AMERICAS
I Squared Capital, a private equity firm, agreed to acquire infrastructure division of GTT Communications, a cloud networking services provider, for $2.15bn.
The infrastructure division sale consists of selected network and data centre assets accumulated from several GTT acquisitions.
"The divestment of the highly differentiated infrastructure division assets will ensure greater focus on network investment and development of high-speed infrastructure services under the more specialized ownership of this experienced investor. The deal enables GTT to reinforce its capex light business model as well as its cloud networking focus and will benefit both enterprise and infrastructure clients alike," Ernie Ortega, GTT CRO and interim CEO.
GTT Communications is advised by Credit Suisse, Goldman Sachs, Goodwin Procter, Lewis, and Lippert/Heilshorn & Associates. I Squared Capital is advised by Solon, KPMG, Morgan Stanley, Rothschild & Co, Latham & Watkins, Linklaters, and Brunswick Group. Debt financing is provided by Morgan Stanley and Rothschild & Co.
FinTech III, a special purpose acquisition company, completed the merger with GTCR-backed Paya, an integrated payments and commerce solution provider, in a $1.3bn deal.
"The firm has been an exceptional partner, and we are excited for their continued support of our growth strategy while operating in the public market. I'd also like to express my appreciation to the public market investors who have invested in support of the next chapter in Paya's evolution," Jeff Hack, Paya CEO.
Paya was advised by Evercore, William Blair & Co, Kirkland & Ellis, and ICR. Fintech Acquisition was advised by Cantor Fitzgerald, Evercore, Morgan Stanley, Northland Capital Partners, and Ledgewood.
SolGold, an exploration company focussed on the discovery and definition of world-class copper-gold deposits, failed to acquire Cornerstone Capital Resources, a company that offers exploring for precious and base metals, industrial minerals, and rare earth elements, for $102m.
SolGold was unsuccessful in its unsolicited offer to acquire all of the issued and outstanding common shares of Cornerstone. Hostile Bid expired on October 14, 2020, without any Cornerstone common shares being taken up.
Varian announced that its stockholders have voted to approve the previously announced pending combination with Siemens Healthineers at a special meeting. Varian stockholders voted overwhelmingly in favour of the transaction.
"The overwhelming support our stockholders have expressed for this combination reflects the compelling value and important opportunity to shape the future of healthcare we see with Siemens Healthineers. This vote brings us closer not only toward completing this transformative combination but also toward realizing our vision of a world without fear of cancer. We look forward to securing the remaining regulatory approvals and closing the transaction," Dow Wilson, Varian CEO.
Varian is advised by Goldman Sachs, Wachtell Lipton Rosen & Katz, and Joele Frank. Siemens Healthineers is advised by Latham & Watkins. Debt financing is advised by JP Morgan and UBS. JP Morgan and UBS are advised by Clifford Chance and Hengeler Mueller.
First Citizens BancShares, a parent company of First-Citizens Bank & Trust, agreed to merge with CIT Group, a holding company which provides lending, advisory, commercial banking, vendor finance, and leasing services to small and middle market businesses, in a $2.2bn deal.
CIT stockholders will receive 0.062 shares of First Citizens Class A common stock for each share of CIT common stock they own. First Citizens stockholders will own approximately 61% and CIT stockholders will own approximately 39% of the combined company.
“Frank and I have long respected each other’s companies and believe this transaction will accelerate our strategic goals by bringing together the expertise of both banks to create scale, strength and value. This transaction will build on those efforts and more fully unlock the potential in our core franchises. In addition, the strength that is created as a larger US bank will enable greater opportunities for our team, our customers and our communities," Ellen R. Alemany, CIT Group Chairwoman and CEO.
CIT Group is advised by Keefe Bruyette & Woods, Morgan Stanley, Stifel, and Sullivan & Cromwell. First Citizens is advised by Piper Sandler and Smith Anderson.
EU antitrust regulators have extended their investigation into Alphabet unit Google's $2.1bn purchase of Fitbit to January 8 from December 23.
Google last month offered to restrict the use of Fitbit data for Google ads, make it easier for rival makers of wearables to connect to the Android platform and allow third parties to continue to have access to Fitbit users’ data with their consent.
Fitbit is advised by Qatalyst Partners, Fenwick & West, and Sard Verbinnen & Co. Qatalyst Partners is advised by Cooley. Google is advised by Lazard and Cleary Gottlieb Steen & Hamilton.
Lee Equity, a private equity firm, agreed to acquire a majority stake in Simplicity Group, a diversified financial services provider, from Aquiline Capital, a private equity firm. Financial terms were not disclosed.
