AMERICAS
Transportation firm Bombardier announced that it has signed a definitive agreement with Alstom and CDPQ for the disposal of Bombardier Transportation at $8.4bn.
"Today’s announcement marks a significant milestone towards achieving our near-term priorities and repositioning Bombardier as a pure-play business jet company. The proceeds from this transaction will allow us to begin reshaping our capital structure and start addressing our balance sheet through debt pay-down, so that we can achieve the full potential of our incredibly talented employees and our industry leading business jet portfolio," Eric Martel, Bombardier President and CEO.
Alstom is advised by Mazars Corporate Finance, Rothschild & Co, Societe Generale, Cleary Gottlieb Steen & Hamilton and Davies Ward Phillips & Vineberg. Debt financing is provided by Credit Agricole, HSBC and Societe Generale. CDPQ is advised by HSBC, Freshfields Bruckhaus Deringer and McCarthy Tetrault. Bombardier is advised by Citigroup, National Bank Financial, Rockefeller Capital Management, UBS, AZB & Partners, Jones Day, Norton Rose Fulbright and Joele Frank.
LVMH said it had submitted its troubled $16.2bn takeover of Tiffany, which is now at the centre of a legal dispute between the two groups, for EU approval as it seeks to counter accusations that it deliberately stalled antitrust proceedings, Reuters reported.
The French group's acquisition of the US jeweller turned sour when LVMH said it could no longer complete it due to a request by the French government to delay the closing of the deal and the weakening of Tiffany's business.
"LVMH confirms that earlier today, immediately after receiving approval to proceed by the European Commission, it has submitted the proposed acquisition of Tiffany for antitrust review, as it has always stated it would do. Eight of the ten requisite antitrust clearances have already been obtained," LVMH.
Tiffany is advised by Centerview Partners, Goldman Sachs, Sullivan & Cromwell and Sard Verbinnen. Centerview Partners and Goldman Sachs is advised by Weil Gotshal and Manges. LVMH is advised by Citigroup, JP Morgan, Cleary Gottlieb Steen & Hamilton, Skadden Arps Slate Meagher & Flom, White & Case, Brunswick Group, DGM Conseil, Deluxewords, Kekst CNC, Montfort Communications, Publicis Consultants and SEC and Partners. Legal advice to debt providers is provided by Allen & Overy.
Canopy Growth, a cannabis company, and Acreage Holdings, a cannabis cultivation, processing and dispensing company, are pleased to announce that Acreage has obtained a final order from the Supreme Court of British Columbia approving the previously announced amended arrangement under section 288 of the Business Corporations Act involving Canopy Growth.
As previously announced, Acreage received the required shareholder approval in connection with the amended arrangement at its special meeting of shareholders held on September 16, 2020.
Acreage is advised by Canaccord Genuity, Eight Capital, Foros, INFOR Financial, Cozen O'Connor, DLA Piper, Stikeman Elliott and Wildeboer Dellelce. Canopy Growth is advised by Greenhill & Co, PricewaterhouseCoopers, Cassels Brock & Blackwell, Paul Hastings and Ernst & Young.
Pivotal Investment II, a special purpose acquisition company, agreed to merge with XL Fleet, a provider of vehicle electrification solutions, in a $1bn deal. Upon closing, the combined company will be named XL Fleet and is expected to remain listed on the New York Stock Exchange under a new ticker symbol, "XL".
"We believe that this transaction will enable XL Fleet to advance and accelerate the growth of our industry-leading fleet electrification business, including a rapid expansion of our product offerings. With thousands of XL-equipped vehicles already on the road today, we are excited to continue to pave the way for fleets seeking to promote sustainability while improving operational efficiency," Dimitri Kazarinoff, XL Fleet CEO.
XL Fleet is advised by Canaccord Genuity, Mintz Levin and ICR. Pivotal Investment is advised by BTIG, Cantor Fitzgerald, PJT Partners, Graubard Miller, Morrison & Foerster and Gasthalter & Co.
Glass Lewis has recommended that shareholders of Noble Energy vote in favour of the energy producer's proposed $5bn acquisition by Chevron, the proxy advisory firm said.
In supporting the transaction, Glass Lewis said it found the proposal to be “both strategically and financially compelling” to Noble investors, with the combined company offering a number of benefits that would be unavailable to Noble as a standalone entity, Reuters reported.
“Although the company may have been contractually and legally obligated to make these payments due to employment agreements, we believe shareholders should question whether the size of these awards is the best use of company capital,” Glass Lewis.
Noble Energy is advised by JP Morgan and Vinson & Elkins. JP Morgan is advised by Simpson Thacher & Bartlett. Chevron is advised by Credit Suisse and Paul Weiss Rifkind Wharton & Garrison.
The US Justice department-approved Anheuser-Busch's plan to acquire the shares of Craft Brew Alliance that it does not own.
The $321m deal was announced in November and was approved on condition the companies sell Craft Brew Alliance's Kona brand beer, Reuters reported.
