EMEA
German steelmaker Thyssenkrupp canceled a planned merger with India's Tata Steel after the offer failed to secure regulatory approval. European Union was expected not to approve a deal that was said to create a virtual duopoly in the common market. Currently, Thyssenkrupp plans a restructuring and listing the elevators unit, its most successful business.
Tata Steel will explore finding a new partner for the asset and a partial sale of assets in Europe, Koushik Chatterjee, Tata Steel CFO said. The company remains committed to de-leveraging the balance sheet of the European business.
Activist investor Cevian Capital said Thyssenkrupp needs a fundamentally new direction after the company abandoned plans to hive off its steel business and split up the rest of the conglomerate. Thyssenkrupp abandoned a plan to spin off its capital goods business - car parts, plant engineering, and elevators - following a collapse in its share price since it announced the scheme in September.
"Under these conditions, a separation is no longer the best solution for Thyssenkrupp. We can no longer achieve the restart we intended," Thyssenkrupp CEO Guido Kerkhoff said.
Tata was advised by Ernst & Young, ALRUD, Bredin Prat, De Brauw Blackstone Westbroek, Hengeler Mueller, and Slaughter & May. Thyssenkrupp was advised by Ramboll, Chestnut Corporate Finance, Deutsche Bank, Ernst & Young, Goldman Sachs, JP Morgan, Macquarie Group, Linklaters, and Finsbury.
Inmarsat investors voted to sell the British satellite firm to a PE-led consortium for $5.5bn, which followed the company's board recommendation that the offer was fair and reasonable. Inmarsat's board recommended the $7.21 per share cash offer in March, which represented a 46% premium to the share price.
Nearly 79% of shares voted supported a scheme of arrangement for the takeover by a consortium comprising Apax Partners, Warburg Pincus, and two Canadian pension funds.
Inmarsat is advised by Credit Suisse, JP Morgan, PJT Partners, and Clifford Chance. Bank of America Merrill Lynch, Barclays, UBS, Kirkland & Ellis, and Freshfields Bruckhaus Deringer advise the consortium.
Britain's Brewin Dolphin agreed to buy Investec's Irish wealth business for €44m ($49m) in cash. With this deal, Brewin Dolphin will become one of the country's top-three wealth managers.
Brewin Dolphin will look to raise £60m ($78m) in a share placing to help fund the deal and bolster its capital position after a string of other acquisitions over the last 12 months.
David Nicol, CEO at Brewins, commented: "This acquisition, which is consistent with our strategy of growth in assets under management, provides us with an exciting opportunity to strengthen substantially our existing presence in the Republic of Ireland, one of Europe's fastest growing economies."
Rothschild & Co, Liberum Capital, RBC Capital Markets, and Camarco advised Brewin Dolphin.
Reliance Industries agreed to acquire Hamleys Global Holdings, the owner of the Hamleys brand, for £68m ($89m) from C Banner International, a Hong Kong-listed company. Hamleys is the oldest and largest top shop in the world.
"Over the last few years, we have built a very significant and profitable business in toy retailing under the Hamleys brand in India. [...] The worldwide acquisition of the iconic Hamleys brand and business, places Reliance into the frontline of global retail. Personally, it is a long cherished dream come true," said Darshan Mehta, President, and CEO of Reliance Brands.
Slaughter & May and Khaitan & Co advised Reliance.
Slovenia's state-owned postal service agreed to buy a majority stake in local shipping firm Intereuropa. Posta purchased a 72.13% stake in Intereuropa from local banks SID Banka, Nova Ljubljanska Banka, Gorenjska Banka, Nova KBM, SKB Banka, and Banka Intesa Sanpaolo. It is rumored that the value of the deal is €105m ($118m).
The transaction will be concluded in the second half of this year, subject to approval from the Slovenian competition watchdog, following which Posta will announce a bid for the remaining shares of Intereuropa.
Virgin Atlantic to bid for Thomas Cook airlines, IAG exits. (FS)
The CEO of British Airways owner IAG canceled bidding for Thomas Cook's airline unit on Friday after rival Virgin Atlantic was reported to be interested in the part of the business. Virgin Atlantic offered to buy Thomas Cook's UK long-haul business.
