AMERICAS
US tech giant International Business Machines is set to secure unconditional EU approval for its $34bn bid for software company Red Hat, Reuters reported.
IBM is seeking to expand its subscription-based software offerings via the deal, its most significant to date, to counter slowing software sales and waning demand for mainframe servers.
It would also help it catch up with Amazon, Alphabet, and Microsoft in the fast-growing cloud computing business.
Red Hat is advised by Guggenheim Partners, Morgan Stanley, and Skadden Arps Slate Meagher & Flom. IBM is advised by Goldman Sachs, JP Morgan, Lazard, Hogan Lovells, Paul Weiss Rifkind Wharton & Garrison, and Simpson Thacher & Bartlett.
UnitedHealth Group won Federal Trade Commission antitrust approval to buy DaVita’s primary and urgent care unit for $4.3bn.
The deal is part of an effort by health insurers to cut costs by playing a more direct role in medical services, including shifting patients to cheaper, more accessible locations for routine or non-life-threatening emergency medical services.
UnitedHealth is advised by Sullivan & Cromwell. Davita is advised by Latham & Watkins.
Havas Group acquired a majority stake in Battery, a highly acclaimed, culture-driven creative agency based in Los Angeles, California, with a specialized focus on gaming and streaming entertainment to bring those storytelling sensibilities to other industries. Financial terms were not disclosed.
“When we founded Battery, we had no financial backing and one client. But we knew we’d be successful if we eliminated layers, championed early/fast client collaboration and understood the value of intuition. It’s the mutual love and passion for pushing boundaries that makes our partnership with the Annex the perfect fit. We know Battery will be able to keep doing what we do best, and that’s delivering simplicity, fearless creativity and relentless will—now with the support of additional resources to scale.” Battery co-founders Anson Sowby, CEO, and Philip Khosid, CCO.
Battery is advised by R&D Venture Partners.
EQT Partners entered into agreements to acquire Acumatica from its founders, management and other minority investors. Existing shareholders and management will re-invest significantly into the Company, while EQT will have majority ownership. Financial terms were not disclosed.
Acumatica is a fast-growing software as a service company, serving customers with true cloud Enterprise Resource Planning solutions. Through its ERP platform, Acumatica helps customers streamline and automate processes, manage and control inventory in real-time and increase productivity.
"This move provides exceptional validation of Acumatica’s market execution and growth in the last several years. Greater investment from EQT will unlock new opportunities for us to better serve our customers and secure a stronger future for Acumatica. To compound this potential, is the access to, and collaboration with, ERP industry leader and fellow EQT portfolio company, IFS.” Jon Roskill, CEO of Acumatica.
EQT is advised by Jefferies & Company and Kirkland and Ellis. Acumatica is advised by GCA and Willkie Farr & Gallagher.
Chico’s said it plans to review a new buyout offer from private equity firm Sycamore Partners that lowered an earlier unsolicited offer.
Sycamore disclosed in a regulatory filing on Wednesday that it had lowered its offer for Chico’s to $350m in cash because of the US women’s apparel retailer’s deteriorating financial performance.
“Your most recent full-year guidance requires a significant improvement in performance trends and an increase in EBITDA (cash flow) of $10m, or 25%, in the second half of the year,” Sycamore Managing Director Stefan Kaluzny wrote in a letter to Chico’s Chairman David Walker.
Chico's is advised by Goldman Sachs and Paul Weiss Rifkind Wharton & Garrison.
QuEST Global, a global product engineering and lifecycle services company, acquired Dakota Moon, a Nevada based engineering and supply chain services provider to the aerospace industry. Financial terms were not disclosed.
"Our capabilities in providing customized supply chain solutions and QuEST Global's solid foundation in providing supply chain services and expertise in the convergence of mechanical, electronics, software and digital engineering innovations, will help us to deliver world-class supply chain solutions to customers across diverse industries. We are confident that by leveraging the deep relationships of both companies with customers and quick turnaround time, we will be able to add unmatched value for our customers." Mary Beth Bonkowski, CEO and Founding Partner, Dakota Moon.
