AMERICAS
Cineplex, Canada's largest cinema operator, has launched legal action against Cineworld, the world's second-largest cinema chain, after it pulled out of a $2.3bn deal to acquire the business that was due to complete this month, FT reported.
"The deal looked like it made a lot of sense. It looked like quite a decent business . . . But we are in a very different world now. From an operational point of view, Cineworld have enough to do with their own estate at the moment without trying to take on another chain as well," Richard Marwood, a senior fund manager at Royal London Asset Management, which holds a 2.5% stake in Cineworld.
Stockholders of Lantheus, which develops, manufactures and commercializes innovative diagnostic imaging agents and products, voted to approve the issuance of shares for a merger with Progenics, an oncology company developing innovative medicines and artificial intelligence to find, fight and follow cancer.
"We are very excited that our stockholders have approved the share issuance in connection with the Progenics merger and that the Progenics stockholders also approved the transaction earlier today. We believe that the combined company will offer a diversified portfolio of precision diagnostics, radiopharmaceutical therapeutics, digital solutions and pharma service offerings, delivering value across the patient health care continuum," Mary Anne Heino, Lantheus President and CEO.
Lantheus is advised by SVB Leerink, White & Case and Sard Verbinnen & Co. Progenics is advised by Bank of America Merrill Lynch, Jefferies & Company, O'Melveny & Myers, and Joele Frank. Financial advisors to Progenics are advised by Willkie Farr & Gallagher.
The UK Competition and Markets Authority launched an investigation into Visa's planned $5.3bn acquisition of Plaid, an American fintech company.
The regulator is 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 UK for goods or services.
Visa is advised by Lazard, Skadden Arps Slate Meagher & Flom and Wilson Sonsini Goodrich & Rosati. Plaid is advised by Goldman Sachs.
GreyLion Capital, a private equity firm which focuses on investing in high-growth businesses in the lower middle market, completed the spin-out from Perella Weinberg Partners. Financial terms were not disclosed.
“Our move to independence represents the natural evolution of our business, which has built a track record for robust value creation in various macroeconomic environments. The entire team at PWP has been very supportive of our strategic decision to become an independent firm. We appreciate their partnership throughout this process and for all their assistance over the years,” Chip Baird, GreyLion Managing Partner.
GreyLion was advised by Kirkland & Ellis and Prosek Partners.
Lighthouse Property Insurance, a property and casualty insurance carrier, completed the acquisition of Prepared Insurance, a Florida-domiciled property and casualty insurance provider, from Prepared Holdings Group, the parent company of a consolidated group of companies writing personal homeowners' lines of business in Florida & Louisiana. Financial terms were not disclosed.
"Due to the ongoing challenges of Florida's homeowners insurance industry, now is the perfect time for a financially strong and trusted carrier to enter the market. In a state with 20m people, carriers in Florida will enjoy an opportunity to write very good business," David Howard, Prepared President.
SoftBank is considering a deal to dispose of T-Mobile shares.
SoftBank Group said it is considering the sale of its T-Mobile US shares, confirming reports that the Japanese company is nearing such a deal as part of its effort to sell about $41bn in assets.
SoftBank said it may sell some of its stake through private placements or public offerings, adding that there is no assurance a final deal will be reached. T-Mobile also confirmed SoftBank’s plan and was not specific about the details, saying that SoftBank was exploring “one or more monetization transactions” involving the wireless carrier’s stock. Last month SoftBank was closing in on an agreement to sell about $20bn of its stock in T-Mobile, as part of the efforts to raise capital after record losses in its investment business.
“These transactions may include one or more of: private placements or public offerings; privately negotiated transactions with T-Mobile or one or more stockholders of T-Mobile, including Deutsche Telekom, or third parties,” T-Mobile.
Jennifer Lopez and Alex Rodriguez get another backer for Mets bid.
