EMEA
EU antitrust regulators extended by two weeks, to July 23, their investigation into 'Vodafone's bid for Liberty 'Global's cable networks in Germany and central Europe. Earlier this month, Vodafone offered to grant rival Telefonica Deutschland access to its enlarged high-speed broadband network to allay competition concerns about the deal.
In May 2018 Vodafone agreed to acquire Liberty 'Global's operations in Germany, the Czech Republic, Hungary and Romania for an enterprise value of €18.4bn ($20.8bn).
Vodafone is advised by EY, Morgan Stanley, Robey Warshaw, UBS, Hengeler Mueller, Lakatos Koves and Partners, Slaughter & May, Maitland, and CNC/JKL. Liberty Global is advised by Goldman Sachs, LionTree Advisors, CMS, Freshfields, Shearman & Sterling, and Citigate Dewe Rogerson.
Rupert Krefting, the head of corporate governance and at M&G Investments, wrote to Patrick Snowball, the chairman of the Provident Financial, saying that M&G's current intention is to vote against the hostile £1.3bn ($1.7bn) bid by Non-Standard Finance as it does not represent good value.
M&G holds a stake of just 1.7% in the Provident, but as one of the UK's most influential investors, its stance will carry weight and is likely to prompt others to follow.
Barclays, JP Morgan, Jefferies and Brunswick Group are advising Provident. Deutsche Bank, Ondra Partners, Shore Capital, Slaughter & May, and Maitland are advising NSF.
Private equity firm Charterhouse Capital Partners offered to acquire Tarsus Group, an international business-to-business media group with interests in exhibitions, conferences, publishing, and online media, for £668m ($710m). The offer represents a premium of approximately 36.2%.
Commenting on the Acquisition, Neville Buch, Tarsus's Chairman, said: "We believe that the Acquisition provides significant value for Tarsus's shareholders, whilst ensuring that Tarsus can continue its journey as a leading exhibitions business with an owner that can provide the capital and industry experience to support Tarsus's future growth. We believe that the Acquisition is in the interests of Tarsus's shareholders, employees and customers and we look forward to seeing Tarsus continue to grow going forward."
Deutsche Bank, Peel Hunt, Macfarlanes, Ogier, and IR Focus advised Tarsus Group. Goldman Sachs, Moelis & Co, Allen & Overy, Carey Olsen, and Greenbrook advised Charterhouse.
Barrick Gold Corporation offered to acquire all of the shares it does not already own in Acacia for $285m through a share for share exchange of 0.153 Barrick shares for each ordinary share of Acacia.
The proposal assumes that Acacia will pay no further dividends. The exchange ratio is based on the 20-day volume weighted average trading prices of Acacia and Barrick as at market close in London and New York on May 20. This implies a value for Acacia of $787m and total consideration to the minority shareholders of Acacia of $285m.
The offer represents a near 11% discount to Acacia's closing share price on Tuesday and is 42% below Barrick's audited valuation of Acacia's assets in its 2018 annual report. Barrick owns currently 63.9% of London-listed Acacia. Barrick Gold Corp's offer to buy the rest of Acacia Mining is fair because the Canadian company is taking on more risk by increasing its exposure to Tanzania, said Barrick's CEO.
Britain's competition watchdog is investigating if Olympus Partners planned takeover of DS Smith's flexible and rigid plastic business could hurt market competition. The deal, which was announced in March, values the London-listed company's plastic packaging unit at up to $585m.
Sullivan & Cromwell and Brunswick Group advised DS Smith.
CAF Group agreed to acquire EuroMaint Group, the Swedish rolling stock maintenance company, from Orlando Management for €80m ($89m), with a final price that will be specified, after the proper adjustments. With the incorporation of this new company, CAF reinforces its growing activity in the rail services area and also strengthens its presence in the Nordic markets, where the company has developed a significant number of projects. The transaction is expected to close by July 19.
"This transaction will strengthen CAF Group's positioning at a European level in the maintenance and supply of components, which is an activity with longer average execution times that provides greater sales stability in the medium and long term. Likewise, EuroMaint's strong client portfolio will contribute to generate new opportunities for the development of other types of projects in the Nordic region," said CAF Group in a statement.
