EMEA
Fiat Chrysler Automobiles, an Italian-American multinational automobile corporation, made a merger offer to Groupe Renault, a French multinational automobile manufacturer. The combined business would be 50% owned by FCA shareholders and 50% by Groupe Renault shareholders and would be valued at approximately $35bn.
The proposed combination would create a global automaker, preeminent in terms of revenue, volumes, profitability, and technology, benefitting the companies’ respective shareholders and stakeholders. The combined business would sell approximately 8.7m vehicles annually, would be a world leader in EV technologies, premium brands, SUVs, pickup trucks and light commercial vehicles and would have a broader and more balanced global presence than either company on a standalone basis.
Goldman Sachs, Nomura, d'Angelin & Co, Darrois Villey Maillot Brochier and Sullivan & Cromwell are advising Fiat Chrysler Automobiles.
Canal +, a French film and television studio owned by Vivendi, agreed to acquire M7 Group, a Luxembourg based media company, from private equity firm Astorg Capital Partners for €1bn ($1.1bn). The proposed transaction is subject to the clearance from the relevant regulatory authorities and is expected to close later this year in September 2019.
Commenting on the acquisition by Canal+, Charles-Hubert le Baron, at Astorg said: “Since our cooperation with M7 in 2014, the company has continued to expand its business rapidly in Eastern Europe, while further upselling its subscriber base across all geographies. In line with our investment philosophy, Astorg has encouraged M7 to develop its external growth through acquisitions (the most recent one being UPC Direct in Eastern Europe) and also investments made to improve the customer experience (e.g. Over-the-Top features). Canal+ strong interest in M7 is a testimony of the remarkable strategy rolled-out by the M7 management team.”
Nasdaq withdrew its offer for Oslo Bors, a Norwegian exchange operator, soon after Euronext, a European stock exchange operator with its registered office in Amsterdam, secured approval from Norway's Ministry of Finance this month to buy more than 50% of the company. Nasdaq matched Euronext's $798m bid on March 4, 2019.
Euronext's success blocks Nasdaq's ambition of completing a sweep of the Nordic-Baltic region, where the US firm already owns the stock markets of Sweden, Denmark, Finland, and Iceland, as well as those of Estonia, Latvia, and Lithuania.
Arctic Securities, Carnegie, Selmer, and Thommessen are advising Oslo Bors. Goldman Sachs and Skadden Arps Slate Meagher & Flom are advising Nasdaq. Bank of America Merrill Lynch, Rothschild & Co, SEB, SpareBank 1 Markets and Schjodt are advising Euronext.
Mike Ashley, a British billionaire retail entrepreneur in the sporting goods market, sold Newcastle United, a professional football club in Newcastle upon Tyne, England, to Abu Dhabi’s billionaire Sheikh Khaled bin Zayed Al Nehayan for £350m ($445m).
The contracts between Ashley and Sheikh Khaled have been signed and submitted to the Premier League. Sheikh Khaled, the cousin of Manchester City owner and Arab billionaire Sheikh Mansour bin Zayed Al Nahyan, previously failed in his bid to buy Liverpool Football Club for £2bn ($2.5bn) last year.
Gulf Capital, an alternative asset manager based out of the Middle East, acquired a 70% stake in Medica Group. Founded in 1999, Medica provides aesthetics, cosmetics and dermatology equipment, and products across the Middle East. The company claims to have a portfolio of over 20 international brands across 12 countries. Financial terms were not disclosed.
“This investment in the dominant market leader gives Gulf Capital a strong exposure to the fast-growing aesthetics and cosmetics sectors and allows us to capitalize on the growing consumer and healthcare trends in the region,” Gulf Capital CEO Karim el Solh said.
Freshfields and PwC advised Gulf Capital. Emirates Investment Bank and BonelliErede advised Medica Group.
Algeria’s energy minister said that he would seek a “good compromise” when asked about his earlier comments that Algiers would block a plan by Total, a French multinational integrated oil and gas company, to buy Anadarko’s Algerian assets for $8.8bn. Occidental Petroleum agreed to sell Anadarko Petroleum Corporation’s assets in Algeria, Ghana, Mozambique, and South Africa to Total if it succeeds in completing its plan to take over of Anadarko. Occidental is buying Anadarko for $57bn after it won a bidding war against rival Chevron Corporation. As part of this deal, Occidental would be selling the assets to Total.
Malaysia's Employment Provident Fund buys Sports Direct headquarters. (FS)
Malaysia’s Employees Provident Fund has bought Sports Direct International U.K. headquarters for £120m($153m).
Sports Direct's sale of Shirebrook property, a warehouse complex and distribution center is being negotiated. Furthermore, after completion of the deal, Sports Direct will take a 15-year lease on the Shirebrook property and continue to operate it as a distribution center, offices, and retail business.
Leonardo to look for partnerships in specific business areas.
