AMERICAS
TPG Capital, a private equity firm, agreed to acquire a 30% stake in DIRECTV, a media satellite infrastructure provider, from AT&T, a telecommunication company, in a $16.25bn deal.
AT&T and TPG believe the new structure will provide greater focus, flexibility and resources to best position the business to succeed in the long term and deliver on its commitment to customers, employees and shareholders.
"This agreement aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max. And it supports our deliberate capital allocation commitment to invest in growth areas, sustain the dividend at current levels, focus on debt reduction and restructure or monetize non-core assets. TPG is the right partner for this transaction and creating a new entity is the right way to structure and manage the video business for optimum value creation," John Stankey, AT&T CEO.
TPG Capital is advised by Bank of America Merrill Lynch, Credit Suisse, Cleary Gottlieb Steen & Hamilton, Ropes & Gray, and Finsbury Glover Hering. AT&T is advised by Goldman Sachs, Sullivan & Cromwell, and Gladstone Place Partners.
Switchback Energy Acquisition, a publicly traded SPAC with a strategic focus on the energy sector, completed the merger with ChargePoint, an electric vehicle charging network, in a $2.4bn deal.
“ChargePoint has a proven and capital-light business model that combines hardware and high-margin, recurring software subscriptions and services with extensive and strong customer relationships. As a result, we believe ChargePoint will continue to grow its strong market position as the EV industry evolves. Switchback and our investors are excited to partner with the talented ChargePoint team to advance their vision,” Scott McNeill, Switchback CEO, CFO and Director.
ChargePoint was advised by Bank of America Merrill Lynch, Oppenheimer & Co, Gunderson Dettmer Stough Villeneuve Franklin & Hachigian, Weil Gotshal and Manges and Financial Profiles. Switchback Energy was advised by Morrow Sodali Global, Goldman Sachs and Vinson & Elkins.
W.R. Grace, an American chemical business based in Columbia, Maryland, agreed to acquire the fine chemistry services business of Albemarle, a global specialty chemicals company, for $570m. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions, including receipt of certain regulatory approvals.
"This transaction reflects our ongoing commitment to actively and continuously refine our portfolio as we focus Albemarle on its core, growth-oriented business segments. Fine Chemistry Services is a profitable business, and we have confidence that Grace is positioned to help it thrive. I want to thank the strong operating team for their excellent performance and professionalism throughout the process," Kent Masters, Albemarle CEO.
W.R. Grace is advised by Goldman Sachs, Moelis & Co, Fried Frank Harris Shriver & Jacobson, Wachtell Lipton Rosen & Katz and Joele Frank. Albemarle is advised by Bank of America Merrill Lynch and Troutman Pepper.
LiDAR manufacturer AEye and SPAC CF Finance Acquisition announced that Continental, an automotive supplier, is participating in the $2bn merger.
"Our broad partnership combines two industry leading teams of LiDAR engineers from three continents to bring best-in-class automotive grade autonomous driving solutions to market," Frank Petznick, Continental Head of advanced driver assistance systems.
AEye is advised by Guggenheim Partners, DLA Piper and Financial Profiles. CF Finance is advised by Cantor Fitzgerald, Ellenoff Grossman & Schole and Hughes Hubbard & Reed.
Cigna-backed Evernorth, a health service company, agreed to acquire MDLIVE, a telemedicine company. Financial terms were not disclosed.
"Becoming part of the Evernorth portfolio is an opportunity for MDLIVE to join an organization that complements our work, and has been a long-time partner and investor in our business. Together, we can accelerate MDLIVE's growth strategy and ability to serve more customers, while also building new services that will benefit our existing stakeholders, including employees, partners, patients, customers, health plans and providers," Charles Jones, MDLIVE Chairman and CEO.
MDLIVE is advised by Bank of America Merrill Lynch and Davis Polk & Wardwell. Cigna is advised by Greenhill & Co, Sheppard Mullin Richter & Hampton, and Wachtell Lipton Rosen & Katz. Greenhill & Co is advised by Sullivan & Cromwell.
TC Energy and TC PipeLines announced their shareholders' approval for the $1.68bn. TCP unitholders voted to approve the previously announced merger of TCP and a wholly-owned subsidiary of TC Energy.
Approximately 70% of the TCP common units represented by proxy or present at the special meeting voted in favor of the approval of the Merger Agreement and the transactions contemplated thereby, including the merger, which represented approximately 54.5% of TCP’s total outstanding common units as of January 15, 2021.
TC PipeLine is advised by Evercore and Kirkland & Ellis. TC Energy is advised by JP Morgan and Vinson & Elkins.
