EMEA
Sunrise Communications believes it can win shareholder backing to raise $4.1bn to complete its takeover of Liberty Global’s Swiss business, Chief Executive Olaf Swantee told Reuters.
The executive has met more than 100 investors to convince them about the deal, which would create a stronger rival to state-controlled Swisscom in providing mobile phone, cable television, and internet services. “We are convinced that we can win the shareholders over to our side,” said Swantee.
Sunrise is advised by PwC, Deutsche Bank, Morgan Stanley, UBS, Latham & Watkins, Lenz & Staehelin, Meyerlustenberger Lachenal, NautaDutilh, Slaughter & May and Deloitte. Liberty Global is advised by Credit Suisse, JP Morgan, and Lion Tree Advisors.
Tata Steel is likely to offer to sell parts of its European packaging activities to secure regulatory approval for a planned joint venture with Thyssenkrupp, Reuters reported.
The Commission aims to wrap up its antitrust investigation into Tata Steel and Thyssenkrupp’s tie-up by May 13.
Tata Steel is advised by ALRUD, Bredin Prat, Ernst & Young, De Brauw Blackstone Westbroek, Hengeler Mueller and Slaughter & May. Thyssenkrupp is advised by Deutsche Bank, JP Morgan, Chestnut Corporate Finance, Goldman Sachs, Macquarie, Finsbury, Ernst & Young, Ramboll Environ, Rothschild & Co and Linklaters.
Ares Life Sciences together with Waypoint and Swiss billionaire Ernesto Bertarelli made a €730m ($830m) cash offer for Stallergenes Greer, a global biopharmaceutical company headquartered in London, specializing in the diagnosis and treatment of respiratory allergies through immunotherapy. The €37 ($42) per share offer represents a 43% premium.
"The Special Committee has given careful consideration to the proposal by Waypoint and believes that the value proposed recognises the future potential of the business and the improved prospects of Stallergenes Greer following recent efforts by management. The proposal also represents an attractive cash premium to the current share price as well as a source of liquidity for Shareholders. As majority shareholder, Waypoint has been consistently and demonstrably supportive of Stallergenes Greer. We have confidence that with 100% ownership of Stallergenes Greer, Waypoint will develop the business into a successful future to the benefit of patients, employees and other stakeholders." Elmar Schnee, the Chairman of Stallergenes Greer.
Stallergenes is advised by Evercore, FTI Consulting, and Havas Paris. Ares is advised by Hirzel Neef Schmid Konsulenten and UBS.
London-listed Ophir Energy agreed to be bought by Indonesian oil and gas group Medco for a sweetened cash bid of £408.4m ($539m) after previously agreeing to a lower offer.
Under the terms, Ophir shareholders will receive 57.5 pence per share in cash, the companies said in a joint statement. That is up from the previously agreed 55 pence per share, as Petrus Advisers, which owns 4% percent of Ophir, planned to vote against Medco’s bid because it undervalued the company.
Ophir is advised by Investec, Morgan Stanley, Brunswick Group, Linklaters and Lambert Energy Advisory. PT Medco is advised by Peel Hunt, Standard Chartered Bank, Sidley Austin, and Tulchan Communications.
Alvarium Investments acquired Iskander, an asset manager dedicated to large private investors. Financial terms were not disclosed.
Separately, Alvarium is part of Queensgate Investments, which this week acquired four Grange Hotels in Central London in a deal valued at around £1bn ($1.3bn).
“In recent years we have seen sustained and measured growth, bringing on and integrating new teams and service offerings for the benefit of our clients and partners. Today we announce our latest acquisition in France as well as a rebrand that consolidates our international operations under one brand. Both mark an exciting new chapter for the firm, reinforcing our position as one of the leading independent global investment boutiques.” Alexander de Meyer, Alvarium Chief Executive Officer.
Infighting at the top of EssilorLuxottica turned personal with the top shareholder and executive chairman accusing the Franco-Italian group’s executive vice chairman of a power grab, as per Reuters.