Leonardo, an Italian global high-tech multinational company specializing in aerospace, defense, and security, will look for partnerships in specific business areas, CEO Alessandro Profumo said, ruling out a merger involving the entire group. Mr. Profumo said he expected Europe’s fragmented defense industry to consolidate, with tie-ups emerging in specific business areas as companies embark on joint projects and strive to cut costs.
“As a parent company, Leonardo isn’t planning to join a potential M&A trend in the defense industry but I think there is room for M&A in Europe at business area level,” he said. “We want to remain in the driving seat and lead the M&A process in those business areas where Leonardo is a leader, on the opposite side, in those areas where the group is not a leader it is open to cede control in a combination.”
Ma'aden ponders a $5bn rights issue.
Saudi Arabian Mining Co, commonly known as Ma'aden, a diversified mining company, active in gold base metals mining and infrastructure industry, is considering a possible rights issue to raise up to $5bn. Ma’aden could use the proceeds to help finance its potential acquisitions. The Saudi Public Investment Fund, which owns a 65.4% stake in the mining firm, is set to participate in the rights issue.
HSBC is advising Ma'aden.
AMERICAS
Canadian Utilities, a Canada-based worldwide utility organization, sold its Canadian power business to Energy Capital Partners, a private equity and credit investor, for $835m. The agreement includes 11 partly or fully owned natural gas-fired and coal-fired electricity generation assets located in Alberta, British Columbia, and Ontario, with a combined generating capacity of approximately 2,100 megawatts.
“We are impressed by the portfolio’s high-quality assets and strong operating history. We look forward to partnering with the portfolio’s talented management team and employees and to continuing to provide a high level of service to the portfolio’s offtakers and customers,” said Tyler Reeder, Managing Partner, Energy Capital Partners.
JP Morgan and RBC Capital Markets are advising Canadian Utilities.
Autogrill, Italy's leading highway service group, has completed the disposal of 23 Travel Centres across Highways 400 and 401 in Ontario, Canada, to a consortium led by Arjun Infrastructure Partners and Fengate Capital Management, for $190m.
The travel centers were operated under the ONroute brand name by HMSHost, a subsidiary of Autogrill. As part of the transaction, HMSHost has agreed to a transition period to provide support services to ensure continuity of service.
Aurora agreed to acquire Blackmore, an industry-leading Lidar company. Financial terms were not disclosed.
From Aurora point of view, Lidar is critical for developing a reliable self-driving system that can navigate our roads more safely than a human driver. As we’ve said before, different sensor modalities have different strengths and weaknesses; thus, incorporating multiple modalities drives dramatic improvements in the reliability of the system.
Aurora believes that Blackmore’s technology will allow delivering a safer, more efficient, and more cost-effective Driver than even the best systems available on the market today.
Endeavor, the US talent agency is looking to file for IPO.
Financial Times reported that Endeavor, an American talent agency with $3.6bn in revenue, filed for an IPO. The firm, one of the world’s biggest talent agencies, representing top performers from Rihanna to Charlize Theron, did not say how much money it planned to raise as part of the IPO, or what timeline it had set to complete the offering.
“We saw an opportunity to use disruption to our benefit and build a company and a platform for where the world was headed,” founder Ari Emanuel wrote in a letter to investors on Thursday.
Pot Company by Wall Street Alumni goes IPO.
Ayr Strategies, a U.S. based pot company, run by former executives from Goldman Sachs and Bank of America, will begin trading at Canada's NEO exchange at the value of $774m.
Ayr's goal is to become one of the top five U.S. multi-state pot companies within five years, when they expect the top companies will be able to generate 20% Ebitda margins and multiples that are 15 times those of consumer packaged goods companies.
“We want to be known as the disciplined people in cannabis, with a disciplined approach to growth. That doesn’t mean we won’t be aggressive, but we will be very disciplined in our growth organically and very disciplined in future acquisitions.” Jennifer Drake, Ayr Chief Operating Officer
Petrobras sets deadline for Liquigas non-binding offers.
Reuters reported that Petroleo Brasileiro, a Brazilian state-controlled oil company, has set 7th of June as the deadline to receive a non-binding proposal for its LPG distribution unit Liquigas.
Petrobras has been selling assets to reduce debt and re-focus on offshore exploration and production.
Banco Santander Brasil is managing the sale of Liquigas.
APAC
EQT Infrastructure, a Swedish private-equity firm, offers to acquire Vocus Group, a specialist fiber network services provider operating in Australia for $2.3bn.
EQT offered a confidential, non-binding, indicative proposal to acquire all of the stakes of Vocus for $3.6 each.
UBS and Allens are advising Vocus. EQT is advised by JP Morgan.
Manipal Hospitals, a multi-specialty hospital chain, would acquire Medanta, a leading hospital chain in India, for $829m.
US-based PE fund Carlyle holds a 27% stake in Medanta, acquired from US-based Avenue Capital in 2013 at a valuation of $600m.
TPG and Temasek financially back Manipal Hospitals. A new investor Blackstone is expected to pitch a $450m funding commitment.