Thermo Fisher Scientific, a manufacturer of scientific instruments, consumables, and chemicals, completed the acquisition of Mesa Biotech, a biotechnology company, for $450m.
"Mesa Biotech is an important part of our strategy to expand the benefits of molecular diagnostics at the point of care, starting with Covid-19 testing. By combining Thermo Fisher's operational excellence, access to raw materials and existing distribution and sales channels with Mesa's innovative platform, we can rapidly scale manufacturing volume, drive cost efficiencies and bring much-needed diagnostics to market faster and at greater scale," Mark Stevenson, Thermo Fisher Scientific Executive Vice President and COO.
Thermo Fisher Scientific was advised by Wachtell Lipton Rosen & Katz and Joele Frank.
PPG Industries, a supplier of paints, coatings, and specialty materials, completed the acquisition of The VersaFlex Family of Companies, a manufacturer of diversified building materials, from DalFort Capital Partners, a private equity firm, for $70m.
"This outstanding outcome is a testament to the VersaFlex team and DalFort's strategy of partnering with business owners and their operating teams to build exceptional companies," Morris Wheeler, VersaFlex Chairman.
VersaFlex was advised by Lazard and Greenberg Traurig.
Fundation Group, an origination solutions provider, agreed to merge with ODX, a fintech and software company. Financial terms were not disclosed.
"ODX and Fundation joining forces allows us to turbocharge our technology roadmap and deliver an expanded set of capabilities to our clients. Linear will equip our clients with flexible technology that is uniquely aided by insights grounded in decades of combined financial services and lending experience," Brian Geary, ODX President.
Fundation Group is advised by Barclays. ODX is advised by SenaHill Partners.
Roivant Sciences, a pharmaceutical company, agreed to acquire Silicon Therapeutics, a computational drug discovery company, for $450m.
"By joining forces with Roivant, we can significantly accelerate making this vision a reality. Roivant has an impressive track record in clinical execution and building and deploying technology platforms to power pharmaceutical research, development and commercialization," Lanny Sun, Silicon Therapeutics Co-Founder and CEO.
Silicon Therapeutics is advised by New Day Bio Consulting.
HP, an American multinational information technology company, agreed to acquire HyperX, the gaming division of Kingston Technology, an American multinational computer technology corporation, for $425m.
"We continue to advance our leadership in Personal Systems by modernizing compute experiences and expanding into valuable adjacencies. We see significant opportunities in the large and growing peripherals market, and the addition of HyperX to our portfolio will drive new sources of innovation and growth for our business," Enrique Lores, HP President and CEO.
HP is advised by Skadden Arps Slate Meagher & Flom.
Parkland, an independent supplier and marketer of fuel and petroleum products, agreed to acquire Conrad & Bischoff, an American supplier of petroleum products. Financial terms were not disclosed.
“This acquisition checks all the boxes of our US growth strategy and complements our existing ROCs. C&B strengthens our supply advantage, brings a high-quality retail network and offers a long runway for organic growth,” Doug Haugh, Parkland USA President.
Parkland is advised by Sullivan & Cromwell.
Aurora Innovation, an autonomous-driving startup, agreed to acquire OURS Technology, a lidar sensor manufacturer. Financial terms were not disclosed.
Aurora plans to incorporate the chips into the sensing component of its autonomous driving system. The decision to acquire Ours Technology rather than simply licensing its technology will enable Aurora to remove the possibility of a competitor swooping in. Moreover, absorbing the startup will enable it to align the product development roadmap more closely with its business model.
Compass, the real estate technology company, agreed to acquire KVS Title, a title insurance and settlement services company. Financial terms were not disclosed.
"Their family-like culture, their expertise in the title business and, most importantly, their great leadership team make them a perfect match for Compass. The underlying driver of Compass' success has always been our obsession with how to help agents grow their business and better serve their clients. With this acquisition we're advancing both of these goals," Robert Reffkin, Compass Founder and CEO.
Ataccama, a provider of self-driving data management and governance solutions, agreed to acquire Tellstory, a data visualization platform startup. Financial terms were not disclosed.
"Tellstory solves the problem of dashboards that are highly useful for analysts with specific, complex requirements, but painful for readers who are less skilled at configuring a BI tool, interpreting data, and finding critical bits of information. It visualizes data through data-driven stories, similar to a dynamic infographic. It leverages AI to provide active intelligence and data insights, selecting and highlighting the most interesting facts for the reader and recommending the optimal way to visualize them," David Lazar, Tellstory UX Designer.
Ecopetrol CEO defends a $4bn deal that unnerved investors.