"Lee Equity seeks to back leading entrepreneurs. Bruce and the broader Simplicity team have done an incredible job of growing the business into a clear market leader in a short four-year period. We believe that Lee Equity can help Simplicity drive the next phase of its growth and continue to recruit industry-leading Principals to the partnership," Mark Gormley, Lee Equity Partner.
Simplicity Group is advised by Waller Helms Advisors, Sirote & Permutt, and Willkie Farr & Gallagher. Lee Equity is advised by Oliver Wyman and Weil Gotshal and Manges. Aquiline Capital is advised by Prosek Partners.
Volkswagen’s truck unit Traton Group said it had agreed to sweeten its $43 per share takeover bid for US truck maker Navistar to $44.5.
The announcement follows hours of negotiations, with Navistar’s board saying the offer would need to be raised to $44.5 per share to win shareholders’ backing, hours before Traton’s $43 per share offer was due to expire.
“We are pleased to have reached an agreement in principle for a transaction after intensive negotiations with Navistar. We are looking forward to completing our due diligence and obtaining the necessary approvals in respect of this exciting deal in order to welcome the new Traton family member," Matthias Gründler, Traton Group CEO.
Navistar is advised by JP Morgan, PJT Partners, Sullivan & Cromwell and Brunswick Group.
The Jordan Company agreed to acquire performance material business of PQ Group Holding, a chemical manufacturer, for $650m.
“The planned sale of Performance Materials at an attractive valuation marks a significant milestone on our ‘Simpler and Stronger’ strategic path, as we target a portfolio reflecting both higher top-line growth and higher margins,” Belgacem Chariag, PQ Group Chairman, President and Chief Executive Officer.
The Jordan Company is advised by Kirkland & Ellis. PQ Group is advised by Goldman Sachs, Harris Williams & Co, and Ropes & Gray.
InstarAGF Asset Management, an independent alternative asset management firm, agreed to acquire LS Networks, a fibre-optic network operator. Financial terms were not disclosed.
“LS Networks is a premier essential digital infrastructure platform with an established operating history, deep, diverse customer relationships and attractive growth profile. We are delighted to partner with the leading provider of innovative solutions in the Pacific Northwest to help extend competitive fiber connectivity and advanced technologies to bridge the digital divide in our communities," Jack Bittan, InstarAGF Partner.
LS Networks is advised by Stifel and Davis Wright Tremaine. InstarAGF is advised by Wells Fargo Securities and DLA Piper.
John Hancock Life Insurance, an insurance company, agreed to acquire a 30% stake in ExteNet Systems, a provider of converged communications infrastructure and services. Financial terms were not disclosed.
"With our strong track record of providing market-leading, shared digital infrastructure and services for our customers, ExteNet is perfectly positioned to excel in our commitment to deliver tomorrow's connectivity today. I am excited to work with our newest partner, John Hancock, as we continue to build next-generation infrastructure and innovative solutions, including outdoor and in-building 5G, nationwide," Jim Hyde, ExteNet President and CEO.
ExteNet is advised by PJT Partners and Simpson Thacher & Bartlett. John Hancock is advised by TAP Advisors and Paul Weiss Rifkind Wharton & Garrison.
Existing BioMed investors agreed to acquire BioMed Realty, a self-advised real estate investment trust, from Blackstone Real Estate Partners, a provider of investment management and advisory services, for $14.6bn.
The recapitalization is expected to close within five business days of the conclusion of the “go-shop” process.
“Together with Blackstone, we have created a coveted portfolio in one of the most sought-after real estate asset classes. Our sector continues to prove its resiliency, and now is the logical time to seek long-term capital. This partnership structure and Blackstone’s ongoing support enable us to advance our mission, which is to make concentrated investments in core markets to support the growth of the life science and technology industries," Tim Schoen, BioMed Realty President and CEO.
Blackstone was advised by Morgan Stanley and Simpson Thacher & Bartlett. BioMed was advised by Eastdil Secured.
Sumo Group, a video game developer, completed the acquisition of Pipeworks, a video game studio. Financial terms were not disclosed.
The acquisition gives Sumo a significant and well-established presence on the West Coast, from which to expand in the US market, and brings an abundance of valuable experience to the Group. The addition of its 134-strong team takes Sumo Group’s headcount to just short of 1k, a major step forward in the company’s growth strategy.
"Pipeworks is an exciting addition to the Group and we welcome Lindsay Gupton, the CEO of Pipeworks, and his team to Sumo Group. We have already started to explore specific opportunities with clients and we look forward to creating great games together," Carl Cavers, Sumo Group CEO.
Sumo Group was advised by Allen & Overy, Investec, Zeus Capital, and Belvedere Communications.
Genstar-backed Prometheus Group, a provider of asset management operations and optimization software, completed the acquisition of Utopia Global, a software and services company. Financial terms were not disclosed.