Vera Bradley, a leading American bag and luggage company and iconic lifestyle brand, agreed to acquire a majority stake in Pura Vida, a rapidly growing, digitally native, and highly engaging lifestyle brand, for $75m in cash.
Robert Wallstrom, Chief Executive Officer of Vera Bradley, said, “The acquisition of Pura Vida is a terrific fit for Vera Bradley as we move into Year Two of our Vision 20/20 strategic plan and focus on growth. As we pursue ways to increase revenues, grow shareholder value, expand our customer community, and diversify the business, Pura Vida will be a great addition to our portfolio."
Robert W. Baird and Ice Miller advised Vera Bradley. Sage Group and Solomon Ward Seidenwurm & Smith advised Pura Vida.
Spectrio, one of the nation’s leading providers of in-store marketing solutions powered by content and technology, acquired Media Distribution Solutions, a leader in low-cost, on-demand video creation based in Plano, Texas. The acquisition builds upon Spectrio’s marketing technology suite, further accelerating the company’s capability to provide content at scale across avenues both online and on-site.
“Delivering a consistent marketing message, both online and in-store, is key for any business to build trust and loyalty with their customers. This acquisition allows us to offer our customers fresh, turnkey, personalized video content they can integrate across the entire shopper journey.” Dax Brady-Sheehan, Spectrio Chief Executive Officer.
ManifestSeven, California’s first integrated omnichannel platform for legal cannabis acquired M Delivers, a discrete and safe delivery service for medical cannabis, and rights to the telephone number 1-800-Cannabis. Financial terms were not disclosed.
The telephone number 1-800-Cannabis would serve as a centralized gateway through which businesses and consumers can be able to access M7's services.
“We are excited to be joining with ManifestSeven, a market leader who will allow M Delivers to maximize its growth potential and offer our exceptional service to a new universe of customers,” Christine Bordenave, M Delivers CEO.
PERILSS, the independent Zurich-based organization providing industry-wide catastrophe insurance data, agreed to acquire Canada-based CatIQ, a provider of catastrophe loss and exposure information. Financial terms were not disclosed.
Commenting on the acquisition, Luzi Hitz, CEO of PERILS, said: “We are delighted to be announcing our agreement with CatIQ. The firm’s excellent market reputation and steadfast commitment to enhancing the industry’s understanding of Cat risk have enabled it to secure the support of the majority of the Canadian general insurance market. Acquiring CatIQ is in line with our mission to increase data availability and strengthens our ability to provide state-of-the-art Cat intelligence and industry loss triggers, helping boost the efficiency of re/insurers, modelers and others as well as the specialized risk transfer market.”
Newmark Group, which operates a leading, global, full-service commercial real estate services business, Newmark Knight Frank, acquired Utah-based ACRES, a commercial real estate agency. Financial terms were not disclosed.
"NKF's commitment to acquiring the best expertise in key markets and regions, underscores our focus on expanding local and national service offerings and ACRES fits soundly into our platform of comprehensive services designed to meet the complex and diverse needs of clients," stated Barry Gosin, Newmark Group CEO. "With its prominence in industrial, office and capital markets and the growth opportunities in the Salt Lake City Market and the ‘Silicon Slopes,' ACRES is an important addition to NKF."
Givex, the cloud-based customer engagement solution that helps to streamline business operation from end-to-end, acquired Giftcertificates, the online service that sells gift cards from Canada’s most significant brands direct to businesses and consumers, from Moneris Solutions, Canada’s leading payment processor. Financial terms were not disclosed.
“We count many of the Giftcertificates brands as our clients already, and we look forward to building a relationship with many of the other merchants who sell through this platform,” said Don Gray, CEO of Givex. “We look forward to building this into the preeminent online marketplace for gift cards and creating even more value for our clients with this product offering.”
eSolutions, a leading healthcare technology company, acquired Practice Insight, a clearinghouse and RCM software vendor that provides fast, secure and robust integrated EDI solutions. Financial terms were not disclosed.
