AMERICAS
Tiffany has received regulatory approvals from the Japan Fair Trade Commission and the Mexican competition authority for its contentious $16bn acquisition by luxury goods group LVMH, Reuters recorded.
Earlier last week, Tiffany sued LVMH after the French company said it could not complete the deal due to a French government request, as well as the impact of the coronavirus outbreak. Louis Vuitton brand owner said it would file its requests for approval to European authorities in the coming days, and expected to win approval in October.
Tiffany is advised by Centerview Partners, Goldman Sachs, Sullivan & Cromwell and Sard Verbinnen & Co. Centerview Partners is advised by Weil, Gotshal & Manges. LVMH is advised by Citi, JP Morgan, Cleary Gottlieb Steen & Hamilton, Skadden Arps Slate Meagher & Flom, White & Case, Brunswick Group, DGM Conseil, Deluxewords, Kekst CNC, Montford Communications, Publicis and SEC and Partners. Debt providers are advised by Allen & Overy.
Sunrun, a provider of residential solar, battery storage and energy services, and Vivint Solar, a full-service residential solar provider, received notification from the Department of Justice of early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
The transaction remains subject to other customary closing conditions, including approval by the stockholders of Sunrun and Vivint Solar and is expected to close in early October.
Vivint is advised by Bank of America Merrill Lynch, Morgan Stanley, Simpson Thacher & Bartlett and Wilson Sonsini Goodrich & Rosati. Sunrun is advised by Credit Suisse, Axinn Veltrop & Harkrider and Cooley. Credit Suisse is advised by Cravath Swaine & Moore. Blackstone is advised by Weil Gotshal and Manges.
Adtalem Global Education, an educational services provider, agreed to acquire Walden University, a regionally accredited higher education institution, from Laureate Education, a university operation services provider, for $1.5bn.
"Walden University was a pioneer in distance education, and today – 50 years later – it remains a leader in digital learning in higher education. We are incredibly proud of Walden's legacy of creating affordable access to quality graduate education through an unwavering commitment to innovation and student outcomes. Walden University provides its more than 52k students with the tools to transform themselves so they can have a positive impact on their communities and the world," Eilif Serck-Hanssen, Laureate President and CEO.
Adtalem is advised by Morgan Stanley and Covington & Burling. Debt financing is provided by Morgan Stanley. Laureate Education is advised by Goldman Sachs, Faegre Drinker Biddle & Reath, Jones Day and Simpson Thacher & Bartlett.
Volkswagen’s heavy-truck business boosted its bid for Navistar International, offering to buy the rest of the US manufacturer for $3.6bn.
Traton increased its offer to purchase the portion of stock it doesn’t already own to $43 a share, up from $35 a share offered in January. Navistar board will carefully review the revised proposal from Traton in consultation with its advisors to determine the course of action that it believes is in the best interests of the company and its stakeholders.
Navistar is advised by JP Morgan, PJT Partners, Sullivan & Cromwell and Brunswick Group.
Verisk Analytics, a data analytics services provider, agreed to acquire Franco Signor, a provider of Medicare Secondary Payer, from BV Investment Partners, a private equity firm. Financial terms were not disclosed.
"We have had a terrific partnership with BV and appreciate their valuable support and insight that allowed us to formalize and execute on value-driving initiatives across customer engagement, technology and product development, sales and marketing and operations. Together we expanded Franco's reach and capabilities and we look forward to bringing that to Verisk and combining the best of both companies to better serve our customers and the market," John Williams, Franco Signor CEO.
BV Investment is advised by Chris Tofalli. Verisk is advised by Edelman.
Nubank, a digital banking services provider, agreed to acquire a minority stake in Easynvest, a Fintech company, from Advent International. Financial terms were not disclosed.
"We challenged the status quo in creating a new generation of simple, human-centric financial services products in Latin America. Joining forces with Easynvest will enable us to replicate Nubank’s approach of bringing simplicity and efficiency to a complex market and using technology and customer focus to truly democratize access to great financial services products for everyone. In Easynvest, we have found a partner that not only shares our cultural values and purpose, but also has a strong leadership position,” David Vélez, Nubank Founder and CEO.
Advent is advised by Finsbury and Nova PR.
Gryphon-backed 3Cloud, a Microsoft Azure services firm, completed the acquisition of the consulting arm of Pragmatic Works, a services firm focused on Microsoft's cloud and data platforms. Financial terms were not disclosed.