The deal, as investors from Bogota to New York see it, has all the markings of a cash-strapped federal government forcing a state-run company to bail it out, Bloomberg reported.
Ecopetrol, Colombia’s biggest oil company, would hand over about $4bn to the government in exchange for control of another state-sponsored outfit, the electric utility giant known as ISA. From the moment word of the transaction leaked in early January, questions began to pile up from perplexed investors - how did the deal fit with Ecopetrol’s business model? How will the price tag be settled? - and the stock began to badly lag the broad rally in oil drillers across the globe.
McDonald’s considering selling a part of Dynamic Yield.
“The potential sale of the non-McDonald’s part of our business has been discussed from the outset and now feels like the right time to explore that possibility. We look forward to our continued relationship while continuing to expand the use of Dynamic Yield’s technology at McDonald’s restaurants around the world,” Liad Agmon, Dynamic Yield Founder and CEO.
Telefonica in exclusive talks with investor for Brazil fibre unit.
Telefonica is in exclusive talks with a financial investor about forming a joint fibre optic venture in Brazil, Chief Operating Officer Angel Vila said.
The Spanish telecoms group is planning to expand high speed fibre coverage to more Brazilian cities, following a similar project launched in Germany in partnership with insurer Allianz, Reuters reported.
“Brazil is the size of a continent. Our capital expenditure (capex) won’t reach it all,” Angel Vila.
ECS draws private equity interest in hotels sale. (FS)
ECS is drawing interest from rival private equity firms as it looks to offload a portfolio of Portuguese real estate that includes some of the country’s top hotels, Bloomberg reported.
Lisbon-based ECS is exploring a sale of the properties, and is seeking $1.7bn. The ECS portfolio includes the Conrad Algarve and Hilton-branded Cascatas Golf & Resort Spa, as well as the NAU Hotels & Resorts chain, shopping centers and undeveloped land.
YieldStreet weighs options including a sale or starting own SPAC.
Yieldstreet, the online firm that offers esoteric investments to affluent individuals, is exploring options including a sale, while also weighing setting up a special purpose acquisition company of its own, Bloomberg reported.
The New York-based company is working with an adviser to solicit interest from potential buyers including blank-check firms, and separately, is in early discussions with potential co-sponsors for its own SPAC. Merging with a SPAC is an increasingly popular way to go public, and some closely held companies have also sought to raise vehicles of their own.
SoftBank reaches a settlement with former WeWork CEO Neumann.
SoftBank Group said it has reached a settlement with WeWork’s special committee and the company’s co-founder and former chief executive, Adam Neumann, putting to rest a legal battle dating back to 2019, Reuters reported.
Media reports earlier this week indicated the deal includes a nearly $500m cut in Neumann’s payout from SoftBank.
The legal tussle between SoftBank and Neumann started in 2019, when SoftBank agreed to buy around $3bn in WeWork stock belonging to Neumann as well as current and former WeWork employees. SoftBank later contested its obligation to purchase the shares.
SentinelOne plans for IPO at possible $10bn value.
Cybersecurity startup SentinelOne is preparing for an initial public offering that could value it at more than $10bn, Bloomberg reported.
SentinelOne, which uses artificial intelligence to protect companies against security threats, is interviewing bankers about the listing, which could happen this year. The company’s plans are in the early stages and its listing plans including the valuation and timing could still change.
Kraken seeks funding at a $10bn valuation. (FS)
Cryptocurrency exchange Kraken Digital Asset Exchange is in talks to raise new funding in a move that would more than double the firm’s valuation to about $10bn, Reuters reported.
The company is in discussions with firms including Fidelity Investments, Tribe Capital and General Atlantic; terms, including lead investors, are not final, and it’s possible the valuation may surpass $10bn in this round.
Robinhood plans confidential IPO filing as soon as March.
Online brokerage Robinhood, at the centre of this year’s retail trading frenzy, is planning to file confidentially for an initial public offering as soon as March, Reuters reported.
The California-based brokerage has held talks in the past week with underwriters about moving forward with a filing within weeks.
The last year that Robinhood has picked Goldman Sachs to lead preparations for an initial public offering which could value it at more than $20bn.
Cartesian Growth announces closing of $345m IPO. (FS)
Cartesian Growth announced the closing of its initial public offering of 34,5m units, including 4,5m units pursuant to the exercise of the underwriters’ over-allotment option.
The units are listed on the Nasdaq Capital Market and trade under the ticker symbol “GLBLU.” Each unit consists of one Class A ordinary share of the сompany and one-third of one redeemable warrant. Each whole warrant entitles the holder thereof to purchase one Class A ordinary share at a price of $11.5 per share.