“At eSolutions, we are committed to delivering transformative products that help our clients grow and strengthen their revenue health,” said Gerry McCarthy, CEO of eSolutions. “Practice Insight is known for improving the entire healthcare billing process by leveraging robust connections to payers and seamless integration with providers to reduce rejections, speed payments and increase total reimbursement. With this acquisition, we add complementary claims processing, workflow management capabilities, and analytics that enhance our revenue cycle suite of solutions. We look forward to continuing the excellent service and support that their clients have received over many years.”
Granite Creek Capital Partners, a private investment firm based in Chicago, invested in Royal Biologics, a medical device company focused on the growing regenerative medicine sector. The company, a leading manufacturer and distributor of devices used in stem cell and other surgical procedures, develops, licenses, produces and distributes biologics, orthobiologics, and orthopedic implant products. Financial terms were not disclosed.
"Salvatore Leo and Demetri Soteropoulos, the founders and leaders of Royal Biologics, have built an exceptional business that stands out for its innovations and service,” said Mark Radzik, Partner at Granite Creek. “We are proud to partner with such a results-driven organization and look forward to supporting the company’s continued investments in its product portfolio, distribution network, and management team as it reaches its next stage of growth.”
Bentley Associates advised Royal Biologics.
iRobot, the leader in consumer robots, acquired Massachusetts-based Root Robotics, the creator of the eponymous coding robot, a two-wheeled device designed to draw on whiteboards and other surfaces, scanning colors, playing music and otherwise playing out coding instructions. Financial terms were not disclosed.
"The acquisition of Root Robotics allows iRobot to broaden the impact of its STEM efforts with a commercially available, educational robotic platform already being used by educators, students and parents," said Colin Angle, chairman, and CEO of iRobot. "Root also helps increase the reach of iRobot's educational robot line by offering a proven system for people of all ages, including students in elementary school."
BayMark Health Services, a specialty health care organization, acquired Tennessee-based A.M.C. Nashville, an office-based opioid treatment program in Nashville. Financial terms were not disclosed.
“Like much of the Mid-West and Southern United States, Tennessee continues to experience significant increases in overdose deaths and opioid prescribing rates by physicians, both of which are telling factors in areas where proven treatment options are needed,” shared Mike Saul, BayMark Division President. “AppleGate Recovery, backed by the experience and support of BayMark, has an opportunity to expand the service offerings of A.M.C. Nashville, who has done great work over the last 8 years in providing quality addiction treatment and proving to be a valuable asset to the community.”
Wynnchurch Capital, a leading middle-market private equity firm, acquires MPL Holdings, a manufacturer of cultured marble bath products and accessories. Financial terms were not disclosed.
“MPL’s success is driven by our commitment to providing customers with market leading service and quality; we are excited to partner with Wynnchurch in furthering these efforts,” Bob Claxton, MPL CEO.
Slack’s reference price set at $26 at the trading debut in the direct listing.
Slack Technologies is set to make its trading debut on the New York Stock Exchange with a valuation of about $15.7bn, the second major company to go public through a so-called direct listing.
The workplace-messaging company’s valuation is based on a reference price of $26 set Wednesday. Slack’s stock is expected to open significantly higher than this reference price, Wall Street Journal reported.
Target Hospitality acquired three Permian Basin Communities from Superior Lodging.
Target Hospitality, the largest provider of vertically-integrated specialty rental accommodations in the US, announced the acquisition of three communities in the Delaware Basin – a high-growth area within the Permian Basin – from Superior Lodging, hotel development and real estate investment company. This transaction advances the company’s strategy of enhancing the breadth and depth of its lodging network, adding 575 rooms across the Permian Basin. Financial terms were not disclosed.