"The foundation of the digital enterprise is clean, consistent, and complete master data. Not only do companies need good master data to fully realize their investments in computerized maintenance management systems, newer concepts such as asset integrity management, predictive maintenance and 'digital twins' absolutely count on high integrity data to drive business efficiencies across the enterprise. Utopia has both the software and domain expertise to solve this onerous and complex issue. I look forward to working with Arvind and Narinder to incorporate Utopia's amazing solutions into the Prometheus Platform," Eric Huang, Prometheus Group Founder and CEO.
Utopia Global was advised by Lazard and Katten Muchin Rosenman. Prometheus Group was advised by Chris Tofalli.
Cowen, an asset management firm, led a $200m Series H funding round in Proterra, an innovator in heavy-duty electric transportation. The round saw also investment from Soros, Generation Investment Management, and Broadscale Group.
As demand grows for battery-electric vehicles and 100% zero-emission fleets, we are excited to collaborate with CSI as well as our other investors to accelerate the transition to clean, quiet transportation for all and deliver even more Proterra Powered vehicles around the world," Jack Allen, Proterra CEO and Chairman.
Proterra was advised by Bank of America Merrill Lynch.
Wipro, an IT and business solutions provider, agreed to acquire Eximius Design, a provider of engineering services, for $80m.
“Our customers, employees and the entire semiconductor ecosystem will tremendously benefit from the synergies of Eximius and Wipro’s combined portfolio of offerings. Clients will gain access to Wipro’s global scale and offerings, along with Eximius’ innovative solutions to accelerate the adoption of ASIC, FPGA, systems and software engineering initiatives. We are pleased to become a part of the Wipro family," Jay Avula, Eximius Design CEO.
Wipro is advised by AZB & Partners.
Canadian Pacific, a railway company, agreed to acquire the remaining stake in Detroit River Rail Tunnel, a tunnel operator, from OMERS, a private equity firm, for $312m.
"This is an important corridor for CP and by taking full ownership, we can better operate the asset to the benefit of our customers and the North American supply chain. This strategic acquisition combined with our recent purchase of the CMQ will further integrate the eastern part of our network and create value for our shareholders," Keith Creel, Canadian Pacific President and CEO.
Honeywell International, an American multinational conglomerate, completed the acquisition of UAV business of Ballard Power Systems, a manufacturer of fuel cells. Financial terms were not disclosed.
"We remain positive on the long-term outlook for fuel cell propulsion systems in the UAV market. However, we determined to divest this non-core systems business given our strategic focus on the Heavy- and Medium-Duty Motive markets of bus, truck, train and marine, where we expect scaled commercialization and growth through 2030 and beyond. We believe the UAV business will be best positioned within the Honeywell enterprise and look forward to our ongoing collaboration with Honeywell and growing the exciting business opportunities for a range of urban air mobility and broader aerospace applications," Randy MacEwen, Ballard President and CEO.
ConocoPhillips nears the acquisition of Concho Resources.
ConocoPhillips, an oil producer, is nearing the acquisition of Concho Resources, a shale producer, in what could be the largest shale industry deal since the collapse in energy demand earlier this year.
A tie-up of the explorers will create a heavyweight driller in America’s most prolific oilfield - the Permian Basin of West Texas and New Mexico - rivalling only the likes of Occidental Petroleum and Chevron in terms of crude output, Bloomberg reported.
The companies are finalizing the terms of a transaction and could announce an agreement as soon as Monday. No deal has been reached and talks may still fall apart.
NYSE encourages companies to test direct listing process.
The New York Stock Exchange has invited companies to test the direct listing process to promote the use of the budding IPO alternative, Reuters reported.
The goal of the test is to highlight to companies looking to go public how a direct listing will function when new shares are sold, and money is raised.
Direct listings have enabled existing investors to sell their shares and led to investment banks playing less of a role in deciding the price at which shares are sold. The US Securities and Exchange Commission has approved a proposed rule by the NYSE to allow companies to raise capital through a direct listing. Supporters of the direct listing model have criticized IPOs as chummy deals that allow bankers to allocate the most shares to their top clients.
Shell Canada abandoned plans for the sale of Sarnia Manufacturing Centre.
Shell Canada, a provider of petroleum products and services, has abandoned plans for the possible sale of Sarnia Manufacturing Centre, a refinery that provides base materials for chemicals and propane producers in the Sarnia area, Reuters reported.
“We have decided to stop actively marketing the Sarnia Manufacturing Centre and its associated infrastructure which includes the refinery, chemicals plant, Sarnia and Hamilton Distribution terminals and Shell’s 45% interest in Sun-Canadian Pipeline”, Shell Canada Spokeswoman.
