AMERICAS
Clearlake Capital and SkyKnight Capital-backed symplr, a global healthcare governance, risk management, and compliance software-as-a-service platform, agreed to acquire TractManager, a provider of healthcare technology services, from private equity firm Arsenal Capital Partners. Financial terms were not disclosed.
"TractManager's cloud solutions bring powerful new capabilities to our customers' connected GRC enterprise, enabling additional insights to drive improved quality of care and financial performance. Our expanding, end-to-end SaaS platform is a one-of-a-kind single source of truth for GRC-related data for providers, payers, and health systems," Rick Pleczko and Tres Thompson, symplr CEO and COO.
TractManager is advised by Harris Williams, Morgan Lewis & Bockius, and Prosek Partners. symplr is advised by Sidley Austin and Lambert & Co. Debt financing is provided by Antares Capital, Ares Management, Credit Suisse, Deutsche Bank, Goldman Sachs, Golub Capital, and Jefferies.
Gilead Sciences, an American biopharmaceutical company, completed the acquisition of Immunomedics, a pharmaceutical company focusing on the development of antibody-drug conjugates for the treatment of cancer, for $21bn.
“There is a lot of important work ahead of us to deliver on the vast potential that Trodelvy offers for patients with cancer. Together we will bring Trodelvy to many more patients around the world with triple-negative breast cancer and continue to explore its potential in many other types of cancer, both as a monotherapy and in combination with other treatments,” Daniel O’Day, Gilead Sciences Chairman and CEO.
Immunomedics was advised by Bank of America Merrill Lynch, Centerview Partners, Cowen & Company, and Wachtell Lipton Rosen & Katz. Bank of America Merrill Lynch and Centerview Partners are advised by Sullivan & Cromwell. Gilead Sciences is advised by Lazard, Morgan Stanley, and Davis Polk & Wardwell. Lazard and Morgan Stanley are advised by Cravath Swaine & Moore.
Private Equity-backed Syncapay, a holding company focused on high potential payment solutions, completed the acquisition of Wirecard North America, a company specializing in issuing of compensation, disbursement, consumer incentive and refund card, from Wirecard, a company that offers Internet payment and processing services. Financial terms were not disclosed.
“We are thrilled to welcome North Lane into the Syncapay family, and, along with daVinci, look forward to delivering an unparalleled payments platform, empowering companies to thrive in a digital future. By bridging the technologies and capabilities of daVinci and North Lane, we will be positioned to sell a broader base of services and benefit from economies of scale to accelerate the growth opportunities for our combined company,” Juli Spottiswood, Syncapay Chairman and CEO.
Syncapay was advised by Idea Grove, Raymond James and Goodwin Procter. Wirecard was advised by Moelis & Co, Noerr, Ropes & Gray, and Brunner Communications. Centerbridge Partners was advised by Piper Sandler and Kirkland & Ellis.
Pivot Technology Solutions, an IT services provider, announced the approval of a majority shareholder for the $80m acquisition by Computacenter.
Pivot intends to seek a final order of the Ontario Superior Court of Justice to approve the arrangement at a hearing expected to be held on October 29, 2020. Assuming timely receipt of all necessary court, third-party approvals and the satisfaction of all other conditions, closing of the arrangement is expected to occur on or about November 2, 2020. Following the completion of the arrangement, Pivot shares will be delisted from the Toronto Stock Exchange and Pivot will apply to cease to be a reporting issuer under applicable Canadian securities laws.
Pivot Technology is advised by Raymond James and Borden Ladner Gervais. Computacenter is advised by Obair Partners, Linklaters, McCarthy Tetrault, and Tulchan Communications.
Two of CoreLogic's largest shareholders liquidated holdings in the US property data analytics company as a takeover battle intensified, fund updates from T. Rowe Price and Harris Associates showed.