Additionally, Lufthansa and private equity fund Indigo Partners are seen among the front-runners for Thomas Cook's airlines after the firm put it up for sale in February, to raise cash after a string of profit warnings in 2018.
China's BAIC looking for a 5% stake in Daimler.
According to Reuters, China's BAIC Group is looking for a stake of up to 5% in Daimler as a way to secure its investment in Beijing Benz Automotive, Chinese Mercedes-Benz manufacturing company.
Reportedly, BAIC informed Daimler of its intention to buy a 4-5% stake in the German car producer earlier this year and asked local authorities in Beijing to support this purchase. BAIC started acquiring Daimler shares on the open market.
Fresenius in talks over the potential sale of blood transfusion business.
According to Reuters, Fresenius approached potential suitors about the sale of its blood transfusion business. Earlier, Fresenius CEO Stephan Sturm said the company was evaluating all options for its transfusion and cell therapy unit, which would be a better fit for a company more focused on the business, and that Fresenius was making good progress in the process.
Goldman Sachs is advising Fresenius reportedly.
Wirecard sees a €273m potential profit of Softbank alliance.
Wirecard sees the total five-year potential profit from its alliance with Softbank Group Corp at €209-273m ($235-307m). Last month Wirecard signed the partnership with Softbank, to which it is issuing €900m ($1bn) in convertible bonds.
Germany's largest fintech company Wirecard sees a present-value profit boost of up to €101m ($113m) over the five years in partnering with companies backed by Softbank, the world's biggest tech investor.
Brazilian BTG Pactual considers the sale of EFG International stake.
Latin America's largest investment bank Banco BTG Pactual may spinoff its 29% stake in the Swiss private bank EFG International. BTG's stake is worth around $600m and spinning it off would be similar to what BTG did with Engelhart Commodities Trading Partners Group in 2016, CFO João Dantas said, although no decision has been taken yet.
TPG to rescue Abraaj's $1bn healthcare fund. (FS)
TPG Growth agreed to gain control of a $1bn healthcare fund that was previously managed by collapsed private equity firm Abraaj. The vehicle will be renamed the Evercare Health Fund and will continue to make healthcare-focused investments in Africa and South Asia. The Rise Fund, a TPG-backed $2bn social impact vehicle, will make co-investments alongside Evercare.
The investors include Bill & Melinda Gates Foundation, the Overseas Private Investment Corp, IFC, CDC Group, Proparco, Philips and Medtronic.
AMERICAS
IFM Investors, an asset manager with a focus on infrastructure, agreed to acquire Buckeye Partners, owner, and operator of one of the largest networks of integrated midstream assets, for $10.3bn.
The all-cash transaction is valued at $10.3bn EV and $6.5bn equity value. The acquisition price for $41.50 per unit, represents a 27.5% premium to Buckeye's closing unit price on May 9, 2019, and a 31.9% premium to Buckeye's volume-weighted average unit price since November 1, 2018, which is the last trading day before Buckeye's announcement of certain strategic actions. Buckeye's Board of Directors unanimously approved the proposed transaction with IFM.
"This acquisition is aligned with IFM's focus on investing in high quality, essential infrastructure assets that underpin the economies in which they operate," said Julio Garcia, Head of Infrastructure, North America of IFM.
Evercore, Credit Suisse, Goldman Sachs, BofA Merrill Lynch, White & Case, and Baker Botts are advisors to IFM. Intrepid Partners, Wells Fargo Securities, and Cravath Swaine & Moore are advisors to Buckeye.
Occidental Petroleum CEO Vicki Hollub praised her $57bn deal for Anadarko Petroleum and defended the terms she negotiated with Warren Buffett to secure the deal without seeking shareholder approval.
Hollub won over larger rival Chevron with a bid that some Occidental investors called risky. The offer will leave Occidental with $46bn in new debt. Some shareholders including T. Rowe Price, Occidental's sixth-largest, announced they plan to vote against the board. Other shareholders voted to lower the threshold for calling a special meeting, making it easier for dissatisfied investors to organize opposition to the board.
"We can operate this better than anybody else. We are the rightful owners," Hollub said at the company's annual general meeting.
