AMERICAS
Billionaire investor Carl Icahn ratcheted up his fight with Occidental Petroleum over its pending purchase of rival Anadarko Petroleum by calling for a special shareholder meeting where he hopes to win board seats.
In a regulatory filing, Icahn said he planned to oust and replace four Occidental directors and change the company’s charter through a stockholder consent solicitation to prevent it from ever engineering a similar takeover again.
Responding to the filing, Occidental said it would review the latest materials filed by Icahn, and looks forward to addressing them in ongoing conversations with shareholders.
The following are the advisors for Anadarko-Occidental deal: Evercore, Goldman Sachs, Vinson & Elkins, and Wachtell Lipton Rosen & Katz are advising Anadarko. Credit Suisse, Paul Weiss Rifkind Wharton & Garrison, and Shearman & Sterling are advising Chevron. Bank of America Merrill Lynch, Citigroup, and Cravath Swaine & Moore are advising Occidental.
The Federal Communications Commission has opened a new investigation into whether Sinclair Broadcast Group engaged in misrepresentations or a lack of openness in its failed effort to win approval for a $3.9bn bid to purchase Tribune Media.
In a June 25 letter to Sinclair posted on the FCC’s website, the government agency directed Sinclair to answer a series of questions and provide documents by July 9, warning that “failing to respond accurately and completely to this (letter) constitutes a violation of the act and our rules.”
Tribune Media was advised by Guggenheim Partners, Moelis & Co, Covington & Burling, Debevoise & Plimpton, and Latham & Watkins. Nexstar Media was advised by Bank of America Merrill Lynch, Kirkland & Ellis, and Wiley Rein. Sinclair Broadcast was advised by JP Morgan and Sullivan & Cromwell.
Scotiabank has reached an agreement for the sale of its operations in Puerto Rico and the US Virgin Islands, to Oriental Bank, a subsidiary of OFG Bancorp. The deal is subject to regulatory approvals and customary closing conditions. Financial terms were not disclosed.
Oriental Bank is a diversified financial institution that provides personal and commercial banking services to customers, primarily in Puerto Rico. Oriental Bank was founded in 1964 and is headquartered in San Juan, Puerto Rico. The firm has expanded over the years as a result of organic growth and strategic acquisitions.
"We are pleased to have reached an agreement with Oriental Bank, a prominent local bank with a strong reputation for providing high-quality products and services to customers. We are confident that Oriental Bank, with the support of a talented team, will be well positioned to continue to grow the businesses and provide continuity to customers and employees in Puerto Rico and the USVI," said Ignacio (Nacho) Deschamps, Group Head of International Banking and Digital Transformation at Scotiabank.
Scotiabank is advised by Credit Suisse and Sullivan & Cromwell.
Ascensus - whose technology and expertise help millions of people save for retirement, education, and healthcare - has agreed to acquire HR Simplified, a third-party administration firm that services consumer-directed health plans and provides COBRA administration. Financial terms were not disclosed.
HR Simplified's offerings include health savings accounts, flexible spending accounts, health reimbursement arrangements, pre-tax commuter benefit programs, along with other benefit continuation services. It will immediately become part of Ascensus' Health and Benefits line of business.
"I've always stated that the foundation of HR Simplified's success is the human touch. In Ascensus, we've found an organization that will allow us to continue to offer the very best in benefits administration; they share our dedication to providing excellent service and finding solutions that best fit clients' needs." Mike Melnychuk, HR Simplified's president.
Investcorp Credit Management, a subsidiary of Investcorp Bank, acquired a majority stake in CM Investment Partners. Financial terms were not disclosed.
Following the transaction, Cyprus Capital Partners and Stifel Venture would retain their equity interests in CMIP, while ICM would be the majority shareholder.
