise up to $213m in its US IPO.
CureVac expects its offering of 13.3m shares to be priced between $14 and $16 per share.
ICG seeks $1.18bn for Recovery Fund II. (FS)
Intermediate Capital Group, a global alternative asset manager, is seeking to raise $1.18bn for its secondary recovery fund, targeting opportunities arising from the coronavirus pandemic almost a decade after raising its Western Europe-focused predecessor amid the financial crisis,
PE News reported.
ICG intends to provide 10% of the newest Recovery fund’s value, or as much as $118m. The firm expects to make 15 to 30 investments of $24m to $118m each in primary debt as part of rescue packages and lender-led restructurings. The firm also anticipates making secondary purchases, including of senior loans from UK banks and through restructuring situations, and acquiring liquid securities, pension documents show.
Avedon Capital raises $592m for its third fund. (FS)
Avedon Capital Partners raised $592m for its third fund in five months, 65% larger than its predecessor, which closed in 2017 at $355m. The fund is on track to reach its hard cap of $681m in the "coming months",
PE News reported.
Avedon Capital Partners focuses on the lower mid-market in the Benelux region and in Germany, targeting companies with enterprise values between $18m and $178m. It typically invests $12m to $47m in companies in the business services, software and technology, consumer and leisure and industrial sectors.
APAC
BGH Capital, a private equity firm, agreed to acquire Village Roadshow, an operator of studios, cinemas and theme parks, for $542m. The deal still needs shareholder approval, and Village is set to have a scheme meeting in November. If the deal is approved, the BGH transaction will be completed shortly after.
"The BGH transaction provides the opportunity for all VRL shareholders to realise an attractive cash price for all of their VRL shares, in a very uncertain operating environment. VRL shareholders will also have the opportunity to elect to retain an equity interest in an unlisted VRL entity that is controlled by BGH," Peter Tonagh, Village Roadshow Chairman.
Village Roadshow is advised by Stratford Advisory Group, UBS and MinterEllison. BGH Capital is advised by Herbert Smith Freehills.
Temasek, a Singaporean holding company, terminated the acquisition of a 30% stake in Keppel, a Singaporean marine conglomerate, for $3bn. Temasek currently directly owns 20% of Keppel.
Such measures were brought after Keppel reported significant losses in Q2 2020, invoking a material adverse change.
Phoenix New Media, a new media company in China, entered into a new share purchase agreement with Run Liang Tai Management for the sale of the Phoenix's investment in Yidian Zixun, a rapidly-growing personalized news and lifestyle information app.
Under the new agreement, Phoenix New Media will be required to deliver the 140m shares of Yidian to Run Liang Tai after certain closing conditions are satisfied. Once the delivery is completed, Phoenix will have sold a total of 235m shares of Yidian to Run Liang Tai at a total price of $350m.
Phoenix New Media is advised by Houlihan Lokey and ICR.
Huya, a game live streaming platform, agreed to acquire DouYu, a Chinese video live streaming service. DouYu will receive a to-be-agreed number of newly issued Class A ordinary shares of Huya for their respective DouYu shares.
Tencent would support the transaction as a shareholder of each of Huya and DouYu, and would be willing to participate in the transaction in such manner and on such terms and conditions as to be further discussed and mutually agreed upon.
DouYu is advised by ICR. Huya is advised by The Piacente Group.
Viva Biotech, a drug discovery platform, agreed to acquire an 80% stake in Langhua Pharmaceutical, a pharmaceutical company, for $367m.
"The strategic acquisition agreement we made with Langhua Pharmaceutical will effectively improve the integrated service capability in new drug R&D and overall competitiveness for both sides. We have steady confidence towards the business prospects and potential future growth of Langhua Pharmaceutical," Mao Chen Cheney, Viva Biotech Chairman and CEO.
Profit Access Investments, a private investment vehicle, completed the acquisition of a 24.22% stake in Vtron Group, a Shenzhen-listed video display systems manufacturer, for $212m.
"The investment presented an opportunity to create a unique and unprecedented opportunity that will allow Vtron to use its full potential by tapping into domestic opportunities, as well as push forward its global expansion," Profit Access Investments.
Blackstone set to acquire Prestige assets for $1.7bn. (FS, RE)
Blackstone Group is set to acquire rental income assets of Prestige Group, a property development company in South India, for more than $1.7bn in the largest real estate portfolio buyout in India.
The deal will include the developers nine operational malls and the combined assets.
Axa considers selling Singapore business.
Axa, a French multinational insurance firm, intends to sell its Singapore business as it seeks to raise funds divesting peripheral operations, according to
Bloomberg. The company is working with an adviser on the potential sale.
The Singapore unit, which offers life and property and casualty insurance, could draw interest from rivals seeking to expand in southeast Asia. It generated $723m of revenue in 2019. A sale process could start as soon as the next few weeks.
IndiGo to raise up to $534m via share sale.
Interglobe Aviation, which runs India's largest airline IndiGo, will raise up to $534m through the sale of shares to institutional investors, as it looks to manage cash during the Covid-19 pandemic which has hit its operations,
Reuters reported.
The virus outbreak caused Interglobe to report its biggest ever loss last month. The company also announced separate plans to raise at least $268m through the sale and leaseback of planes and other assets.
Google plans the acquisition of a 10% stake in PolicyBazaar for $150m. (FS)
Google considers acquiring a 10% stake in SoftBank-backed PolicyBazaar, an Indian insurance aggregator and a global financial technology company, for $150m.
The talks are in preliminary stage. If they go through, this will be a secondary investment, which could pave the way for PolicyBazaar's existing investors to make a partial exit,
DealStreetAsia reported.
Tiger intends to invest $100m in Zomato. (FS)
Tiger Global Management, an American hedge fund, considers investing $100m in Zomato Media, an Indian provider of an online food and nightlife guide service. The proposed transaction is likely to peg the valuation of Zomato at $3bn.
Beike looks to raise $2bn in US IPO. (FS)
Tencent and SoftBank-backed Beike, a Chinese online property platform, is looking to raise about $2bn in a US IPO. The company is offering 106m American depositary shares at $17 to $19 each. The shares will represent three of Beike's Class A ordinary shares.
At $2bn at the top of that range, Beike's IPO would be the largest float by a Chinese company on US exchanges since iQIYI raised $2.4bn in March 2018,
Bloomberg reported.
VeriSilicon looks to raise $267m in STAR Market IPO.
Xiaomi-backed VeriSilicon Microelectronics, a provider of platform-based, all-round, one-stop custom silicon services and semiconductor IP licensing services, is looking to raise $267m in a STAR Market IPO.
VeriSilicon intends to offer 48.3m common shares at $5.5 apiece. The company kicked off the subscription exercise on August 7, and its shares have been oversubscribed 4.3 times.
New Oriental picks banks for Hong Kong IPO.
New Oriental Education & Technology Group, a provider of private educational services in China, picked Bank of America, Credit Suisse and UBS for a planned second listing in Hong Kong that could raise at least $1bn,
Bloomberg reported.
New Oriental is planning to list as early as the end of this year, and more banks could be added to the deal at a later stage.
Pacific Equity raises $1.8bn for its sixth core fund. (FS)
Australian private equity firm Pacific Equity Partners closed its sixth flagship fund with $1.8bn in commitments.
The Sydney-based investor's portfolio includes medical device distributor LifeHealthcare and Intellihub, a utility services company.