Walki Group agreed to acquire Plastiroll, a Finnish producer of biodegradable bags and films, from funds managed by Sponsor Capital and key personnel of the company. Financial terms of the transaction have not been disclosed.
"With this transaction, we will significantly broaden our offering of sustainable packaging materials including compostable bags and films as well as recyclable dispersion coated fiber-based packaging," says Leif Frilund, President and CEO of Walki.
Atlas Copco, a Swedish industrial group, agreed to acquire Eurochiller, an Italian manufacturer and distributor of industrial cooling equipment and related products. The acquisition is expected to be completed during the second quarter of 2019. The company will become part of the Oil-free Air division within the Compressor Technique business area. Financial terms were not disclosed.
"Acquiring Eurochiller with its great team and high-quality products will complement our existing product portfolio and allow us to further increase the productivity of our customers," said Vagner Rego, Business Area President Compressor Technique.
Fiat Chrysler and Renault in talks over a merger.
According to the Financial Times, FCA is in advanced talks to create extensive ties with Renault. The carmakers want to join forces to face the structural challenges facing the auto industry.
In the future, the agreement may lead FCA to join the Renault-Nissan-Mitsubishi Alliance in the future. However, this outcome would mean taking a difficult path, which would involve winning over Japan's Nissan. The talks are focused on the potential for extensive cooperation between FCA and Renault, which is the dominant partner in the alliance with Nissan.
Soros bought a 3% stake in Swiss asset manager GAM. (FS)
According to Swiss Exchange's filling, The SFM UK Management fund linked to George Soros built a 3% stake in Swiss asset manager GAM Holding. GAM shares rose 7% in early trading on Friday.
At Thursday's close, the shares were up about 5% this year after losing three-quarters of their value in 2018 after the suspension and subsequent sacking of fund manager Tim Haywood. Haywood has denied any wrongdoing and this month said he hopes to win an appeal against his dismissal.
CVC hastens £1.2bn sale of warranty giant D&G. (FS)
According to Sky News, CVC Capital Partners is holding talks about a sale or listing of Domestic & General, the warranties giant which insures millions of Britons' household appliances. D&G is likely to be valued at around £1.2bn ($1.5bn).
CVC Capital Partners is currently holding talks with several rival buyout firms, including Apax Partners, Centerbridge and Warburg Pincus, about a sale of D&G, even as it prepares for a stock market listing of the business.
Gilde likely to sell a majority stake in TMC Groep to Ergon Capital Partners. (FS)
The Netherlands Authority has reported the intended transaction for Consumers and Markets, but he still has to grant permission. Also, TMC council also has to decide on the takeover.
Founder Thijs Manders will remain co-shareholder of the company after the new investor joins. Second co-founder Jan van Rijt and co-director of TMC Emmanuel Mottrie will also retain their minority interest. The three together hold more than 30% stake.
In 2012, Gilde became the majority shareholder of TMC, which was then listed on the Amsterdam stock exchange. It had already been clear for some time that the investor would try to sell its shareholding after a period of about seven years.
Qatar wants to buy a stake in Leeds United.
According to the Financial Times, Qatar Sports Investments, a state-backed group which controls French Paris Saint-Germain, is in talks to buy a stake in Leeds United in a deal that would allow Qatar to enter English football for the first time.
Qatar is seeking a majority stake in Leeds United, which plays in the Championship, the second tier of English professional football. Leeds narrowly missed promotion into the Premier League this season.
Sberbank is in talks to sell Antipinsky refinery.
CEO of Sberbank, German Gref, said that Russia's largest lender Sberbank is in talks with potential investors to sell Russia's Antipinsky oil refinery. The lender has also sold the debt-ridden Afipsky refinery to Russian billionaire Mikhail Gutseriyev. Financial terms of the transaction were not disclosed.
Possible consultations about Sberbank's Ukrainian subsidiary future.
CEO of Sberbank, German Gref, said that the Russian bank might hold consultations with Ukraine's new leader Vladimir Zelensky on the future of its Ukrainian subsidiary.
"I do not think it is possible within the next half a year, as he now has to form the new government, elections and so on. He will not have time for us within the next half a year, later consultations are possible. Of course, we will resume efforts," he said.