T. Rowe Price’s Mid-Cap Growth Fund, which held 17.8% of CoreLogic at the end of 2019, did not own any CoreLogic shares at the end of September. Harris Associates, which held 4.15% of CoreLogic in two portfolios at the end of June and owned 5.5% before that, no longer held shares at the end of September, Reuters reported.
CoreLogic is advised by Sard Verbinnen & Co. Senator Investment is advised by Cadwalader Wickersham & Taft. Cannae Holdings is advised by Trasimene Capital, Weil Gotshal and Manges, and Sloane & Company.
Goldman Sachs Merchant Banking Division, a private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally, is set to invest $500m in Global Compute Infrastructure, a newly established global data center infrastructure platform.
“Goldman Sachs is the perfect partner for us as we pursue global investment opportunities in the data infrastructure space. Our combined global pedigrees and networks, together with GS MBD’s access to ample growth capital, will allow the Global Compute platform to not only serve the critical needs of our customers around the world, but also create and unlock value for our partners. Our initial investment in ATM S.A. is an ideal illustration of this collaboration. We are extremely enthusiastic about our partnership with Goldman Sachs enabling us to provide creative solutions for our global customers," Scott Peterson, Global Compute CEO.
Goldman Sach MBD was advised by Davis Polk & Wardwell LLP. Global Compute was advised by PJT Partners, Mayer Brown, Torch Partners and White & Case.
Cumulus Media, an owner of radio stations across the United States, announced the initial closing of their broadcast tower sale-leaseback transaction with Vertical Bridge, telecommunication infrastructure private owner and manager in the United States.
The initial closing of tower portfolio transaction was for $208m in gross proceeds and the company anticipates that it will close on the remainder of the previously announced $213m purchase price through one or more subsequent closings by the end of the second quarter of 2021.
“We are thrilled to have expeditiously completed the first closing of this significant transaction. Our further improved liquidity position and covenant-lite, long-dated debt will continue to support our growth initiatives and allow us to take advantage of accretive opportunities as we navigate through near-term uncertainties to drive long-term shareholder value," Mary G. Berner, Cumulus Media President and CEO.
Cumulus Media was advised by Houlihan Lokey and Jones Day. Vertical Bridge was advised by Morrison & Foerster.
Adidas explores strategic options for Reebok.
German sportswear company Adidas is planning to sell its Reebok division, as the group seeks to put an end to its ill-fated investment in the US-focused brand, Reuters reported.
The company will decide in the coming months whether to proceed with a sales process. The internal review is in the early stages.
Since taking over as chief executive officer of Adidas in 2016, Kasper Rorsted has repeatedly parried rumours that he was looking to sell the brand. He closed under-performing Reebok stores and allowed some licensing deals to expire, cutting sales at the long unloved sporting label but cutting expenses even more.
BC Partners to split PetSmart and Chewy in a $6bn recapitalization deal. (FS)
Three years after saddling PetSmart with debt to acquire online rival Chewy, a group led by private equity firm BC Partners is splitting them in two, betting that the companies will be better off on their own.
The group plans to recapitalize PetSmart with $1.3bn of equity and $4.65bn of debt raised from institutional money managers. All of PetSmart’s remaining shares in Chewy will be distributed to the BC Partners-led group, which will operate the fast-growing but unprofitable online retailer as a wholly separate business. The new structure will result in a smaller debt load relative to earnings as well as longer maturities for PetSmart, which will continue to focus on its brick-and-mortar locations, Bloomberg reported.
The transaction is likely to be seen more favourably by creditors compared to a 2018 deal in which BC Partners put a portion of Chewy’s equity outside the reach of PetSmart lenders. They argued that PetSmart was insolvent at the time of the transfer, and that the move was thus fraudulent. PetSmart eventually got a majority of its lenders to approve amendments to their documents to squash the dispute.
Wells Fargo considers sale of asset management business.
Wells Fargo, a diversified, community-based financial services company, is exploring a sale of its asset management business. The potential deal would illustrate how Charles Scharf, Wells Fargo CEO, seeks to turn the company around following a years-old sales practices scandal, Reuters reported.