"With the acquisition of Pragmatic Works Consulting, 3Cloud has taken another big step towards achieving our goal of becoming the number one Azure pure-play services provider. Pragmatic Works Consulting has built an outstanding reputation as a leader in Azure data and analytics solutions, and we are excited to combine the expertise of our two world-class teams to deliver leading-edge Azure solutions for Microsoft customers," Mike Rocco, 3Cloud CEO and Co-Founder.
3Cloud was advised by 7 Mile Advisors.
ACME AtronOmatic, a creator of the MyRadar weather app, completed the acquisition of EndpointAI, a weather technologies company. Financial terms were not disclosed.
"The meshing of our technology with the robust capabilities available in MyRadar gives us the opportunity to rapidly expand and reach millions of customers. The team at MyRadar is so talented and truly sees the value in what we have built over this past year. The timing could not have been better," Mike Chapman, Endpoint Co-Founder.
ACME was advised by Kafka.
Algonquin Power & Utilities, a renewable energy and regulated utility conglomerate, agreed to acquire a 53.5% stake in Empresa de Servicios Sanitarios de Los Lagos, a vertically integrated, regional water and wastewater provider, for $92.3m.
"The acquisition of ESSAL supports APUC's strategic growth program and broadens our regulated footprint into a historically stable and foreign investment-friendly OECD country with a robust regulatory framework. As APUC's first international water utility, ESSAL will benefit from our core competency of responsible utility ownership, as well as leverage our best practices of safety, operational excellence, and innovation. We are excited with this opportunity to serve the water needs of our Chilean customers," Arun Banskota, APUC Chief Executive Officer.
OneBeacon Insurance Group, a provider of insurance services, completed the acquisition of International Bond & Marine Brokerage, a privately held brokerage specializing in the international trade markets. Financial terms were not disclosed.
"We are excited to welcome IB&M to the OneBeacon and Intact family. Their deep focus on international trade customers and ability to provide risk management solutions spanning customs bonds, cargo, liability and other important insurance coverages speaks to their expertise and track record. We look forward to a seamless transition for all affected brokers and their clients," Mike Seff, OneBeacon Head of Surety North America.
Gilead considers acquiring Immunomedics for more than $20bn.
Gilead Sciences, an American biopharmaceutical company, is contemplating a deal to acquire Immunomedics, a biopharmaceutical company, for more than $20bn in a deal that would further expand Gilead's portfolio of cancer treatments, WSJ reported.
Discussions between Gilead and Immunomedics were initially centered around a partnership before shifting to a full-fledged takeover negotiation.
US bankruptcy judge rejects proposed $2.4bn LATAM Airlines financing deal. (FS)
A US bankruptcy judge rejected a $2.4bn financing plan for struggling LATAM Airlines on the grounds that a convertible loan included as part of the package would amount to "improper" treatment of other shareholders, Reuters reported.
The proposal supported by LATAM was composed of a $1.3bn loan from asset management firm Oaktree Capital Management and a $900m convertible loan from several key LATAM shareholders, including the Cueto family that controls the airline and Qatar Airways.
The move is a setback for LATAM, which needs short-term liquidity. But in a lengthy court decision, the judge left the door open for the Chilean carrier to introduce a similar financing plan in the future, this time without the possibility of converting part of the loan into equity.
Lone Star-backed American Bath Group considers $2bn sale. (FS)
The Lone Star Funds-backed American Bath Group, a provider of bathroom products, is exploring strategic options, including a sale, that could value the company at $2bn.
The company is working with an adviser to run a sales process, and it is likely to attract interest from peers and private equity firms.
Brookfield explores $1.3bn sale of Simply Self Storage. (FS)
Brookfield Asset Management is exploring a sale of Simply Self Storage, a real estate company, which could fetch about $1.3bn.
The alternative asset manager, working with advisers, has fielded interest from prospective suitors.
TPG considers divesting Strive Communities. (FS)
TPG considers divesting Strive Communities, an operator of mobile-home parks, that could fetch $750m or more, Bloomberg reported.
The firm, working with an adviser, is set to begin soliciting interest from potential suitors in coming weeks. There is a possibility that TPG will decide to keep the business.
AbCellera hires banks for US IPO.
AbCellera Biologics, a Canadian antibody therapy developer, which has been participating in efforts to develop a treatment for the novel coronavirus, has hired investment banks for a US initial public offering, which could come later this year.