"CBA's diverse portfolio of national lifestyle brands and award-winning regional breweries are an excellent complement to our family of craft partners," Marcelo Michaelis, Anheuser-Busch President.
Craft Brew Alliance is advised by Goldman Sachs and Wachtell Lipton Rosen & Katz. Anheuser-Busch is advised by Lazard, Skadden Arps Slate Meagher & Flom and Sullivan & Cromwell.
Condor Hospitality, a hotel-focused real estate investment trust, terminated the $318m merger with NexPoint Hospitality, a publicly-traded real estate investment trust.
Condor Hospitality terminated the merger agreement due to the failure of NHT's operating partnership to consummate the acquisition of Condor and for material breaches of the merger agreement by NHT's operating partnership and its affiliates. Pursuant to the merger agreement, Condor is entitled to receive a termination fee of $11m within five business days of its termination of the merger agreement.
The Orogen Group, an investment firm, agreed to acquire a majority stake in Westcor Land Title Insurance Company, a title insurance underwriter. Financial terms were not disclosed.
"We are thrilled to partner with Orogen and look forward to working with Vikram and his team to execute on our long-term vision for Westcor. Every day, our employees and agents provide peace of mind to consumers and play an essential role in the largest personal financial investment many of them will ever make. We believe that the values and vision we share with Orogen will allow us to continue to expand our business and deliver exceptional service to our customers. I am personally grateful to our team members and customers for their years of dedication, and I couldn't be more excited about the next stage of growth for our company," Mary O'Donnell, Westcor President and CEO.
Westcor is advised by Citigroup and Mayer Brown. The Orogen Group is advised by Davis Polk & Wardwell and Greenberg Traurig.
Clearlake Capital to acquire Zywave, a software-as-a-service provider, from Aurora Capital. Financial terms were not disclosed.
"Clearlake's investment in Zywave is a true game-changer. This move will enable us to both accelerate our growth organically and increase our pace of acquisitions moving forward. Zywave is already a proven InsurTech leader, delivering end-to-end solutions to insurance professionals globally, and now we will have the opportunity to further expand upon our leadership position with even more impactful developments," Jason Liu, Zywave Chief Executive Officer.
Aurora is advised by William Blair & Co and ASC Advisors. Clearlake Capital is advised by Lambert & Co.
Ericsson, a Swedish multinational networking and telecommunications company, agreed to acquire Cradlepoint, a provider of 4G and 5G enterprise solutions, from Mercato Partners, a private equity firm, for $1.1bn.
The combined offering will create valuable new revenue streams for customers by supporting full 5G-enabled services for enterprise, and boost returns on investments in the network.
"We have led the way in bringing the power of cellular networks and technologies to enterprise and public sector customers - helping them connect beyond the limits of traditional wired WANs. Ericsson with its global 5G leadership is a great match for us and I am very excited to continue to scale and expand our business together," George Mulhern, Cradlepoint Chairman and CEO.
Cradlepoint is advised by Latham & Watkins and Highwire PR.
Brightstar Capital Partners, a private equity firm, agreed to acquire a 75% stake in Brightstar, an end-to-end device lifecycle solution for carriers, retailers, and enterprise, managing mobile devices and accessories across the wireless ecosystem from SoftBank. Financial terms were not disclosed.
"We are thrilled to renew our relationship with Brightstar as it continues to build on the increasing importance of mobile technology around the world. Having served as investors and operators in this industry for nearly two decades, including valuable time spent on the Company's board, we're confident that our experience and commitment will help Brightstar continue to provide innovative services to the global wireless industry," Andrew Weinberg, Brightstar Capital Founder and CEO.
Brightstar Capital is advised by Citigroup and Dukas Linden Public Relations.
Palo Alto Networks, an American multinational cybersecurity company with headquarters in Santa Clara, completed the acquisition of The Crypsis Group, an incident response, risk management and digital forensics consulting firm, from ZP Group, an organization with a portfolio of companies specializing in breach response, national security solutions and IT staffing, for $265m.
"We are excited to welcome The Crypsis Group to Palo Alto Networks. This is a team that has handled the most difficult and complex security incidents. The addition of their consulting services will not only strengthen Cortex XDR and help us protect customers from future cyberattacks but also assist in mitigating the potential impact resulting from a breach," Nikesh Arora, Palo Alto Networks Chairman and CEO.
The Crypsis Group was advised by Pillsbury Winthrop Shaw Pittman.
Toll Brothers, a builder of luxury homes, agreed to acquire Keller Homes, a private home building company. Financial terms were not disclosed.
"We are thrilled to be joining with Keller Homes. Their team will enable us to continue to expand our operations in Colorado, which is one of our strongest markets. Keller Homes has a great reputation based on nearly four decades in the market. We welcome them to the Toll Brothers family," Douglas C. Yearley, Jr., Toll Brothers Chairman and CEO.
Keller Homes is advised by Robichaud Financial Services.