Wells Fargo’s asset management business offers mutual funds and retirement products. Wells Fargo plans to keep its wealth management business that caters to high-net worth clients. Wells Fargo’s asset management arm, which managed $578bn, could bring more than $3bn in a sale.
EQT to proceed with the takeover of CNX Resources. (FS)
EQT, a producer of US natural gas, is seeking to acquire rival CNX Resources, an oil and gas exploration and production company, Bloomberg reported.
EQT recently sent a takeover proposal to CNX Resources. No final decision has been made and EQT could opt to not proceed with a potential deal.
The proposal comes as a wave of deals involving other shale companies is shaking up the industry, with investors looking for scale as a way to cut costs and gain more control over supplies.
PayPal is in advanced talks to acquire crypto firms.
PayPal Holdings is exploring acquisitions of cryptocurrency companies including Bitcoin custodian BitGo, a provider of digital wallet services, Bloomberg reported.
PayPal has been holding talks with BitGo, a company that helps investors store Bitcoin securely, and could reach a deal within weeks.
BitGo is backed by investors including Goldman Sachs, Craft Ventures, Digital Currency, DRW, Galaxy Digital Ventures, Redpoint Ventures, Valor Equity Partners and Founders Fund.
Starboard calls ACI Worldwide an 'attractive' takeover candidate. (FS)
Starboard Value, a hedge fund, which now owns 9% of ACI Worldwide, views the payment systems company as an “attractive” takeover candidate, Reuters reported.
Starboard said there is room for ACI to speed up organic growth with expanding operating margins and said that new management is taking sensible steps. Starboard has already won 22 board seats in 2020, including three at Commvault Systems, data management software maker.
“ACI looks equally as attractive when you compare its current revenue multiple to recent transaction comps,” Jeffrey Smith, Starboard CEO and CIO.
Chorus Aviation receives takeover proposal.
Chorus Aviation, Canadian aircraft repair and overhaul services provider, received a non-binding acquisition proposal from a third party, Reuters reported.
There can be no assurance that any transaction will occur.
Shares of Chorus, which has a market value of about C$383m ($292m), rose nearly 7% before being halted.
Garrett Motion received approval for $2.6bn KPS Capital offer. (FS)
Garrett Motion, autoparts maker, obtained court approval to move ahead with an auction and sale process in which KPS Capital, a private equity firm, is providing the lead bid, despite a competing proposal from shareholders led by Centerbridge Partners and Oaktree Capital, PE Insights reported.
US Bankruptcy Judge signed off on the sale procedures during a telephonic hearing.
Garrett was advised by Sullivan & Cromwell.
Churchill Capital upsized IPO to $400m.
Churchill Capital V, a special purpose acquisition company backed by former Citigroup banker Michael Klein, upsized its IPO to $400m, Reuters reported.
The blank-check company said it now looks to sell 40m units at $10 per unit. Each unit consists of one share of its Class A common stock and one-fourth of one redeemable warrant.
Citigroup, Goldman Sachs, JP Morgan and Bank of America Merrill Lynch are joint bookrunners of the IPO.
Eat Just seeks to raise $200m. (FS)
Eat Just, a food manufacturing company that produces plant-based foods, is working with an adviser to raise at least $200m in a transaction that may value the company at $2bn or more, Bloomberg reported.
“As a high-growth company focused on expanding Just Egg sales and capacity expansion needs, we are always evaluating sources of capital to achieve our mission to build a healthier, safer food system,” Andrew Noyes, Eat Just Head of Global Communications.
The San Francisco-based company has been gauging preliminary interest from Citic Securities, a Chinese full-service investment bank.
Microsoft-Backed Databricks prepares IPO.
Databricks, a provider of software solutions whose business overlaps with data and analytics software maker Snowflake, is preparing an IPO that could come in the first half of 2021, Bloomberg reported.
Discussions are at an early stage and the company has held talks with banks but has yet to hire underwriters. San Francisco-based Databricks is aiming to go public at a price significantly higher than the valuation in its last funding round.