The company is unaware of any plans for closure and that considerations for future investment will be handled on a case-by-case basis.
Uber considers partial sale of Uber Elevate.
Uber Technologies is seeking options for Uber Elevate business, including strategic partnerships or a partial sale, Reuters reported.
The move reflects the obsession of Dara Khosrowshahi, Uber CEO, with achieving profitability.
JCPenney sale talks terminated.
Talks between JCPenney, an American department store chain, and potential buyers Simon Property Group and Brookfield Property Partners, retailer’s two biggest landlords, broke down, Bloomberg reported.
Simon Property and Brookfield Property missed several deal deadlines. The two sides may turn to mediation to help them determine if they can complete the deal, and on what terms.
Nextdoor considers going public at $5bn valuation.
Nextdoor, a social network for neighbours sharing information or trading goods and services, is considering options to go public, including an IPO, Bloomberg reported.
The company is targeting a valuation in the range of $4bn to $5bn. Nextdoor might also go public through a direct listing or by merging with a blank-check firm, and a transaction may happen before the end of next year.
Nextdoor has raised about $470m and was last valued at $2.2bn after a funding round in September 2019. Its investors include Benchmark, Greylock Partners, Kleiner Perkins, Riverwood Capital, Axel Springer and Tiger Global Management.
Hertz secures $1.65bn in financing. (FS)
Hertz Global Holdings, a bankrupt car rental company, had lined up $1.65bn in debtor-in-possession financing, sending its shares soaring, Reuters reported.
Hertz plans to invest up to $1bn in vehicle acquisitions in the United States and Canada, and up to $800m for working capital and general corporate purposes.
The financing will be provided by some of the company’s creditors. It has filed a motion for approval of the financing by the US Bankruptcy Court for the District of Delaware.
Addition raises $1.4bn VC fund. (FS)
Lee Fixel, Tiger Global Management former executive's firm Addition, has raised a $1.4bn venture capital fund less than four months after securing his first vehicle, Financial Times reported.
Addition finalised the fundraising this week. It does not plan to begin investing the capital until next year. Mr Fixel has made a debut with Addition, striking deals in a dozen companies since the onset of the pandemic in the US.
In August, Addition led a $110m funding round in Lyra Health, a telehealth start-up, that valued the company at $1.1bn. Last month, the fund led a $200m financing for Snyk, a cybersecurity start-up, valuing it at more than $2.6bn.
Carlyle Group CEO is preparing for any outcome in the US election. (FS)
Kewsong Lee, Carlyle Group CEO, is working on post-election plans and helping employees avoid burnout while continuing to pursue deals, especially outside the US, Private Equity Insights reported.
The firm has invested about $1.5bn in Asia alone this year, mostly in health-care and technology. The company is expecting tax changes, regulatory shifts and fiscal stimulus that may come in the wake of the US election next month.
Lee took over as sole CEO in September after Glenn Youngkin, who stepped down. Carlyle is pursuing earlier-stage deals and credit investments, rather than leveraged buyouts or unwanted divisions of larger companies.
M&A chief is planning to leave Microsoft. (People)
Marc Brown, Microsoft M&A Chief, is leaving the company after a more than two-decade work on deals ranging from LinkedIn to Nokia handset unit, Bloomberg reported.
Frank Shaw, Microsoft Spokesman, confirmed Brown’s departure and declined to comment on a replacement. The company is still searching for a senior business development executive to replace Peggy Johnson, who left in July.
Brown most recently worked on Microsoft’s acquisition of ZeniMax Media, a video-game company, for $7.5bn in cash. He was also involved in the software maker’s attempt to buy the US assets of TikTok, a video-sharing app.
EMEA
Canada’s GardaWorld expects to incur as much as $403m in fees and expenses if it succeeds in its hostile takeover offer for UK rival G4S, Bloomberg reported.
Garda, which made a $3.81bn hostile offer for G4S, could pay as much as $232m in financing fees if it succeeds in acquiring the UK firm. Fees incurred for financial advice could range anywhere between $1.3m and $129m. Aside from financing and advisory fees for banks, legal expenses are expected to be $12m to $23m. Garda expects to pay as much as $9m for public relations advice.
G4S is advised by Citigroup, JP Morgan, Lazard, Linklaters, and Brunswick Group. BC Partners is advised by Kirkland & Ellis. GardaWorld is advised by Barclays, Simpson Thacher & Bartlett, and Montfort Communications.
Scatec Solar, a builder and operator of solar power plants, agreed to acquire SN Power, a hydropower developer, from Norfund, a private equity firm, for $1.17bn.