Cantor Fitzgerald served as the sole book-running manager of the offering.
Brookfield-backed Tegra files for IPO. (FS)
Brazilian homebuilder Tegra, controlled by Brookfield Asset Management, has filed with Brazilian securities industry watchdog CVM for an IPO, Reuters reported.
Tegra filed for the IPO on Thursday, as well as Bra =zilian hospital chain Kora Saude and truck parts maker Librelato.
Foresite Capital raises $969m for a new fund. (FS)
Foresite Capital's latest $969m fundraise represents a rare feat among venture capital and growth equity firms: only a handful of investors - including Arch Venture Partners and Flagship Pioneering -have raised comparable or larger sums to invest in emerging life sciences companies in recent years.
But at just a decade old, Foresite is far younger than Arch and Flagship, which have each launched dedicated life science funds larger than $1bn in the past year. The San Francisco firm now oversees $4bn in assets and is led by CEO and founder Jim Tananbaum.
Clearbanc fills ClearAngel fund with $100m. (FS)
Toronto growth capital firm Clearbanc unveiled ClearAngel and intends to lend $100m from the investment vehicle to support founders who do not have access to angel investors, an experienced board or adviser network.
“This took us over a year in the making. We kept thinking about the long haul and how to automate these experiences so that they were meaningful,” Michele Romanow, Clearbanc Co-founder.
CPPIB chooses safety after CEO flames out. (FS, People)
John Graham was promoted to CEO of the Canada Pension Plan Investment Board, putting him in charge of a $373bn global portfolio that includes everything from Britain’s Southampton port to Germany’s Axel Springer media empire to the Petco retail chain, Bloomberg reported.
The fund needed a new CEO quickly after Mark Machin was found to have flown to the United Arab Emirates, where he received a Covid-19 vaccine. He had committed a double political sin - taking a trip in defiance of Prime Minister Justin Trudeau’s warnings to avoid international travel, and getting a shot most other Canadians can’t get because of the country’s limited vaccine supplies.
EMEA
French waste and water management firm Suez said its board had unanimously rejected Veolia’s offer of $26bn, formalizing opposition to a bid after months of wrangling between the rivals.
Suez said the offer threatened its corporate interests as it entailed dismantling the company, and did not bring clear benefits in areas such as innovation. It added that guarantees on jobs were unsatisfactory, as they were limited to a time period, and that the price offered by Veolia did not reflect the value being created by Suez.
“The board of directors reiterates its wish to find a negotiated solution. It will take whatever steps necessary to make sure that Veolia does not impose its interests at Suez’s shareholders’ meeting," Suez.
Suez is advised by Goldman Sachs, JP Morgan, Rothschild & Co, Societe Generale, Bredin Prat, Darrois Villey Maillot Brochier, Sullivan & Cromwell and Brunswick Group. Veolia is advised by Bank of America Merrill Lynch, Citigroup, Credit Agricole, HSBC, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, Cleary Gottlieb Steen & Hamilton, Flichy Grange Avocats, Gide Loyrette Nouel, Hogan Lovells, Patrice Gassenbach, Peltier Juvigny Marpeau & Associes, Xavier Boucobza and Image Sept. Engie is advised by BNP Paribas, Centerview Partners, Credit Suisse, Lazard, d'Angelin & Co, Weil Gotshal and Manges, Estudio de Comunicacion and Havas Paris.
Euronext, an Italian stock exchange, confirmed that the European Commission has approved the $5.08bn acquisition of Borsa Italiana Group. This approval further improves the certainty of execution of the transaction, by satisfying an additional major condition for the completion of the transaction.
The European Commission’s decision follows: approval of the transaction by London Stock Exchange Group’s shareholders on 3 November 2020; approval by the German Federal Cartel Office on 11 November 2020; approval by Euronext’s shareholders on 20 November 2020; foreign direct investment clearance for the transaction by the Italian Council of Ministers on 11 December 2020; conditional approval of LSEG proposed acquisition of Refinitiv by the European Commission on 13 January 2021; completion of the acquisition of Refinitiv by LSEG on 29 January 2021; and approval of the transaction by the Financial Conduct Authority on 25 February 2021.
LSE is advised by Barclays, RBC Capital Markets, Goldman Sachs, Morgan Stanley, Robey Warshaw, Freshfields Bruckhaus Deringer and Teneo. Financial advisors of LSEG are advised by Herbert Smith Freehills. CDP is advised by Lazard. Euronext is advised by Credit Agricole, HSBC, Intesa SanPaolo, JP Morgan, Lazard, Mediobanca, Rothschild & Co, BonelliErede, Cleary Gottlieb Steen & Hamilton, Clifford Chance, Gianni Origoni Grippo Cappelli & Partners, PricewaterhouseCoopers and Community Group. Debt financing is provided by Bank of America Merrill Lynch, Credit Agricole, HSBC and JP Morgan.