“This acquisition delivers on our commitment to continue to grow our proprietary network and exclusivity zones through organic and inorganic opportunities,” said Brad Archer, President and Chief Executive Officer of Target Hospitality. “Our customers value the scale and flexibility of our network of communities, and these value-enhancing additions to our lodging network create an even larger platform for our customers to utilize. Accordingly, we expect these communities to drive continued growth with highly visible, recurring revenue while further enhancing our value proposition to our customers.”
Peru opens $27bn infrastructure plan to shore up economy.
Peru is seeking investors to improve some of the worst infrastructures in South America and at the same time provide a boost to its weakening economy.
The country will present next month a five-year plan to develop 60 projects requiring an investment of PEN90bn ($27bn), according to Finance Minister Carlos Oliva. The works will spur construction activity in the short term and boost Peru’s annual growth by one percentage point in the medium time, he said.
CBS considers an offer for Viacom.
CBS, an American English language commercial broadcast television and radio network, considers making an offer for Viacom, an American multinational mass media conglomerate company.
Viacom CEO Bob Bakish is believed to be the frontrunner to be in charge of the combined organisation. The companies split apart in 2006, though there have been numerous failed attempts in recent years to join back together.
EMEA
TDR Capital, a leading British private equity firm, offered to acquire BCA Marketplace, a used vehicle marketplace, for £1.9bn ($2.4bn). BCA said the firms are in advanced discussions regarding the deal. The offer price represents a premium of approximately 25% to BCA's closing share price of 195 pence per share on 19 June 2019.
TDR Capital’s offer comes nearly a year after the group rejected a takeover proposal from Apax Partners, which BCA said undervalued the company.
Jefferies & Company and Buchanan are advising BCA Marketplace.
GlaxoSmithKline has offered concessions to address EU antitrust concerns over its planned joint venture with Pfizer’s consumer health business, the European Commission said. GlaxoSmithKline has kicked off the sale of some consumer health brands as it seeks to raise about £1bn ($1.26bn) before pressing ahead with a spinoff of its consumer healthcare business, Reuters reported.
The EU competition enforcer will decide by July 10 whether to accept the proposal, demand more, or open a full-scale investigation.
Pfizer is advised by Centerview Partners, Guggenheim Partners, Morgan Stanley, Clifford Chance, Dentons, Norton Rose Fulbright, Paul Weiss Rifkind Wharton & Garrison, Skadden Arps Slate Meagher & Flom, Wachtel Lipton Rosen & Katz and White & Case. GlaxoSmithKline is advised by Citigroup, JP Morgan, Greenhill & Co, Blake Cassels & Graydon, Davies Ward, Kirkland & Ellis, Slaughter & May and Brunswick Group. Herbert Smith Freehills is advising debt providors.
Macquarie Group, an Australian multinational independent investment bank, and financial services company, offered to acquire Premier Technical Services Group, which maintains, inspects, tests, repairs, and installs permanent façade access equipment, for £265m ($334m). The offer price represents a premium of approximately 141.5% to the closing price per Premier Technical Services Group Share on 19 June 2019.
"We are pleased that the Independent Directors of PTSG are recommending this takeover offer. We view PTSG as a highly attractive leader in its chosen specialist markets, with a strong track record of performance and reputation for quality, value, and safety. Health and safety is an increasingly key focus for businesses, and PTSG's expertise means it will continue to play a critical role in providing safe working environments which comply with regulations and other requirements. We see a strong opportunity to partner with the management team in continuing to grow the business in core and adjacent markets, both organically and via strategic acquisitions, which is why we have made this compelling offer to shareholders at an attractive premium." Adam Joseph, Senior Managing Director, Macquarie Principal Finance Europe.
Numis Securities, KPMG, Pinsent Masons and Hudson Sandler are advising Premier Technical Services Group. Rothschild & Co and Travers Smith are advising Macquarie.
Abris Capital Partners, a leading Central and Eastern European private equity fund, acquired Dentotal Protect, the leading of dental supplies, instrument, and equipment. Financial terms were not disclosed.