Databricks has raised about $900m from backers including Andreessen Horowitz, Coatue Management, New Enterprise Associates, Tiger Global Management, BlackRock and T. Rowe Price. Its backers also include Battery Ventures, Sinewave Ventures, In-Q-Tel and Data Collective.
EMEA
London Stock Exchange Group expects to complete the $27bn acquisition of Refinitiv by the first quarter of next year.
"We are making good progress on the highly attractive Refinitiv transaction, having secured further regulatory approvals around the world. We continue to engage constructively with the European Commission and believe the potential divestment of the Borsa Italiana group will contribute significantly to addressing the EU's competition concerns," David Schwimmer, LSEG CEO.
Refinitiv is advised by Canson Capital Partners, Evercore, Jefferies & Company, Corrs Chambers Westgarth, Osler Hoskin & Harcourt, Simpson Thacher & Bartlett, and Eterna Partners. LSEG is advised by RBC Capital Markets, Oliver Wyman, Barclays, Goldman Sachs, Morgan Stanley, Robey Warshaw, Blake Cassels & Graydon, Freshfields Bruckhaus Deringer, and Teneo. Financial Advisors to LSEG are advised by Herbert Smith Freehills. CPPIB is advised by Weil Gotshal and Manges. Thomson Reuters is advised by Allen & Overy.
SoftBank Group CEO Masayoshi Son said the sale of chip designer Arm to Nvidia will drive growth in computing power, in his first public comments since the $40bn deal.
Son made the comments at a virtual summit about artificial intelligence hosted by Saudi Arabia, an anchor investor in the $100bn Vision Fund, at which he reiterated his belief that AI would transform society.
Arm Holding is advised by Hogan Lovells. Nvidia is advised by Morgan Stanley, Cleary Gottlieb Steen & Hamilton and Latham & Watkins. SoftBank Vision Fund is advised by Zaoui & Co. SoftBank Group is advised by Morrison & Foerster, Kekst CNC, and Sard Verbinnen & Co.
Private equity firms Parcom Capital and Mississippi Ventures, agreed to acquire Hema, a Dutch variety store-chain for $522m.
The 50/50 consortium of Parcom and Mississippi Ventures combines retail and management experience with an entrepreneurial spirit and business acumen. The consortium sees great potential in HEMA.
“Today’s announcement marks an important next step for HEMA with intended future shareholders that will create a stable operating platform for the roll-out of our strategic plans going forward. With the closing of our capital restructuring, HEMA realises a major turnaround, including a strengthened balance sheet and ample liquidity. Both parties have Dutch roots and have expressed a strong commitment to HEMA’s strategy, management and employees, as well as our unique brand and heritage," Tjeerd Jegen, Hema CEO.
Hema is advised by Moelis & Co and De Brauw Blackstone Westbroek. Parcom Capital and Mississipi Ventures are advised by Quore Capital and Clifford Chance.
Intermediate Capital Group, a private equity firm, completed the acquisition of interior door manufacturers Puertas Sanrafael and Puertas Castalla. Financial terms were not disclosed.
This merger creates a new European Group, with 1.1k employees and a consolidated turnover of around $166m. It will enable CMAI to acquire the know-how and resources necessary to pursue its growth strategy in the field of interior doors in France, successfully initiated in 2018.
Puertas Sanrafael and Puertas Castalla are advised by Houlihan Lokey and Uria Menendez. Intermediate Capital Group is advised by Translink Corporate Finance and Cuatrecasas Goncalves Pereira.
Triton Partners, an investment firm, completed the acquisition of HiQ International, an IT consultancy firm, for $445m.
"Triton has a tradition of investing in companies with high potential and is working closely with them to unlock such potential. With HiQ, we are now adding a top-class company to our portfolio, characterized by its expertise and strong culture. We look forward to actively supporting the management and employees of HiQ as a stable owner by investing in the growth and development of the company into a Northern European leader," Peder Prahl, Triton Director of the General Partner.