The planned listing would come amid strong demand for new biotechnology stocks, with almost half of the US IPOs in 2020 coming from the healthcare sector.
AbCellera has hired Credit Suisse Group, Stifel Financial and SVB Leerink as the lead underwriters of its upcoming IPO.
Opendoor considers going public through Social Capital II merger.
Opendoor, a property technology startup, is in advanced discussions to go public through a merger with Social Capital Hedosophia Holdings II, a blank-check company.
Social Capital is in discussions with prospective investors to raise fresh equity to help fund the deal with Opendoor.
The combined company would be valued at about $5bn in the deal, which is expected to be announced in the coming weeks. The transaction had not yet been finalized, and talks could still fall apart.
CI Financial considers US listing to boost deals.
CI Financial, an independent mutual fund manager, may seek a US listing as it ramps up a strategy of buying smaller wealth management firms, Bloomberg reported.
Chief Executive Officer Kurt MacAlpine said the Toronto-based company is in talks with several US registered investment advisers, having bought interests in eight firms over the past year. CI's largest such deal came in August when it agreed to buy Balasa Dinverno Foltz, a private wealth management firm with $4.5bn in assets under management.
"We've been focused on globalizing the company in a number of different ways. One is our business mix. The other is our investor base. There absolutely is a scenario where we do our next financing in the US. It would probably be a little bit easier to do it on the back of having a listing in the US, just because it helps to reinforce interest in our stock," Kurt MacAlpine, CI Financial CEO.
True Wind Capital raises $525m in its IPO. (FS)
Private equity firm True Wind Capital's blank check IPO raised $525m in the 13th such offering by investors from the region this year.
San Francisco-based TWC Tech Holdings II, led by True Wind founding partners Adam Clammer and James Greene Jr., intends to utilise the funds to help take a yet-to-be-determined tech company public through a reverse merger.
TWC Tech Holdings II sold 52.5m units at $10. It is now set to trade on the Nasdaq with the symbol of "TWTCU".
Tortoise Acquisition to raise $300m in an IPO.
Tortoise Acquisition, a special purpose acquisition company, began trading on Friday. The company is offering 30m shares, up from the 25m. Shares will price at $10 each and also include a one-fourth warrant to buy a share at $11.50. The offering shares are trading as "SNPR.U."
Tortoise Acquisition will raise $300m from the offering or $345m with the underwriter option. The IPO offering is expected to close September 15.
KKR seeks to boost private credit bets in asset-based financing. (FS)
KKR & Co is looking to grow its asset-based private lending business to capitalize on a retreat by banks and more traditional market participants in the wake of the coronavirus pandemic that has led to mispriced risk, Bloomberg reported.
"We're trying to target what we call under-served asset classes that we think are mispriced for the risk you are taking. When you're lending against or acquiring pools of secured or unsecured loans, whether it's residential or auto or hard asset lending, it is just generally a different risk profile, it's very well downside protected," Daniel Pietrzak, KKR Co-Head of private credit.
Citigroup appoints Jane Fraser as the new global CEO. (People)
Jane Fraser will become the first woman to lead a major financial institution in the United States when she takes the reins at Citigroup, the country's third-largest bank. Ms. Fraser, who has been at Citi for 16 years and runs its biggest global division, the consumer bank catering to individual customers, will succeed Michael Corbat as chief executive, The New York Times reported.
Ms. Fraser's ascension is groundbreaking on Wall Street, which has never quite shaken off its longstanding reputation as a boys club, with men dominating the upper ranks of banks and other financial firms, despite efforts to recruit and promote more women.
EMEA
Third Point Reinsurance entered into a definitive agreement with the holders of Sirius International Insurance Group's Series B preference shares, under which such holders have agreed to remain investors in the company upon the closing of the proposed merger contemplated by the merger agreement between Third Point and Sirius.
"Reaching an agreement with the Cornerstone Investors is an important milestone for SiriusPoint. This agreement provides us with certainty regarding our capital position going forward, resolves amicably a potential litigation, and constitutes an important endorsement of SiriusPoint by sophisticated investors. Having this impressive slate of investors in the combined company further reinforces our strong balance sheet as we support our clients and broker partners in the upcoming renewal season," Sid Sankaran, Third Point Chairman.