Jennifer Lopez and Alex Rodriguez appear to have at least one new backer in their quest to make an Amazin’ bid on the Mets. The name of the investors was not disclosed.
The Galatioto Sports Partners investment bank is working with two investors who are considering investing up to a combined $250m with A-Rod and J.Lo for their Mets bid, NY Post reported.
Calpers prepares to increase buyout investments. (FS)
Calpers, a US public pension plan, is preparing to increase its investment in buyout funds as it seeks to hit a 7% return target in the face of the economic slowdown caused by the coronavirus pandemic, WSJ reported.
The investment committee of the $386.9bn California Public Employees’ Retirement System voted to commit a higher percentage of its assets to buyout funds, while reducing the weighting of private-credit funds.
Rockpoint racks up $5.8bn for two US real estate funds. (FS)
Rockpoint Group, a Boston-based real estate private equity firm and registered investment adviser has completed the final closing of its latest opportunistic vehicle, Rockpoint Real Estate Fund VI, with $3.8bn in equity commitments. The fund well exceeded its $3bn fundraising target.
Besides, Rockpoint also recently completed a final close of its latest lower risk vehicle, Rockpoint Growth and Income Real Estate Fund III, with $2bn in commitments. Together, the two vehicles represent more than $5.8bn in capital commitments.
The new fund is larger than the prior fund in the opportunistic fund series, Rockpoint Real Estate Fund V, which closed in 2016 at $3.3bn.
Bain Capital raises $3.2bn for the latest distressed fund. (FS)
Bain Capital Credit has raised $3.2bn for a new distressed debt and special situations fund. The firm raised capital from existing and new investors for the program called Bain Capital Distressed and Special Situations Fund 2019.
"While we do this in all market environments, now is one of the most attractive ones we've seen. On the distressed side, in any 10 years, there are maybe two great years to be a distressed investor, and we're in the midst of those two great years," Jeff Robinson, Bain Capital Managing Director.
FTV Capital closes its largest fund to date at $1.2bn hard cap. (FS)
FTV Capital, a growth equity investment firm, closed its sixth and largest fund to date, FTV VI, at the hard cap of $1.2bn in capital commitments from existing and limited partners. FTV has raised nearly $4bn and invested in 114 innovative, high-growth companies in its core sectors: enterprise technology and services, financial services, and payments and transaction processing.
"We value the continued support of our longstanding investors and welcome our new investors as we enthusiastically look forward to executing our consistent, time-tested strategy to generate compelling risk-adjusted returns for our limited partners,” Karen Derr Gilbert, FTV Capital Partner and Head of fundrising.
FTV Capital was advised by Kirkland & Ellis.
EMEA
The European Commission has opened an in-depth antitrust probe into the $50bn merger of Fiat Chrysler and PSA amid concerns that the deal may reduce competition in the small commercial value market.
The second-phase investigation was launched after the duo failed to offer any concessions to the European Commission to assuage worries over their potential dominance in the market.
“[Commercial vans] are a growing market and increasingly important in a digital economy where private consumers rely more than ever on delivery services. Fiat Chrysler and Peugeot, with their large portfolio of brands and models, have a strong position in commercial vans in many European countries," Margrethe Vestager, European Commission Executive Vice-President.
Fiat Chrysler is advised by Bank of America Merrill Lynch, Barclays, Citigroup, Goldman Sachs, JP Morgan, UBS, d'Angelin & Co, Darrois Villey Maillot Brochier, De Brauw Blackstone Westbroek, Legance, Loyens & Loeff, Sullivan & Cromwell, Community Group, Image Sept, Sard Verbinnen & Co. Legal advice to financial advisors is provided by Cleary Gottlieb Steen & Hamilton and Macfarlanes. BPIFrance is advised by Willkie Farr & Gallagher. Peugeot family is advised by Zaoui & Co. PSA Group is advised by Mediobanca, Messier Maris & Associes, Morgan Stanley, Perella Weinberg Partners, Bredin Prat, Cabinet Bompoint, Linklaters, Stibbe. Exor is advised by Lazard.