Essentra, a provider of essential components and solutions, agreed to acquire 3C! Packaging, a provider of packaging solutions, for $65m.
"3C! is a strong fit for Essentra with excellent growth prospects. The business further strengthens our position in pharmaceutical and healthcare packaging in core product areas we know well, in addition to bringing valuable new innovation to Essentra with its serialisation technology. The acquisition of 3C! follows the successful integration of Nekicesa which has performed strongly in the first year of Essentra ownership. With 3C! we will continue to build the Packaging division's track record for identifying, acquiring and integrating high quality businesses that meet our disciplined criteria and deliver sustainable value to Essentra over the long-term," Paul Forman, Essentra CEO.
Essentra is advised by Tulchan Communications.
Cooper Equipment Rental, a Canadian equipment rental company, completed the acquisition of Canadian assets of Herc Rental, a full-service equipment rental firm. Financial terms were not disclosed.
"We are excited to enter the Atlantic Canada market with the acquisition of the Herc Atlantic assets. I believe the solid team of rental professionals at Herc Atlantic will integrate well with, and ultimately contribute to, the Cooper culture. Herc Atlantic's late model equipment fleet and excellent branch facilities will allow our new team members to deliver the high level of service that Cooper customers across the country have come to expect," Darryl Cooper, Cooper Equipment President.
Cooper Equipment was advised by Gowling WLG.
Private equity firms GIC and Durable Capital led a $500m Series G financing round in Affirm, a fintech company. Other returning investors include Lightspeed Venture Partners, Wellington Management Company, Baillie Gifford, Spark Capital, Founders Fund, and Fidelity Management & Research Company.
“We’re excited about this vote of confidence from both new and existing investors as we advance our mission to build honest financial products that improve lives,” Max Levchin, Affirm CEO and Founder.
TT Electronics, an engineer and manufacturer of electronics, agreed to acquire Torotel, a manufacturer of electrical components, for $43.4m. The transaction is expected to close in the fourth calendar quarter of 2020 and is subject to the approval of Torotel's shareholders and regulatory conditions.
"We are very excited to join TT, a global provider of engineered electronics for performance-critical applications. TT has a demonstrated commitment to continued investment in power devices for the aerospace and defense markets. We see this as a great opportunity for our employees to be part of a growing dynamic company. This acquisition enhances our existing customer relationships by leveraging our shared product offering, manufacturing expertise, and engineering capabilities," Herb Sizemore, Torotel Chairman, President and CEO.
Oracle, a software services provider and Walmart, a retailing services provider to acquire a 20% stake in newly formed TikTok Global, a social media platform, from ByteDance, a technology company. Oracle gets 12.5%, Walmart gets 7.5% and ByteDance gets the remaining 80%. Financial terms were not disclosed.
TikTok Global, together with Oracle, SIG, General Atlantic, Sequoia, Walmart and Coatue will create an educational initiative to develop and deliver an AI-driven online video curriculum to teach children from inner cities to the suburbs, a variety of courses from basic reading and math to science, history and computer engineering.
"We are pleased that the proposal by TikTok, Oracle and Walmart will resolve the security concerns of the US administration and settle questions around TikTok’s future in the US," TikTok.
SitusAMC, a provider of services and technologies, completed the acquisition of Cohen Financial's loan servicing and asset management platform from Truist Financial, an American bank holding company. Truist will retain Cohen's Debt Advisory & Placement platform which it will migrate under the Grandbridge brand. Financial terms were not disclosed.
"Cohen was a natural fit for us, given the relationship between our existing SitusAMC Servicing & Asset Management team and the Cohen clients. We are excited to have the Cohen servicing and asset management platform as part of the SitusAMC team," Michael Franco, SitusAMC CEO.
Arthur J. Gallagher, a US-based global insurance brokerage and risk management services firm, agreed to acquire Erin P. Collins & Associates, a provider of consulting services. Financial terms were not disclosed.
"ECA's business is closely aligned with Gallagher's health and welfare strategy, and further expands our benefits capabilities across the Southwest. They also offer us unique cross-selling opportunities. I am delighted to welcome Erin and his associates to our growing global team," J. Patrick Gallagher, Arthur J. Gallagher Chairman, President and CEO.
Illumina considers acquiring Grail for $8bn. (FS)
Illumina, a genetic sequencing company, is in talks to acquire Grail, a cancer diagnostics startup it spun off in 2016, in a deal that could be valued at around $8bn.
News of the potential purchase comes just a week after Grail filed to go public in what has been touted as one of the largest venture-funded biotech offerings in recent years.
Prior to the IPO filing, Grail had raised at least $2bn in known funding from a long list of venture and strategic backers, including Illumina, Bill Gates and ARCH Venture Partners.
ByteDance plans TikTok IPO to win US deal as deadline looms.
China's ByteDance, a Chinese multinational internet technology company, is planning a US initial public offering of TikTok Global, the new company that will operate the popular short video app, should its proposed deal be cleared by the US government, Reuters reported.