Third Point is advised by EA Markets, JP Morgan, Debevoise & Plimpton, Kekst CNC and Rein4ce. EA Markets and JP Morgan are advised by Cravath Swaine & Moore. Sirius is advised by Barclays, Conyers Dill & Pearman, Jenner & Block and Sidley Austin. China Minsheng is advised by Goldman Sachs, Skadden Arps Slate Meagher & Flom and Brunswick Group.
Antin Infrastructure Partners, a private equity firm, agreed to acquire Miya Water, an international environmental services company, from Bridgepoint. Financial terms were not disclosed.
"Miya is a best-in-class water operator with a solid base that will serve as a springboard to capture the strong growth potential that exists in the sector. We are delighted to support Miya's management team in the next stage of the company's development," Mauricio Bolaña, Antin Partner.
Antin is advised by Marsh & McLennan, Defining Future Options, Deutsche Bank, Ernst & Young, PWACS, Herbert Smith Freehills, McConnell Valdes and Servulo. Bridgepoint is advised by ERM Group, Citigroup, Ernst & Young, PricewaterhouseCoopers, Willis Towers Watson and Uria Menendez.
French waste and water management group Suez reiterated its opposition to Veolia’s offer for Engie’s stake in the company, and said it was looking at alternatives, Reuters reported.
“The board of directors of Suez affirms its full support to the management team to execute and accelerate the Suez 2030 strategic plan and to explore alternatives to Veolia’s proposal that are in the interests of the group and all its stakeholders. The board of directors of Suez met yesterday and, after a thorough review, unanimously concluded that the hostile approach announced by its competitor Veolia on Aug. 30 2020 is against the best interests of Suez and all its stakeholders,” Suez.
Sunrise Communications is battling rival Salt Mobile in Swiss court over Salt's attempt to block telecom giant Liberty Global's proposed $7.4bn takeover of Sunrise, Reuters reported.
The row is unfolding across several fronts. Salt said this month it won a US court’s permission to serve subpoenas on Liberty Global Chairman John Malone and Chief Executive Michael Fries in the dispute. Sunrise said a Zurich commercial court had rejected Salt's request for an injunction blocking major Sunrise shareholder Freenet and Sunrise directors and executives from tendering their shares in the offer.
“Sunrise is of the firm view that Salt’s application lacks any merit, both on the facts and the law,” Sunrise.
Sunrise is advised by Deutsche Bank and Lenz & Staehelin. Liberty Global is led by Credit Suisse, JP Morgan, LionTree Advisors, Homburger, Ropes & Gray, and Shearman & Sterling. Freenet is advised by Citigroup.
Next Private, a private holding company of billionaire Patrick Drahi, agreed to acquire Altice Europe, a cable, telecommunications and media company, for $2.9bn.
"Right from the start of the process in early August, we have followed a careful, full and thorough process with all four independent non-executive directors and the non-conflicted executive director. Our focus has been on determining the best way forward for Altice Europe and its business, while safeguarding the interests of all stakeholders involved. This transaction will allow Altice Europe to more successfully and effectively achieve its goals in a private and fully owned environment, benefiting from the founder’s ongoing long term commitment to the business," Jurgen van Breukelen, Altice Europe Chairman.
Altice Europe is advised by Lazard, LionTree Advisors, Allen & Overy, and De Brauw Blackstone Westbroek. Next Private is advised by BNP Paribas, Luther, NautaDutilh, and Ropes & Gray.
Breedon, a cement company, is to sell off some of its assets over competition concerns surrounding its acquisition of around 100 sites from CEMEX, a building matelials company, in a $235m.
The firm announced that it had told the Competitions and Markets Authority, it will offload a “small number” of ready-mixed concrete plants and an asphalt plant in England, as well as two quarries and a cement terminal in Scotland, to make the deal acceptable to the watchdog.
“The company fully expects to be able to finalize the required undertakings to the CMA’s satisfaction and complete the required divestments in the near future, paving the way for the integration of the remaining former Cemex assets into the group later this year. Until that time, they will continue to be held separate from Breedon and operated as Pinnacle Construction Materials,” Breedon.
Breedon Group was advised by Cenkos Securities, Numis Securities, Moelis & Co, and Teneo. CEMEX was advised by HSBC and Slaughter & May.
Vodafone Group said it remains in talks to sell its Egyptian business to Saudi Telecom for $2.4bn, after failing to finalize the terms before a deadline.