The London Stock Exchange will not offer concessions to EU antitrust regulators reviewing its $27bn bid for the data and analytics company Refinitiv.
The EU’s antitrust authority is expected to open a full-scale investigation into the takeover, with LSEG and Refinitiv’s overlapping activities in areas such as fixed income trading likely to be in focus as well as the impact of the deal on the price of financial data, Reuters reported.
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.
Saudi Aramco, a Saudi Arabian national petroleum and natural gas company, completed the acquisition of a 70% stake in Saudi Basic Industries, a Saudi diversified manufacturing company, active in petrochemicals, chemicals, industrial polymers, fertilizers, and metals, from Saudi sovereign wealth fund Public Investment Fund for $69bn.
“We are excited to complete this transaction. It is a significant leap forward which accelerates Aramco’s Downstream strategy and transforms our company into one of the major global petrochemicals players. The strategic integration of our Upstream production and Downstream chemicals feedstock production with SABIC’s chemicals platform is expected to create opportunities for selective integration synergies that support growth and add value for shareholders," Amin Nasser, Aramco President & CEO.
SABIC was advised by Citigroup. Saudi Aramco was advised by JP Morgan, M. Klein & Co., Morgan Stanley, White & Case, Brunswick Group, and Kekst CNC. PIF was advised by Bank of America Merrill Lynch, Goldman Sachs, HSBC, AS&H, and Clifford Chance.
Italy’s insurance authority has cleared Intesa Sanpaolo’s proposed $5.3bn acquisition of rival UBI Banca, providing the last regulatory green light awaited by market watchdog Consob to examine the offer’s document.
Consob has now five days to give its go-ahead to the prospectus for the multi-billion, all-paper offer Intesa unveiled in February to take over UBI and create the euro zone’s seventh-biggest banking group, Reuters reported.
Intesa Sanpaolo is advised by Equita SIM, JP Morgan, Mediobanca, Morgan Stanley, UBS, and Pedersoli Studio Legale.
Pacific Asset Management, an asset management business, agreed to acquire Parallel Investment Management, a provider of investment management services, from Fidelius Group, a financial services company. Financial terms were not disclosed.
"We are delighted that the Fidelius Group has decided to partner with PAM. The combination of PAM's investment management capabilities with the strength and breadth of Fidelius Group's chartered financial planning expertise makes for a strong long-term partnership and great cultural fit, not only for our group but for our advisers and all our clients," Matthew Lamb, Pacific Asset Management CEO.
Fidelius is advised by DC Advisory.
Henry Mauriss, an American television executive, lodged a formal offer to acquire the British soccer team Newcastle United for $442m.
The figure is $63m more than the bid offered by the consortium involving Saudi Arabia’s Public Investment Fund. Should the Saudi-led proposal fail the league’s owners’ and directors’ test, Mauriss would be free to finalise a fresh agreement to end the sports retail tycoon’s 13-year ownership of the club.
GIC led a $102m Series D funding round in Pagaya, a global financial technology company using artificial intelligence to reshape asset management and institutional investment, with participation from Aflac Global Ventures, Poalim Capital Markets, Viola, Oak HC/FT, Harvey Golub, Clal Insurance, GF Investments, and Siam Commercial Bank.
Pagaya will use the investment to hire more top tier data scientists, develop its technology further, and continue its pursuit of new asset classes, such as real estate and other fixed-income assets like auto loans, mortgages, and corporate credit.
"It's extraordinary to see the Pagaya team deliver on their promise to bring in a new era of asset management using unparalleled technology. The firm continues to significantly and effectively innovate in a space that has failed to evolve for decades. Pagaya is driving the future of asset management," Harvey Golub, Pagaya board member.