ByteDance is racing to clinch an agreement with the White House that will stave off a US ban on TikTok that President Donald Trump has threatened could happen as early as next week.
Either way, Donald Trump does not want China's ByteDance to maintain a controlling interest in TikTok because it could put Americans' personal information at risk.
LATAM Airlines obtains approval for the second try for essential $2.45bn loan package.
LATAM Airlines, an airline holding company, obtained approval on its second try of a crucial $2.45bn bankruptcy loan to take the airline out of Chapter 11 restructuring, after having its first package rejected by a judge last week, Reuters reported.
The judge rejected the initial plan due to a convertible loan that he concluded was too beneficial to the airline's current shareholders. The new package was similar but did not include the convertible loan.
Oaktree considers divesting Agro Merchants Group for $2bn. (FS)
Oaktree Capital, an alternative investment management firm, considers divesting Agro Merchants Group, a cold storage company that could fetch as much as $2bn, including debt, Bloomberg reported.
The alternative asset manager, which owns Agro through its private equity arm, is soliciting interest from potential suitors.
Ontex Group considers bidding for Domtar's personal-care unit.
Ontex Group, a producer of disposable personal hygiene solutions, is contemplating a bid for Domtar's personal-care business that could value the unit at as much as $1.1bn, Bloomberg reported.
Ontex is working with an adviser to prepare a bid for the business, which Domtar announced was under review in August. Ontex could work with a partner to help fund the transaction.
The personal-care unit is also attracting private equity interest. No final decision has been made, and Domtar could choose to keep business.
Covestro denies it is in takeover talks with Apollo. (FS)
Covestro, a German plastics maker, rejected a report that it was in takeover talks with private equity firm Apollo Global Management.
"We are not in takeover talks with Apollo. We are regularly in talks with various market participants about strategic opportunities," Lars Boelke, Covestro spokesman.
Reid Hoffman and Mark Pincus join the hunt for SPAC targets.
LinkedIn Co-Founder Reid Hoffman and Zynga Founder Mark Pincus are looking to set themselves apart from the ultra-wealthy who have started special purpose acquisition companies, Bloomberg reported.
For their SPAC, which began trading after raising $600m, the high-profile pair want to draw upon their experience building companies and taking them public without losing a "growth mindset," they "aid in a joint interview.
Baron Davis joins SPAC craze with Bull Horn Holdings.
Baron Davis, the two-time NBA All Star, is joining the board of Bull Horn Holdings, a new special purpose acquisition company, that intends to seek out a target in the sports, media or entertainment industries, Bloomberg reported.
The company, led by chief executive officer Robert Striar, has held early discussions with prospective institutional investors about raising $75m.
Unity Technologies soars in blockbuster NYSE debut.
Shares of Unity Technologies, an American video game software development company, soared in their debut on the New York Stock Exchange, giving the gaming platform a market value of around $18bn and signaling sustained demand for new stocks.
The Silicon Valley startup's stock, which debuted on the New York Stock Exchange at $75 per share, closed at $68.35, well above the $52 per share in its initial public offering.
"Going public is good for discipline. We can also compensate our employees with more transparency. We picked the date earlier this year, and we never expected it's going to be a hot IPO market," John Riccitiello, Unity CEO.
LoanDepot considers IPO at a $15bn valuation.
LoanDepot, a mortgage lender, is rebooting its plans for an initial public offering, about five years after scrapping one at the last minute. No final decision has been made, and its plans could change.
The company has held discussions with potential underwriters for an IPO that could come as soon as the fourth quarter and could achieve a valuation of $12bn to $15bn in an IPO.
Next Insurance seeks $2.25bn valuation in funding round.
Next Insurance, an online insurance provider, considers raising new capital in a round that values the insurance technology startup at about $2.25bn, Bloomberg reported. The round hasn't been finalized, and its terms could still change.
Social Capital seeks $2bn for three new SPACs. (FS)
Social Capital Hedosophia, a venture capital firm, is seeking to raise at least $2bn for three new blank-check companies, Bloomberg reported.
The partnership between venture capitalist Chamath Palihapitiya and longtime investor Ian Osborne plans to raise $350m, $650m and $1bn for its fourth, fifth and sixth special purpose acquisition companies, respectively.
Social Capital could gather as much as $2.76bn collectively: $483m, $897m and $1.38bn for the three vehicles. That can occur if the deals are increased by 20%, and a 15% greenshoe is exercised by underwriters.
Nuvi's IPO marks Canada's largest tech offering.
Nuvei, a payments company, jumped 31% in its trading debut, riding the wave of demand for technology shares that has swept the globe in recent months, Bloomberg reported.
Nuvei is among a cluster of firms benefiting from the shift to e-commerce during pandemic lockdowns. The deal raised $700m, making it the biggest tech offering in the history of the Toronto Stock Exchange.