Triton Partners was advised by Roschier Attorneys. HiQ International was advised by Setterwalls Advokatbyra.
Fidelity International, a funds manager, agreed to acquire UK personal investing business of Legal & General, a financial services company. Financial terms were not disclosed.
“This transaction is a positive step for LGIM and particularly for our direct to consumer business. It optimises the strategic fit between two highly-regarded organisations and in particular supports customers, who now gain Fidelity International’s scale and operational capacity in these specific products while continuing to benefit from the LGIM investment expertise which underpinned their original product purchase," Michelle Scrimgeour, Legal & General CEO.
Legal & General is advised by Tulchan Communications.
Algeco, a modular space leasing business, completed the acquisition of Temporary Space Nordics, a provider of temporary space solutions for public and private customers across the Nordic region. Financial terms were not disclosed.
"I am delighted to welcome TSN Group into the Algeco business. The Nordic market is particularly attractive to us and this adds significantly to our presence in Sweden, strengthens our positions in Norway and Finland and marks our entry into the Danish market," Mark Higson, Algeco CEO.
Algeco was advised by Tulchan Communications.
Macquarie Infrastructure and Real Assets, a private equity firm, agreed to acquire Romanian power assets of CEZ Group, a multi-utilities services provider. Financial terms were not disclosed.
“Romania is one of Europe’s most dynamic economies, and its energy infrastructure is critical to supporting the country’s long-term growth and low-carbon transition. We are delighted to announce this investment and we look forward to supporting this critical infrastructure business as it invests to deliver more reliable, efficient, safe, and sustainable electricity to the communities it serves,” Leigh Harrison, MIRA EMEA Head.
Macquarie is advised by Citigroup. CEZ Group is advised by Societe Generale.
Renault to end van collaboration with Fiat ahead of Fiat/PSA deal.
In a deal forged under former Renault boss Carlos Ghosn, the French carmaker had been producing Fiat’s Talento vans at its Sandouville plant in France since 2016.
European Commission antitrust regulators, meanwhile, are examining FCA and PSA’s large market share in small vans and have expressed concerns on this front and could potentially request concessions in this area.
Aryzta and Elliott Management talks terminated without a binding offer. (FS)
Aryzta, Swiss baking company, said discussions with Elliott Management, an investment firm that provides portfolio management and consulting services to pension plans, sovereign wealth funds, endowments and foundations, concluded without a binding offer, Bloomberg reported.
“The board of Aryzta will proceed to select the optimum option to bring the company forward sustainably,“ Aryzta.
Besides Elliott, Aryzta had also attracted interest from private equity firms Apollo Global Management and Cerberus Capital Management, as well as George Weston, Canadian grocery and baking giant.
Cellnex is in talks to purchase CK Hutch tower unit.
Cellnex Telecom is in advanced talks to acquire CK Hutchison's European wireless tower business, which would mark one of Europe’s biggest telecom infrastructure deals, Bloomberg reported.
Europe’s wireless tower operator is discussing a purchase of the CK Hutchison portfolio for about $10.7bn. The terms, including price and structure, may change and talks could still fall apart.
CK Hutchison, founded by Hong Kong billionaire Li Ka-shing, has been working with advisers to carve out its European towers as a separate subsidiary and had been considering selling a minority stake in the business.
SSAB considers a deal with Tata Steel European business.
SSAB, a Swedish steelmaker, is exploring a combination with Tata Steel European business, a steel producer which manufactures a variety of steel products, as a back-up plan to a deal with Thyssenkrupp, a manufacturer of industrial components, amid industry consolidation, Bloomberg reported.
SSAB is holding preliminary talks with Tata Steel of India as it seeks merger options. The Swedish company, which has a market value of around $3.2bn, would gain control of Tata Steel’s European business if they pursued such a deal.
Tata would also be interested in revisiting a potential tie-up with Thyssenkrupp’s steel unit to see if regulatory approval could be achieved the second time around.