Chambers & Partners, a provider of legal research and analysis, completed the acquisition of Top 3 Legal, an online platform that helps businesses to manage their relationships with law firms. Financial terms were not disclosed.
“Chambers are delighted to have Top 3 Legal as part of our portfolio, and in-house teams greatly value the services provided by the Team Sheets. The combination of Chambers and Top 3 Legal will create the de facto source of research and analysis for corporates in choosing legal advice and representation. I look forward to working with Gareth, Richard and the Top 3 Legal team,” Tim Noble, Chambers and Partners CEO.
Oaktree Capital, a private equity firm, agreed to acquire an 82% stake in Castello, an Italian alternative fund manager focused on real estate. Financial terms were not disclosed.
“The strong financial resources and professionalism of our two shareholders will allow us to have an international reach and further expand our activities in Italy,” Giampiero Schiavo, Castello CEO.
Mubadala considers selling property assets to Aldar. (FS, RE)
Mubadala is considering the sale of a mall and other real estate assets to Abu Dhabi's largest property developer Aldar Properties, Bloomberg reported.
The sovereign wealth fund is weighing selling the Galleria Mall on Al Maryah Island, as well as the city's financial district, Abu Dhabi Global Market, to Aldar. Mubadala may also dispose of some residential buildings in the United Arab Emirates' capital.
Owners of Abu Dhabi retail space are trying to navigate a market slump as the coronavirus pandemic compounds an oversupply of homes, offices and shops.
IAG said to prepare the review of strategy. (FS)
IAG, the parent of British Airways, is reviewing its strategy to help reposition the group as it emerges from the coronavirus pandemic, Bloomberg reported.
The company is working with Goldman Sachs and Morgan Stanley to study its future business plan and liquidity needs. The airline group, which also owns Iberia, is examining options that could include debt or equity fundraising.
Like its peers, IAG has been ravaged by the effective shutdown of air travel brought on by Covid-19, which is expected to result in $84bn of losses for global airlines in 2020. IAG’s units have borrowed money through state-backed programs in the UK and Spain to help weather the downturn.
Telia in talks with Turkish sovereign wealth fund for Turkcell stake. (FS)
The former Swedish phone monopoly said it is in advanced talks to sell its stake in Turkey’s largest mobile-phone operator to the nation’s sovereign wealth fund for $530m - a 54% discount to the market value of Turkcell Iletisim Hizmetleri.
An exit could end a 15-year-old feud for control of Turkcell that has resulted in ongoing spats over board representation, the size of dividends and other issues that have hampered the Istanbul-based carrier’s operations. It has also tied up cash Telia could have used to expand closer to home in Nordic and Baltic countries, while the decline in the lira would also have diminished returns.
“The shareholder deadlock, lack of liquidity, and a history of foreign-exchange devaluations warrant a discount, but we had valued this stake at only a 20% discount, so this price is a clear disappointment. Telia has been willing to exit Turkcell for a long time, but there were no buyers due to the shareholder deadlock,” Stefan Gauffin, DNB Nor analyst in Stockholm.
Alpha Bank in talks with investment firms to sell $11bn of loans. (FS)
Alpha Bank, the fourth largest Greek bank, is in talks with at least five US investment firms including Cerberus and PIMCO in a fresh attempt to offload a portfolio of debt worth more than €10bn ($11.3bn), Reuters reported. Alpha could earn €400m ($452m) to €500m ($565m) from the sale.
The portfolio, known as Galaxy, consists of retail loans worth €7.6bn ($8.6bn) plus loans to medium-sized and large corporate clients worth €3bn ($3.4bn).
EU curbs Chinese M&A in Europe.
The European Union suggested a raft of measures to protect its industries from the potential threat of takeovers by companies bankrolled by China and other foreign powers.
The suggested curbs, which could be formalized in draft legislation next year, could eventually lead to a ban on some firms from making acquisitions, or force them to divest assets, and allow the European Commission to impose fines. They effectively extend Europe's strict system of state-aid limits to businesses worldwide.
