AMERICAS
StoneCo, a provider of financial technology solutions, agreed to merge with Linx, a provider of retail management software in Brazil, in a $1.1bn deal.
"We are excited to join efforts with Linx in this journey and are looking forward to combining Linx's deep expertise in vertical software and omnichannel solutions with Stone's powerful technology and financial services capabilities, our strong client-centric culture and powerful distribution channels. I believe this will help us to become the one stop shop for merchants of all sizes, supporting them in the online as well as in the offline world. We will continue to focus on building solutions by applying best practices in technology, with constant client feedback and the use of data to drive product improvement roadmaps," Thiago Piau, StoneCo CEO.
StoneCo is advised by Proton Partners, JP Morgan, Morgan Stanley, Davis Polk & Wardwell, Mattos Filho and Spinelli Advogados. Linx is advised by Goldman Sachs, Pinheiro Neto and White & Case. Debt financing was provided by JP Morgan and Morgan Stanley.
The $2.7bn controversial takeover of Genworth Financial by China Oceanwide, is attempting its final close of the 1.4k days long-running acquisition, amid deteriorating US-China relationships.
The deadline for Oceanwide’s proposed purchase has been extended 15 times, and it’s now been pending longer than any other takeover in the US valued at $1bn.
Genworth is advised by Goldman Sachs, Lazard, Richards Layton and Finger, Weil Gotshal and Manges, and Willkie Farr & Gallagher. China Oceanwide is advised by Citigroup, Willis Capital Markets & Advisory, Potter Anderson & Corroon, and Sullivan & Cromwell.
Chevron's $5bn offer to acquire Noble Energy, an independent oil and natural gas exploration and production company, emerged after the US oil major first proposed taking a stake of at least 50% in Noble's Eastern Mediterranean natural-gas fields, Reuters reported.
If consummated, the all-stock merger will boost Chevron's US shale oil holdings and give it huge natural gas assets off the coast of Israel. Noble's Leviathan, one of the world's biggest offshore gas discoveries of the last decade, already is supplying gas to Israel, Egypt and Jordan.
Chevron is advised by Credit Suisse and Paul Weiss Rifkind Wharton & Garrison. Noble Energy is advised by JP Morgan and Vinson & Elkins. JP Morgan is advised by Simpson Thacher & Bartlett.
Authentic Brands Group, a brand development, marketing, and entertainment company, and SPARC Group, a global enterprise which designs, sources, manufactures, distributes, and markets apparel and accessories, agreed to acquire Brooks Brothers, an American apparel company, for $325m. The proposed transaction is subject to Court approval and the satisfaction of customary closing conditions, including regulatory approval.
As part of the agreement, SPARC has committed to continue operating at least 125 Brooks Brothers retail locations. The bidders intend to preserve the iconic Brooks Brothers brand and to continue to serve the company's loyal customers.
Brooks Brothers is advised by Ankura Consulting, Pj Solomon, Weil Gotshal and Manges and Edelman.
Omnicell, a provider of medication management solutions and adherence tools for health systems and pharmacies, agreed to acquire 340B Link, a provider of software-enabled services and solutions to hospitals, health systems and clinics, from Pharmaceutical Strategies Group, a pharmacy intelligence and technology company, for $225m.
“This is an exciting transaction for Omnicell that accelerates our strategic transformation and brings us even closer to achieving the long-term vision of the Autonomous Pharmacy. Key to realizing this vision is supporting health systems and providers as they manage an increasingly complex medication management supply chain. The 340B program is a significant part of that supply chain, and PSG’s market-leading 340B Link business adds distinct capabilities and software-enabled services to our portfolio, which will help providers manage compliance and reporting requirements for their 340B program, while capturing eligible drug cost savings," Randall Lipps, Omnicell Chairman, President, CEO, and Founder.
Omnicell is advised by Greenhill & Co and Sidley Austin. PSG is advised by Houlihan Lokey and Norton Rose Fulbright.
Arcline Investment Management, a private equity firm with $1.5bn in committed capital, completed the acquisition of Jersey Elevator, a provider of elevator maintenance, modernization and installation services. Financial terms were not disclosed.