Starwood Capital Group, a private equity firm, agreed to acquire a 70.41% stake in RDI REIT, a property investment business, for $460m.
"We are pleased to announce this acquisition, which we believe represents an attractive opportunity for investors to realise liquidity and a significant premium to the three month volume weighted average price of 87.2 pence per RDI REIT Share. We look forward to supporting RDI REIT and its management team going forward," Krysto Nikolic, Starwood Managing Director.
RDI REIT is advised by JP Morgan, Java Capital, Peel Hunt, CMS, Simcocks Advocates, FTI Consulting and Instinctif Partners. Starwood is advised by Eastdil Secured, Appleby, Kirkland & Ellis and Maitland.
Rhone Capital, a private equity firm, completed the acquisition of a 20% stake in Illycaffe, a premium coffee brand, for $239m.
"We chose Rhone as a travel companion for this next phase of growth because of their deep, global experience in strategically partnering with family-owned companies and based on their ability to understand illy’s unique, premium positioning rooted in its superior quality, longstanding heritage and authentic, sustainable business model. I strongly believe that Rhone will be an ideal partner as we continue to realize our dream of offering the greatest coffee to the world, which is our foundation and uncompromised vision for the future,” Andrea Illy, Illycaffe Chairman.
Illycaffe was advised by KPMG, Goldman Sachs, Gattai Minoli Agostinelli & Partners and SabelliBenazzo. Rhone Capital was advised by Ernst & Young, Credit Suisse, Chiomenti, Kirkland & Ellis, NCTM, Brunswick Group and Community Group.
The European Commission has approved private equity group Blackstone and B&J Holdings' $586m acquisition of the remaining stake in Applegreen, an Irish company that operates a number of petrol stations in Ireland.
The move to take Applegreen private comes as the business grapples with Covid-19, Brexit, and an accelerating shift by motorists towards electric vehicles. The board of Applegreen believes the offer, if effected, would represent a compelling opportunity for shareholders to realise their investment at an attractive premium to the prevailing share price.
Applegreen is advised by Goodbody, Shore Capital & Corporate, Arthur Cox, Drury Porter Novelli and MHP Communications. Blackstone and B&J Holdings are advised by Goldman Sachs, A&L Goodbody and Latham & Watkins. Goldman Sachs is advised by Ashurst and Mason Hayes & Curran.
Ontario Teachers' Pension Plan Board, agreed to acquire a majority stake in Logoplaste, a manufacturer of rigid plastic packaging solutions for the world's premier FMCG brands, from The Carlyle Group. Financial terms were not disclosed.
"This marks an exciting new chapter for our company as we look forward to the continued growth opportunity for Logoplaste and its customers with backing from Ontario Teachers'. We also thank Carlyle for their partnership, expertise and support in maintaining Logoplaste's position as a leading provider of rigid packaging solutions for the consumer goods industry and in driving continuous innovation with an integrated approach that is the foundation of our company," Gerardo Chiaia, Logoplaste CEO.
Logoplaste is advised by Barclays, Goldman Sachs, Linklaters and Vieira de Almeida. OTTPB is advised by Ernst & Young, Credit Suisse, Uria Menendez, Weil Gotshal and Manges, and Kekst CNC.
Lloyds Development Capital, a mid-market private equity investor, completed an investment in Phoenix Datacom, a network security firm. Financial terms were not disclosed.
"With LDC’s support we will be able to maximise this opportunity so that we can build, scale and further enhance our product and service offering. LDC’s experience of backing growing technology businesses gives us greater confidence in delivering our future growth plan," John Carson, Phoenix Datacom Managing Director.
Phoenix Datacom was advised Quantuma, Shoosmiths and Citypress PR. LDC was advised by Acuity Advisors, CIL Management Consultants and HMT Corporate Finance.
TA Associates, a private equity firm, completed the acquisition of a majority stake in Fairstone Group, a diversified financial services provider. Financial terms were not disclosed.
“I’ve been with Fairstone for almost 10 years and have seen first-hand the development of the business in that time – it has been truly impressive. I’m particularly proud that the company has delivered such an exceptional return to all our earlier stage shareholders whilst also creating very meaningful value for a large number of our colleagues. This is a deal that we believe is genuinely in the best interests of all stakeholders. That really is something special," David Hickey, Fairstone Group Chairman.
