Daily Review

 

Generali, a financial services provider, agreed to acquire a 77% stake in MGG Investment Group, an investment firm specializing in senior secured loans and structured capital solutions for middle-market businesses, for $320m, according to press releases.

MGG Investment Group is advised by UBS, Cadwalader Wickersham & Taft, Schulte Roth & Zabel and Gasthalter & Co. Generali is advised by Ardea Partners and Morgan Lewis & Bockius, according to press releases.

 

Angelicoussis Group, a privately owned group of shipping companies, completed the acquisition of Altera Shuttle Tankers, a shuttle tanker provider, from Altera Infrastructure, a global energy infrastructure services group. Financial terms were not disclosed.

Maistros Shiptrade was advised by Slaughter & May (led by Richard Smith and Richard Hilton). Altera Infrastructure was advised by Rystad Energy, Jefferies & Company, Kirkland & Ellis, Schjodt and PricewaterhouseCoopers, according to MergerLinks data. 

Stellex Capital Management, a New York-based middle-market private equity firm, completed the acquisition of Industrial Construction Services Holding, a provider of electrical services. Financial terms were not disclosed, according to press releases.

Industrial Construction Services was advised by Houlihan Lokey. Stellex Capital was advised by Paul Weiss Rifkind Wharton & Garrison (led by Angelo Bonvino and Michael Vogel) and Marketcom PR (led by Rosalia Scampoli), according to MergerLinks data and press releases.

 

AlixPartners' owners weigh a $5bn sale of the consulting firm. (Bloomberg)

The private equity owners of AlixPartners are exploring a potential sale of the US consulting firm. Caisse de dépôt et placement du Québec, Public Sector Pension Investment Board and Investcorp are working with advisers to gauge buyer interest in AlixPartners. A deal could value the New York-based company at at least $5bn and perhaps as much as $8bn.

AlixPartners said it regularly reviews its capital structure and invites outside investors to participate in its growth and commercial success. The firm’s three external investors made a minimum 10-year commitment when they came on board.

The potential sale is still in the exploratory stage, and no formal decisions have been made. The outcome will depend on various factors, including market conditions and strategic alignment with potential buyers.

 

Kimberly-Clark explores a $4bn sale of international tissue business, attracting potential buyers. (The Business Times)

Kimberly-Clark’s potential sale of its international tissue business has attracted interest from companies including Royal Golden Eagle, Brazil’s Suzano and Asia Pulp & Paper. The unit could be valued at about $4bn.

This strategic consideration aligns with the company's efforts to focus on more profitable segments. Deliberations are in the early stages, and any potential sale will depend on the outcome of the ongoing review.

Historically, Kimberly-Clark has worked with Centerview Partners, JP Morgan and Gibson Dunn & Crutcher, according to MergerLinks data.

Cosan sells $1.5bn Vale stake to reduce debt amid high interest rates. (Live Mint)

Brazilian conglomerate Cosan has sold approximately 173m shares of mining giant Vale, representing a 4.05% stake, to reduce its debt by 40%, bringing it down to around 14bn reais ($2.33bn). 

Cosan's Chairman, Rubens Ometto, emphasized that the decision was influenced by Brazil's high interest rates, stating, "Vale is an extraordinary asset and I have a lot of confidence in the new management... However, the current level of interest rates forces us to reduce Cosan's leverage ratio." 

This move aligns with Cosan's strategy to optimize its capital structure and focus on its integrated energy platform. Analysts view the sale positively, noting it demonstrates strong discipline in reducing leverage and refocusing strategic priorities. 

Lone Star Funds prepares for a potential exit from Novo Banco. (Bloomberg)

Lone Star Funds, the US private equity firm holding a 75% stake in Portugal's Novo Banco, is reportedly engaging advisers to explore exit strategies, including a sale or IPO. 

Novo Banco, established in 2014 following the collapse of Banco Espírito Santo, has undergone significant restructuring under Lone Star's ownership since 2017. The bank has improved its financial health, reporting a core Tier-1 capital ratio of 19.9% and consistent profitability over the past three years. 

In December 2024, shareholders agreed to lift a dividend payout ban, facilitating potential ownership changes through an IPO or sale. CEO Mark Bourke has indicated readiness for an IPO in early 2025, aiming to diversify the shareholder base while maintaining the bank's independence. 

