AMERICAS
The "go-shop" period began on November 12 after Tiger Midco, an affiliate of the private equity firm Apollo, agreed to acquire Tech Data last month at $130 per share, valuing the technology equipment distributor at $4.8bn. The period expired on December 9.
Apollo Global Management is advised by Barclays, RBC Capital Markets, Citigroup, JP Morgan, Wells Fargo Securities, Paul Weiss Rifkind Wharton & Garrison, Wachtell Lipton Rosen & Katz, and Rubenstein Associates. Tech Data is advised by Bank of America Merrill Lynch and Cleary Gottlieb Steen & Hamilton.
Canadian regulators approved the disposal of Genworth Financial's majority stake in its Canadian unit to Brookfield Business Partners. The stake sale is expected to be completed on December 12, Reuters reported.
Genworth stated that regulators were viewing the sale of its 57% stake in Genworth MI Canada for about $1.8bn.
Brookfield Business Partners is advised by BFIN Securities, BMO Capital Markets, CIBC, RBC Capital Markets, Scotiabank, and Torys. Genworth is advised by Sullivan & Cromwell.
Harvest Partners, a private equity firm, completed the acquisition of Lazer Spot, a provider of yard management services, from Greenbriar. Financial terms were not disclosed.
"We are thrilled to invest alongside the Lazer Spot management team and support the next phase of growth with the Company's blue-chip customer base. Customers value Lazer Spot's commitment to safety and reliability, and management has built a best-in-class service delivery model to achieve that," James Mitchel, Harvest Principal.
Lazer Spot and Greenbriar were advised by Harris Williams, Kirkland & Ellis, and Kekst CNC. Harvest Partners was advised by Ropes & Gray, and Blicksilver Public Relations.
"This acquisition is transformational for Gravity and enables the company to offer expanded water handling infrastructure for producers operating in the core of the Midland Basin. Gravity continues to focus on providing the most reliable and efficient produced water gathering and disposal infrastructure for its customers. We are excited to expand our platform and welcome On Point and its proven management team to Gravity," Rob Rice, Gravity President, and CEO.
Gravity was advised by Barclays and Vinson & Elkins. Clearlake was advised by Blicksilver Public Relations.
Digital Colony to acquire Highline do Brasil from Patria. (FS)
Digital Colony, a company investing in digital communications, mobile and Internet infrastructure sectors, agreed to acquire Highline do Brasil, a provider of infrastructure solutions for the wireless telecommunications industry, from Patria Investments. Financial terms were not disclosed.
"Our partnership with Digital Colony will allow us to expand our services ‒ including our flagship BTS program ‒ to meet the growing infrastructure needs of the country's MNOs, and offer new sites on which to deploy their equipment," Fernando Viotti, Highline CEO.
Digital Colony is advised by Linklaters and Stanton. Patria is advised by Simpson Thacher & Bartlett and Stocche Forbes.
Blue Point Capital Partners, a private equity firm, agreed to acquire Mattco Forge, a designer and manufacturer of forged metal products. Financial terms were not disclosed.
“Blue Point sees a significant opportunity to grow the Mattco platform. Together with management and our extensive A&D operating resources, we hope to expand the company’s production capabilities, improve its supply chain management and enhance its business infrastructure, all while maintaining Mattco’s best-in-class track record of customer service and execution,” Mark Morris, Blue Point Partner.
Mattco is advised by Lazard.
The Chartis Group to acquire Greeley.
The Chartis Group, a provider of management consulting services, agreed to acquire Greeley, a provider of clinical effectiveness, regulatory compliance, CMS remediation, and physician and medical staff services. Financial terms were not disclosed.
"Greeley is an important addition to our firm. Its unparalleled expertise assisting providers both in advancing their clinical quality and effectiveness capabilities and in elevating their physician services will enable Chartis to even more comprehensively serve its clients as they navigate the transforming healthcare delivery landscape," Ken Graboys, The Chartis Group CEO.
New York Life in talks to acquire Cigna’s nonhealth benefits unit.
New York Life, the third-largest life insurance company in the United States, is in talks to acquire Cigna’s nonhealth benefits unit in a deal that could be valued at as much as $6bn.