Fairstone Group was advised by Keefe Bruyette & Woods, Wyvern Partners and Proskauer Rose. TA Associates was advised by Evercore, Muckle and Travers Smith.
LVMH-backed Financière Agache and L Catterton, agreed to acquire a majority stake in BIRKENSTOCK, a footwear manufacturer, in a $4.8bn deal.
"In L Catterton and Financière Agache we have found not just shareholders, but also partners for achieving our global growth ambitions. They have a great deal of know-how and excellent access to international markets. Both future partners share our growth strategy; for our products to be represented in all international markets and in all channels, while maintaining our long-standing traditions and the unique offer of quality and sustainability "made in Germany"," Oliver Reichert, BIRKENSTOCK CEO.
BIRKENSTOCK is advised by Kekst CNC. L Catterton is advised by Goldman Sachs, Kirkland & Ellis and Joele Frank.
Digital Turbine, a provider mobile communication products, agreed to acquire AdColony Holding, a mobile advertising platform, from Otello, an internet company, for $400m.
"We look forward to welcoming the AdColony team to the Digital Turbine family and believe that this strategic transaction accelerates our growth and is a positive for our partners, advertisers, employees and shareholders. AdColony saw the secular tailwinds toward mobile, video and high-speed networks like 5G before most and has been able to capitalize on its vision,” Bill Stone, Digital Turbine CEO.
Otello is advised by LUMA Partners and Hogan Lovells. AdColony is advised by Blast PR.
Private equity firm Davidson Kempner Capital Management and Citigroup completed the acquisition of mortgage financing services providers Bradford & Bingley and NRAM, from UK Asset Resolution, a unit of the UK government, for $6.9bn.
"UKAR's objective is to facilitate the orderly wind down of NRAM and B&B whilst treating customers fairly. This transaction marks the end of the government's ownership of these companies and is a significant step towards the completion of that objective," Ian Hares, UKAR CEO.
UKAR was advised by Moelis & Co and Brunswick Group.
Energean, an international exploration and production company, with focus on gas, completed the acquisition of the 30% stake in its subsidiary Energean Israel from Kerogen Capital, an independent private equity fund manager specialising in the international oil and gas sector, for $405m.
"I am delighted that we have increased our holding in Energean Israel to 100%, which will enable us to further generate long-term value by capitalising on the production growth and upside potential of our Israeli acreage offshore whilst further supporting our ambition to be the leading independent gas producer in the Mediterranean," Mathios Rigas, Energean CEO.
Energean was advised by White & Case. Kerogen was advised by Walkers.
Royal Dutch Shell agreed to acquire Next Kraftwerke, a virtual power plant firm. Financial terms were not disclosed.
"We are coming out of a fossil age lasting for nearly 200 years and are in the midst of the transformation to a more sustainable energy system. We will only be able to successfully shape this transformation if the players in the traditional energy industry actively drive it. My co-founder Jochen Schwill and I are convinced that we can help to further accelerate this change with this partnership," Hendrik Sämisch, Next Kraftwerke Co-Founder and CEO.
Shell is advised by by CMS. Next Kraftwerke is advised by White & Case.
EG Group, the highly leveraged petrol stations business whose billionaire owners have bought UK supermarket chain Asda, is planning to raise an extra $1.8bn in the next stage of the group's debt-fuelled acquisition spree, FT reported.
The new debt is expected to be a combination of junk bonds and loans, with about $1.4bn in "first-lien" debt, which is the first to be repaid in the event of a default, and the remaining $400m in more junior-ranking loans.
EG Group is advised by Brunswick Group.
Axonics Modulation Technologies, a medical technology company, completed the acquisition of Contura, a medical devices manufacturer, for $200m.
“This acquisition is highly synergistic, leverages our expansive commercial footprint and gives us the opportunity to expand our SNM business around the world. Axonics will provide urogynecologists and urologists with a complete suite of clinically differentiated incontinence solutions for their patients, thereby enhancing Axonics’ value proposition to new and existing customers," Raymond W. Cohen, Axonics CEO.
Axonics was advised by Barclays.
Jysan weighs acquisition of Kcell.
A Kazakh financial group is looking at buying a controlling stake in mobile-phone operator Kcell to expand its online retail business, Bloomberg reported.
Jysan group, whose two banks combined rank third in Kazakhstan by assets, is seeking to acquire Kazakhtelecom’s 75% of Kcell. The state-run telecommunications company bought the stake for $446m in 2018, when the mobile operator’s market capitalization was almost $1bn. It’s now about $1.2bn.