Anadarko is advised by Evercore, Goldman Sachs, Vinson & Elkins, and Wachtell Lipton, Rosen & Katz. Chevron is advised by Credit Suisse, Paul Weiss, Rifkind, Wharton & Garrison, and Shearman & Sterling. Occidental is advised by Bank of America Merrill Lynch, Citigroup, and Cravath, Swaine & Moore.
According to Bloomberg, JP Morgan, the largest US bank agreed to take a $1bn equity stake using its own money. The check helped Sinclair Broadcast Group amass the cash it needed for a $10.6bn purchase from Walt Disney without too much leverage.
Last week, Sinclair Broadcast Group, a publicly traded American telecommunications conglomerate, acquired 21 regional sports network from Walt Disney, an American diversified multinational mass media and entertainment conglomerate, for $10.6bn.
Guggenheim Securities, Deutsche Bank, RBC Capital Markets, Pursuit Advisors, Moelis & Co, Fried Frank Harris Shriver & Jacobson, Pillsbury Winthrop Shaw Pittman, Latham & Watkins, and Thomas & Libowitz advised Sinclair. Allen & Company, JP Morgan, Cravath Swaine & Moore, and Covington & Burling advised Disney. JP Morgan, Deutsche Bank, Royal Bank of Canada, BofA Merrill Lynch provided committed debt financing.
Sycamore Partners offered to acquire Chico's FAS, women's apparel retailer, for $3.50 per share in cash in a deal valued at $408m. Chico's will review the offer. Sycamore had previously offered $4.30 per share, which Chico's had rejected as it "substantially undervalued" the retailer. The company did not disclose the details of the previous offer.
Goldman Sachs and Paul Weiss Rifkind Wharton & Garrison advise Chico's.
The Boston Beer Company and Dogfish Head Brewery signed a merger agreement. Cash and stock transaction, valued at approximately $300m, combines two award-winning craft beer pioneers with unrivaled brewing expertise and portfolios of leading beer.
The combined company will be led by Boston Beer CEO, Dave Burwick who said: "United, we will have the highest quality, most distinct, high-end portfolio, from both a price-point and product perspective with the top-ranked sales organization to bring it to market."
Nixon Peabody advised Boston Beer. Arlington Capital Advisors and McDermott Will & Emery advised Dogfish Head.
Reverence Capital Partners, a private investment firm focused on investing in financial services businesses, agreed to acquire Advisor Group, a leading independent wealth management platform, which supports over 7k financial advisors with $268bn of client assets. Financial terms were not disclosed.
"Advisor Group is one of the premier wealth management platforms in the US and together with Reverence Capital's investment, wealth management expertise and industry relationships, the company is uniquely positioned to identify and tackle growth opportunities across the business," said Milton Berlinski, Co-Founder and Managing Partner of Reverence Capital.
Barclays, RBC Capital Markets, SunTrust Robinson Humphrey, and Simpson Thacher & Bartlett advised Advisor Group. Kirkland and Ellis and Davis Polk & Wardell advised Reverence Capital.
Netflix, the world's leading internet entertainment service, acquired StoryBots, the children's learning and entertainment brand behind the hit Emmy Award-winning Netflix Original series Ask The StoryBots. Financial terms were not disclosed.
The acquisition is a sign of Netflix's commitment to bring educational content to its growing member base of kids and families around the world.
"Together with Netflix, our goal is to make StoryBots the leading educational entertainment brand for connected kids and families globally.", Evan and Gregg Spiridellis, StoryBots Co-founder.
AEA Investors acquired API Technologies, a designer and manufacturer of high-performance components for microwave and electromagnetic application, from J.F. Lehman & Company, a middle-market private equity firm focused on investing in the defense, aerospace, maritime, government and environmental industries. Terms of the transaction were not disclosed.
Glenn Shor, a member of API's Board of Directors and Partner at J.F. Lehman, said, "We are proud of the accomplishments of the API management team and the success the business achieved during our ownership period. We believe the company is well positioned to continue its trajectory and produce leading products in its core markets."
Evercore, Houlihan Lokey, Blank Rome, BakerHostetler, Renaissance Strategic Advisors advised J.F. Lehman & Company.
Monomoy Capital Partners, a private equity firm focusing on manufacturing, industrial, distribution, and consumer products sectors, acquired Kauffman Engineering, a leading manufacturer of highly-engineered wire harnesses and cable assemblies for electrical systems. Financial terms were not disclosed.