Cigna in recent months has been seeking a buyer for a business that sells life, accident and disability-income insurance to employers for their workers, in a move that would help the health giant focus on its core business.
NortonLifeLock attracts deal interest from McAfee. (FS)
Cybersecurity software firm McAfee showed deal interest in rival NortonLifeLock, joining Permira and Advent International as potential suitors for the consumer software company, the WSJ reported.
One of the options being considered is a combination with the consumer business of McAfee, the California-based company, which is owned by Intel and private-equity firms TPG Capital and Thoma Bravo.
Macquarie considers $2bn sale of Virginia Toll Tunnels. (FS)
Macquarie Group and Skanska, a Stockholm-based construction company, are weighing the sale of the Elizabeth River Tunnels, a toll road concession in southeastern Virginia that could fetch more than $2bn, Bloomberg reported.
Macquarie Infrastructure and Real Assets, the Australian bank’s infrastructure-investing arm, and Skanska are interviewing potential advisers ahead of a sale process for the project that could start next year.
Parthenon Capital raises $2bn for the sixth fund. (FS)
Parthenon Capital closed its growth-oriented private equity fund Parthenon Investors VI at its hard cap of $2bn. The closing exceeds its fundraising target of $1.5bn.
"We appreciate the rapid and significant support we received from existing limited partners and welcome an outstanding group of new investors to the Parthenon family," Brian Golson, Parthenon Capital Managing Partner, and Co-CEO.
K+S to consider stakes sale in North American businesses.
German potash and salt miner K+S said it was looking into selling stakes in its North American businesses because an ongoing cost-cutting push would not yield enough savings to reach its debt reduction target.
A company spokesman said K+S was considering selling a stake in its Bethune potash mine in Canada - which the company values at nearly $5.5bn - or bringing in an industry partner. It ruled out an outright sale of the plant. He added that K+S was also considering all options for its salt business in North and South America, which includes the Morton Salt brand.
Brazil's Petrobras divests 34 oil fields for $266m.
Brazilian state-controlled oil company Petróleo Brasileiro concluded the sale of 34 onshore oilfields in the state of Rio Grande do Norte for $266m to a PetroReconcavo subsidiary.
The sale is part of Petrobras' divestment plan to reduce its debt load and focus on deepwater exploration and production.
Thoma Bravo outperforms rivals. (FS)
Thoma Bravo, technology-focused private equity group, outperformed rivals for the third year in a row, showing that sector specialism pays off.
Uber in talks acquire self-driving car simulation startup Foresight.
Uber Technologies is in advanced negotiations to acquire Foresight, a startup that develops simulation software, DealStreetAsia reported.
Uber’s simulation software has suffered from various deficiencies and still has trouble predicting how its self-driving car prototypes will handle the real world.
Vivo Capital considers sale of Surgical Specialties. (FS)
Vivo Capital is considering a sale of medical device maker Surgical Specialties that could fetch more than $500m, Bloomberg reported.
Vivo Capital is working with an adviser on a potential sale for the manufacturer of medical products such as sutures, needles, and surgical knives. The healthcare-focused investment firm reached out to several prospective suitors to gauge interest.
JP Morgan seeks $1bn for mezzanine debt fund. (FS)
JP Morgan is raising money for a mezzanine fund through its asset- and wealth-management arm, Bloomberg reported.
The firm is looking to raise as much as $1bn from investors for a fund that would focus on providing financing to companies using a hybrid of equity and debt. The bank has already raised a significant portion of its target.
May River to close $300m Fund II. (FS)
May River closed its second fund on $300m after three months in the market. Demand for May River Fund II exceeded its target. The fund will continue to focus on investing in high quality, lower middle-market industrial businesses.
EMEA
Just Eat declines raised offer from Prosus.
The Board of Just Eat rejected an increased takeover offer from Dutch-based technology group Prosus, because it significantly undervalued the company, and continued to back a rival all-share proposal from Takeaway.com.
Prosus, a spinoff of South Africa's Naspers, raised its bid for the British food delivery company to 740 pence a share from 710 pence on Monday.
Just Eat said the increased Prosus offer was only 16% higher than its share price of 635.6 pence in July before Takeaway.com said it was in talks about combining with the group and was 5% lower than its share price on Friday.