ACON S2 Acquisition announces pricing of $250m IPO. (FS)
ACON S2 Acquisition, a special purpose acquisition company, announced the pricing of its IPO of 25m units at $10 per unit. The units will be listed on the Nasdaq and trade under the ticker symbol "STWOU". The offering is expected to close on September 21.
The company intends to focus on businesses that employ a strategic approach to sustainability. The company's sponsor is an affiliate of ACON Investments.
Deutsche Bank, Cowen & Company and Stifel, Nicolaus & Company are serving as joint book-running managers for the offering.
Playboy explores deal to return to the stock market. (FS)
Playboy magazine owner Playboy Enterprises is exploring options that include going public through a merger with a blank-check acquisition company, Reuters reported.
A deal with a blank-check firm would result in Playboy's return to the stock market, nine years after it went private in a $207m deal led by its late founder Hugh Hefner and Rizvi Traverse Management, a private equity firm.
Riverstone is preparing a cleantech SPAC IPO.
Riverstone Holdings, a private equity firm, is planning a blank-check acquisition company that will buy a business in the clean energy industry.
The new entity will raise money from investors in an initial public offering, which will form the basis of a war chest to buy a privately-owned clean energy business. A formal announcement about the venture could come as soon as October.
Palantir Technologies to debut on NYSE on September 29.
Central Intelligence Agency-backed Palantir Technologies, a data analytics firm, stated that its shares would begin trading on the New York Stock Exchange on September 29, Reuters reported.
Shares of Palantir, which last week said it would debut on September 23, are scheduled to go public through a direct listing.
Scopely in talks for funding at $3bn value. (FS)
Scopely, a developer of games for mobile devices, is in talks with investors to raise funding at around a $3bn valuation. The company's plans aren't final, and the terms of the fundraising round could still change.
Investment firms Wellington Management and NewView Capital are expected to lead the round. The company is in discussions to raise at least $200m.
Washington State Investment Board invests $925m into private equity. (FS)
Washington State Investment Board, an investment management company, disclosed five new private equity commitments totaling up to $925m, PE Insights reported.
The board, which oversees $145.4bn in assets including $111.5bn in defined benefit plan assets, committed up to $250m each to FountainVest Capital Partners Fund IV, a growth equity and middle-market buyout fund managed by FountainVest Partners, and TCV XI, a private equity fund that focuses on technology firms managed by Technology Crossover Ventures.
The board also committed up to $200m to lower-middle-market buyout fund Thoma Bravo Discover Fund III, up to $125m to Menlo Ventures XV, a venture capital fund managed by Menlo Ventures, and up to $100m to Searchlight Capital III, a buyout fund managed by Searchlight Capital Partners.
Questa Capital raises $348m for second healthcare fund. (FS)
Questa Capital Management, a healthcare venture capital firm, raised $348m for its second medical growth equity fund, Questa Capital Partners II.
Questa, which raised the fund from endowments, foundations, family offices and other investors, plans to make 10 to 12 deals with this new vehicle, targeting companies with established technologies and services.
Blackstone forms ClearGen and injects $250m. (FS)
Blackstone, through funds managed by GSO Capital, announced the formation of ClearGen that will finance and own distributed and sustainable energy infrastructure assets focused on commercial, industrial and institutional customers. GSO will initially commit $250m to fund ClearGen and expects to expand the commitment as capital is deployed.
ClearGen and Blackstone will offer flexible capital solutions and programmatic investments alongside equipment manufacturers, developers and energy service companies who develop, build, and operate Distributed Infrastructure.
Endeavor Global closes third venture capital fund at $134m. (FS)
Endeavor Catalyst, the investment vehicle of global non-profit organization Endeavor that supports high-impact entrepreneurs around the world, has closed its third fund, Endeavor Catalyst III, with $134m.
The investment vehicle co-invests in equity financing rounds of startups founded and led by entrepreneurs that are part of Endeavor's network.
EMEA
A large majority of shareholders in Spanish telecoms firm MasMovil have accepted a private equity bid to take it private in the first major deal of its kind since the coronavirus pandemic struck. Holders of 86.4% of the company tendered their shares for the $26.7 each on offer, Reuters reported.
United States-based funds KKR, Providence and Cinven had secured support from the company's board and owners of almost 30% of its stock before announcing a bid worth $3.3bn.
MasMovil is advised by BNP Paribas, Bank of America Merrill Lynch, Goldman Sachs, Clifford Chance and Kreab. Financial advisors are advised by Davis Polk & Wardwell. Providence is advised by Weil Gotshal and Manges. KKR is advised by Barclays, Morgan Stanley, Freshfields Bruckhaus Deringer, Paul Weiss Rifkind Wharton & Garrison, Uria Menendez and Sard Verbinnen. Debt financing to KKR is provided by BNP Paribas, Barclays and Morgan Stanley.
Engie said it would seek a higher offer from Veolia, for 29.9% stake in French waste and water management group Suez, adding it had not yet received any alternative proposal from Suez.