“We are delighted to announce the acquisition of CMIP, marking our entry into ‘middle-market’ lending in the US. We are seeing significant opportunities in the BDC space, and we believe that this acquisition will enable us to capitalize on these opportunities going forward. It also allows us to reach a new client segment as we look to grow our client base by delivering our expertise to a wider group of shareholders and high-net-worth individuals in the US” Jeremy Ghose, Head of Investcorp Credit Management.
dormakaba has signed an agreement to acquire Alvarado Manufacturing, a leading manufacturer of physical access solutions in North America such as speed gates, turnstiles and other admission devices with a focus on office, commercial and government buildings, as well as sports, leisure and entertainment facilities. Financial terms were not disclosed.
Combined with its own physical access solutions business, dormakaba will achieve one of the leading positions in the respective market in North America. The acquisition offers an excellent strategic fit to dormakaba with a widely complementary customer base and the suitable local product offering.
Uber Technologies acquires Mighty AI, a Seattle based IT company that builds vision models for autonomous vehicles. Financial terms were not disclosed.
Uber will acquire Mighty AI’s intellectual property, tooling, tech talent, and labeling community. A little more than 40 employees from Mighty AI will join Uber at its Seattle engineering office, operating as a team within Uber’s self-driving division. Mighty AI clients include Samsung, Microsoft, Intel, Accenture, Siemens, and others.
“I’m excited to pair Mighty AI’s platform and expertise in generating high-quality labeled data with Uber ATG’s world-class research and engineering to accelerate the development of self-driving technology,” Daryn Nakhuda, Mighty AI CEO.
Essentra, a supplier of plastic and fiber products, agreed to acquire Innovative Components, one of the leading manufacturers and distributors of knobs, pins, and handles in North America. Financial terms were not disclosed.
"As a leading provider of knobs, pins, and handles, Innovative Components both strengthens and extends our product range while adding further valuable manufacturing capacity in the Americas. Innovative Component is a strong strategic fit with our own successful hardware business and another example of the attractive acquisition opportunities available to our Components division. As the last few months have demonstrated, we are continuing to combine the successful stabilization of our businesses to generate stable organic growth with the active management of our portfolio." Paul Forman, Chief Executive of Essentra.
W&T Offshore acquired producing properties in the Gulf of Mexico for $200m.
W&T Offshore has entered into a purchase and sale agreement with ExxonMobil to acquire their interests in and operatorship of oil and gas producing properties in the eastern region of the Gulf of Mexico, offshore Alabama, and related onshore processing facilities for $200m.
"These low decline assets are highly accretive, free cash flow positive, and adjacent to our current operations thereby providing us the opportunity to recognize increased scale, rationalize operations and capture cost efficiencies to further grow cash flow. In addition, we also have the opportunity for further growth in reserves from potential field life extensions and drilling and facility upgrade opportunities. We believe this acquisition, with its long-life reserves, production, and infrastructure, complements our ongoing strategy to recognize the value for our shareholders through drill bit success, effective risk and cost management, and joint venture partnership." Tracy W. Krohn, Chairman, and Chief Executive Officer.
123Dentist’s strategy attracts support from equity partners. (FS)
123Dentist, Canada’s network of dental practices, raised $425m, including $300m in committed growth capital and a further $125m accessible from both equity and debt partners. The funds received, which will be used to accelerate 123Dentist’s expansion program, including an equity investment from private equity firm Peloton Capital Management and a refinancing of 123Dentist’s existing syndicated credit facilities co-led by Royal Bank of Canada and Bank of Montreal.
“Our vision since day one was to establish 123Dentist as a national network built by dentists for dentists. That is why we encourage clinic level ownership for dentists to ensure both the continued success of their practice and optimal care for their patients,” Dr. Amin Shivji, CEO and practicing dentist at 123Dentist.
Blackstone raises $12bn for infrastructure fund. (FS)
Blackstone Group is close to raising more than $12bn for the debut infrastructure fund. According to Bloomberg, company executives, including Tony James, have publicly expressed confidence that the open-ended fund, Blackstone Infrastructure Partners, will reach $40bn over the long term. Half of that total would come from the Public Investment Fund of Saudi Arabia, known as PIF, which anchored the vehicle with a commitment of as much as $20bn - earning the sovereign wealth fund rewards such as discounted management and incentive fees.