Skoda Transportation it talks to acquire Alstom's Reichshoffen plant.
Alstom, a maker of the French high-speed TGV train, is in talks with Skoda Transportation to sell its plant in Reichshoffen, Bloomberg reported.
The sale is being imposed by the European Commission to complete a deal with Bombardier, Canadian rail unit. Alstom selected Skoda Transportation over Spain’s CAF, because it’s potentially a more ambitious rival.
The companies have said that the purchase of Bombardier’s transport business will be completed in the first quarter of next year. The French train manufacturer would almost double its size with the cash-and-stock purchase of Bombardier’s rail unit.
Ares Management considers sale of Farrow & Ball. (FS)
Farrow & Ball, the high-end English paint maker, is considering a sale of the business at a time of surging demand for home renovations, Bloomberg reported.
Ares Management is speaking to potential advisers about strategic options for Farrow & Ball, which generated record revenue last year.
Farrow & Ball has in the past drawn takeover interest from US-based buyers, as it offers the kind of acquisition opportunity favoured by global paint companies seeking to expand geographically.
BP considers sell of a stake in Constellation.
BP, an oil and petrochemicals company, is weighing a sale of its majority stake in the Constellation oilfield in the Gulf of Mexico, Bloomberg reported.
The oil exploration and production giant has reached out to potential buyers of the deepwater asset, which could achieve a value of around $200m in any sale.
BP owns 66.7% of the Constellation field, which produces about 10k barrels a day. The remainder is held by operator Occidental Petroleum, which inherited it through its $37bn purchase of Anadarko Petroleum.
Caffe Nero examines CVA due to pandemic.
Caffe Nero, Britain's coffee shop operator, is considering a company voluntary arrangement, an insolvency mechanism, to restructure its financial liabilities as the coronavirus crisis continues to harm hospitality businesses, Sky News reported.
Caffe Nero is working with KPMG on its options and is expected to seek steep rent cuts from landlords as part of any restructuring deal.
"It has been a difficult period since lockdown measures were introduced by the government and we're working incredibly hard to navigate our way forward. As part of this, we are working closely with advisors to help review our options and assist with our ongoing negotiations with landlords," Caffe Nero spokesman.
Soltec to go public with a valuation of $520m.
Soltec, a renewable energy company, is planning to go public with the aim of capturing €150m ($177m). The valuation after the operation will be between $438m and $520m. The final price is between $4.33 and $5.7 per share.
It will be the first listing on the Spanish Stock Exchange since Solarpack at the end of 2018.
Soltec has already insured $35m of the capital increase, equivalent to 23% of the total amount. Santander agrees to subscribe $11m and the Swedbank Robur, manager of the Swedish bank, $23m.
Soltec was advised by Banco Santander, CaixaBank, JB Capital Markets, Berenberg and Rothschild & Co.
General Motors-backed Wejo to raise $350m. (FS)
General Motors-backed Wejo, a provider of online automotive data services, is launching a plan to raise more than $350m from investors, Sky News reported.
Wejo is close to hiring investment bankers to oversee the large capital injection as it attempts to gain scale in the fast-growing "connected car" data market.
Wejo collects and analyses the data from 18m cars on its platform, selling it under licence to businesses ranging from parking app developers to local authorities.
Goldman Sachs in talks to take over Blanchardstown Centre from Blackstone. (FS, RE)
Goldman Sachs is in advanced talks to take over the Blanchardstown Centre, a shopping centre valued at $1bn, from owner Blackstone, PE Insights reported.
Shopping centres throughout Europe are struggling during the pandemic. They took a fresh hit in Ireland this week when the Government imposed a new national lockdown, closing all non-essential stores.
Goldman Sachs plans to inject fresh capital and is likely to pursue several projects at the site should the deal be finalised, including the redevelopment of space vacated by collapsed retailers.
APAC
Internet content & marketing services firm Bitauto Holdings announced that at an extraordinary general meeting the shareholders voted in favour of the merger with Yiche Holding. Financial terms were not disclosed.