"The Kauffman team looks forward to working with Monomoy, whose resources and capabilities will allow us to advance our strategic and operational initiatives," Mike Buis, Kauffman CEO.
Goldman Sachs near closing a deal to buy United Capital.
According to Reuters, Goldman Sachs is near closing a deal to buy boutique wealth management firm United Capital Financial Partners for $700-750m.
Acquiring United Capital would give Goldman several thousand affluent and high net worth clients, a wealth bracket the bank currently does not serve. The deal would be Goldman's most significant since the financial crisis. Goldman has been ramping up efforts to grow its retail client base and deposits to diversify its revenue streams and lower its cost of wholesale funding.
Uber dropped below its IPO price in Wall Street debut.
Uber shares skidded in their anticipated Wall Street debut, opening with a loss of 6% in a volatile session for the broader equity market. After pricing at $45 for the IPO - which meant a market value of $82bn - Uber fell to $42 at the open on the NYSE. Uber's shares ended the day down 7.6% at $41.57.
"My reaction (to the share price) is if we build and build well, shareholders will be rewarded. We're certainly not measuring our success over a day, it really is over the years," said Dara Khosrowshahi, Uber CEO.
APAC
Siam Cement Group, a Thailand-based holding company engaged in the industrial supplies and construction industries, acquired a majority share of Fajar, which produces and sells the industrial paper for use in the packaging of consumer and industrial goods in Indonesia, for $665m.
"The major shareholding in Fajar will allow SCG to enhance its ASEAN growth, especially in Indonesia." Roongrote Rangsiyopash, SCG CEO.
Etihad to buy a minority stake in Jet Airways.
Middle Eastern carrier Etihad Airways made an offer for a stake in India's Jet Airways, the airline that struggles with $1.2bn debt, said the unit of State Bank of India, which oversees the sale of the stricken airline. Etihad, which already holds a minority stake in Jet, is interested in re-investing in the airline, subject to certain conditions. However, no financial terms were disclosed.
Etihad spokesman said that the Middle Eastern carrier "cannot be expected to be the sole investor" and "additional suitable investors would need to provide the majority of Jet Airways' required recapitalization."
Global Power Synergy to buy $757m energy project from Thai Oil.
Thailand's Global Power Synergy plans to buy a 250MW power project from Thai Oil for $757m. The move by state-owned PTT's energy unit Global Power Synergy is the latest in a string of deals to buy power-generating assets.
The transaction will be completed after the construction of the Energy Recovery Unit project is finished and a provisional acceptance certificate is issued under the CFP.
Chinese e-commerce Beidian raised $126m funding led by Hillhouse and Sequoia. (FS)
Beidian, the social e-commerce platform, completed its new round of fundraising for CNY860m ($126m). This round of investment is led by Hillhouse Capital, Xiang He Captial, Sequoia Capital, Sinovation Ventures, Gaorong Capital, IDG Capital, Captial Today, and other well-known investment institutions. The money raised will be mainly applied to supply chain upgrading to realize better social-driven retail experiences for its users.
LeapFrog raised $700m Emerging Market Fund. (FS)
LeapFrog Investments launched the largest-ever private equity fund by a dedicated impact fund manager, which surged past its $600m target to reach $700m. The fund targets 70m low-income consumers.
The new fund invests in healthcare and financial services companies with a focus on Asia and Africa. Investors include many of the world's leading insurers, pensions and asset managers, development finance institutions, foundations, and family offices.
"It is time for a better kind of capitalism. LeapFrog was founded on a philosophy of Profit with Purpose, rejecting conventional trade-off thinking in financial markets. That has proved a winning strategy, driving strong growth and returns while changing tens of millions of lives." Dr. Andrew Kuper, LeapFrog Investments CEO.
Dignari Capital Partners closed fund at $626m. (FS)
Dignari Capital Partners, a Hong Kong-based private credit investment manager, completed raising $626m in equity for its second China-focused investment vehicle DCP China Credit Fund II.
Initially, Dignari Capital Partners planned to raise $500m in the capital, which was almost double in size than its previous fund. DCP specializes in credit and special situations investments in the region with a focus on distressed corporates in China and Hong Kong.
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