Canadian B2Gold is in talks to buy $200m Zimbabwe gold mine.
According to Bloomberg, Canadian B2Gold Corp considers buying an idled Zimbabwean gold project if it can be exempted from a law which requires producers to sell all the metal to the Zimbabwean central bank.
Securing an exemption may open the way for further investment by gold producers in the southern African nation, where several companies have closed mines because of the sales requirements and Zimbabwe's economic crisis.
AMERICAS
Freedom Mortgage Corp and RoundPoint Mortgage Servicing Corp entered a merger agreement in which RoundPoint will become a wholly-owned subsidiary of Freedom Mortgage. Following the merger, Freedom Mortgage's combined owned and subserviced mortgage servicing rights portfolio is expected to be over $300bn.The transaction is subject to customary closing conditions and certain regulatory approvals and is expected to close in the third or fourth quarter of 2019. Financial terms of the deal were not disclosed.
"This merger will create a much larger and stronger organization with significant synergies," said RoundPoint CEO Kevin Brungardt. "RoundPoint will benefit operationally in many ways, including having access to Freedom Mortgage's substantial origination platform. With the combination of servicing portfolios, the merger makes the company the seventh largest US mortgage servicer nationwide."
Goldman Sachs and Sidley Austin advised RoundPoint. Classic Strategies Group and Zuckerman Gore Brandeis & Crossman advised Freedom Mortgage.
Brazilian Natura&Co expects to increase revenue by investing in the brand and digital capabilities after sealing a deal to merge with Avon Products and control 76% of the new company. Chairman Roberto Marques said it would be necessary to spend around $125m over the next 36 months to capture cost savings of $150-250m per year, mainly in Brazil and the rest of Latin America.
Natura &Co is acquiring Avon Products in an all-share transaction, creating the fourth-largest pure-play beauty group in the world with expected annual gross revenues of over $10bn. The combined company will have an enterprise value of approximately $11bn based on closing prices on May 21, 2019.
Goldman Sachs, PJT Partners, Sullivan & Cromwell, Cravath Swaine & Moore, and Paul Weiss Rifkind Wharton & Garrison advise Avon Products. Morgan Stanley, UBS, Davis Polk & Wardwell, and Pinheiro Neto advise Nautra&Co. Banco Bradesco, Citigroup, and Itau Unibanco provide debt. Kirkland & Ellis advise Cerberus as the largest stockholder for Avon Products.
Pennsylvania's Public Utility Commission approved T-Mobile US-Sprint Corp $59bn combination, bringing the megamerger one step closer to completion. The commission voted 3-2 to approve the deal. The deal, which was announced in April 2018, is facing concerns regarding competition in the US.
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.
Penguin Random House acquired a significant minority ownership stake in
Sourcebooks, one of the country's fastest-growing independent publishers. The transaction will create a performance- and growth-oriented partnership between the two companies. Sourcebooks retains its majority ownership of 55%, with no changes in its leadership, management, publishing autonomy, or entrepreneurial culture. Penguin Random House now owns 45%, as a collaborative investor in the Illinois-based company. Terms were not disclosed.
"Sourcebooks is an amazing success story with an extraordinarily strong track record of building sustainable growth," said Madeline McIntosh, "and Dominique is a great publisher and entrepreneur whom I have long admired. We now have a singular opportunity to forge a partnership of shared vision and values, and together grow our businesses, as we shape readers' lives through the books we publish."
Deloitte advised Sourcebooks.
The Riverside Company, a global private equity firm, has acquired Northern Colorado Traffic Control, a full-service provider of outsourced traffic management serving the Colorado market. Financial terms were not disclosed.
NCTC is an add-on to Riverside's Area Wide Protective platform that also provides temporary traffic management solutions to utilities, utility contractors and telecommunications companies, among various other customer types.
"We're excited to work with an already successful company that maintains strong relationships and business results," says Riverside Partner Ryan Richards. "We also continue to seek strategic add-ons for the platform that complement and accelerate the organic growth of AWP."
Kirkland & Ellis and CohnReznick advised Riverside.