"Forty-six years after my father founded the Company, this move provides us with a strong foundation for the continued development of the business. I am excited to be working with Arcline to create lasting growth within our industry," John Sweeney, Jersey Elevator President.
Arcline was advised by Curzon Creative and Joele Frank.
Health Catalyst, a provider of data and analytics technology and services to healthcare organizations, agreed to acquire Vitalware, a provider of revenue workflow optimization and analytics SaaS technology solutions to healthcare organizations. Financial terms were not disclosed.
"In addition to adding a best in KLAS technology solution from Vitalware, this acquisition is another powerful example of Health Catalyst's ability to integrate and scale software on top of our DOS platform. Ultimately, DOS, our cloud-based data platform, will further enhance the analytics insights made available by Vitalware's technology by integrating charge and revenue data with claims, cost, and quality data," Dan Burton, Health Catalyst CEO.
Health Catalyst is advised by WE Communications.
One Equity Partners, a middle-market private equity firm, completed the acquisition of American Medical Technologies, a provider of advanced wound care, ostomy, urology and tracheostomy supplies and services. Financial terms were not disclosed.
“We are thrilled to partner with OEP to expand our value-added services to Skilled Nursing Facilities. Increased patient acuity and wound complexity are highlighting the need for outcome-focused wound management services. OEP shares our vision for providing patients with comprehensive care that improves quality of life and drives better outcomes," Sam Muppalla, AMT CEO.
One Equity Partners was advised by Stanton PRM.
Investment firms B Capital Group and Sanabil led a $123 Series B round in Atomwise, a drug discoverer and manufacturer. The funding round includes returning investors Data Collective, Baidu Ventures, Tencent, Y Combinator, Dolby Family Ventures, and AME Cloud Ventures.
“Over the past three years, our platform AtomNet® has tackled — and succeeded - in finding small molecule hits for more undruggable targets than any other AI drug discovery platform. With support from our new and existing investment partners, we will be able to leverage this to develop our own pipeline of small molecule drug programs, further grow our portfolio of joint-venture investments, and realize our vision to create better medicines that can improve the lives of billions of people," Abraham Heifets, Atomwise CEO and Co-Founder.
Brookfield in talks to buy Blackstone’s Cheniere stake. (FS)
Brookfield Asset Management's infrastructure arm is in talks to acquire Blackstone’s minority stake in liquefied natural gas terminal operator Cheniere Energy Partners, Bloomberg reported.
The alternative asset manager is working with a partner to acquire Blackstone’s interest. No final decision has been made and Brookfield Asset Management could opt to not proceed.
Blackstone’s stake is worth about $7.8bn.
Pravati Capital launches the fifth litigation finance fund with $200m. (FS)
Pravati Capital, a litigation specialist and consulting firm, has launched its fifth investment fund, Pravati Investment Fund V, with $200m.
Fund V follows four of Pravati's successful funds launched over the span of seven years. The new fund offers, for the first time, non-US and US-tax exempt qualified international investors the opportunity to invest in alternative investment vehicle specialised in the litigation finance sector.
Fund V, as past funds, is structured using the proven methodology of stringent due diligence in selecting and structuring investments, while providing opportunities for law firms to restructure, regain financial footing and build their asset portfolios. Pravati's focus remains on investing in non-correlated assets with limited risk independent of the economic cycles offered by the growing litigation finance sector.
"We are pleased to offer Fund V to qualified international investors seeking an alternative investment vehicle in the litigation finance sector. Litigation financing is critical for an average person who may be fighting deep pockets and needs to level the playing field," Alexander Chucri, Pravati Capital CEO and Portfolio Manager.
Airbnb is close to filing to go public after travel rebound.
Airbnb plans to file paperwork for a stock market listing in the next few weeks paving the way for its shares to start trading as soon as the fourth quarter, Bloomberg reported.
The San Francisco-based company is preparing to submit documents confidentially with the US Securities and Exchange Commission for an initial public offering. The long-awaited move would represent a swift comeback for the home-sharing startup after the coronavirus pandemic sent the travel industry into a tailspin.