Under the new shareholder structure, Dentotal aims to consolidate and expand its market share both organically and through acquisitions. Abris will continue to support the company's growth not only with the introduction of new product lines but also with the expansion of logistics and IT systems.
"Our investment in Dentotal is based on our strong track record of investment and the development of Romanian market leaders." Adrian Stanculescu, Abris Capital Partners Investment Director.
Endless through the Enact Fund II acquires Redhall Networks, a leading telecommunications service provider from Redhall Group. Financial terms were not disclosed.
"We were pleased to partner with Enact who were able to support the acquisition and ambitious development plans for the business moving forward. We are excited to at last be working with like-minded people to achieve a single goal.” Gavin Rabbitt, Redhall Networks Managing Director.
Womble Bond Dickson is advising Endless. Grant Thronton, and Squire Patton Boggs are advising Redhall Networks.
Thomas H. Lee Partners, a private equity firm investing in growth companies, acquires AutoStore, a leading robotics and software company providing automation technology to warehouse & distribution facilities around the world. Financial terms were not disclosed.
Members of AutoStore’s senior management team and EQT, among others, will continue to hold minority positions in the Company. EQT will also remain on the Board alongside THL. The recapitalization will ensure AutoStore has the resources needed to build upon its leading robotic technology and software platform, accelerate new product innovation for its customers, and execute on broader global growth objectives.
"We are thrilled about the opportunity to partner with the AutoStore team,” Jim Carlisle, THL Managing Director.
Morgan Stanley, Marsh, Kirkland & Ellis, and PwC are advising THL.
Essentra, a leading global provider of essential components and solutions, sold its Speciality Tapes business to OpenGate Capital, a private equity firm, for £61m ($77m). The consideration, which is subject to the usual adjustments for net debt and working capital at closing, will be payable on completion of the transaction and will be satisfied fully in cash.
Commenting on today's announcement, Paul Forman, Chief Executive of Essentra said: "The sale of Speciality Tapes represents another significant move in the simplification of our portfolio. With OpenGate having the investment resource to build on the unique capabilities of Speciality Tapes and to further diversify its end-market exposure, the transaction both represents good value for Essentra's shareholders and provides the business with a strong platform for future successful growth."
Tulchan Communications is advising Essentra.
Vendis Capital Management, a leading private equity fund specialized in consumer brands, acquires L'Atelier d'Amaya, a custom jewelry manufacturer. Financial terms were not disclosed.
"We are very happy to welcome Vendis Capital. By combining our strengths, we will have the necessary resources to achieve our ambitions and have full confidence in our ability to expand swiftly in France and internationally to fully realize the growth potential of L’Atelier d’Amaya.” Amaya de Gorostarzu, L’Atelier d’Amaya Co-founder.
Apollo Global-backed Nova KBM, Slovenia's second-biggest bank, offered to acquire Abanka, a Slovenian bank. Hungarian bank OTP was the other bidder for Abanka. Financial terms were not disclosed.
Slovenia promised to sell Abanka, which is 100% state-owned, in exchange for the European Commission’s approval of state aid to the bank in 2013.
Brown Shipley, a provider of wealth planning, investment management, and lending services, agreed to acquire NW Brown, a wealth manager based in Cambridge with an additional office in Norwich. Financial terms were not disclosed.
Commenting on the acquisition, Rory Tapner, Chair of Brown Shipley, said: “This acquisition is an exciting and significant step in the ongoing drive to increase Brown Shipley’s scale across the UK. There are numerous synergies between Brown Shipley and NW Brown across their wealth management client propositions and employee culture, making the business an ideal fit."
Groupe Meilleurtaux, which provides mortgage brokerage services and real estate loans to individuals in France, completed its acquisition of MonFinancier, a financial investment advisory firm. The deal was announced on May 6. Financial terms were not disclosed.
"We are delighted with this merger, which will enable us to significantly increase our reach through the reputation of the Meilleurtaux Group and to offer a much larger number of savers and investors our range of high-performance products," said Marc Fiorentino and Yannick Hamon, co-founders of MonFinancier.