Affirma Capital, a global private equity firm investing in balance sheet restructuring, expansion and growth capital, acquisitions or management buyouts, and mezzanine has acquired a majority stake in Hwa Sung, a leading Korean OEM/ODM company specialized in eyebrow and other color cosmetics products. Financial terms were not disclosed.
Hwa Sung was advised by BDA Partners.
Fraser and Neave, a food and beverage, publishing and former brewing and property industries conglomerate and Maxim’s Caterers, food, beverage, and restaurant chain, have acquired Starbucks Coffee Thailand. Financial terms were not disclosed.
“We are delighted by the opportunity to partner Maxim’s to invest in Starbucks Thailand. This acquisition provides an interesting strategic opportunity for F&N to enter and participate in the fast-growing premium retail coffee market in Thailand, one of F&N’s three significant core markets. We believe that adding Starbucks Thailand, with its store footprint and its position as a well-recognized coffee retailer in Thailand, will strengthen our competencies in the on-premise sector and elevate our capabilities in directly engaging consumers, in the long term.” Koh Poh Tiong, F&N Director and Chairman of its Board Executive Committee.
Reliance, an Indian conglomerate holding company, agreed to sell a 24% stake in its radio unit, Reliance Broadcast Network, to Jagran Prakashan, a leading Indian publishing house, for $173m. The planned exit from the radio business is part of efforts by Anil Ambani, Reliance's chairman, to cut wider group liabilities after a debt-fueled expansion in the past decade strained finances, while a subsequent government crackdown on bad loans led to the collapse of his wireless phone-services unit.
Trax to be valued $1bn in upcoming financing round.
Trax, a Singapore based start-up serving the retail industry, is about to sign a deal to raise $100m at a pre-money valuation of about $1.1bn. This would make Trax as the second most valuable startup in Singapore.
The new round is aimed at financing three acquisitions and is expected to close by the end of June. Trax is eyeing an IPO launch within 18 to 24 months.
“As long as you have a good company that has a solid business model, blue-chip clients, and expanding business model, those companies will always be successful. Trax has always burned very little cash, and we provide solutions for a huge industry, the retail industry. We are not intimidated.” Bar-El, Trax Founder.
Indonesia's Softex eyes $500m IPO. (FS)
PT Softex Indonesia, a sanitary product maker, backed by private equity firm CVC Capital Partners, plans to conduct an IPO and hopes to raise a fund of $500m.
The Tangerang-based company has met with potential advisers for a share sale in Indonesia that could happen as soon as this year. CVC bought a significant minority stake in the Indonesian company in 2015, which was the private equity firm’s fourth investment in the Southeast Asian nation at that time.
SoftBank to invest $350m in Lenskart. (FS)
SoftBank Vision Fund is in talks to invest $350m in Lenskart, eyewear retailer. Such investment would propel Lenskart into the coveted unicorn club.
Lenskart was also talking with Carlyle, a private equity firm, about funding, but the talks did not end up with an agreement.
Lenskart, after gaining new capital, would be looking to embark on a pan-India expansion by opening 150 more stores by March 2020 and a total of 2,000 over the next five years. The money would be spent on enhancing its technology stack, particularly artificial intelligence and machine learning capabilities.
Private equity real estate deals slugging in SE Asia. (FS)
According to a Deal Street Asia report, the real estate market in Southeast Asia recovered very well since the financial crisis and even created new records. But despite being perceived as a very attractive region in terms of fundraising, actual deal activity is not as robust as in other Asian markets. Investors, both domestically and internationally, are heavily deploying their capital in cities across China, Japan, South Korea, and Australia instead.
Old Bridge to launch category 3 alternative investment fund. (FS)
Old Bridge is launching its first open-ended category three alternative investment fund (AIF) that will invest in publicly listed companies. The latest fund will make investments easier for long-term investors. Category 3 AIFs invest in public markets, while Categories 1 and 2 cater to venture capital, private equity, and debt and infrastructure funds, Deal Street Asia reported.
“Across all the products – PMS, the Vantage Equity Fund, and our long term equity fund – the underlying portfolios will be almost the same. They will have an approximately 80% overlap.” Kenneth Andrade, Founder of Old Bridge.
ArcelorMittal and Resurgent looking to buy Essar Power generation plant.
ArcelorMittal, a multinational steel manufacturing corporation, and Resurgent Power Ventures, a coal-fired and hydropower plants operator, are reportedly looking to jointly buy Essar Power generation plant in India. Arcelor previously made a $690m bid for the asset in February.
Tata Power owns 26% of Resurgent Power, while ICICI Bank and the sovereign wealth funds of Oman and Kuwait hold the rest. Deliberations on the joint offer are still ongoing, and there’s no certainty a deal for the power plant will emerge.
China East Education looking to raise $680m in Hong Kong IPO.
Bloomberg reported that China East Education, a Chinese provider of vocational training, started taking investor orders for a Hong Kong IPO, which could bring the company as much as $680m. The price range which the company offers implies a market capitalization of $2.7bn to $3.4bn. The company's share sale would be the largest education listing globally, trumping the $490m offering by US education service provider Laureate Education in 2017.
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