The French and the Italian groups were supposed to have equal weighting in the combined company’s leadership, but they now accuse each other of trying to gain the upper hand.
“Hubert Sagnieres (executive vice-chairman) only accepts what he himself has proposed, he refuses a proposal from anyone else, we’ve had to accept everything he does,” Leonardo Del Vecchio the founder of Luxottica and biggest shareholder.
France’s Essilor and Italy’s Luxottica merged last October, creating the world’s largest eye-wear maker in a €54bn ($62bn) deal.
Luxottica was advised by Deutsche Bank, UBS, Bonelli Erede, Mediobanca, D.F. King & Co, Bredin Prat, Chiomenti, Cravath Swaine & Moore, and Barabino & Partners. Essilor was advised by BNP Paribas, Citigroup, Rothschild & Co, Cleary Gottlieb Steen & Hamilton, Barbosa Mussnich & Aragao, CMS, Jones Day, Blake Cassels & Graydon, D.F. King & Co, and Bredin Prat.
Shares in the German pharmaceuticals and chemicals group took another plunge after a San Francisco jury found that there was a direct causal link between glyphosate and cancer. The product in question was Roundup, the weedkiller acquired by Bayer as part of its $63bn takeover of US seeds and chemicals giant Monsanto last year.
Bayer insists that glyphosate-based weedkillers like its Roundup and Ranger Pro products pose no health risk to the farm workers and gardeners who use them around the world. For one particular group of people, however, the substance has proven highly toxic: Bayer’s own shareholders reported Financial Times.
Deutsche Bank CEO optimistic about the merits of a merger with Commerzbank.
Christian Sewing, the chief executive of Deutsche Bank, believes there is a strong case for a merger with rival Commerzbank, Reuters reported.
Sewing sees multiple benefits of a merger, including “clear” dominance in its home market, scale, and shared technology costs. Deutsche’s CEO also believes that a combined entity would improve the cost of funding, with “the best funding ever”.
The European Central Bank and the EU watchdog in charge of disposing of failing banks both said that the two banks, like any other lenders planning a merger, should guarantee that the merged entity could be “resolvable” to avoid taxpayers having to pay for their bailout in a crisis...
“If a bank becomes too big, complex or interconnected... it needs to have additional capital,” the ECB top watchdog Andrea Enria said when asked in the European Parliament about a possible tie-up between Deutsche Bank and Commerzbank.
Coesia and Koerber to bid for Bosch packaging unit. (FS)
Italy’s engineering group Coesia and German industrial holding Koerber are preparing offers for the packaging machinery unit that German auto supplier Bosch has put on the block, Reuters reported.
Private equity firms such as Triton, Bain, KKR, Cinven, and Onex are also expected to hand in first bids by a pre-Easter deadline for the company which is expected to fetch a valuation of €500-600m ($570-684m), including debt.
Allianz looks for the acquisition of DWS from Deutsche Bank.
Allianz is on the hunt for asset management acquisitions, but only if they add something that it does not already have, said chief financial officer Giulio Terzariol to Financial Times.
Germany’s largest insurance group has been looking at a potential bid for DWS, the asset manager that is 78% owned by Deutsche Bank.
“We are looking at the possibility to diversify into new strategies,” he said. “We have pretty much a fixed income shop. If we can add alternative strategies, they can be very profitable.”
DWS has €662bn under management although it has a bias towards fixed income, which is the company’s biggest asset class, accounting for a third of the money it manages.
Elliott calls shareholders for control under Uniper. (FS)
Elliott has called for a shareholder vote to instruct management of German utility Uniper to enter talks on giving one of the latter’s biggest investors the right to control it without having a majority of its shares.
While the combined stake of Fortum and Elliott only adds up to 68%, that would likely be enough given traditional attendance rates at shareholder meetings.
Uniper was advised by Morgan Stanley, Rothschild & Co, Shearman & Sterling, and Finsbury Hering Schuppener. Fortum was advised by Barclays, Perella Weinberg Partners, Hengeler Mueller, Roschier, and Brunswick Group. Deutsche Bank acted as debt provider. E.ON was advised by Goldman Sachs and Linklaters.
