EMEA
PAI Partners has entered into exclusive negotiations for the sale of B&B Hotels, a leading European budget hotel chain, to the Merchant Banking Division of Goldman Sachs for €1.9bn ($2.1bn). Once completed PAI will make c.3x return on its investment.
B&B Hotels had 2018 sales volumes worth €580m ($647m), and it runs a network of 476 hotels, competing with the likes of Accor.
“We would like to thank PAI Partners for their efforts and their confidence in our teams. Leveraging our unique concept, brand, and entrepreneurial spirit, we look forward to continuing our growth trajectory alongside Goldman Sachs.” Fabrice Collet, B&B Hotels Chief Executive Officer.
Morgan Stanley through its Morgan Stanley Tactical Value Investing fund, acquires 5.5% stakes in Tikehau Capital, asset management and investment group for $368m.
The US bank will invest at least €300m ($335m) of fresh equity into the asset manager, together with other existing investors in a deal. The move is part of a broader trend of asset managers selling minority positions to third parties as they seek permanent capital to expand into new markets and products.
Componenta has purchased the shares and capital loans of Komas, a machining operation company, from funds managed by CapMan, Fortaco Oy and certain private persons. Financial terms were not disclosed.
Komas is a manufacturer of machined components, forged blanks, hydraulic pipes, and plate cuttings. Key customers of Komas include major international OEMs of machinery and equipment.
“The acquisition of Komas expands Componenta’s range of products and services and improves the quality of our customer service by creating a one-stop-shop for industries purchasing cast and machined components. A large number of our customers wish to purchase the casting and the related services as a ready-made component from a single supplier. Componenta and Komas already have several common customers with ideal prerequisites for cooperation. The acquisition of Komas will improve the level of expertise within the Group and expand our presence in the Finnish market. Long distances between locations increase the total cost of a product. By acquiring machining locations close to our foundries, we are able to increase our competitiveness." Harri Suutari, Componenta CEO.
CapMan is advised by Aventum Partners and Avance Attorneys.
Mosaic Private Equity, a private equity firm specializing in providing development capital for expansion and acquisition, backing management teams to acquire businesses, acquires 37.5% stake in SkinnyBrands, which is behind the famous Skinny Lager brand. Financial terms were not disclosed.
SkinnyBrands' management has been strengthened with Mihai Albu, ex-chief executive of ABI Russia and Central Europe, assuming the chief executive role, and Adrian Hirst, ex-global sales director at Kopparberg, being brought in as chief compliance officer.
"This is an incredibly exciting new chapter of the company's rapid development and one that will shape the future for the business and hopefully the industry for years to come.", Tom Bell, SkinnyBrands Co-founder.
LVMH, the largest luxury goods group, which is the largest of its kind in the world, would buy Le Chateau du Galoupet, a winery in France’s Provence region dating back to the 17th Century, mainly producing rose wine. Financial terms were not disclosed.
This deal would bolster LVMH's portfolio of top wines and spirits, such as Veuve Clicquot champagne and Hennessy Cognac.
Royal KPN, a Dutch landline, and mobile telecommunications company agreed to sell its data center subsidiary NLDC to a fund managed by DWS. Financial terms were not disclosed.
The transaction is in line with KPN’s strategy to accelerate simplification and focus on core ICT services in Business. After closing of the transaction, KPN continues to deliver its core ICT services out of its remaining and NLDC data centers in the Netherlands as well as use public cloud capabilities such as AWS and Azure.
EQT, a leading investment firm, sells Coromatic Group, to E.ON, a European leader within energy networks and state-of-the-art customer solutions. Financial terms were not disclosed.
The transaction is subject to approval from the relevant authorities and is expected to close in late Q2 or Q3 2019.
"We now look forward to continuing our ambitious growth journey together with E.ON, pursuing a bold ambition of becoming the frontrunner of the decentralized energy market in Europe.", Erik Bertman, Coromatic CEO.
EQT was financially advised by Nordea and legally advised by Roschier.
Major merger talks in the Gulf with $1tn assets under consideration.
More than twenty Gulf financial institutions with total assets exceeding $1tn are in merger talks, as a part of an unprecedented wave of consolidation in the region's financial industry.
Talks are said to be underway in Abu Dhabi for a possible tie-up between Abu Dhabi Islamic Bank PJSC with First Abu Dhabi Bank PJSC, a merger that would create one of the Middle East's largest lenders with combined assets worth $234bn.
National Commercial Bank and Riyad Bank. The merger would create Gulf's third-largest lender with combined assets worth $188bn.
Emirates NBD and Denizbank. Dubai's largest bank would buy Turkey's Denizbank for $2.8bn. The combined asset would be $180bn.
Kuwait Finance House and Ahli United Bank, KFH in January offered to buy Ahli United Bank in a share-swap deal with a combined asset worth $97bn.