Halliburton is seeking serious buyers only in real estate auction. (RE)
Halliburton has been slashing jobs and retiring fracking gear as low oil prices crushed its order book. Now it is going one step further by selling the land its business rested on, Bloomberg reported.
The world’s biggest provider of fracking services plans to sell 13 North American sites in October, according to a statement from auctioneer Williams & Williams.
Only serious buyers are invited to participate because the properties will be sold on a “where is, as is” basis, which means that once a bid is accepted, there is no turning back. The parcels span a wide swath of the North American oil patch, from Edmonton to South Louisiana.
Polestar considers public listing.
Polestar, the premium electric vehicle maker owned China’s Geely and Volvo Cars, would like to eventually be publicly listed, but the immediate focus is on successfully launching the new Polestar 2 electric sedan, Reuters reported.
“The mid- and long-term perspective indeed is to be ... open for the stock market and an IPO,” Thomas Ingenlath, Polestar CEO. “This is indeed one track that is absolutely still on and has not changed” since Volvo Cars CEO Hakan Samuelsson said in January 2019 that Polestar could eventually be listed publicly, Ingenlath added.
EMEA
Liberty Global, a multinational telecommunications company, agreed to acquire Sunrise Communications Group, an integrated communications provider in Switzerland, for $7.43bn.
"The industrial logic of this merger is undeniable, but the real winners are Swiss consumers and businesses. This powerful combination of 5G wireless and gigabit broadband will accelerate digital investment at a time when connectivity has never been more essential. Fixed-mobile convergence is the future of the telecom sector in Europe, and now Switzerland will have a true national challenger to drive competition and innovation for years to come. We look forward to welcoming Sunrise employees to the Liberty and UPC family and congratulate them and the board on their success," Mike Fries, Liberty Global CEO.
Liberty Global is advised by Credit Suisse, JP Morgan, LionTree Advisors, Homburger and Shearman & Sterling. Sunrise is advised by Deutsche Bank and Lenz & Staehelin.
Occidental Petroleum abruptly finished a year-long effort to sell Algerian oil and gas fields to raise cash for debt payments, saying it now regards them as “core” assets.
Occidental had agreed to sell the Algerian holdings, along with a smaller position in Ghana, for around $4.9bn to Total, an energy company, but the French major walked away from the deal in May after the North African country blocked the sale, Bloomberg reported.
Total is advised by Ernst & Young, Lazard and Weil Gotshal and Manges. Anadarko is advised by MacKenzie Partners, Bank of America Merrill Lynch, Citigroup, Cravath Swaine & Moore, Freshfields Bruckhaus Deringer and Brunswick Group.
MCH Private Equity, a mid-market focused private equity firm, completed the acquisition of a majority stake in Molecor, a manufacturer of molecular oriented PVC pipes. Financial terms were not disclosed.
With this transaction, MCH foresees the consolidation of a unique technology for the development of infrastructure and water transport, both in the development of new pipelines and in the renewal of obsolete networks.
Molecor was advised by Aon Securities, KPMG, PwC, and Araoz & Rueda. MCH was advised by Garrigues.
Amdocs, a provider of software and services to communications and media companies, completed the acquisition of Openet, a software vendor, for $180m
“We are excited to join Amdocs, with whom we have been alongside at customers for many years, and help bring fast value to service providers’ 5G plans. It is truly a momentous day for Openet and for all of our stakeholders,” Niall Norton, Openet CEO.
Openet is advised by Arthur Cox, Drury Porter Novelli, and Capnua & Twomey Moran.
I Squared eyes $2.4bn sale of Energia. (FS)
I Squared Capital is planning an auction to sell power firm Energia Group later this year, with the infrastructure fund aiming to secure a valuation of around $2.35bn including debt, Reuters reported.
Called Viridian Group until a 2019 rebranding, Energia owns and operates around 1 gigawatt of renewable and conventional power generation in the Republic of Ireland and Northern Ireland, and provides gas and electricity to over 750k customers.
A sale process for Energia is expected to begin later this year, subject to market conditions.
South Africa hires RMB to advise on possible airline stake sale. (FS)
South Africa’s Rand Merchant Bank, the investment banking arm of FirstRand, has been appointed as an adviser to help the government assess offers for stakes in its insolvent national airline, Bloomberg reported.