DiaSorin weighs a deal for Luminex.
Italian diagnostics company DiaSorin is considering an acquisition of rival Covid-19 testing-kit maker Luminex, Bloomberg reported.
DiaSorin is working with advisers to study a potential deal. No final decision has been made and deliberations may not lead to a transaction.
Deutsche Telekom CEO suggests that European telecoms industry needs to consolidate.
Europe’s telecoms industry needs to consolidate, Deutsche Telekom Chief Executive Tim Hoettges said, as the region’s 100 operators invest more in 5G networks at a time when revenue and profits are under pressure, Reuters reported.
“The industry is in a dilemma that it can only escape through cost synergies. I believe deeply that European consolidation is necessary,” Tim Hoettges.
Hindujas join SPAC boom with float of $2bn Switch. (FS)
Britain's second-richest family is exploring plans to join a wave of blank cheque mergers in a move that could see another major UK electric vehicle manufacturer going public in the US, Sky News reported.
Ashok Leyland, the Indian-listed group controlled by the Hindujas, is working with bankers on a potential merger of Switch Mobility with a SPAC in New York.
BASF says Wintershall Dea will not go public before September.
BASF said the long-awaited IPO of its Wintershall Dea unit won’t take place before the second half of this year, showing market uncertainty is continuing to keep North Sea oil IPOs on hold, Bloomberg reported.
Wintershall Dea may go public in September at the earliest, its largest shareholder, BASF. The Germany-based explorer and producer, valued at more than $20bn in 2019, is the largest player among a handful of European oil and gas firms looking to sell shares.
In the past two years, many of them have paused those plans, initially as fossil fuels started to lose their appeal to investors amid environmental concerns, and then as oil demand and prices crashed in the first wave of the coronavirus.
Illycaffe opens up to non-family investor and eyes IPO in coming years.
Illycaffe marked a new step in its strategy to go beyond a family-owned business model by letting an external investor in for the first time in its 88-year history, Reuters reported. A bourse listing could be an exit strategy for the private equity firm in the future.
“An IPO is one of the options that we will consider in a matter of years,” Andrea Illy.
Barclays ECM exec lands new role weeks after retirement. (People)
The former head of continental European equity capital markets at Barclays has secured a new role leading corporate development at a firm developing electric vehicle chargers, FN reported.
Enrique Febrer-Bowen, who spent more than 11 years at the UK lender in senior ECM roles, has joined Wall Box Chargers as a VP of corporate development, just weeks after retiring from the bank. He was latterly head of continental Europe ECM at Barclays.
APAC
Ares Management, a private equity firm, agreed to acquire a 60% stake in private markets businesses of AMP, a diversified financial services company, for $1bn.
"We've been impressed by the growth of AMP Capital's private markets business over the past several years and our time with the team as part of the portfolio review has further cemented our view on the intrinsic value of this business under our leadership. We expect that this transaction would be highly strategic and complementary to our business and financially accretive for our shareholders," Michael Arougheti, Ares CEO.
Ares is advised by Brunswick Group and Citadel Magnus.
Carlyle is a key contender to buy Mphasis for c.$3bn. (FS)
Carlyle is a key contender and a lot of companies, which have been in the fray for the $3bn transaction to by a midcap IT firm, could have step aside especially because of the valuations. The expectations from the seller Blackstone side have been on the higher side.
On the other hand, it is a large ticket size, but Carlyle has been aggressive on India and is only bidder for this particular company.
Takeda to divest 4 diabetes products to Teijin Pharma.
Takeda Pharmaceutical announced that it has entered into an agreement to transfer the assets, marketing rights and, eventually, marketing authorization associated with a portfolio of select non-core products in Japan to Teijin Pharma, a Tokyo-based pharmaceutical company, for $1.25bn, subject to customary legal and regulatory closing conditions.
“This announcement builds on the continued execution of Takeda’s operational and financial commitments of optimizing our portfolio for growth and paying down long-term debt, while delivering life-transforming treatments to patients worldwide. With longstanding expertise in type 2 diabetes, we are confident that Teijin Pharma is the right partner to maximize the value of these trusted products and ensure uninterrupted patient access in Japan,” Costa Saroukos, Takeda Chief Financial Officer.
Top Glove plans to raise $1.9bn in Hong Kong listing.
Top Glove, the world’s biggest rubber glove maker, is seeking to raise as much as $1.9bn from a listing in Hong Kong to fund expansion and bolster its profile with overseas investors, Bloomberg reported.