Dubai Islamic Bank, UAE's most prominent Islamic lender, is rumored to buy Dubai-based Noor Bank PJSC, with a combined asset of $97bn.
Thermo Fisher Scientific to acquire manufacturing site in Ireland for €90m from GSK.
Thermo Fisher Scientific, the world leader in serving science, has acquired a drug substance manufacturing site in Cork, Ireland, from GlaxoSmithKline for c.€90m ($100m) in cash. The Cork site will expand capacity to meet customer demand for the development and commercial manufacturing of complex active pharmaceutical ingredients (APIs).
The site produces highly specialized APIs for treating diseases including childhood cancer, depression and Parkinson's. Thermo Fisher will continue to produce APIs for GSK under a multi-year supply agreement and plans to expand the use of the site to develop and produce complex APIs for other customers as well.
"The GSK Cork site will enhance our API offering by expanding our development and commercial capabilities to provide much-needed capacity for APIs currently in development," Michel Lagarde, Pharma Services for Thermo Fisher Scientific senior vice president and president.
Thermo Fisher is advised by Arthur Cox.
Benettons aims to increase Generali stake.
The Benetton family wants Generali to remain in Italian hands and is ready to tighten its grip on Europe's third-biggest insurer along with other Italian investors. French insurer Axa and Switzerland's Zurich Insurance have been viewed as potential buyers of Generali.
"We think that Generali must remain an Italian company.", Luciano Benetton, Benetton Co-founder.
Coca-Cola to retain a majority stake in its African operations.
The Coca-Cola Company announced today that it would maintain its majority stake in Coca-Cola Beverages Africa for the foreseeable future.
Coca-Cola previously announced its intention to re-franchise CCBA, which is the largest bottler of Coca-Cola beverages in Africa, serving 12 countries.
PIC to decide whether to back Sibanye bid for Lonmin.
South Africa’s Public Investment, whose 30% stake in Lonmin is enough to block the miner’s planned takeover by Sibanye Gold.
South Africa’s antitrust court rejected a labor union’s bid to block Sibanye’s acquisition of Lonmin, saying its primary concern related to the welfare of the platinum producer’s workforce.
Lonmin believes that the terms of the transaction are in the best interests of shareholders, providing a solution to the challenges faced by the company.
AMERICAS
The chairman of the US Federal Communications Commission has backed the proposed T-Mobile and Sprint merger after the companies made concessions to try to get the deal over the line.
Ajit Pai said he would recommend that the five-member commission approve the combination between the third and fourth-biggest wireless operators in the country.
That followed offers from the groups including building a 5G network that would cover most of the country within six years of the merger’s close; agreeing not to raise prices for three years; and committing to selling Boost Mobile, a pre-paid mobile phone service provider.
“In light of the significant commitments made by T-Mobile and Sprint as well as the facts in the record to date, I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it,” Mr. Pai said. While the deal has yet to be officially approved, it is likely to be backed by at least three of the FCC commissioners.
Sprint is advised by Centerview Partners, JP Morgan, Mizuho Securities, SMBC Nikko, The Raine Group, Goodwin Procter, Morrison & Foerster, Potter Anderson & Corroon, Simpson Thacher & Bartlett, and Skadden Arps Slate Meagher & Flom. Deutsche Telekom is advised by Deutsche Bank, Evercore, Goldman Sachs, Morgan Stanley, PJT Partners, Allen & Overy, DLA Piper, Hogan Lovells, Latham & Watkins, Richards Layton and Finger, and Wachtell Lipton Rosen & Katz. Softbank is advised by Morrison & Foerster.
Building Engines, the commercial real estate industry’s most innovative web and mobile portfolio management platform service provider, acquires Real Data Management, the leading provider of managed services and software solutions for real estate companies throughout the United States. Financial terms were not disclosed.
"RDM has continually worked towards a mission of helping real estate professionals work faster and smarter. We recognized the same priorities and values in the Building Engines team.I’m proud for RDM to be joining forces with the backing, reinforcement, and resources of this CRE technology powerhouse, world-class organization.”, Peter Boritz, Building Engines CEO.
Renaissance Learning, a global leader in pre-K–12 educational technology, enabling teachers, curriculum creators, and educators to drive phenomenal student growth, acquires Freckle Education, an innovative differentiation platform that allows teachers to provide every student with instruction and practice at the level that’s best for them. Financial terms were not disclosed.
“We launched Freckle because we believe every student deserves a world-class education and the best way to deliver that is by empowering teachers to differentiate instruction for their students, and we couldn’t be more excited to see Freckle improve learning for so many more students with the expanded reach Renaissance will provide.”, Sidharth Kakkar, Freckle CEO.
Toshiba Memory would buy back stakes held by Apple & Dell.
Toshiba Memory Holdings will buy out the preferred shares in the chipmaker held by Apple, Dell Technologies, Kingston Technology, and Seagate Technology for $4.5bn.