Merck-backed StayWell explores the possible sale. (FS)
StayWell, a Vestar Capital Partners-backed employee health education company majority owned by a unit of Merck is weighing a possible sale.
The London - based company has retained investment bank Piper Jaffray to help explore a sale. Private equity firms are among those being approached about a prospective deal involving the company.
StayWell is projected to generate about $33m of EBITDA in 2019, according to Private Equity News. It also is projected to produce $127m in revenue this year.
Siemens to explore turbine unit merger.
Siemens shares rose following a report that the German industrial group is exploring merging its struggling turbine unit with an Asian partner.
Manager Magazine said Siemens Chief Executive Joe Kaeser has relaunched negotiations with Japan’s Mitsubishi Heavy Industries and it's gas turbine unit Mitsubishi Hitachi Power Systems to find a solution for the business where profit and sales have collapsed. Siemens could enter a joint venture with the Japanese companies for building large gas and steam generators while keeping the profitable service business.
AMERICAS
Private Equity Group of Ares Management Corporation has acquired CoolSys, a parent of market-leading refrigeration and HVAC companies nationwide. Financial terms were not disclosed.
CoolSys will continue to operate under its current executive team, which will collectively maintain a significant equity investment in the company.
“CoolSys is the recognized leader in the fragmented refrigeration & HVAC services market. We are impressed by its rapid growth, blue-chip customer portfolio, expanding the set of customer solutions, highly capable leadership team, and strong employee-centric culture. We look forward to partnering with CEO Adam Coffey and the entire CoolSys management team to accelerate growth both organically and through add-on acquisitions.” Matt Cwiertnia, partner, and co-head of North America Private Equity of Ares Management.
Phillips & Temro Industries has acquired a majority stake in EVoCharge, one of North America’s original electric vehicle (EV) charging infrastructure providers with a focus on cable management solutions and charging station products. Financial terms were not disclosed.
EVoCharge develops and manufactures Electric Vehicle Supply Equipment and its EVoReel cable management solutions. The acquisition of EVoCharge increases the breadth of PTI’s sustainability offerings and supports its continued commitment to providing environmentally responsible, quality products for the electric vehicle/hybrid industry.
“Over our 100-year history, PTI has continued to evolve to meet ever-changing customer needs. EVoCharge is a pioneer in the vehicle charging market. Together, our goal is to be the leader in charging solutions for consumer and commercial use,” Tom Moser, President, Phillips & Temro Industries.
SK Capital-backed Perimeter Solutions completed the purchase of a group of companies in Post Falls, Idaho, including First Response Fire Rescue, River City Fabrication and H&S Transport. Financial terms were not disclosed.
Perimeter Solutions plans to integrate the three businesses within its manufacturing and services systems to expand its offering in the fire suppression sector. The Perimeter will retain management and staff of the three companies, the facilities of which will become an operational site under Perimeter Solution’s Fire Safety Group.
“There is a great cultural and strategic fit with Perimeter Solutions. As we looked for the right partner to grow and expand our wildland fire management services, it was important to find a partner whose core values align with ours,” Shannon Horn, First Response President.
Levi Strauss nears a value of $8.7bn, as per IPO price. (FS)
Levi Strauss fetched a higher price than expected in its IPO, surged 31% in their debut, giving the jeans maker a market value of $8.7 in and suggesting strong investor appetite, as the US jeans maker returns to the stock market after 34 years as a family-owned company.
The first IPO was done in 1971 and then Levi family took it private for $1.6bn. This time the descendants of Levi Strauss will sell a small part of their shares and will continue to control the company. The proceeds from the IPO will boost Levi Strauss’ coffers to invest in broadening its product range.
Goldman Sachs, JP Morgan, Bank of America and Morgan Stanley are among the main underwriters of the IPO.
Petrobras reevaluates partnership with China's CNPC.
Brazil’s state-owned oil company Petroleo Brasileiro is reevaluating a partnership with the China National Petroleum to build a refinery in Rio de Janeiro state.