Bitauto Holdings will be acquired by an investor consortium led by Tencent Holdings-backed Morespark and Hammer Capital in an all-cash transaction.
Bitauto Holdings is advised by Duff & Phelps, Foote Group and Skadden Arps Slate Meagher & Flom. Investor consortium is advised by Latham & Watkins, Kirkland & Ellis and Bank of America Merrill Lynch.
Venture capital funds Xiaomi Changing Industrial Fund and CMB International led a $225m funding round in SmartSens, a developer of CMOS image sensing chips. Other investors include Sequoia Capital, China Internet Investment Fund, Wingtech Technology, Transsion Holdings, China Fortune-Tech Capital, Haitong Kaiyuan, Lenovo Capital, and Forebright Capital.
With the new capital investment, SmartSens aims to support technology and product innovation.
Flipkart Group, a retailer group, agreed to acquire a 7.8% stake in Aditya Birla Fashion and Retail, a clothing and accessories retailer, for $203m.
“We look forward to this partnership with Flipkart Group, and our collective journey to delight customers of a young and aspirational India. Given the complementary strengths of ABFRL and Flipkart Group, this partnership has the potential to dramatically accelerate the growth of the apparel industry in India and reshape apparel commerce. This deal also provides a tremendous opportunity to build scale of existing brands and expand its brand portfolio into emerging consumer segments,” Ashish Dikshit, ABFRL Managing Director.
HK brokers preparing billions for bidding in Ant's IPO.
Hong Kong’s brokerages are preparing billions of margin-lending dollars to tap an expected surge in retail demand for Ant Group's $35bn dual-listing in Hong Kong and Shanghai, Reuters reported.
GIC, Singapore’s sovereign wealth fund, Temasek Holdings and National Council for Social Security Fund are also jockeying for a slice of the deal. Alibaba Group will also buy new Ant shares to maintain its ownership stake at around 32%.
Ant has recently added CCB International as a joint global coordinator for the IPO in Hong Kong. The deal will have eight joint book runners, including recent addition Mizuho Financial Group.
Ant has picked China International Capital and CSC Financial to lead its Shanghai leg of the IPO. CICC, Citigroup, JPMorgan and Morgan Stanley are heading the Hong Kong offering. T. Rowe Price Group, UBS Asset Management and FMR, the parent of Fidelity Investments, are among the money managers angling for a piece of Ant Group's IPO.
Link Administration rejects a $1.96bn takeover offer. (FS)
Link Administration, provider of services in superannuation administration industry, rejected a takeover offer of $1.96bn from private equity firms Carlyle Group and Pacific Equity Partners but it was willing to continue talks over the bid, DealStreetAsia reported.
The conditional offer of $3.7 a share undervalued PEXA, an online property transaction firm, that Link holds a stake in, and did not factor in a market recovery.
Commonwealth Bank of Australia and Morgan Stanley also hold a stake in PEXA. Link, which also provides services to fund managers and trading firms, would update investors on its plans.
Goldman Sachs to pay $2.9bn over 1MDB corruption scandal.
Goldman Sachs is clawing back $174m in executive compensation and had agreed to pay $2.9bn over its role in 1Malaysia Development Berhad corruption scandal, DealStreetAsia reported.
Under terms of the deal, Goldman Sachs agreed to pay a $2.3fine bn for breaking anti-bribery laws and to disgorge $600m of ill-gotten gains as part of a deferred prosecution agreement, which also requires it to improve its compliance controls.
The bank also agreed for its Malaysia subsidiary to plead guilty in a US federal court, in a victory for prosecutors who rarely extract criminal guilty pleas from corporate entities.
Coca-Cola Europe in advanced talks to purchase Coca-Cola Amatil.
Coca-Cola European Partners, an independent bottler of the storied soft drink, is in talks to acquire a majority stake in Coca-Cola Amatil to expand in Asia Pacific and would be the largest deal involving an Australian company so far this year, Bloomberg reported.