Just Eat is advised by Goldman Sachs, UBS, Oakley Advisory, Linklaters, and Brunswick Group. Takeaway is advised by Bank of America Merrill Lynch, Gleacher Shacklock, Lazard, Cravath Swaine & Moore, De Brauw Blackstone Westbroek, NautaDutilh, and Slaughter & May. Prosus is advised by JP Morgan, Allen & Overy, and Finsbury Hering Schuppener. Debt financing to Prosus is offered by Investec.
AMS secures a 59% stake in Osram. (FS)
AMS, an Austrian sensor specialist, stated that the acceptance rate in its €4.6bn ($5.1bn) takeover offer for Osram, German lighting group, was at 59.3%, a little more than the required 55% threshold, Reuters reported.
After failing with a first offer at the same price but with a higher threshold of 62.5%, investors had been uncertain whether the second try would be successful, with hedge funds thought to hold around a third of Osram shares days before the offer period expired on Thursday.
Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group. Bain Capital is advised by Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco, and FTI Consulting.
ArchiMed, a European healthcare specialist investor, completed its acquisition of Direct Healthcare Group, which manufactures pressure area care solutions, from NorthEdge Capital, a private equity firm. Financial terms were not disclosed.
“We’re partnering with an exceptional management team with a proven track record when it comes to clever product innovation and driving successful mergers and acquisitions. Our common focus with management for the next phase of development will be on internationalizing DHG’s footprint and expanding its product range, especially through further acquisitions,” Antoine Faguer, ArchiMed Partner.
ArchiMed was advised by KPMG, Candesic, Lanchner Communications, and Dechert. NorthEdge was advised by Pricewaterhousecoopers, CIL, Addleshaw Goddard, and MC2.
Cboe Global Markets to acquire EuroCCP.
Cboe Global Markets, an exchange holding company, agreed to acquire EuroCCP, a pan-European equities clearinghouse. Financial terms were not disclosed. The transaction is expected to close in the first half of 2020.
The deal will open access and transparent interoperability in Europe. Additionally, Cboe's ownership of EuroCCP is expected to provide an opportunity to pursue the development of equity derivatives trading and clearing capabilities in the region, subject to regulatory approvals.
"Cboe's planned acquisition of a leading equities clearinghouse in Europe is an important step in our growth strategy for the region. We believe ownership of EuroCCP will enhance our current European equities business, while providing opportunities to potentially diversify our business, including trading and clearing derivatives, in the future. We look forward to officially welcoming the EuroCCP team to Cboe Global Markets," Ed Tilly, Cboe Global Markets Chairman, President, and Chief Executive Officer.
EuroCCP is advised by PJT Partners, Allen & Overy, and Greentarget. Cboe is advised by Macfarlanes and Norton Rose Fulbright.
VR Equitypartner, a Frankfurt-based investment company, agreed to acquire a minority stake in Bookwire, a digital publishing marketplace. Financial terms were not disclosed.
"For e-books and audio books, there is no way around Bookwire. The company is excellently positioned in its niche market and we look forward to supporting it in the development of this leading position in the future," Christian Futterlieb, VR Equitypartner Managing Director.
VR Equitypartner is advised by wdp Wachter Digital Partners, KPMG, and Watson Farley & Williams.
"Teranga has the appropriate infrastructure and processing facilities approximately 25 kilometers away and combining the orebodies, and the geological prospectively will add further benefits. This is a good example of an instance where assets we own might be better suited in combination with others," Mark Bristow, Barrick CEO & President.
Barrick is advised by Scotia Capital, Davies Ward Phillips & Vineberg, and Norton Rose Fulbright.
Investment company Fortress Investment Group completed the acquisition of Majestic Retail and Commercial and related assets of Majestic Wine, the United Kingdom's specialist retailer of wine, for £100m ($121m).
"I am delighted that we have managed to secure an independent future for both Naked and Majestic Retail and Commercial, allowing both companies to pursue growth by focusing on their unique propositions," Rowan Gormley, Majestic CEO.
Majestic Wines was advised by Investec, Rothschild & Co and Instinctif Partners.
The Competition and Markets Authority has to decide whether to continue a two-month-old probe that froze Amazon's bid of around $500m for a minority stake in food-delivery service Deliveroo.