Pieridae to acquire Shell's natural gas business for $148m.
Pieridae Energy, an explorer, and developer of oil and gas properties in Canada will purchase Shell Canada's natural gas assets in Alberta for C$190m ($145m).
According to Reuters, the deal will consist of all of Shell's midstream and upstream assets in the southern Alberta Foothills area, which produces 29k barrels of natural gas, natural gas liquids, and condensate. Pieridae is also buying three sour gas plants.
“Not only does this deal help us secure the remaining conventional natural gas supply needed for the first train of the Goldboro LNG project, it makes Pieridae a major player in the Alberta midstream and upstream industry,” Alfred Sorensen, Pieridae Chief Executive Officer.
Lazard and Kirkland are advising Forever 21 on restructuring. (FS)
Forever 21, a leading fashion apparel brand is going through a restructuring procedure and is seeking advice from investment bank Lazard and law firm Kirkland & Ellis as it is trying to avoid being a victim of the industry slump.
Management has been busy over the past few weeks, holding discussions with lenders including Apollo Global Management and interviewing potential advisers. Forever 21 is exploring financing that would shore up its liquidity and ensure co-founder Do Won Chang maintains control.
Centrebridge in talks to acquire Magellan Health. (FS)
Managed-care provider Magellan Health is in exclusive talks for a possible sale to private-equity firm Centerbridge Partners, Wall Street Journal reported.
The companies could reach an agreement next month, and should the companies strike a deal, Centerbridge may sell Magellan’s assets such as its pharmacy-benefit management business.
HG Vora raises stake in Owens Corning. (FS)
Hedge fund HG Vora Capital Management is raising its stake in Owens Corning, a composites and building materials company. The exact stake size of HG Vora in Owens Corning is not yet known.
French retailer Casino restructures Latin American operations.
French retailer Casino plans to simplify the complex shareholding structure of its Latin American operations to manage the rising debts and manage its financial conditions.
The restructuring would result in Casino controlling its Latin American business in Brazil, Colombia, Uruguay, and Argentina through a 41% stake in Brazilian unit Grupo Pao de Acucar.
EMEA
Abu Dhabi National Oil Company (ADNOC) said it had completed a deal for BlackRock and KKR to buy a 40% stake in ADNOC Oil Pipelines for $4bn. Under the terms of the deal, the pipeline company will lease ADNOC’s interest in 18 pipelines transporting crude oil and condensates across ADNOC’s upstream concessions for 23 years.
KKR and BlackRock’s investment, which was first announced in February, was funded through their infrastructure funds and financed by a syndicate of banks, ADNOC said in a statement.
“We have created an innovative core midstream infrastructure platform alongside ADNOC and BlackRock that can be a catalyst for further foreign investment and broader economic transformation in the United Arab Emirates. Having long had a presence in the region, we appreciate the high quality of ADNOC as a partner and Abu Dhabi’s investor-friendly environment to enable our first direct investment in the region. With this transaction as a precedent, we believe there is substantial potential to do even more.” Henry Kravis, Co-Founder, Co-Chairman and Co-CEO of KKR.
ADNOC was advised by Bank of America Merrill Lynch, Moelis & Co, and JP Morgan. Simpson Thacher & Bartlett and Finsbury advised KKR.
French President Emmanuel Macron said there was no need for the government to lower its stake in Renault and that he wanted the Renault-Nissan alliance to work on strengthening its synergies.
Relations have been strained between the alliance members since the shock arrest in November of former boss Carlos Ghosn, but Macron referred to that as an individual situation that should not have a bearing on their partnership.
“Nothing in this situation justifies changing the cross-shareholdings, the rules of governance, and the state’s shareholding in Renault, which has nothing to do with Nissan,” Macron said.