"We want to be in control within our own territory. When it comes to foreign subsidies we have absolutely no control and no transparency," Margrethe Vestager, EU Competition Commissioner.
Ex-Warburg Pincus dealmakers beat target for first tech fund. (FS)
Corten Capital, an investment firm co-founded by two former Warburg Pincus dealmakers, has brushed off investor jitters over the coronavirus pandemic to raise $441m for its first technology fund.
The firm surpassed its initial target of $339m. The fund will invest in just two or three companies in the tech-enabled business services, information and software sectors in Europe and North America.
Technology dealmaking is down 48% by value this year, in line with the fall in the volume of global mergers and acquisitions. Still, a string of big-ticket transactions announced in recent days is bringing hope of recovery.
APAC
The Competition Commission of India is reviewing Facebook's $5.7bn acquisition of a 9.99% stake in Jio Platforms, a digital services provider.
"The Competition Commission of India appears to be like to forestall misuse of knowledge in all of the offers it assesses. The regulator can also be contemplating whether or not new parameters needs to be included in its evaluation standards; at the moment some mergers and acquisitions escape the brink for scrutiny even when potential hurt is clear," Ashok Kumar Gupta, CCI Chairman.
Facebook is advised by Bank of America Merrill Lynch, Hogan Lovells, Shardul Amarchand Mangaldas & Co, and White & Case. Reliance is advised by Morgan Stanley, AZB & Partners and Davis Polk & Wardwell.
Iberdrola Group, a power generation company, agreed to acquire Infigen Energy, a developer and operator of renewable energy generation assets for $576m.
Acquiring Infigen Energy will enable Iberdrola to tighten its hold on the new and highly relevant market that Australia represents, being a priority market for the group since it announced plans to launch there earlier this year.
Infigen is advised by Goldman Sachs, Lazard and Gilbert + Tobin.
BOCOM International, a provider of financial services, China Structural Reform Fund, a government fund, and Jumbo Sheen Group, a large enterprise group that is principally engaged in equity investment and fund management, invested $141m in Qiniu Cloud.
The company previously raised the same amount in its Series E round of funding from Alibaba Group and YF Capital in August 2017.
Qiniu Cloud was advised by China Renaissance Securities.
Mercury Capital, a private equity firm, agreed to acquire the publishing business of Bauer Media, a multimedia conglomerate. Financial terms were not disclosed.
“Bauer Media remains committed to magazine publishing. This decision supports our strategy to invest in our market, leading brands where we believe we are best placed to do so. We have been proud to be the custodian of these iconic brands in Australia. I would like to thank our talented teams for their commitment and the contribution they have made to Bauer Media. I wish them well for the future," Veit Dengler, Bauer Media COO.
Bauer Media is advised by FTI Consulting.
Barrick Gold sold a majority stake in Shandong Gold for $210m.
Institutional investors completed the acquisition of a majority stake in Shandong Gold, a gold miner from Barrick Gold, a Canadian gold producer for $210m.
The shares were sold by an accelerated book-building process and were placed primarily with new and existing institutional shareholders of Shandong Gold.
Barrick Gold was advised by Morgan Stanley.
Westpac considers selling a 9.5% stake in Pendal for $128m. (FS)
Reuters reported that Westpac Banking, an Australian bank and financial services provider, intends to sell its remaining 9.5% stake in Pendal Group, an independent, global investment management business, for about $128m. Shares will be offered to institutional investors at $4.14 each, a 4% discount to Pendal's last closing share price.
After the deal, Westpac expects to add about 2 basis points to the bank's common equity Tier 1 capital ratio and see a post-tax accounting gain in the second half of $22m.
Billionaire Damani considers taking control of India Cements.
Radhakishan Damani, the Indian tycoon who built a fortune rolling out his supermarkets across the country, is considering acquiring a controlling stake in India Cements, Bloomberg reported.