The state is looking to raise more than $575m that South African Airways administrators say is needed to revive its operations eight months after going into bankruptcy protection. Finance Minister Tito Mboweni has said the National Treasury will not use its own money, beyond $932m in existing debt guarantees, and will instead seek “strategic partners” or private-equity backers as well as tapping pension funds and global financial institutions.
“The Department of Public Enterprises has identified a transaction adviser. The advisers are expected to assess unsolicited expressions of interest from private-sector funders, private-equity investors and partners for a future restructured SAA,“ South African ministry.
Eli Rozenberg's bid for a controlling stake in El Al may struggle to win board support.
Eli Rozenberg’s bid for a controlling stake in El Al Israel Airlines is below the price that can be obtained in a public share offering and may struggle to gain board support. Mr Rozenberg offered to acquire a 45 stake for $75m.
“From my talks with members of the board, most are against the proposal. Shareholders are opposed to it,” Reuters reported.
E.ON sees regulatory risks as British grid up for sale.
E.ON stopped short of expressing interest in the British networks unit that US utility PPL put up for sale earlier this week, pointing to the shaky regulatory environment in the country, Reuters reported.
PPL said it had decided to launch a sales process for Western Power Distribution, which has a regulatory asset value of $10.1bn, adding it had hired JP Morgan to run the process.
“Last year Jeremy Corbyn wanted to nationalise these assets,” Johannes Teyssen, CEO of E.ON.
Knaus Tabbert plans to revive IPO.
Knaus Tabbert, the German maker of camper vans and motor homes, has revived plans for an initial public offering, Bloomberg reported.
The company has started gauging investor demand for a potential listing. It aims to kick off the share sale on the Frankfurt stock exchange as soon as September. No final decisions have been made, and Knaus Tabbert could still delay plans for the offering.
Knaus Tabbert is seeking to take advantage of surging demand for camper vans favored by cautious vacationers in the midst of the coronavirus pandemic.
APAC
A consortium of private equity firms and individual investors including Bizuo Tony Liu, CEO of Cellular Biomedicine Group, offered to take the company private, for $384m. Cellular Biomedicine Group is a biopharmaceutical firm engaged in the drug development of immunotherapies for cancer and stem cell therapies for degenerative disease.
The consortium of investors includes Bizuo Liu (CEO of CBMG) and certain other members of CBMG management (Yihong Yao, Li Zhang and Chengxiang Dai), Dangdai International Group, Mission Right, Wealth Map Holdings, Earls Mill, OPEA, Maplebrook, Full Moon Resources, Viktor Pan and Zheng Zhou and Yunfeng Fund III, TF Capital, Velvet Investment.
Under the terms of the merger agreement, CBMG's stockholders will receive $19.75 in cash for each outstanding share of common stock held immediately prior to the effective time of the merger.
Cellular Biomedicine is advised by Jefferies & Company and White & Case. Bidders are advised Kirkland & Ellis and O'Melveny & Myers.
Taishin Financial Holding, a financial holding company, agreed to acquire Prudential of Taiwan from Prudential Financial, a financial services company. Financial terms were not disclosed.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals.
Taishin is advised by Citigroup. Prudential Financial is advised by Debevoise & Plimpton.
China Education Group, an investment holding company principally engaged in the provision of private higher education services, agreed to acquire a 60% stake in Haikou University of Economics, private university in the Hainan Free Trade Port, for $195m.
“The national strategy of developing Hainan Free Trade Port has provided bright prospects and favourable policies to create tremendous development opportunities in Hainan. As a leading group in the higher education and vocational education industry, China Education Group will actively participate in the education sector in the Hainan Free Trade Port, so as to meet the demand of students for high-quality higher education and enable more enterprises in the region to benefit from a stronger human capital base,” Xie Ketao, China Education Group Co-Chairman.
China Education Group is advised by SPRG.
SoftBank is targeting over $10bn in public investing. (FS)
SoftBank Group is targeting investments of more than $10bn in public stocks as part of a new asset management arm, far exceeding the initial holdings that founder Masayoshi Son outlined to shareholders on Tuesday, Bloomberg reported.