VINCI Energies, which deploys, equips, operates, and optimizes energy, transport and communication infrastructures, acquired Koning en Hartman, a company specialized in communication networks in the Netherlands. Financial terms were not disclosed.
“Koning & Hartman is a high-value technological organisation of entrepreneurs, and that fits in well with the VINCI Energies culture. Koning & Hartman’s high-quality “Technovation” service strengthens the Axians portfolio in the telecom and IT infrastructure market and the Actemium portfolio in industrial automation solutions. I’m convinced that the offers we are now gaining will add value to the solutions that we can offer our customers.” Rob van Kaathoven, Deputy Managing Director of VINCI Energies in the Netherlands.
Parquest Capital, a leading investment firm, acquires 66% stakes in France-based Agence pour la Diffusion de l'Information Technologique (Adit), business intelligence and security consultancy, from Weinberg Capital. Financial terms have not been disclosed.
Oxy Capital, a leading equity firm acquires Saphety, Portugal-based software specialist from Sonaecom, a leading telecom company of Portugal. Financial terms were not disclosed.
Cooper, a French pharmaceutical company, backed by London-based private equity investment firm Charterhouse Capital Partners, acquired Laboratoires Diepharmex, a pharmaceutical company in Geneva, Switzerland. Financial terms were not disclosed.
For Cooper, owned by Charterhouse since 2015, this new acquisition grants the opportunity to seize control of Audispray, an iconic brand in hygiene and ear care.
Kloeckner shares surge on report of a possible takeover by Thyssenkrupp.
Shares in metals trader Kloeckner spiked by almost 14% after a German magazine reported that Thyssenkrupp could take over the German metals distributor to boost its trading business.
Guido Kerkhoff, CEO of steel-to-submarines conglomerate Thyssenkrupp, has already had an initial discussion with Gisbert Ruehl, head of Kloeckner.
YIT to exit paving business in Russia.
YIT, the largest Finnish and significant North European construction company, is planning to exit its paving business in Russia either by closing down or by selling the paving operations by the end of 2019. The firm reported adjusted operating loss of approximately €30m ($34m) in 2018. The company will also discontinue residential construction in Moscow and the Moscow region. YIT has also decided to close down the contracting business for external clients in Russia entirely.
”YIT has long traditions as a residential developer in Russia, and we want to continue building quality homes in Russia also in the future. By simplifying the structure and discontinuing the challenging business operations, the whole segment’s performance will be enhanced, capital employed will be released and the profitability will clearly improve,” Executive Vice President, Housing Russia Teemu Helppolainen said.
Rocket Internet shares surge after report on delisting plans.
Shares in German e-commerce investor Rocket Internet jumped more than 7% after a magazine reported that Chief Executive Officer Oliver Samwer is planning to delist the company to make more independent investment decisions.
The supervisory board of Rocket Internet has discussed the project, Manager Magazin said. It said the most likely scenario was for Rocket Internet to buy back shares using cash on hand of €3.6bn ($4bn) in the company’s treasury.
Elliott - Vivendi to reach compromise to end Telecom Italia battle. (FS)
Elliott Management is preparing to compromise with Vivendi on board representation at Telecom Italia to end their battle for influence over the indebted phone carrier, Bloomberg reported.
The agreement between two of Telecom Italia’s most significant shareholders will come with a pledge to pursue a common strategy. The board changes are slated to be discussed by Telecom Italia’s directors later this month, they said.
Cerberus-backed Renovalia looking to sell its photovoltaic business for €140m. (FS)
Cerberus takes another step in the divestment of its renewable business in Spain. The fund's portfolio company, Renovalia, is looking to dispose of its photovoltaic business, which has a portfolio of 118 MWp distributed in nine parks. The unit is valued at around €140m ($157m).
PricewaterhouseCoopers is advising on the sale.