Suez sees rival Veolia’s bid plan as hostile and is working on finding a consortium of financial investors to make a rival bid for the stake French energy group Engie wishes to sell, Reuters reported.
“The board has decided to grant a mandate to Jean-Pierre Clamadieu, chairman of the board, and to Claire Waysand, interim chief executive officer, to seek improved terms from Veolia, as well as further assurances with regards to the quality of the industrial project," Engie.
Veolia is advised by Citigroup, Messier Maris & Associes, Perella Weinberg Partners, Cleary Gottlieb Steen & Hamilton, Flichy Grange Avocats, Gide Loyrette Nouel, Hogan Lovells, Patrice Gassenbach, Peltier Juvigny Marpeau & Associes, and Xavier Boucobza.
G4S’s chief executive has indicated that the global security company is open to higher offers even as it seeks to defend itself against a $3.8bn hostile bid from BC Partners-backed GardaWorld.
“As a holder of 10% of G4S shares, Schroders believes the bid from GardaWorld backed by buyout group BC Partners materially undervalues the company and its prospects. However, we are open to a deal at a fair price for G4S shareholders that more accurately reflects peer multiples, synergies and other strategic benefits that an acquirer will gain from," Sue Noffke, Schroders Head of UK equities.
G4S is advised by Citigroup, JP Morgan, Linklaters, and Brunswick Group. BC Partners is advised by Kirkland & Ellis. GardaWorld is advised by Barclays, Simpson Thacher & Bartlett, and Montfort Communications.
The head of Nvidia has promised to make “legally binding” promises to the staff of Arm Holdings after a political row over the takeover of the Cambridge-based tech company, FT reported.
The group promised to keep the headquarters of Arm in Cambridge while growing its presence with a new artificial intelligence centre in the city. The SoftBank pledges expire in September 2021, at which point - unless Nvidia makes fresh legally binding promises - its new owner would have a free hand over Arm’s future.
Arm Holdings is advised by Hogan Lovells. Nvidia is advised by Morgan Stanley and Latham & Watkins. SoftBank Vision Fund is advised by Zaoui & Co. SoftBank is advised by Morrison & Foerster and Kekst CNC.
CaixaBank, a Spanish financial company, agreed to acquire Bankia, a Spanish bank for $5bn. The agreement consists of an exchange ratio of 0.6845 new CaixaBank ordinary shares for every Bankia share and includes a 20% premium over the exchange ratio at the closing of September 3. Spain, via state bailout-fund FROB, will hold 16.1% in the combined lender, having held 61.8% in Bankia previously.
The operation will generate new forms of income following the renegotiation of agreements entered by Bankia in the insurance sector and thanks to the ability to offer a wider and better quality portfolio of products and services to a larger customer base. Over a period of five years, the combined entity is expected to progressively generate revenue synergies amounting to $342m annually.
"With this operation, we will become the leading Spanish bank at a time when it is more necessary than ever to create entities with a significant size, thus contributing to supporting the needs of families and companies, and to reinforcing the strength of the financial system. The new entity will continue to carry out the best corporate governance practices," Jose Ignacio Goirigolzarri, Bankia Chairman.
Bankia is advised by Rothschild & Co. CaixaBank is advised by Morgan Stanley. FROB is advised by Nomura.
Bitumina Industries, a bitumen company, completed the acquisition of a 49.99% stake in Nynas, a researcher, producer and supplier of bitumen and naphthenic oils, from Neste, an oil refining and marketing company. Financial terms were not disclosed.
"We take great pride in having been able to acquire the shares of Neste in Nynas, which is a natural expansion in our global industrial bitumen portfolio. We are certain that we can contribute to the successful future of Nynas," Bernd Schmidt, Bitumina Industries Executive Chairman.
Neste was advised by Vinge. Bitumina is advised by AXIS Strategic Partners and Reed Smith.
The Competition and Markets Authority has opened an investigation into the anticipated acquisition of Kuehne + Nagel Drinkflow Logistics, a transport and logistics company, by XPO Logistics, an American transportation and logistics company.
The CMA said it was considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
XPO Logistics is advised by Macfarlanes.
Macquarie Infrastructure & Real Assets, a private equity firm, offered to acquire a 50% stake in Open Fiber, a network infrastructure services provider, from Enel, an energy company, for $3.1bn.
The Italian government told Macquarie it wanted the fund to buy less than 50% of Open Fiber so that CDP, which has a right of first refusal on any Enel stake sale, could take control.
Schroders, an asset management firm, agreed to acquire Sandaire, an investment management firm. Financial terms were not disclosed.
This will combine the boutique-style service of Sandaire with the depth of international investment expertise and financial stability and strength of Schroders.
“Our family has chosen to partner with Schroders in recognition that by combining Sandaire’s specialist expertise in the Family Office field. We are proud of the business we have built over the last two decades and look forward to seeing our family and clients flourish under Sandaire’s new ownership. I look forward to working with Schroders Wealth to help it enhance and grow the services it offers in the Family Office Sector," Alex Scott, Sandaire Founder.