Vodafone “remains in discussions with Saudi Telecom to finalize the transaction in the near future,” and “now looks to Saudi Telecom and Telecom Egypt to find a suitable agreement to enable the transaction to close,” Bloomberg reported.
Vodafone Egypt is advised by Citigroup. Saudi Telecom is advised by Barclays. Vodafone Group is advised by Goldman Sachs.
The Premier League hit back at Newcastle United after the football club claimed it blocked its $445m takeover by a consortium led by Saudi Arabia’s sovereign wealth fund, FT reported.
The response escalates the dispute over what led to the collapse of a takeover that would have resulted in Newcastle becoming the latest English club to attract a foreign owner. It comes a day after the club and its billionaire owner Mike Ashley accused the Premier League of failing to handle the takeover approval process “appropriately”.
Eurazeo, a private equity firm, agreed to acquire the remaining 20% stake in Idinvest Partners, a private equity firm. Financial terms were not disclosed.
"The acquisition of all of the capital of Idinvest is a logical step. The decision to accelerate the operation confirms the mutual ambition of Idinvest's partners to fully engage in the Group's strategic project and become a European leading benchmark for companies at every stage of their development. With this operation, Eurazeo is offering its shareholders, partner investors and the management teams of our portfolio companies the strength of a unique and integrated Group that has diversified into four asset categories and is made up of expert teams in 10 countries. I am delighted that we have been able to accelerate this operation," Virginie Morgon, Eurazeo CEO.
Nvidia nears a $40bn acquisition of Arm Holdings from SoftBank.
Chip manufacturer Nvidia is nearing a $40bn acquisition of British chip designer Arm Holding from SoftBank Group. Arm and Nvidia have been in exclusive talks for several weeks and a deal could be sealed early next week, assuming it isn’t derailed at the last minute.
The cash-and-stock deal being discussed would value Arm in the low $40bn. The terms under discussion would mark a big win for SoftBank, which bought Arm four years ago for $32bn and had struggled to jump-start growth in the business.
Euronext and Italy's CDP confirm talks to bid for Borsa Italiana. (FS)
Euronext, a pan-European stock exchange, and Cassa Depositi e Prestiti, an Italian investment bank, confirmed that they were in discussions to make a joint bid for Borsa Italiana, Italy's stock exchange, as Deutsche Boerse, a German capital market company, submitted a rival offer and one from Swiss exchange Six was expected.
The London Stock Exchange, which bought the Milan-based stock exchange in 2007 for $1.9bn, is now trying to divest it as part of antitrust remedies to help get its $27bn takeover of Refinitiv over the line.
The LSE has already received separate bids for Borsa's bond trading platform MTS and will need to decide whether it wants to break up Borsa or opt for an outright sale.
Banks behind Asda sale prepare $5bn debt deal. (FS)
Financing to back the potential buyout of Asda Group, a UK grocery firm, by a private equity sponsor could total just under $5bn, Bloomberg reported.
Three bidders are still involved in the process after final bids were submitted on Monday, Apollo Global Management, Lone Star, and TDR Capital.
One of the options being considered by Apollo is a real estate-backed financing rather than a typical LBO debt package.
The Post Office to divest its telecoms and insurance businesses.
The Post Office is in talks to offload its telecoms arm and is exploring a sale of its insurance business as its new chief executive puts his stamp on the centuries-old institution.
The government-owned company has appointed bankers to oversee and auction of its telecoms division, which boasts 500k customers and annual revenues of approximately $117m.
PJT Partners, the investment bank, had been hired to run the auction, which is expected to command a price tag of more than $78m, following a number of unsolicited expressions of interest.
McLaren considers selling its global headquarters to raise cash.
McLaren Group is contemplating a sale of its global headquarters as part of a refinancing strategy the company announced earlier this year, Bloomberg reported.
The British supercar maker has also appointed banks to advise on a debt restructuring and equity raise to buttress its balance sheet. Its headquarters is in Woking, on the southwestern edge of London.
McLaren has struggled since the coronavirus outbreak. A $389m equity raise early this year hasn't been enough to face an almost 70% revenue collapse throughout the pandemic.
CaixaBank and Bankia deal to create a regional powerhouse.
CaixaBank's potential acquisition of Bankia would create a new powerhouse in Spanish finance, putting pressure on the country's other three top banks, Bloomberg reported.