“Hydropower and solar PV are complementary technologies, resulting in new project opportunities, for instance floating solar on hydro reservoirs. With this transaction, we see great potential in broader project origination and geographical expansion into growth markets in South East Asia and Sub-Sahara Africa. SN Power adds scale and significant cash flow from operating plants and will raise stakeholder value; benefiting customers, employees, shareholders, business partners and the societies in which we operate,” Raymond Carlsen, Scatec Solar CEO.
Scatec Solar is advised by Multiconsult, Ernst & Young, JP Morgan, SpareBank1 Markets, Advokatfirmaet Selmer, King & Spalding, and Sweco. Norfund was advised by Nomura.
SALTO Systems, a manufacturer of electronic access control solutions, agreed to acquire Gantner, a provider of contactless access solutions from Ardian. Financial terms were not disclosed.
“Thanks to the new partnership with SALTO, we can expand our product portfolio, take advantage of important synergies, better target our markets and address customer segments with precision. This puts us in an optimal position to continue our dynamic growth,” Elmar Hartmann, Gantner CEO.
Ardian is advised by Indefi, goetzpartners, Deloitte, GCA Altium, Willkie Farr & Gallagher, and Taxess.
Partners Group, a private equity firm, agreed to acquire a 49% stake in Telepass, a toll payment services provider, from Atlantia, an Italian infrastructure group for $1.2bn.
"We welcome Partners Group to the Telepass team. The firm's excellent operational capabilities and history of supporting companies to grow their geographical footprint, expand service areas, and advance technologically will help us to build on our strong presence throughout Europe and drive our inorganic growth strategy. This acquisition is happening at a key point in Telepass' growth and we look forward to benefiting from the size and strength of Partners Group's platform, as well as the team's responsible ownership approach," Gabriele Benedetto, Telepass CEO.
Atlantia is advised by Goldman Sachs, Intesa SanPaolo, Mediobanca, BonelliErede, and Gianni Origoni Grippo Cappelli & Partners.
A consortium of investors including Chart Industries-backed Chart International, Technip Energies and Bpifrance-backed EDF Pulse led a $210m funding round in McPhy, a company specialized in hydrogen production and distribution equipment.
“The collaboration with McPhy is an important milestone for the future of the green hydrogen industry and demonstrates our ambition to accelerate the journey to a low-carbon society. We will work with McPhy to develop large scale and competitive carbon free hydrogen solutions from production to liquefaction, storage and distribution which we firmly believe is core to achieving net-zero targets. We are excited to be also joined by Chart Industries whose expertise lies in equipment development and is complementary to our process technology and project capabilities. We are proud to keep the same pioneering spirit and our commitment to technology and outstanding project execution to serve the energy transition," Arnaud Pieton, Technip Energies President.
McPhy was advised by Bryan, Garnier & Co, King & Spalding and NewCap. Technip Energies was advised by Willkie Farr & Gallagher.
The Competition and Markets Authority has raised doubts over the proposed $66m acquisition of Findel Education by Yorkshire Purchasing Organisation. CMA stated that both YPO and Findel compete closely with each other in the field of educational resources such as stationery, furniture and art & science materials.
The merger may reduce competition both by eliminating Findel’s significant competitive constraint on YPO and potentially forcing some generalist distributors to focus only on regions where they have a strong foothold.
The proposed merger will be referred for a Phase 2 investigation unless the parties offer acceptable undertakings within five working days to address the CMA’s competition concerns.
Studio Retail Group is advised by Stifel, N+1 Singer, and Tulchan Communications.
Geodis, a provider of transportation and logistics services, agreed to acquire an entire stake in PEKAES, a logistics group, from Innova Capital, a Central European private equity firm. Financial terms were not disclosed.
“Over the last five years, PEKAES has embarked on a path of dynamic development and implemented a strategic program prepared for this period. While we have successfully achieved the goals set for 2016-2020, our long-term development plan included a key target to combine the strength of our organization with an international strategic investor. GEODIS, as a global logistics provider, is an ideal match. We are proud that a leading global logistics company has given such a positive assessment of our business achievements, the organization of our companies as well as our potential and growth opportunities in the coming years,” Maciej Bachman, PEKAES CEO.
Innova Capital was advised by Greenberg Traurig, Rothschild & Co and PricewaterhouseCoopers.
Private equity firms, VAM Investments and Fondo Italiano d’Investimento, agreed to acquire luxury fashion and accessories companies, Giuntini, Ciemmeci Fashion and Mely’s Maglieria. Financial terms were not disclosed.
“These companies complement each other, they are not competitors — they are three legs of the same table. This is only the beginning of this industrial project. We have already identified other companies that can become part of Florence - one is specialized in jersey and the other in denim. We will rapidly expand this integrated platform,” Francesco Trapani, VAM Chairman.