Stepan Company, a manufacturer of speciality chemicals, completed the acquisition of the anionic surfactant business and associated sulfation equipment located in Mexico from Clariant, a speciality chemical company. Financial terms were not disclosed.
"This acquisition supports Stepan's growth strategy in Latin America and enhances our ability to support our customers' growth in the Mexican Consumer and Functional markets for surfactants. We look forward to transitioning customers' supply to Stepan's Ecatepec and Matamoros Mexico facilities over the coming months," F. Quinn Stepan, Stepan Chairman, President and Chief Executive Officer.
LSE picks Euronext as preferred bidder for Borsa Italiana.
London Stock Exchange entered exclusive talks to divest Borsa Italiana, Italy's stock exchange, to Euronext, with the French operator seeing off Deutsche Boerse and Switzerland's Six as it bids to add another bourse to its pan-European network, Reuters reported.
Dubbed "Project Botticelli", the LSE's sale of the Milan stock exchange is sensitive in Rome due to concerns about who takes control of its bond platform, which handles trading of Italy's $3.1tn of government debt.
Saudi Industrial and National Petrochemical in talks to create an $11bn chemicals maker.
Saudi Arabian petrochemicals companies, Saudi Industrial Investment Group and National Petrochemical, started talks to merge, potentially creating a firm with $11bn in assets as Middle Eastern energy companies assess their options in a lower oil-price environment, Bloomberg reported.
The talks are at an initial stage, and no agreement has been reached. Saudi Industrial owns 50% of National Petrochemical.
UBS Chairman Axel Weber revives mega-merger vision.
UBS Group Chairman Axel Weber is reviving a decade-long push for a megamerger to create a European banking behemoth that can compete with US rivals, Bloomberg reported.
Weber has drawn up a wish list of possible partners for a potential deal including Deutsche Bank, BNP Paribas, as well as local competitor Credit Suisse. The German executive sees a deal with Deutsche Bank among the most favored scenarios.
VW considers divesting Bugatti to Rimac Automobili.
Volkswagen, a German automaker, considers selling its Bugatti division that would give the maker of 16-cylinder performance vehicles a new lease on life in the electric age, Bloomberg reported.
To help finance the potential deal, VW's Porsche unit could boost its 15.5% stake in Rimac Automobili, a Croatian car manufacturer, to 49%. VW's supervisory board hasn't noded the deal, and the talks are fluid.
Deloitte Global rejects plan to sell UK restructuring division.
Deloitte UK has been forced to drop plans to divest its restructuring practice after its global parent company vetoed the disposal on the grounds that it could have an adverse impact on the rest of the firm, FT reported.
The proposed sale was expected to bring in hundreds of millions of pounds that would have mitigated a drop-off in some consulting work during the pandemic. It would also have reduced the risk of conflicts of interest for restructuring partners whose attempts to pick up work have sometimes been thwarted by the firm's relationships.
Rolls-Royce plans to raise $3.2bn.
Rolls-Royce Holdings said it was seeking to raise $3.2bn to strengthen its balance sheet, which was impacted by the Covid-19 pandemic.
The aero-engine maker said it was considering a variety of options, including a rights issue. Debt and equity issuances are other options being considered.
"We continue to review all funding options to enhance balance sheet resilience and strength," Rolls-Royce.
Itochu considers selling Kwik Fit.
Kwik Fit, a tyre-fitting and automotive repair groups, is to be put up for sale by its Japanese owner almost a decade after it last changed hands, SkyNews reported. A final decision about its future is yet to be determined.
Itochu, the conglomerate which bought Kwik Fit for more than $816m in 2011, has asked investment bankers at Nomura to examine strategic options for the company.
DWS begins sale of IKS. (FS)
Deutsche Bank's asset manager DWS has launched an auction for its fund administration unit IKS as it seeks to simplify its operations, Reuters reported. IKS is expected to achieve a valuation of between $354m to $472m in a potential sale.
Potential buyers, including Sweden's MFEX, Deutsche Boerse and FNZ Group, the owner of IKS rival ebase, are expected to hand in non-binding bids next week alongside several private equity firms.
Daniel Kretinsky builds a 3.05% stake in Sainsbury. (FS)
Czech billionaire Daniel Kretinsky has built a 3.05% stake in J. Sainsbury to become the UK supermarket group's fourth-largest shareholder, expanding a portfolio of retail investments that also includes France's Casino and Germany's Metro, Reuters reported.
A regulatory filing disclosed the stake held by Kretinsky's VESA Equity Investment and sent Sainsbury's shares more than 3% higher.
"We view Sainsbury's as an attractive investment opportunity for the long-run even against the backdrop of the highly competitive UK grocery market," Branislav Miskovic, VESA Investment Director.
South Africa seeks SAA rescue funds from its agencies.