The tally could reach into the tens of billions. Son, the chief executive officer, unveiled the investment arm in a conference call to discuss earnings. He said the unit has about $555m in capital. However, the amount is seen as a placeholder.
ICICI, HDFC, Axis Bank raise nearly $4.7bn via QIP. (FS)
Private sector lenders ICICI Bank, Axis Bank and Housing Development Finance have raised nearly $4.7bn from institutional investors using the qualified institutional placement route over the past one week, indicating that investors continue to be bullish on financial services majors. ICICI Bank launched its QIP to raise $2bn.
“The deal received strong interest from both domestic and foreign investors. The $2bn deal saw a demand of almost $5bn," the person advising the bank on the fundraise.
Gaw Capital closes two investment vehicles at $900m. (FS)
Hong Kong-based real estate private equity firm Gaw Capital Partners has closed two investment vehicles totaling up to $900m in commitments.
The first vehicle will focus primarily on real estate opportunities across sectors and markets in Asia.
The second vehicle will invest in education platforms in major Asian cities with strong structural tailwinds supporting growth in demand for premium international or bilingual education. The fund will look to partner and work with top-tier school operators through greenfield or brownfield development, and through acquisition of properties.
SoftBank-backed KE set to raise $2.1bn in US IPO. (FS)
KE Holdings, a Chinese online property platform backed by Softbank Group and Tencent, is poised to raise $2.1bn as it plans to price its US initial public offering above an indicative range, Bloomberg reported.
KE, also known as Beike Zhaofang, is telling prospective investors that it’s planning to price the shares at $20 each. The company had been marketing 106m American depositary shares at $17 to $19 apiece.
The above-range pricing underscores the strong demand for KE’s offering, which is set to be the largest float by a Chinese company in the US since iQiyi raised $2.4bn in March 2018.
Alibaba-backed Best to list delivery business in Hong Kong.
Alibaba-backed Best is seeking a Hong Kong listing for its express delivery and freight delivery businesses, keen to boost its valuation and establish an investor base closer to China, Reuters reported.
The plans by Best, which went public in New York in 2017 and has a market value of $1.8bn, are preliminary and the offering size and target valuation have yet to be determined.
The Hangzhou-based company, which has been unhappy with its New York valuation, decided not to include smaller units such as its supply chain management business in the Hong Kong listing as seeking a valuation for just the two delivery units would be more straightforward.
Mr DIY revives $500m IPO plan.
Malaysia’s Mr DIY Group is reviving its initial public offering plan after postponing it in March when the Covid-19 pandemic worsened, Bloomberg reported.
The country’s biggest home improvement retailer aims to restart marketing to gauge investors’ interest next month. The company aims to raise about $500m in the share sale, which could begin as early as October.
Mr DIY’s sales surged to a record in May and June, after the government partially lifted coronavirus-driven restrictions in order to resuscitate the economy.
KKR and Carlyle are betting on a resurgence in Japan dealmaking. (FS)
Private-equity firms including KKR and Carlyle Group are betting on a pickup in Japanese dealmaking later this year as companies take steps to protect themselves against the coronavirus-fueled downturn, Bloomberg reported.
“Corporate demand for consultation over future business models has been growing quite strongly” Kazuhiro Yamada, Carlyle’s Japan buyout advisory team head. The firm is sitting on substantial amounts of “dry powder” for new transactions, having announced in March it raised $2.4bn for its fourth Japan buyout fund, more than double the size of its predecessor.
Industries that are faced with “very strong headwinds” due to the pandemic may seek to carve out non-essential operations for sale in order to focus on their core business, according to Hirofumi Hirano, KKR Japan CEO. Firms that are doing well might take the opportunity of such sales to better compete overseas.
NPS seeks a buyer for Shanghai mall. (FS, RE)
Hong Kong real estate investor Phoenix Property Investors and South Korea’s National Pension Service are considering selling a shopping mall they jointly own in Shanghai, Bloomberg reported.
Phoenix Property and NPS hold 50% each of the retail area of Crystal Galleria, a mixed-used project in Shanghai’s central Jing’an district. The asset may fetch as much as $860m in total.
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