A takeover, which may be announced within days, would allow the combined company to lead rivals Banco Santander and Banco Bilbao Vizcaya Argentaria in the domestic market by almost every measure, with more than $715bn of assets in Spain.
That may prompt rivals to look for ways to catch up Banco de Sabadell, which stands to be left far behind, is working with Goldman Sachs Group to explore strategies that may include consolidation or selling assets.
GP Global considers divesting assets to repay banks.
GP Global Group, a United Arab Emirates-based commodities firm, is considering divesting oil-storage terminals, fuel barges and other assets to repay creditors after trying unsuccessfully to find a buyer for its trading units, Bloomberg reported.
A restructuring adviser is reviewing offers for parts or all of the business and may recommend a deal this month. Geneva-based Mercuria Energy Trading is among firms that have expressed interest.
The Hut Group seeks $2.4bn in London IPO.
The Hut Group, a British e-commerce operator, announced that its initial public offering could raise as much as $2.4bn, which would make it Europe's second-largest listing of the year.
Besides the $1.1bn of new stock that the company already announced it will sell, investors are offering another $1.2bn of existing shares. In all, about 374m shares, or 35% of the company, are being marketed in the IPO at $6.4 each.
BinDawood Holding aims to raise $585m in IPO.
BinDawood Holding, a Saudi Arabian supermarket retailer, set a price range for its IPO, seeking to raise as much as $585m in a Riyadh listing, Reuters reported. It targets a valuation of between $2.5bn and $2.9bn.
The company intends to offer 22.86m existing shares at the pricing of between $22 to $25 per share in the planned IPO. It will sell 20% of the company through the sale of existing shares.
Permira picks Lazard for Dr. Martens' UK float in early 2021. (FS)
Permira, which bought Dr. Martens in 2014 for $449m is looking at a London listing early next year and has asked Lazard to handle the preparation work for the 73-year-old firm, Reuters reported.
The London-based buyout fund, which is currently working on listing Polish auction website Allegro, may also decide to resume negotiations with Carlyle, as it initially expressed interest in buying Dr. Martens early this year.
OVH Groupe plans IPO next year.
OVH Groupe, a French cloud-computing provider, is planning a potential initial public offering in Paris early next year, as European companies make tentative plans for a return to the capital markets. Discussions are at an early stage, and details on timing could change.
The company has mandated Rothschild & Co as an adviser to help with preparations for an IPO. Other banks will soon be invited to pitch for roles on the deal.
Knaus Tabbert sets price range for IPO.
Knaus Tabbert, a German caravan maker, said it would offer shares in its initial public offering at a range of between $68 and $87.
The offering will run from September 14-22, with an expected start for trading on the Frankfurt stock exchange on September 23.
Emerald closes its $100m water impact fund. (FS)
Emerald Technology Ventures, a clean technology venture capital company, closed its $100m global water innovation impact fund, with Temasek as the cornerstone investor, alongside limited partners SKion Water, Ecolab, and Microsoft.
The fund's global mandate will see it invest in early- to expansion-stage companies in order to drive technological innovation in water, with a view to addressing some of the challenges outlined in the UN Sustainable Development Goals, such as improving resource efficiency, building resilient cities and industries, adapting to climate change, and conserving water.
Goldman Sachs names new mid-market M&A heads in EMEA. (People)
Goldman Sachs named new leaders in its mid-market investment banking unit in Europe, a 150-strong global team of dealmakers that was created from scratch last year as the US banking giant targeted smaller deals, FN reported.
Christopher Droege and Chris Emmerson will become co-heads of Europe, the Middle East and Africa cross-markets and sponsor M&A.
Barclays hires Paola Sabbione from Deutsche Bank as new co-head of bank research. (People)
Barclays is continuing to expand its European equity research unit with the hire of a senior Deutsche Bank analyst.
Paola Sabbione is set to join Barclays in October as co-head of bank research and will work alongside its current head, Amit Goel, FN reported.
APAC
Private equity firm TPG-backed Singapore Life, agreed to acquire a majority stake in Aviva Singapore, the Singaporean substitute of insurance broker Aviva for $1.9bn.
The new combined business will initially be named Aviva Singlife. Aviva will retain a 25% equity shareholding in this new, combined business. Singlife’s existing shareholder, Sumitomo Life Insurance Company will hold 20% of the group equity, while Aflac Ventures, Aberdeen Asset Management, IPGL and minorities will collectively hold 20% of the group equity. TPG, a global alternative asset firm, will hold 35% of the group equity.