"The CMA is very interested in tech giants extending their tentacles into other markets. Antitrust regulators are paranoid about it at the moment because they are concerned they have not looked at these mergers enough in the past, like Facebook-WhatsApp," Alan Davis, Pinsent Masons competition lawyer.
DPG Media to acquire Sanoma Media Netherlands for $507m.
DPG Media, a Belgian publishing company, agreed to acquire Sanoma Media Netherlands, a Dutch unit of Sanoma. The deal values the company at $507m. The transaction is subject to customary closing conditions and is expected to be completed latest during Q3 2020.
"Divestment of Sanoma Media Netherlands is an important step in Sanoma's strategic transformation from a predominantly media company into a combination of a growing European-based learning company and the leading cross-media company in Finland. It provides approx. $443m headroom for M&A, enabling us to capture growth opportunities focusing especially on the learning business. With the divestment, Sanoma's exposure to print magazine business, which as a stand-alone business is difficult to convert to digital, will be reduced," Susan Duinhoven, Sanoma President and CEO.
EQT agreed to acquire Recover Nordic, a provider of damage control services, from Agilitas, a private equity firm that invests in waste management and healthcare sectors, for $325m. The transaction is subject to customary conditions and approvals and is expected to close in the first quarter of 2020.
"We are excited to partner with EQT, one of the world’s most reputable investment organizations, with a strong track record in the services sector. EQT’s growth-focused strategy and hands-on ownership approach is a great match for Recover Nordic," Bjorn Herlofsen, Recover Nordic CEO.
Carsales.com considers making an offer for Scout24’s auto unit. (FS)
Australia’s Carsales.com, an online marketplace, which specializes in automotive, motorcycle, and marine classifieds business, is thinking of placing a bid to acquire the car trading business of Germany’s Scout24, joining a €2.3bn ($2.5bn) sale process that attracted interest from private equity bidders, Financial Times reported.
Buyout firms, including Hellman & Friedman, Apax Partners, and Permira, were among the other bidders expected to submit offers for AutoScout24.
It is not sure whether Carsales would proceed with an offer, as the size of the AutoScout24 business is roughly equivalent to the Australian company’s market value.
Saudi Arabia's government invests over $2bn in Aramco IPO.
Saudi government institutions invested c. $2.3bn into the IPO of Saudi Aramco. The transaction was intended to find new sources of funding for the economic diversification plan, Bloomberg reported.
The government sold two-thirds of the shares offered in the company to institutional investors, of which 13.2% came from Saudi government institutions. Non-Saudi investors were allocated 23.1% of the institutional offering, or about $3.9bn.
Additionally, non-Saudi investors were allocated 23.1% in oil giant Saudi Aramco’s IPO institutional tranche, Reuters reported. Saudi government institutions were allocated 13.2% of the institutional tranche.
Italian judge waits to rule on Mediaset overhaul.
An Italian judge will wait until January 21 at the earliest before ruling on a request by France's Vivendi to suspend a planned reorganization at Italian broadcaster Mediaset, leaving the overhaul on hold until then.
Mediaset, controlled by the family of former Prime Minister Silvio Berlusconi, is aiming to create a European TV champion by merging its Italian and Spanish businesses under a Dutch holding company called MediaforEurope.
The Milan-based company wants to use the new entity to pursue pan-European tie-ups to take on increasing competition in the industry and stalling growth in its domestic market.
Deutsche Bank-backed DWS considers acquisition.
Deutsche Bank’s asset manager, DWS, said that it remains on the lookout for takeover targets after tie-up talks with peer UBS failed earlier this year.
“We want to play an active role (in consolidating the sector),” Asoka Woehrmann, DWS Chief Executive.
Mr. Woehrmann added that he expects an increasing number of takeover targets to come on the block in the coming years as the industry’s margins decrease, and new technologies emerge.
Travis Perkins states the demerger of Wickes is on track.
Travis Perkins, Britain's biggest building materials group, said it was making good progress on the demerger of its Wickes home improvement division. The group said in July it intended to demerge Wickes.
"The process is progressing well and is on track to be completed in the second quarter of 2020," Travis Perkins spokesperson.