Alliance Ventures, the strategic venture capital arm of Renault-Nissan-Mitsubishi, announced an investment in The Mobility House, a technology company that provides a platform for integrating vehicle batteries into power grids using intelligent charging, energy and storage solutions. Financial terms were not disclosed.
"Alliance Ventures aims to provide the right ecosystem of open innovation to ensure Alliance member companies deliver mobility for tomorrow. The Mobility House's expertise in e-mobility and energy transition will contribute to the Alliance commitment to zero-emission vehicles and to the achievement of our vision: shaping the future of mobility." François Dossa, Alliance Global Vice President for Ventures and Open Innovation and Chairman of Alliance Ventures.
Bracco Imaging, a global leader in diagnostic imaging, has acquired Blue Earth Diagnostics, a molecular imaging company based in Oxford, UK. Bracco Imaging will buy all outstanding shares of privately-held Blue Earth Diagnostics for the equity value of $450m, plus closing adjustment estimated at $25m, from leading healthcare company Syncona and Blue Earth Diagnostics’ management team.
“Blue Earth Diagnostics’ innovative products and pipeline will significantly enhance Bracco Imaging’s portfolio in precision medicine and personalized diagnostics while expanding our range of nuclear oncology imaging solutions in the Urology segment and other specialties. We are thrilled to welcome to Bracco this world-class team with exceptional product development and commercialization expertise.” Fulvio Renoldi Bracco, Chief Executive Officer, Bracco Imaging.
Greenberg Traurig and Studio Santa Maria advise Blue Earth Diagnostics. JP Morgan advises Bracco.
Quanterix, a company digitizing biomarker analysis to advance the science of precision health, has acquired privately held UmanDiagnostics for $22.5m, comprised of $16m in cash plus $6.5m in Quanterix common stock.
Uman is widely recognized to possess the leading antibodies available today to measure neurofilament light (Nf-L) and has become the provider of choice for biopharmaceutical and diagnostic applications.
“Quanterix has been one of our strongest partners for several years now, and its Simoa technology holds the greatest promise for truly unlocking the value of Nf-L. We are proud that our focus on Nf-L has made possible such promising discoveries in neurodegeneration and greatly look forward to further advancing the field as part of Quanterix. We are compelled by Quanterix’ vision, mission, and strategy for disrupting the field of neurodegeneration research and diagnostics and are confident in the management team’s ability to continue its superb execution against this substantial opportunity.” Niklas Norgren, Uman President, and CEO.
Roko, a private equity firm, acquired an 80% stake in Arbortic. Financial terms were not disclosed.
Both companies are indirectly owned by the founder Jörgen Kaldemark, who will remain as a 20% minority shareholder. Closing is subject to customary conditions and expected to take place by the end of August 2019.
”We found Arboritec to be a healthy, international company with great products. But it is small. We hope to help the company grow its business with continued good profitability.” Tomas Billing, Roko Chairman.
El-Bjorn International and Satema signed a definitive merger agreement to create North Europe's largest player in temporary power, light, and climate. The combined company will be named United Power. Financial terms were not disclosed.
Connecting Capital will be the principal owner of United Power together with Svein Persson and Tore Persson. United Power will have production in Norway, Sweden, Finland, and Latvia. The group employs about 250 people and has a turnover of about $80m.
"We, as the owners of Satema, see this business deal as a possibility to create a larger group with sufficient resources for expansion both in terms of products and geographically," Tore Persson, Satema Owner.
Oaklins is advising Satema.
Tennor Holding, a global investment holding company, acquired a 37.5% stake in Hertha Berlin, a German football club based in the Charlottenburg locality of Berlin, for €125m ($142m). It was also agreed that an increased share up to 49.9% in the future could be acquired.
President of Hertha, Werner Gegenbauer “Today is a good day for Hertha BSC. This partnership is a result of the development that we are making. The president of Hertha BSC is always anxious to ensure the club has a solid financial basis to work off in the future. This aspiration and also the preservation of our club culture are reflected in this new partnership.”