The fashion companies are advised by Hogan Lovells. VAM Investments is advised by DWF.
GFG Alliance-backed Liberty Steel, a steel manufacturing company, offered to acquire Thyssenkrupp Steel Europe, a steel manufacturing unit of industrial giant Thyssenkrupp. Financial terms were not disclosed.
Liberty Steel is convinced that a combination with thyssenkrupp Steel Europe can be the right answer from an economic, social, and environmental perspective.
The discussions with thyssenkrupp have been conducted on a non-exclusive basis, and there is no certainty that the discussions will lead to any agreement or transaction.
Liberty Steel is advised by Hering Schuppener.
Advanced Computer Software Group, a software solutions provider, completed the acquisition of Mitrefinch, a workforce management software company, from LDC, a private equity firm. Financial terms were not disclosed.
“The innovative workforce management solutions developed by Mitrefinch are an exceptional fit with our existing best of breed Cloud HR solution. We’ve seen the impact of Covid-19 change the future of workforce management and shifting workforce expectations, leaving companies facing uncertainties with regards to resourcing and staffing. Digital technology provides accuracy of data to enable rapid decision-making in shifting market conditions which is a vital tool for companies managing shift patterns and measuring critical output,” Gordon Wilson, Advanced CEO.
Advanced was advised by Kirkland & Ellis.
Stripe, a payments company, agreed to acquire Paystack, a fintech startup. Financial terms were not disclosed.
“In just five years, Paystack has done what many companies could not achieve in decades. Their tech-first approach, values, and ambition greatly align with our own. This acquisition will give Paystack resources to develop new products, support more businesses and consolidate the hyper-fragmented African payments market,” Matt Henderson, Stripe EMEA Head.
Yandex and TCS terminate the $5.48bn acquisition talks with Tinkoff.
Talks over a $5.48bn cash-and-share sale of Tinkoff, an online bank to internet giant Yandex ended, Reuters reported.
Discussions over the potential deal, which would have increased competition for Sberbank, Russia’s lender and provider of banking services, and smaller rivals in technology and banking, stalled less than four weeks after they were announced by TCS Group Holding, a parent company of Tinkoff.
TCS said it had agreed with Yandex not to proceed with the transaction, but Tinkoff would continue to partner with it on existing and future projects.
Nestle plans a $5bn sale of Pure Life.
Nestle has kicked off the sale of North American water brands including Pure Life and Poland Spring, as a food group continues to exit slow-growth businesses, Reuters reported.
Nestle boss Mark Schneider wants to retain control of premium water brands like Perrier and San Pellegrino and sell the rest of the portfolio. Besides, he wanted Nestle to shift its focus to better-performing water brands which include Acqua Panna while the rest of the business was being put under review.
Apollo, a private equity fund, Refresco, a Dutch bottling company, Primo Water and Niagara Bottling are expected to show interest.
Nestle is advised by Morgan Stanley.
Italy's Five Star to back CDP's bid for Autostrade. (FS)
The Five Star Movement party is set to support a bid by Italy’s state-backed lender CDP, for the acquisition of 88% stake in its motorway unit Autostrade per l’Italia, removing a significant hurdle in resolving an ongoing spat between Rome and the billionaire Benetton family.
The anti-establishment party is now ready to support a government-led bid which would see lender Cassa Depositi e Prestiti, or CDP, acquire a majority stake in the concession while dropping threats to revoke licenses, Bloomberg reported.
The sale of the stake by Atlantia to CDP is seen as an acceptable way to ensure the Benetton family exits the toll-road operator and a way to avoid kicking off a legally complex revocation process. Five Star would welcome a central role for CDP, which would keep control of the network in public hands.
Investindustrial considers a $2.34bn sale of Polynt-Reichhold. (FS)
Investindustrial, a buyout fund, is planning to sell its speciality chemicals firm Polynt-Reichhold in a deal worth up to $2.34bn that is expected to launch early next year, Reuters reported.
Italy-based Polynt-Reichhold was formed in 2017 by combining Investindustrial-owned Polynt Group and Black Diamond Capital Investors-backed Reichhold.
Investindustrial, led by founder Andrea Bonomi, is looking to hire banks in the coming weeks to prepare the company for an auction process that could take place in the first quarter of 2021.
Marshall Wace completed the acquisition of a 3% stake in IAG. (FS)
Marshall Wace, a hedge fund, completed the acquisition of a 3% stake in British Airways owner IAG, an Anglo-Spanish global airline holding company, Reuters reported.
IAG last month raised $3.2bn to reduce debt and handle the Covid-19 pandemic, which has hammered the global aviation industry as air travel has grounded to a halt.