 

Insight Partners closes $12.5bn in new funds to invest in software companies. (Press Release)

Global software investor, Insight Partners, announced the closing of its thirteenth flagship fund with a dedicated buyout co-invest fund, as well as the closing of its structured equity fund, Opportunities Fund II. These funds represent $12.5bn in capital to deploy in leading software companies across the globe to support growth at any stage. The closing of these new funds brings Insight Partners' regulatory assets under management to more than $90bn and marks a notable milestone in the firm's 30-year history of scaling transformative software companies worldwide. 

"For 30 years, Insight Partners has been more than an investor—we have been a partner to software leaders, helping them scale transformative ideas into global powerhouses. Fund XIII is a testament to the trust we've built with our founders, Limited Partners, and team. As we celebrate this milestone, we remain focused on shaping the next era of innovation and growth in the software industry," Jeff Horing, Insight Partners Co-Founder and Managing Director.

 

Framatome, a French multinational company, agreed to acquire industrial valves manufacturers Velan France and Segault from Velan, an industrial valve manufacturing company, for $198m, according to press releases.

Framatome is avised by Jones Day. Velan is advised by BMO Capital Markets, Bredin Prat, Davies Ward Phillips & Vineberg and McCarthy Tetrault, according to MergerLinks data and press releases.

 

EXA Infrastructure, a London-based digital infrastructure platform, agreed to acquire Aqua Comms, an Ireland-based operator of transatlantic and intra-European subsea infrastructure. Financial terms were not disclosed, according to press releases.

Aqua Comms is advised by Akur Capital, RBC Capital Markets and Paul Weiss Rifkind Wharton & Garrison. EXA Infrastructure is advised by Goldman Sachs and Shoosmiths, according to MergerLinks data and press releases.

KKR to acquire a minority stake in Gulf Data Hub.

 

KKR agreed to acquire a minority stake in Gulf Data Hub, one of the largest independent data center platforms in the Middle East. Financial terms were not disclosed, according to press releases.

Gulf Data Hub is advised by JP Morgan. KKR is advised by Jefferies & Company, according to MergerLinks data.

 

Rio Tinto and Glencore engage in preliminary merger discussions. (Bloomberg)

Rio Tinto and Glencore, two of the world's leading mining companies, have engaged in early-stage discussions regarding a potential merger. If realized, this union would create the largest mining entity globally, surpassing BHP Group. The combined company would have a valuation of approximately $160bn, surpassing BHP in market capitalization.

Despite the potential benefits, the likelihood of the merger proceeding remains uncertain due to these challenges and Rio Tinto's historically cautious acquisition strategy. Additionally, integrating Glencore's coal operations with Rio Tinto's focus on low-carbon materials may pose strategic hurdles. 

Historically, Rio Tinto has worked with Rothschild & Co, JP Morgan, McCarthy Tetrault and Linklaters, according to MergerLinks data.

KKR hires Goldman Sachs to sell stake in Philippine fintech Maya. (Reuters)

Global investment firm KKR has appointed Goldman Sachs to manage the sale of its significant minority stake in Philippine fintech company Maya. KKR currently owns over 20% of Maya, and the potential sale could value the company at more than $2bn. 

Maya is an all-in-one money app offering digital payment and banking services, including bill payments, remittances, savings, investments, and cryptocurrency. Its Maya Bank is the leading digital bank in the Philippines, with a customer base of 5.4m. 

Historically, KKR has worked with Morgan Stanley, Goldman Sachs, Simpson Thacher & Bartlett and Latham & Watkins, according to MergerLinks data.

Shanghai Yuyuan considers a $300m second listing in Hong Kong. (BoF)

Shanghai Yuyuan Tourist Mart Group, which has operations spanning jewelry stores to cultural sites, is contemplating a second listing in Hong Kong. The company, already listed in Shanghai, may seek to raise more than $300m in an offering. Considerations are ongoing and no concrete decisions have been made.

The potential secondary listing aligns with Shanghai Yuyuan's strategic objectives to strengthen its financial position and support future growth initiatives. While the company has not officially confirmed the plans, such a move would reflect a growing trend among Chinese firms seeking dual listings to leverage multiple capital markets.