Newgate Communications advised Hertha.
Aareal Bank Group has acquired a stake in PropTech1 Ventures, a venture capital fund that focuses on the real estate sector and specialises in European PropTech start-ups. Financial terms were not disclosed.
Aareal Bank Group, which is listed in Deutsche Börse's MDAX index, is a leading provider of smart financing, software products and digital solutions for the property sector and related industries.
"Aareal Bank Group is not only the second bank which we have welcomed as a co-investor. More importantly, the move further enhances our approach of uniting active players in the digitalisation of the property industry in an independent venture capital fund. This ensures that in addition to equity, the PropTechs with the strongest prospects also get maximum added value." Marius Marschall von Bieberstein, PropTech1 Ventures Founding Partner.
ReAssure valued at $4.2bn in IPO.
ReAssure, a leading life assurance business will be valued at up to $4.2 bn when it goes IPO on the London Stock Exchange.
The offer is expected to deliver a free float of 26% of ReAssure’s issued share capital. Shares representing up to 15% of the initial offer will be made available as an over-allotment option, which if exercised, will take the free float up to nearly 30%.
Morgan Stanley, Credit Suisse, UBS, BNP Paribas, and HSBC are advising ReAssure.
CVC nears $1bn deal for stake in GEMS Education. (FS)
CVC Capital Partners is close to a deal for a 25% stake in Dubai’s GEMS Education, a private school operator backed by Blackstone Group, that values the firm at more than $4bn, Bloomberg reported.
CVC may pay $1bn or more for the holding, and a deal could be announced in the coming days. No final decisions have been made, and the London-based private equity firm may still decide against a deal.
Cofinimmo acquired 15 nursing and care homes in Belgium for €300m.
Cofinimmo signed agreements regarding the acquisition of 15 nursing and care homes in Belgium. This was achieved through a contribution in kind of the shares of a company for seven assets on the one hand, and by the participation in sort of the other eight holdings on the other side. The current value for the calculation of the share price and the value of the buildings together amount to c. €297m ($337m).
"This demonstrates that, in addition to the geographical expansion of recent years, we are well recognized and appreciated on our first home market. The operations of today are particularly large transactions, moreover relating to recent buildings." Jean-Pierre Hanin, Cofinimmo CEO.
Kinepolis raises $225m through a bond issue.
Kinepolis cinema group has raised around $225m thorough a bond issue. The fresh funds will be used to finance acquisitions and development of new complexes.
The cinema group will also use the proceeds for refinancing loans, the long-term financing of the acquisition of El Punt in Spain, further investments in new complexes in a few countries, the renovation of acquired cinemas and investments in new ones experience concepts.
Bayer announced plans to resolve glyphosate lawsuits. (FS)
Bayer, a German multinational pharmaceutical and life sciences company, revealed plans aimed at resolving multi-billion dollar lawsuits linked to glyphosate, a weedkiller which allegedly causes cancer. The move was welcomed by activist shareholder Elliott Management Corporation, which has taken a sizeable stake in the chemicals company. Shares in the firm grew by 8.7% in response to the news. Marks Manns, a fund manager at Union Investment, one of Bayer’s largest German shareholders, said the share price was likely bolstered by the anticipation of an earlier settlement.
“Investors want more certainty as quickly as possible. But it is for management to weigh up a quick settlement against how many billions you could save by holding out. I don’t want a settlement at all costs,” he said, adding that Bayer’s negotiation position was for now highly unfavorable.
Navigator Holdings announces the appointment of Dr. Henry Deans as CEO. (People)
Dr. Henry Deans has been appointed as the Chief Executive Officer of Navigator Holdings, effective from 22nd of August, 2019. Prior to the promotion, Dr. Deans was appointed as the member of the Board in November 2018.
“I am delighted that Harry Deans has agreed to join the Company as Chief Executive Officer and I look forward to working with him and to continue to grow and develop the Company over the coming months and years. I have been impressed with Harry’s considerable knowledge and understanding of the petrochemical industry since becoming a non-executive director of the Company last year, so I am very pleased to pass the Chief Executive role to a highly capable leader in Harry Deans.” David Butters, Navigator Holdings President.