The U.S. technology companies were part of a group led by Bain Capital that took over the memory chipmaker from former parent Toshiba Corp. Toshiba Memory is aiming for a listing in Tokyo stock exchange later this year or in early 2020.
Osmanthus Investment, a unit of Singapore-based private equity firm Archipelago, has completed its acquisition of a 15% stake in One Network Bank, the rural banking arm of the Philippines' largest lender BDO Unibank. Financial terms were not disclosed.
"The partnership with Osmanthus will further strengthen ONB's strategic foothold in the microfinance business, and contribute to the government's efforts at improving financial inclusion." BDO Unibank.
Mylan acquired South African drugmaker’s portfolio of prescription and over-the-counter products in Australia of Aspen Pharmacare for A$188m ($130m), through its Aplhapharm subsidiary.
In December, Aspen said its wholly owned subsidiary incorporated in Mauritius, Aspen Global Incorporated, and its Australian subsidiaries had entered into a distribution arrangement with Alphapharm, a subsidiary of Mylan in respect of the portfolio commercialized in Australia and New Zealand, where was the point about future possible acquisition.
"This divestment is in line with the Group's ongoing portfolio management approach and its stated intention to not only acquire value-enhancing products but to also divest of non-core assets, thereby ensuring enhanced operational focus. The proceeds will be used to reduce Aspen's gearing." Aspen said in a statement.
Kerry Properties acquires Hangzhou site for $983m.
Kerry Properties, a Hong Kong-listed property investor and developer, announced that it is acquiring a residential and commercial site in Zhejiang Province's Hangzhou City, for Rmb6.8bn ($983m).
Kerry's wholly owned subsidiary, Bright Beyond, has won the bid to acquire the site, which has an aggregate area of 98k sq m, at a government auction. The total consideration will be settled in cash.
"The company aims to create synergies for the project with both its existing portfolio and the benefit of the solid experience gained from its years of development in the city.", Kerry Properties.
Indigo Co-Founder does not want to control India's top airline.
Rakesh Gangwal, one of the founders of Indigo, has no desire to take control of India's biggest airline. There is trouble brewing at India's largest domestic airline IndiGo as Co- founders Rahul Bhatia and Rakesh Gangwal hired a legal counsel to resolve a dispute over control of the airline.
The differences between the two arose as Bhatia feels that Gangwal is trying to gain greater control of the airline by bringing in his terms and conditions.
The move comes as the airline is looking to expand its international operations. The report said that Bhatia has hired JSA Law while Gangwal hired Khaitan & Co to resolve the dispute.
SC Capital Fund V would miss the $1bn target.
Suchad Chiaranussati - led private equity firm SC Capital Partners is set to make a final close for its fifth Asia opportunistic fund this week, moping up about $750m for the vehicle that had set out to raise $1bn.
Tiger Global eyes, Indian B2B startups.
Tiger Global Management is pumping money into software-as-a-service (SaaS) startups in India at a time the sector is grinding through a funding slowdown. The American hedge fund, one of the most prolific startup investors in India, has made a contrarian bet by scooping up stakes in several SaaS startups that provide software services to enterprises and SMEs on a subscription basis.
The focus on SaaS startups in India mirrors Tiger Global's global approach, with investments in companies such as China's Udesk, an enterprise platform for intelligent customer service, and US-based Green Bits, a company that makes point-of-sale software for cannabis retailers.
Luckin raises $561m in an IPO.
Luckin Coffee, a challenger to Starbucks in the race to dominate China's growing coffee culture, climbed in its trading debut after raising $561m in an expanded US initial public offering.
Concurrent with the IPO, the company raised an additional $50m through a private placement with Louis Dreyfus.
The offering was led by Credit Suisse, Morgan Stanley, CICC and Haitong International. Luckin trades on the Nasdaq Global Select Market under the symbol LK.
Coatue would lead $120m funding in Faasos.
Coatue Management, hedge fund, is in talks to lead a $120m funding round in Rebel Foods, Faasos cloud kitchens restaurant company. The company invested a total of about $100m across two rounds in food delivery startup Swiggy last year, which was last valued at $3.3bn. The funding in Rebel Foods is being worked out at a post-money valuation of $500m.
ESR closes Japan Logistics Fund III.
Warburg Pincus-backed pan-Asia logistics real estate platform ESR announced the closing of ESR Japan Logistics Fund 3.
The fund has an initial capacity to capitalize up to JPY200bn ($1.8bn) of real estate projects from the ESR development pipeline in Greater Tokyo, Osaka, and Nagoya.
Canva evaluates $2.5bn after US investors join.
Australian tech startup Canva has banked $70m from investors, including from US venture firm General Catalyst, in a deal that values the design company at $2.5bn.
This funding round boosts Canva beyond 'unicorn' status, the moniker attributed to companies valued at over $1bn, and comes just a few days after Canva acquired photo sites Pexels and Pixabay.
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