Damani, the owner of Avenue Supermarts, has informally reached out to the cement manufacturer’s controlling shareholder, N. Srinivasan, to explore a takeover.
Srinivasan, who controls about 29% of the Chennai-based cement maker, is also exploring other investors to ward off any hostile bids. Damani has promised a friendly change in management and is not seeking a hostile takeover. No decision has been made on how Damani and Srinivasan will proceed.
CDIB mulls stake sale in World Gym Taiwan. (FS)
Asian private equity firm CDIB Capital International is weighing a sale of its minority stake in Taiwanese gym chain World Fitness Services, Bloomberg reported.
CDIB Capital International is working with an adviser on a potential stake sale in World Gym Taiwan, as the firm is known, which could fetch about $400m. That would give the company an enterprise value of more than $1bn. Other private equity firms that own gym chains could be interested in the stake.
Tencent aims to become the biggest shareholder of rival iQIYI.
Tencent Holdings aims to become the biggest shareholder in video streaming rival iQIYI, to lower costs and counter competition in a sector boosted by stay-at-home virus policies.
The Chinese social media and gaming leader has approached iQIYI’s 56.2% owner Baidu to buy a stake of as-yet undetermined size. It was not immediately clear whether Tencent has approached iQIYI or what the full nature of any cooperation would entail.
Carlyle wary of China deals as it braces for tepid recovery. (FS)
Carlyle Group, which has $3.25bn invested in China, is wary of new deals in Asia’s largest economy as it primes its portfolio companies for a tepid recovery in a world still reeling from the coronavirus.
Yang Xiangdong, a 19-year Carlyle veteran who leads the $217bn buyout giant in Asia, said there is nothing to be gained from trying to be the “hero” who calls the bottom of the ongoing.
Yes Bank plans $1bn share sale in IPO. (FS)
Yes Bank is planning to raise at least $1bn in a public offering of shares to boost its capital, Bloomberg reported.
The bank, which counts two of India’s largest lenders State Bank of India and HDFC Bank as its investors, will kick off the fundraising soon. That could help Yes Bank raise its Tier-1 core capital ratio to around 10%, from 6.3% as of end-March.
A share sale would follow Yes Bank’s regulatory application to fast-track its capital raising after the lender’s stock rebounded 73% since the Reserve Bank of India rescued it in March.
Sinocelltech to raise $181m in STAR Market IPO. (FS)
Qiming-backed Sinocelltech, which specializes in development of cutting-edge process and manufacturing technologies for biological products, eyes to raise $181m in its IPO on the Nasdaq-style STAR Market of the Shanghai Stock Exchange. The company offered 50m common shares at a price of $3.6bn each.
Sinoelltech will primarily invest the proceeds for the clinical research of biological products, as well as to fuel working capital needs, DealStreetAsia reported.
Genetron Health is targeting $175.5m in amended US IPO.
Genetron Health amended it plans for an initial public offering in the US and said it expects to sell 13m American Depository Shares on the Nasdaq in an initial public offering that could raise as much as $175.5m.
According to a filing with the US Securities and Exchange Commission, Beijing-based Genetron plans to float 13m ADS on the Nasdaq at an estimated price of $11 to $13.5 each under the ticker symbol GTH. The underwriters of the offering — Credit Suisse and China International Capital — are also expected to be granted a 30-day option to buy an additional 1.95m ADS at the initial offering price.
Kanghua Biological raised $149m in a Chinese IPO. (FS)
Kanghua Biological, a Chinese vaccine producer, has raised $149m in an IPO on Shenzhen startup board ChiNext. The company offered 15m shares at a price of $9.93 apiece.
Yingke PE remains as the largest shareholders of Kanghua Biological with a 20.6% stake after the IPO. Aokang Group comes second with a 16.08% stake and Wang, who serves as Kanghua's Chairman of the board, hold 13.78% stake.
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