South Africa's government is in talks with two state agencies to try and secure the $650m needed to restart its insolvent national airline, Bloomberg reported.
Money is being sought from the Development Bank of Southern Africa and the Public Investment, which oversees more than $129bn of mainly state pension funds.
APAC
Warburg Pincus, General Atlantic and Ocean Link Partners, three private equity firms, and Jinbo Yao, 58 Chairman and CEO, completed the acquisition of all outstanding shares of 58, an online classifieds marketplace, for $8.7bn.
The agreement to purchase 58, known as China's answer to Craigslist, follows more than two months of negotiations after the company said it received a buyout proposal. The potential deal had drawn objections from some minority investors, including Coronation Fund Managers, Aberdeen Standard Investments and Carmignac Gestion, which said the proposed bid significantly undervalued the business.
58 was advised by Houlihan Lokey, Conyers Dill & Pearman, Fenwick & West, Han Kun Law Offices, Skadden Arps Slate Meagher & Flom and Christensen IR. Warburg Pincus was advised by Citigroup, Cleary Gottlieb Steen & Hamilton, Fangda Partners, Kirkland & Ellis, Maples Group, Weil Gotshal and Manges and Wilson Sonsini Goodrich & Rosati. Debt financing to Warburg Pincus was provided by Morgan Stanley and Shanghai Pudong Development Bank. General Atlantic was advised by Paul Weiss Rifkind Wharton & Garrison. Tencent was advised by Davis Polk & Wardwell.
Central Retail, a retailing platform, agreed to acquire COL, an official products retailer, for $406m.
"COL's strength is to have channels in both brick-and-mortar stores and a significant online presence, as well as making sales through its call centre. This will enable CRC to expand its customer base into new groups, particularly business-to-business and the younger customer segment, which is key for COL. The acquisition is expected to be completed within the first quarter of 2021," Yol Phokasub, Central Retail CEO.
Merchantrade, a mobile payment company, completed the acquisition of Valyou, a fintech firm, from Telenor, a telecommunication company. Financial terms were not disclosed.
"In addition to the past achievements and the team that Merchantrade has grown after acquiring Valyou, I believe that the company has the talents, resources, and the ability to expand our footprint and business in Malaysia and the region. I am optimistic about the company’s prospects, and I am also optimistic about the future expectantly," Ramasamy K Veeran, Merchantrade Managing Director.
Ant Group wins Shanghai approval for the launch of dual IPO.
China's Ant Group, a fintech group, has received approval from the Shanghai Stock Exchange for a domestic initial public offering, bringing the financial technology firm closer to a dual-listing expected to be worth up to $30bn.
Backed by Chinese e-commerce giant Alibaba, Ant plans to list simultaneously in Hong Kong and on Shanghai's STAR Market, in what could be the world's largest IPO and come as soon as October.
The company is planning to seek listing approval from the Hong Kong Stock Exchange as early as next week.
PAG to invest up to $8bn in Japan real estate. (RE)
The Asia-focused private equity firm PAG will invest up to $8bn in Japanese real estate over the next four years, Nikkei reported.
The investment specialist expects companies to sell off properties, along with financial institutions eager to shed its debts, due to the coronavirus pandemic. PAG will look for desirable assets among these.
Macquarie prepares Nuix for $1.5bn IPO.
Australia's Macquarie Group is preparing to list Nuix, a software provider, in a deal that would value the data-analysis program seller at close to $1.5bn, Reuters reported.
Macquarie, which owns about 65% of the company that has been used to analyze thousands of documents as part of high-profile investigations such as Volkswagen's emissions scandal and the "Panama Papers" cases, is handling the process alongside Morgan Stanley.
JD Health plans $1bn Hong Kong IPO filing.
JD Health, an e-commerce platform, has selected banks for its planned Hong Kong initial public offering, which it could file for as soon as this month, Bloomberg reported. JD Health aims to raise at least $1bn from the share sale. Details of the offering, including the size and timeline, are subject to change.
The company has picked Bank of America Merrill Lynch, Haitong International Securities Group and UBS to work on the listing.
Hillhouse targets over $3bn for new CNY-denominated fund. (FS)
Hillhouse Capital Group, a private equity firm, is raising a fund targeting over $3bn, as it readies itself for opportunities offered by the eventual normalization of the Chinese economy.
Hillhouse formally began fundraising for its largest-ever yuan fund in recent months. It is unclear when the fundraising will close, but typical time frames are six months to over a year.
Anil Agarwal prepares to raise a turnaround fund with Centricus. (FS)
Anil Agarwal, an Indian commodities tycoon, is preparing to raise an investment fund targeting turnaround opportunities in the country.
Anil Agarwal is working with Centricus Asset Management on the plans. They have started approaching potential investors for the proposed India Direct Investment fund, which will buy stakes in government companies being sold as part of the country's divestment program.
The fund will also target companies restructuring under India's bankruptcy regime. It will look at both private and public firms.
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