Qatar Airways to acquire a 60% stake in new Rwandan international airport. (FS)
Qatar Airways agreed to take a 60% stake in a new $1.3bn international airport in Rwanda, the state-run Rwanda Development Board said on Twitter.
The board said the first phase of construction would provide facilities for 7m passengers a year in the Bugesera district, about 25 km southeast of the capital Kigali. A second phase, expected to be completed by 2032, would double capacity to 14m passengers a year.
US financier's offer for Chelsea Football Club was rejected.
A US financier who co-owns the Los Angeles Dodgers baseball team tabled an offer to buy London’s Chelsea Football Club from Russian oligarch Roman Abramovich, Financial Times reported.
The offer last month by Todd Boehly, former president of asset manager Guggenheim Partners, fell short of the £3bn ($3.9bn) valuation Mr. Abramovich is believed to be seeking for the English Premier League club.
Watches of Switzerland in deal talks in the US.
Watches of Switzerland Group, a British retailer of Swiss watches, is in early takeover discussions with several regional retailers in the US that do not have the size, scale, and resources to compete in the market.
Watches of Switzerland, which reported a 10.3% increase in like-for-like sales in the half and said it expected 8-9% growth for the full year, sees opportunities to buy more stores in the US where the market is “very fragmented”.
"Today you need more scale to participate and do the marketing, also online, so some of the small retail operations will come up for sale," Brian Duffy, Watches of Switzerland Chief Executive Officer.
APAC
Mubadala seeks investment opportunities in China, after investing $100bn in the US. (FS)
Abu Dhabi state investor Mubadala Investment invested $100bn in the United States, more than 40% of its roughly $240bn portfolio, according to its Deputy CEO. The fund will now look to to participate in some “shape, way or form” in the growth of China.
“What that tells you is that from our perspective the risk-reward equation works in the United States,” Waleed al-Muhairi, Mubadala Deputy CEO. He added that the bulk of the investments are direct, with a small portion indirectly invested through funds.
Mr. Muhairi said Mubadala invested $2bn in China in 15-16 sectors from its $10bn UAE China fund and could step up investments in the mainland.
Toshiba restructuring plan in trouble.
Toshiba announced last month it plans to take full ownership of chip-making equipment maker NuFlare Technology and two other units through tender offers at a total cost of about $1.84bn.
Regulatory filings show that funds backed by Murakami, Japan's most prominent activist shareholder, have built a 6.2% stake in NuFlare since Toshiba announced the tender offer for it on November 13.
Toshiba, which already owns 52.4% of NuFlare, has offered $110 for each NuFlare share. While NuFlare's board has endorsed the offer, Toshiba Machine, NuFlare's second-largest shareholder with a 15.8% stake, has yet to decide whether to tender, holding the key to the success of Toshiba's buyout.
Blackstone to pause Coffee Day’s Tech Park acquisition. (FS)
Beleaguered Coffee Day Enterprises’s sale of its technology park to Blackstone Group is stalled as one of its creditors has not approved the deal, Bloomberg reported.
Yes Bank has issued the so-called no objection certificate as it’s seeking assurances on repayments of other loans taken by Coffee Day.
SoftBank taps Goldman for new financing to revive WeWork investment. (FS)
SoftBank Group tapped Goldman Sachs Group for new financing to help revive one of its biggest bets — an investment in office-sharing company WeWork.
Goldman is arranging a $1.75bn line of credit, the first step in SoftBank’s pledge to put together $5bn in debt financing for WeWork as part of its bailout package, DealStreetAsia reported.
Venus Medtech raises $308m in HK IPO.
Venus Medtech, a Chinese company that produces heart valve replacement devices, raised $308 in IPO on the Hong Kong stock exchange, becoming the latest healthcare company to shore up investors’ confidence in the Asian financial hub.
The Chinese developer of cardiovascular devices received retail orders worth over $10bn for the IPO, which made it become the largest healthcare listing in the territory in 2019.
China Everbright together with local authorities launches $284m healthcare fund. (FS)
China Everbright, a Hong Kong-based financial services affiliate of state-owned conglomerate China Everbright Group, teamed up with the local authorities in eastern China’s Taizhou city to set up a new fund for healthcare investments in the region.
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