APAC
LGT, the leading private banking and asset management group owned by the Princely Family of Liechtenstein, has agreed to acquire a controlling stake in Validus Wealth. Financial terms were not disclosed.
The remaining shares will continue to be held by the current management team. Validus Wealth is an Indian wealth management firm with a presence in nine cities across the country. This transaction will enable LGT to gain a foothold in India’s up-and-coming market for high-net-worth private clients.
"Our accelerated growth is a clear reflection of the opportunities in India for home-grown wealth management firms such as ours to leverage. We’re very proud to become part of LGT Group through this transaction. LGT’s comprehensive capabilities will further propel our ambitious agenda and contribute to our efforts in enhancing robust offerings. Their established legacy as a leading global asset manager with over $200bn in client assets and our proficiency of the Indian market will help create an enriched experience for our clients’ financial life through our combined global and local expertise." Atul Singh, CEO Validus Wealth.
Axis Bank considers a $1.3bn share disposal. (FS)
Axis Bank, one of the most significant financial institutions in India is considering raising $1.3bn through a large number of share disposal to institutional investors, as the company seeks to increase capital ratios and expand lending capacity.
The deal would help the Mumbai-based lender enhance risk buffers and support loan growth at a time when shadow banks in the country are battling a liquidity crunch due to rising wariness in the nation’s credit market, Bloomberg reported.
Blackstone buys Sydney office towers from Scentre for $1.1bn (RE)
Blackstone has invested A$1.52bn ($1.06bn) to buy three office towers in Australia from Scentre Group.
The listed retail shopping center owner said Blackstone had bought the Sydney Office Towers on behalf of "certain funds" that it managed.
Peter Allen, Scentre Group CEO, said: "the sale had been conducted by way of granting a 299-year leaseholder interest to Blackstone over the office components located at 100 Market Street, and 77 and 85 Castlereagh Street".
Scentre will retain ownership of Sydney Tower and the Westfield Sydney retail mall, one of Scentre's premier assets in Australia.
Grab raises $300m from asset manager Invesco to fuel growth.
Grab has received an additional $300m investment from asset manager Invesco as part of plans by Southeast Asia’s biggest ride-hailing company to raise $6.5bn in total capital this year.
“The additional investment in Grab takes Invesco’s overall total to $703m and re-affirms its belief in Grab’s vision and plan for the region,” Grab said in a statement.
Kaleyra nearing IPO, aims to raise $192m.
A decade after it's foundation as Solutions Infini, SMS promotion service provider Kaleyra is about to go public on NYSE, and targets to raise up to $192m.
Deal Street Asia reported Kaleyra is going public through a tie-up with Palo Alto-based Gig Capital, a particular purpose acquisition corporation that publicly trades on the NYSE, and allows other firms to raise capital via its unit. The company is currently in the process of finalizing its S1 filing - a US requirement - and investor road shows across the US, and plans to start public trading under its ticker symbol “KLR” by September.
Growthpoint Properties to raise $150m.
Growthpoint Properties, a real estate investment trust and the largest property investment holding company listed on the Johannesburg Stock Exchange announced a fully-underwritten institutional placement to raise approximately $150m and non-underwritten security purchase plan to raise up to $15m at an issue price of $3.97 per security.
The raising is being undertaken to support Growthpoint’s internal development and expansion opportunities and provide capacity to acquire a modern building located in metropolitan Sydney for approximately $50m.
Samindo raises $100m for the acquisition of coal mines.
PT Samindo Resources prepares to raise $100m to acquire coal mines as part of efforts to develop the company's new business.
Ahmad Zaki Natsir, Samindo Resources Investor Relations Manager, revealed that he had prepared funds to smooth out the planned acquisition of a coal mine. Details about the funds were not disclosed.
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