London-based Marshall Wace was founded in 1997, with KKR & Co, US-based private-equity firm, owning a near 40% stake in the company.
Auction Technology Group plans to go public.
Auction Technology Group, an owner of auction platforms including bidspotter and the-saleroom specialising in areas such as industrial machinery, art, antiques and collectables, has begun preparations to be taken public due to a spike in demand during the coronavirus pandemic, Sky News reported.
It happened just eight months after it was acquired by TA Associates, an American private equity firm.
Numis had been appointed to handle the flotation.
APAC
Ant Group to launch a $280bn IPO.
Ant Group, a company providing employment services, plans to increase the valuation target for its IPO to at least $280bn due to strong demand, Bloomberg reported.
The Hong Kong stock exchange has scheduled an Ant hearing for as soon as next week, pending an approval from the Chinese securities watchdog, a requirement for companies conducting dual listings in China and Hong Kong.
GIC, Singapore’s sovereign wealth fund, is planning to invest more than $1bn in Ant’s Hong Kong and Shanghai IPO. The listing is also drawing interest from other existing investors like Temasek Holdings and the National Council for Social Security Fund.
Ant has added Barclays, ICBC International and BOC International to its list of joint book-runners for the Hong Kong sale. That’s in addition to China International Capital, Citigroup, JP Morgan and Morgan Stanley acting as sponsors and Credit Suisse Group acting as joint global coordinator for the Hong Kong leg.
SoftBank in talks to set up SPAC. (FS)
Masayoshi Son, SoftBank CEO and Japanese billionaire, disclosed plans to set up one of the controversial acquisition vehicles in the next two weeks, Bloomberg reported.
For Masayoshi Son, who has backed hundreds of startups in his career, creating such a vehicle may give him a new way to invest in nascent companies while tapping the surging public markets for money.
SoftBank is in talks with potential arrangers including Goldman Sachs and Citigroup about the SPAC listing. The Japanese company’s second Vision Fund could invest in the vehicle.
Blackstone is nearing the acquisition of Prestige for $2bn. (FS)
Blackstone Group, US private equity group, is nearing a deal to acquire Prestige Estates Projects, an Indian developer of commercial properties, for about $2bn, Bloomberg reported. Terms haven’t been finalised and negotiations could still be delayed or fall apart.
The deal will include the sale of commercial offices, retail and hotel properties, mall management and identified maintenance businesses
Blackstone is an owner of commercial real estate in India with a total investment of around $7.8bn. It has built its portfolio over more than a decade, buying up more properties as India’s economy slowed in recent years.
Miratel to acquire 6k towers from Telkomsel for $700m.
Indonesian telecom tower company Dayamitra Telekomunikasi, agreed to acquire 6k tower assets of Telkomsel, an Indonesian wireless network provider, for $700m.
Telkom Strategic Portfolio Director Budi Setyawan Wijaya said this corporate action was part of the TelkomGroup portfolio arrangement in order to optimize the business and assets owned, and increase shareholder value.
"The transfer of these towers will strengthen Mitratel’s core business and increase its value, as well as help achieve its long-term plans. In the future, Telkomsel will focus on its core business as the leading digital telecom company in Indonesia by creating a digital ecosystem and providing the best digital connectivity experience for Telkomsel’s customers. This transaction is part of Telkom’s business portfolio structuring to ensure optimal value for shareholders," Miratel.
ADQ explores acquisition of Amoun Pharmaceutical. (FS)
ADQ, Abu Dhabi sovereign wealth fund, is exploring a potential acquisition of Bausch Health's Egyptian drug unit, Bloomberg reported.
ADQ has been evaluating the Bausch business, known as Amoun Pharmaceutical, as it seeks to expand its portfolio of health-care investments. Amoun could obtain at least $700m in a sale.
Bausch, known as Valeant Pharmaceuticals, has been reshaping its operations since becoming infamous on Wall Street for increasing drug prices. One activist investor, Glenview Capital, has been pushing Bausch to sell or spin-off more businesses.
No final agreements have been reached, and there’s no certainty the deliberations will lead to a transaction. Amoun could also attract other suitors.
Malaysian businessman seeks stake in FGV Holdings.
Syed Mokhtar Albukhary, a Malaysian businessman, is seeking to combine plantation assets with FGV Holdings in a potential merger aimed at securing a stake in one of Malaysia’s biggest palm oil producers, Bloomberg reported.
Perspective Land, owned by Syed Mokhtar, intends to merge with FGV. The closely-held company would potentially become the single largest shareholder in the latter if the transaction comes to fruition.
A merger could reinforce FGV’s fortunes and challenge rival Sime Darby Plantations position as the world’s top palm oil producer.