Petrobras would be having second thoughts on the refinery, which is known as Comperj because the oil company’s new Chief Executive Officer Roberto Castello Branco thinks they should aggressively divest from the oil refining business.
EQT considers divestment of FocusVision.
EQT is weighing a sale software business FocusVision and has hired US investment bank, Houlihan Lokey, to handle the process.
The company is expected to produce about $32m in revenues in 2019.
APAC
Australian adult education provider Navitas said its board would recommend shareholders accept an A$2.09bn ($1.49bn) takeover offer by a consortium comprising its founder and a private equity firm.
“Navitas directors unanimously recommend Navitas shareholders vote in favor of the scheme, in the absence of a superior proposal,” the company said in a statement.
Navitas in January had backed the sweetened buyout offer from the consortium, after rejecting its two earlier bids last year.
Navitas was advised by Goldman Sachs and Ashurst. The consortium was advised by Morgan Stanley and Gilbert + Tobin.
KKR to raise the first $1.5bn Asia real estate fund. (FS, RE)
KKR is raising its first Asia-focused real estate fund, targeting $1.5bn as it looks to deepen its real estate portfolio in the region, Reuters reported.
The New York-headquartered private equity firm is moving toward first-close of the fund late in the second quarter.
The firm itself will commit about $250m in the capital, and potential investors include sovereign funds and pension funds.
The fundraising comes as private equity firms globally have expanded from a model of buying out companies to turn around and sell for profit. They now invest through a range of alternative asset management products, including infrastructure, real estate, hedge funds, and credit.
Indian state-run banks push Naresh Goyal to reduce its stake to 10% in Jet Airways. (FS)
A group of Indian state-run banks wants Jet Airways’ embattled founder and Chairman Naresh Goyal to reduce his stake in the carrier to 10%, Reuters reported.
“Banks want Goyal to bring his stake down to 10%, below the 17% envisaged in the bank-led provisional resolution plan (BLPRP),” sources told. The state-run banks are also pushing Goyal to step down.
Jet has more than $1bn in debt and owes money to banks, suppliers, pilots, and lessors - some of whom have started terminating leases with the carrier.
The government has asked state-run banks, led by State Bank of India (SBI), to rescue Jet without pushing it into bankruptcy, told Reuters, as Prime Minister Narendra Modi seeks to avert thousands of job losses weeks before a general election.
Singapore's Tembusu to launch at least $150m of China funds after securing first QFLP status for Guizhou Province. (FS)
Singapore-based private equity investor Tembusu Partners is to launch several investment funds totaling at least RMB 1bn ($150m) after securing the first Qualified Foreign Limited Partner status awarded to a foreign fund management firm in China's Guizhou Province.
The pan-Asian investment firm also announced the appointment of Lim Ming Yan, former CEO of property giant Capitaland, as Chairman of its China Advisory Board as Tembusu seeks to increase in investments in China, coinciding with the central government's efforts to liberalize the economy and promote innovation.
Warburg Pincus eyes on the acquisition of Vietnam-based casino resort. (FS, RE)
Warburg Pincus is looking at acquiring Vietnam-based resort The Grand Ho Tram, DealStreet Asia reported.
The Grand Ho Tram, located near Ho Chi Minh City, comprises hotels, villas, a golf course, and casino. The total investment cost for the project is $4.2bn. An amount of $1.1bn has been deployed in the first phase of the development, including hotel and resort facilities and a golf course that was opened in 2013 and 2014, respectively.
Murphy Oil to sell its Malaysian assets to Thailand’s PTTEP.
US independent oil and gas producer Murphy Oil is selling two of its Malaysian assets to Thai energy company PTT Exploration and Production Public for $2.13bn, turning its focus toward US shale oilfields.
Murphy Oil, which has been in Malaysia for two decades, would exit the country after the sale of its Sabah Oil and Sarawak Oil units to PTTEP in an all-cash deal. The company said a part of the money raised from the deal would be used for share buybacks and debt reduction.
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