The company, whose shares are traded in Kuala Lumpur and Singapore, plans to issue up to 1.49bn shares at a price to be set at a later date. At $1bn-plus, Top Glove’s listing would be the biggest ever by a Malaysian company in Hong Kong.
The dual primary listing plan comes as medical glove makers face heavy selling in their shares as global vaccine rollouts accelerate. Top Glove’s stock tumbled 22% in February to mark its worst month since the 2008 global financial crisis.
Warburg Pincus-backed ARA weighs a $1bn dual listing. (FS)
ARA Asset Management, a real estate investment firm backed by Warburg Pincus, is weighing a dual listing plan that could raise at least $1bn as soon as this year, Bloomberg reported.
The firm, which also counts Hong Kong billionaire Li Ka-shing as an investor, is working with advisers on a plan to list in Hong Kong and Singapore. The asset manager is leaning toward a Hong Kong offering before a share sale in Singapore.
Warburg Pincus currently owns 48.7% of ARA after buying AVIC Trust’s stake last year. The New York-based buyout firm in 2016 led a group, including ARA founder John Lim and AVIC Trust, to take the then-Singapore listed investment company private.
State Bank of India prepares mutual fund venture for an IPO. (FS)
State Bank of India, the country’s largest lender, is preparing for its mutual fund joint venture for an initial public offering. State Bank of India plans to ask investment banks for proposals after discussions with its board and shareholder Amundi and kick off the process in the next few months. The lender could raise about $1bn from the offering. State Bank of India’s mutual fund is currently valued at about $7bn, Bloomberg reported.
At $1bn, the first-time share sale could be India’s biggest since the $1.4bn listing by SBI Cards & Payment Services in March. The SBI mutual fund business would also be the third such listing of its kind in the country, joining UTI Asset Management and HDFC Asset Management.
Full Truck Alliance files confidentially for US IPO. (FS)
China’s Uber-like startup Full Truck Alliance has confidentially filed for an initial public offering that could raise at least $1bn as soon as this year, Bloomberg reported.
The startup backed by Tencent handed in its IPO filing in the US recently. Full Truck Alliance is working with Morgan Stanley and China International Capital on its American debut after eking out a slim 2020 profit thanks to a pandemic-era shipping surge.
Citic Capital-backed UCO Cosmetics weighing Hong Kong IPO. (FS)
Hangzhou UCO Cosmetics, a Chinese e-commerce servicing company for beauty brands, is considering a Hong Kong initial public offering that could raise at least $300m, Bloomberg reported.
The Citic Capital Partners-backed company has held discussions with potential advisers on the share sale. The IPO could take place as soon as this year.
Olam Food Ingredients plans IPO with adviser hires.
Olam International, one of Asia’s biggest agricultural commodity traders, plans to list its food ingredients unit by the first half of 2022 as part of a major business overhaul, Bloomberg reported.
The Singapore-based company has appointed joint financial advisers and legal advisers to prepare for an initial public offering of the Olam Food Ingredients unit.
Malaysian EPF launches $600m fund managed by BlackRock, HarbourVest, Partners Group. (FS)
Malaysia’s Employees Provident Fund has launched the world’s first and largest syariah private equity direct or co-investment separate managed account fund, with an allocation of $600m, Reuters reported.
The pension fund said in a statement the fund will have three separate managed accounts of $200m each to be managed by BlackRock, HarbourVest Partners and Partners Group. The fund managers will have a global mandate that focuses on direct and co-investment strategies into growth and buyout transactions.
Sequoia Capital raises a new $195m seed fund. (FS)
Sequoia raised $195m for its latest US and Europe-focused seed fund. A successor to the 2018 vintage Sequoia Scout III, Sequoia Capital US/E Fund IV plans to make roughly 10 to 20 investments per year in fledgling startups and founders.
“I wanted to get the word out there that we do make seed investments and that is the primary thing. It’s easy to look at [our recent] large deals and say, ‘Oh, Sequoia is doing these larger deals.’ But let’s not forget, we’ve always been in the seed business,” Jess Lin, Sequoia Partner.
Farnsworth Group to pay $125m for control of Lomotif.
A group of investors, including former MoviePass Chairman Ted Farnsworth, who agreed to buy an 80% controlling stake in the Singapore video-sharing service Lomotif will pay about $125m in the deal, Bloomberg reported.
The agreement with Zash Global Media and Entertainment, announced this week without any disclosure of financial terms, marks one of the biggest exits by a tech startup in Singapore in recent years. With the acquisition of Lomotif, the financier behind once-popular subscription service MoviePass is now trying to disrupt the online video-sharing market dominated by the likes of ByteDance’s TikTok and Kuaishou Technology.
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