Catalent purchased the Bristol-Myers Squibb manufacturing facility in Italy.
Catalent has agreed to purchase Bristol-Myers Squibb’s oral solid, biologics, and sterile product manufacturing and packaging facility in Anagni, Italy. Financial terms were not disclosed.
Catalent is the leading global provider of advanced delivery technologies, development and manufacturing solutions for drugs, biologics, gene therapies, and consumer health products. The companies anticipate completing the transaction by the end of 2019, subject to regulatory approvals, the information and consultation procedure with the unions, and the satisfaction of certain other customary closing conditions.
Through the years, the Anagni plant has served as one of the primary launch facilities for new medicines from Bristol-Myers Squibb that have helped millions of people in the fight against serious diseases such as cancer and cardiovascular disease. Upon closing, Catalent will continue to manufacture Bristol-Myers Squibb’s current product portfolio at the site.
William Blair & Company served as an advisor to Bristol-Myers Squibb.
Vivo Energy formed JV with Kuku Foods East Africa to accelerate the growth of KFC Franchise Portfolio in East Africa.
Vivo Energy, the pan-African retailer, and distributor of Shell and Engen-branded fuels and lubricants, has agreed to form a non-fuel joint venture to accelerate the roll-out of KFC restaurants in Kenya, Uganda, and Rwanda.
The 50:50 joint venture will manage and operate the restaurants in the three markets on behalf of Kuku Foods East Africa Holdings, who will remain the local KFC franchisee. Completion of this transaction is subject to standard legal agreements and regulatory and competition authority approval.
Retail crisis deepens as Bathstore nears collapse.
The carnage gripping Britain's retail sector is on the brink of claiming another victim with the specialist bathrooms chain Bathstore close to appointing administrators.
Sky News has reported that privately owned Bathstore is lining up BDO, the accountancy firm, to handle an insolvency process.
APAC
Two Horses Capital, an investment vehicle owned by a managing partner and a senior advisor at TPG Capital Asia, will acquire the K-12 business unit of Paramount Corporation, a pioneer in private primary and secondary education in Malaysia.
Paramount said it has entered into a conditional share sale and purchase agreement with THC to dispose of its equity in Paramount Education, Paramount Education (Klang), and Sri KDU for a cash consideration of MYR540m ($130m). The deal is subject to approval by Malaysia’s Ministry of Education and shareholders. It is expected to complete by the end of 2019.
"We are happy to embark on this journey with Paramount, the largest K-12 education group in Malaysia. We strongly believe in both the group and industry's growth potential in Malaysia and abroad," Tunku Ali, THC Founder.
Rothschild & Co, and RHB are advising Paramount. Credit Suisse is advising THC. Maybank acts as an advisor to debt provider - TPG.
PT Danareksa, which provides investment banking, equity, and debt capital markets, investment management, and treasury services in Indonesia, acquired a 67% stake in PT Jalin Pembayaran Nusantara, which provides wireless telecommunication services, from Telkom Indonesia, an Indonesian multinational telecommunications conglomerate. Financial terms were not disclosed.
President director of Danareksa, Arief Budiman, said the acquisition was in line with the government plan to establish a holding company for banks and financial service institutions.
Fuji Electric, a Japanese electrical equipment company, acquired Consul Neowatt Power Solutions, a leading Indian power electronics manufacturer, from Peepul Capital, an Indian private equity firm. Financial terms were not disclosed.
With this deal Fuji Electric will expand its power electronics systems business in India, targeting mainly the manufacturing industry and the data center market, which has been booming in recent years, by leveraging CNPS’s network of sales and service centers across the country. FE will also leverage the manufacturing infrastructure and product development capabilities of CNPS for the development of price-competitive products specifically designed for demanding site and power conditions.
Tokopedia, an Indonesian technology unicorn company, acquired Bridestory and Parentstory, two Indonesian e-commerce platforms. Financial terms were not disclosed.