Coca-Cola Amatil, based in North Sydney, has a market value of about $5.6bn and is a dominant player in the Asia Pacific region, with 32 production facilities in Australia, New Zealand, Fiji, Indonesia and Papua New Guinea.
The talks underscore how soft drink bottlers are under pressure to consolidate as the popularity of sugary drinks declines, as well as because of the disruptions caused by the coronavirus pandemic.
Japan favours a gradual approach to ANA's bailout. (FS)
Japan’s government is against a huge bailout plan for ailing ANA, air transportation company, preferring a piecemeal approach to direct capital injections, Reuters reported.
Japan’s airline is expected to announce a revival plan that will most likely include pay cuts and reduction in its fleet of aircraft. These measures will come on top of $3.8bn in subordinated loans to ANA Holdings from state-backed and private lenders.
The government hopes a waiver on airport landing fees, a tax-funded domestic tourism campaign and a gradual re-opening of borders will be enough to keep ANA alive.
Indian pharma promoters view to sell stakes.
Several mid-sized drug makers are discussing potential buyouts with private equity firms after the government offered incentives to encourage companies to produce drug ingredients in India to cut reliance on China, DealStreetAsia reported.
At least three promoters are seeking to sell majority stakes to PE funds. The promoters of Suven Pharmaceuticals have hired Barclays to find a buyer for their 60% stake. Granules India's promoters are working with Kotak Mahindra Capital to find suitors and ZCL Chemicals has appointed Jefferies for a stake sale.
“With Covid and the resultant disruption in supply chains, there is a rethink among formulators, both foreign and domestic, on the risks in the supply chain. There is definitely a move to derisk their China-dependent supply chains and move at least some of it to India,” Hari Buggana, InvAscent Chairman.
SBI Holdings and Towa Bank to form capital merger. (FS)
SBI Holdings, Japanese financial firm, and Towa Bank, regional lender, will conduct a capital merger and take small stakes in one another, DealStreetAsia reported.
SBI will provide its technology and financial services to Towa Bank so that the lender can improve its customer service.
SBI has invested in four regional banks. It is looking to revive struggling regional banks by taking stakes and pushing them into higher-margin businesses.
Lufax plans to raise $2.36bn in IPO.
Lufax Holding, Chinese financial technology firm backed by Ping An Insurance Group, is looking to raise as much as $2.36bn in an IPO that would be one of the biggest by a Chinese company this year on US exchange. Lufax is marketing 175m American depositary shares for $11.5 to $13.5 each, Bloomberg reported.
Lufax plans to use the funds from the IPO for purposes which may include investment in product development, sales and marketing activities, technology infrastructure, capital expenditures, global expansions and other general and administrative matters. It may also use them for acquisitions or investments.
Lufax has turned into a financial giant offering wealth management and retail lending services. It would be valued at almost $33bn based on the outstanding shares listed in its prospectus.
MMC plans to revive a $1bn Malaysian IPO.
MMC, a Malaysian utility and infrastructure group, is reviving an IPO plan for its port assets, which could be the biggest listing in the Southeast Asian nation since 2012, Bloomberg reported.
The Kuala Lumpur-listed company, managed by Syed Mokhtar Al-Bukhary, is seeking to raise about $1bn from the first-time share sale. The firm is in talks with potential advisers and a listing could take place as early as the end of next year.
MMC owns ports including Pelabuhan Tanjung Pelepas and Johor Port in the southern state of Johor and Northport in the central Selangor state as well as Penang Port, north of Kuala Lumpur.
Yuanfudao raised $2.2bn. (FS)
Yuanfudao, Chinese online tutoring start-up, has raised $2.2bn in funding from major Chinese and international investors that lifts the company’s valuation to $15.5bn.
Yuanfudao’s platform based in Beijing offers live courses and provides tutoring options for students.
The funding, split into G1 and G2 rounds, will allow the company to expand its online edtech system and develop new curriculum products.
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