India will not mandate secondary listings for domestic firms floating shares overseas.
India decided not to mandate secondary listings for domestic firms that float shares on a foreign stock exchange as it prepares to announce a new policy within weeks, Reuters reported.
The government is close to drawing up rules for companies to directly float overseas without first having to list shares at home to help start-ups achieve higher valuations and access capital more efficiently.
India was considering allowing foreign listings in seven countries initially, among them Britain, Canada, Switzerland and the United States. The London Stock Exchange claimed it has been in talks with several Indian tech firms on overseas listings.
Playtika files for US IPO.
Playtika Holding, a mobile gaming company owned by a Chinese investor group, it has confidentially submitted paperwork with the US Securities and Exchange Commission for an IPO, Reuters reported.
Playtika’s move to go public comes at a time when a number of China-owned companies are looking to reconsider their listings on US exchanges amid rising tensions between Washington and Beijing. Since the beginning of the year, the United States has increased its scrutiny of Chinese firms looking to list on the Nasdaq and the New York Stock Exchange.
Playtika has hired Morgan Stanley and other banks to underwrite the IPO and is aiming to go public either later this year or early in 2021. Israel-based Playtika could be valued at around $10bn in the IPO.
Yihai Kerry Arawana raised $2b in its IPO.
Billionaire Kuok Khoon Hong, Wilmar International Owner, sold shares of his China business in the biggest ever IPO on the Shenzhen Stock Exchange, DealStreetAsia reported.
Yihai Kerry Arawana's share price more than doubled in its first-day on the ChiNext board after the IPO raised $2bn.
Wang expects expansion after the IPO will lead to an all-around capacity increase in Arawana’s oilseed crushing and grain processing operations, boosting both its revenue and net income in the three years through 2022.
Nanofilm to launch a $375m largest local IPO.
Singapore’s Nanofilm Technologies, a provider of nanotechnology solutions in Asia, launched an IPO, which could raise up to $375m and would be the largest listing on the Singapore Exchange in recent years, DealStreetAsia reported.
“Singapore has invested time and resources in nurturing homegrown and regional technology companies, many of which are ready to tap the capital markets for further growth,” Mohamed Nasser Ismail, SGX Chief.
In a prospectus Nanofilm said it had secured 13 investors, which would take up just over 50% of the offering. These included Temasek Holdings, Aberdeen Standard Investments and Nikko Asset Management Asia.
Citigroup, Credit Suisse and OCBC Bank are joint global coordinators and book-runners with investment bank CLSA.
Xiamen Bank plans to raise $263m in Shanghai IPO.
Chinese state-owned Xiamen Bank is seeking to raise $263m on the Main Board of the Shanghai Stock Exchange, DealStreetAsia reported.
Fubon Financial-backed Xiamen Bank has offered up to 264m common shares at $1 apiece. Its shares have been oversubscribed 3.249 times. The bank aims to fuel its capital in a bid to consolidate competitive capacity in the market.
Xiamen Municipal Finance Bureau will remain the largest shareholder in Xiamen Bank after the IPO with an 18.19% stake, down 2.02%. Fubon Financial Holding will remain the second-largest shareholder with 17.95%, followed by Beijing Shengda Xingye Real Estate Development (9.59%) and Septwolves (8.01%), Chinese men’s clothing brand.
SDIC Power to offer GDRs on LSE.
SDIC Power Holdings, a power generation company in China, to offer approximately 16.3m global depositary receipts representing A shares of the company with a fully paid nominal value. The offering will represent approximately 2.4% of the total ordinary share capital of SDIC Power. The price range is expected to be between $12.27 and $13.37 per GDR.
"We believe a listing on the London Stock Exchange will support new phase of our development, following our transformation from a coal-fired power-focused company to one of China's leading clean energy generators. With our diversified portfolio of generating assets, we are well-positioned to meet China's growing energy needs, bringing hydropower from the country's mountainous west to its industrial east coast. Outside China we will target acquisitions and new projects where we see attractive opportunities, including in Asia and Europe, where SDIC Power is already a co-investor in the Beatrice Offshore Wind Power Project, which is the largest operating offshore wind project in Scotland," ZHU Jiwei, SDIC Power Chairman.
Hillhouse Capital seeks to raise $12bn. (FS)
Hillhouse Capital Group, a private equity firm, is seeking to raise $12bn for its buyout and growth vehicles and is following a separate fundraising strategy for both, DealStreetAsia reported.
Founded by Lei Zhang in 2005 in Beijing, Hillhouse has positioned itself as a global investor with a focus on Asia. Hillhouse’s partners include Canada Pension Plan Investment Board, San Francisco Employees’ Retirement System, Yale University and Mayo Clinic.
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