William Tanuwijaya, Tokopedia's Co-Founder and CEO said that through this acquisition, Tokopedia is committed to becoming a partner to the acquired firms so that they can continue to transform in accordance with technological trends.
Commonwealth Bank of Australia looking to sell CommSec Advisory.
Commonwealth Bank of Australia, an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom, is looking to sell CommSec Advisory, its retail stockbroking and financial advice arm. Commonwealth Bank is looking to sell the business to one of Australia’s leading financial wealth businesses including Ord Minnett, Shaw and Partners and Morgan Stanley Wealth Management.
The bank seems keen to exit its wealth and financial advice businesses. It recently sold its Count Financial business to Countplus. It’s also selling other assets like Colonial First State Global Asset Management for $4.1bn to Japanese business MUTB.
Delta invests in partner Korean Air to expand in Asia.
Delta Air Lines said it had acquired a 4.3% stake in partner Korean Air Lines's parent company intending to expand across Asia.
The No. 2 US airline said it intends to increase its stake in Hanjin Kal, which owns about 30% of Korean Air, to 10% over time, after receiving regulatory approval. It did not disclose how much it paid for the stake.
Delta Chief Executive Officer Ed Bastian recently said he viewed the Korean Air and its Incheon International Airport hub in Seoul as a gateway to adding more destinations across Asia. The two airlines formed a joint venture last year that includes 290 US destinations and over 80 in Asia.
Noble Group considers taking a stake in Australian rare earth developer Arafura.
Commodities trading firm Noble Group is set to take a small stake in ambitious Australian rare earth developer Arafura, raising its exposure to strategic minerals critical to high-tech industries and electric vehicles.
In a filing to the Australian Securities Exchange on Thursday, Arafura said that Noble’s rare earths subsidiary Talaxis would underwrite A$7.2m ($5m) of an A$23.2m ($16m) share offering. According to Reuters calculations, that would give Talaxis a stake in Arafura of around 8%.
Korean fashion brand Basic House considers the sale of China unit. (FS)
TBH Global, the South Korean clothing retailer whose brands include Basic House, is considering a sale of its Chinese business that could raise about $200m.
The company has held talks with potential advisers about the sale, Bloomberg reported. The business could draw interest from other apparel companies as well as private equity firms.
MPIC expects $2bn valuation in hospital subsidiary stake sale.
Philippines’ Metro Pacific Investments expects its hospital unit to be valued at $2bn as it sells a minority stake in the health care group, its chairman said.
The investment and infrastructure holding company plans to sell a portion of its 86% stake in Metro Pacific Hospital Holdings later this year, Metro Pacific Chairman Manuel V. Pangilinan said.
Indonesia’s NLP-focused AI startup Prosa secures Series A funding from GDP Venture. (FS)
Prosa.ai, an Indonesian AI startup focused on Natural Language Processing (NLP), has raised an undisclosed amount of Series A funding from local VC firm GDP Venture.
The new funding will be used to strengthen the Prosa.ai team and improve its products and data capabilities, the company said in an announcement.
Li Ka-Shing's Fortune REIT to delist from Singapore exchange. (FS)
Singapore and Hong Kong-listed Fortune REIT, controlled by Li Ka-Shing, has opted to delist its Singapore units and maintain its single listing status in Hong Kong.
In a securities filing, ARA Asset Management, the manager of Fortune REIT, said the move would eliminate the administrative overhead and compliance costs associated with the Singapore listing.
Haoqipei secures $60m in Series D funding. (FS)
Business-to-business (B2B) auto parts trading platform Haoqipei has closed a $60m Series D financing round led by Access Technology Ventures, with David Yang joining the Haoqipei Board of Directors.
Additional participants in the financing included existing investors XVC Venture Capital, Jeneration Capital, DCM, and SIG.
Founded in 2016 the company has now raised more than $150m in private capital, Haoqipei is an online, technology-driven trading platform connecting vehicle repair shops with auto part suppliers. The company provides market price comparisons and online payments through its software as a service system, and offline warehousing and logistics services.
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