Brazilian Grupo SBF, the owner of sporting goods retailer Centauro, made a counteroffer of $2.80 per share to acquire online shoe retailer Netshoes. The offer values the company at around $87m, and represents a 40% premium over the offer made by Brazilian retailer Magazine Luiza at the end of April, which valued Netshoes at around $62m.
Magazine Luiza offered to pay $2 in cash per share. The acquisition is aligned to the Magazine Luiza's efforts to increase its footprint in the increasingly competitive Brazilian e-commerce, as Amazon revs up operations in Latin America's largest economy seven years after entering the market. The rules give Magazine Luiza time to raise its bid if it wants to win the Netshoes deal. Netshoes reviews the offer and has not decided whether SBF's offer is superior to that of Magazine Luiza.
Goldman Sachs, Simpson Thacher & Bartlett, Demarest Advogados, and Campbells advise Netshoes.
Consolidated Container Company, developer and manufacturer of rigid plastic packaging, acquired Sonic Plastics Enterprises, a producer of packaging for the nutraceutical, health and beauty products. Financial terms were not disclosed.
Mark Shafer, General Manager of CCC's Food, Nutrition, and Beverage Group stated, "Sonic Plastic's experience in the production of packaging for the nutraceutical, health and beauty end markets allows CCC to provide our customers with new and unique packaging solutions."
Global Payments is sealing $20bn merger with Total System Services.
According to the Financial Times, Payment technology company Global Payments is nearing a $20bn agreement to acquire peer Total System Services, in an all-stock deal that is expected to be announced Tuesday, but the timing of the deal may slip. The combined company plans to refinance.
Brookfield, Blackstone, EQT to rival for Genesee & Wyoming. (FS)
According to Bloomberg, Brookfield Asset Management, Blackstone Group, Stonepeak Infrastructure Partners and EQT Partners are competing to acquire railroad operator Genesee & Wyoming.
The investment firms are among suitors that have progressed into the next round of bidding for the company. Genesee & Wyoming is seeking at least $110 per share, which would value the company's equity at about $6.2bn, based its 56.5m shares of common stock outstanding at April 1.
Third Point is building a stake in Centene. (FS)
According to Bloomberg, Dan Loeb's Third Point built a position in Centene Corp and thinks the company should explore a sale process.
JD Power's owner explores the sale of the US unit. (FS)
According to Reuters, XIO Group, private equity firm which owns JD Power, is exploring a sale of the US customer survey and car rating company valued at nearly $1.9bn, including debt.
XIO's acquisition of JD Power in 2016 attracted US government scrutiny because the buyout firm has investors from China. XIO has decided the time has come to sell the company so it can score a profit on its investment.
Evercore Partners is reportedly running a sale process for XIO Group.
APAC
TPG Telecom filed a case with an Australian court challenging the anti-trust regulator's move to block $10bn merger with Vodafone Hutchison Australia, Vodafone's local joint venture. The deal was to combine Australia's third and fourth-largest telcos to create a big player boasting TPG's fiber network and Vodafone's mobile system.
Australia's competition regulator said it opposed the proposed merger between TPG Telecom and Vodafone Group's Australian unit because it would reduce competition, particularly in mobile services.
TPG is advised by Macquarie Group, Herbert Smith Freehills, and FTI Consulting. Vodafone is advised by Bank of America Merrill Lynch, Deutsche Bank, Allens, Linklaters, and Norton Rose Fullbright.
Total wants to reduce stake in the Kashagan oilfield.
According to Reuters, Total wants to sell a third of its stake in Kazakhstan's giant Kashagan oilfield to raise up to $4bn. Total holds a 16.8% stake in Kashagan, one of the world's largest oilfields with a production of 400k barrels per day. The company's entire stake has an estimated value of up to $9bn.
The energy group has held talks with a Chinese national oil company about a stake sale in recent months, but the sides were unable to agree on the price.
Allist Pharma raised $171m in Series A led by Shiyu Capital. (FS)
Chinese innovative drugs developer Allist Pharmaceuticals raised CNY1.2bn($171m) in a new funding round led by healthcare-focused private equity firm Shiyu Capital. Loyal Valley Capital and Suzhou Industrial Park Bioventure Investment also participated in the series. This funding round will be used to promote product commercialization, research new drugs, and promote international cooperation.
CITIC Securities advised Allist Pharma.
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