"The sale of Aviva Singapore is a significant first step in our new strategy to bring greater focus to Aviva's portfolio. We have achieved excellent upfront value for shareholders but have also retained an investment in a leading Singapore life business with attractive long term growth potential. The proceeds from the sale will further strengthen our financial position and enhance our ability to meet our strategic objectives. We continue to work at pace and are seeking to take decisive action on our portfolio with the goal of further enhancing long term value for our shareholders," Amanda Blanc, Aviva CEO.
Singapore life is advised by JP Morgan, Moelis & Co, Standard Chartered Bank, Latham & Watkins, Norton Rose Fulbright, Slaughter & May, TSMP Law, and Wachsman.
ORIX, a private equity firm, agreed to acquire a minority stake in Greenko Energy Holding, a renewable energy equipment supplier, for $980m.
“We welcome ORIX as a long-term partner. The transaction will further drive capacity, revenue, EBITDA and overall earnings growth for Greenko and our stakeholders. Indian energy markets are transitioning from deficit markets to demand-driven contracts requiring reliable, flexible and cost-competitive energy. Greenko is focused on building IREP with storage, which can compete with conventional energy assets like thermal in quality, quantity and cost,” Anil Chalamalasetty, Greenko Managing Director and CEO.
DCP Capital, a private equity firm, agreed to acquire a 9% stake in Tonghua Dongbao Pharmaceuticals, a manufacturer of generic medicines for $283m.
"We are excited to have DCP as our strategic investor. The cooperation between Dongbao Group, our controlling shareholder, and DCP is a win-win partnership. We look forward to working with DCP on various initiatives, such as operational improvements, M&A, and international development. Tonghua Dongbao will continue to focus on its core business in diabetes treatment, further strengthen the product pipeline, and create value for all our shareholders," Chunsheng Leng, Tonghua Dongbao Chairman and CEO.
Gojek and Grab renew merger talks as SoftBank's Son backs deal.
Gojek and Grab, Asia's biggest start-ups, renewed talks on a merger at the behest of shareholders including SoftBank, after the Japanese group's founder Masayoshi Son threw his weight behind a deal, FT reported.
The discussions come as the loss-making rivals lost money due to coronavirus-related restrictions, especially in Indonesia, where they compete aggressively.
Any deal may be closely scrutinised by regulators in terms of its impact on jobs given the poor economic backdrop, even if some investors at both companies believe that antitrust officials are less focused on competitive considerations than in the past.
State lenders to inject $2bn into Asiana Airlines after M&A collapses.
The South Korean government will provide $2bn to full-service Asiana Airlines from a state fund dedicated to protecting key industries from the virus pandemic woes as the prolonged crisis killed the country’s biggest airline M&A deal.
Primary state lender Korea Development Bank and the government held a meeting to launch the Plan B to keep the airliner afloat. Under the management of state-led creditors, restructuring would take place to raise the corporate value of Asiana Airlines as well as Kumho units for asset sale to redeem public funding. Creditors are expected to attempt to sell budget carriers Air Busan and Air Seoul and a golf course under Kumho Resort.
Capital International Group acquires a 4.6% stake in Max Group for $700m. (FS)
Capital International Group, a wealth management company, acquired a 4.6% stake in Max Group, a provider of healthcare services, from its founder Venkatesh Ganesh Analjit Singh, for $700m.
Singh intends to use the proceeds from the stake sale for settling his personal debt. Following this deal, Singh will hold an about 2% stake in Max Healthcare, which he also intends to sell in the future.
Vingroup considers divesting stakes in medical and education units.
Vingroup, a Vietnamese conglomerate, is considering selling controlling stakes in its medical and education units, although the company said it had made no such plans, Reuters reported.
Vietnam's largest listed firm could look for buyers for Vinschool, a private school business, and Vinmec, a chain of private hospitals.
The conglomerate has not appointed any advisers for the stake sales so far, but in its informal talks, two buyers have shown interest in the two businesses.
Temasek considers investing in Ant's mega IPO. (FS)
Singapore state investor Temasek is considering an investment in the IPO of Chinese financial technology company Ant Group, which could be the world's biggest IPO.
Singapore sovereign wealth fund GIC is also considering investing in the IPO.
India's secondary listing policy changes worries investors.
Indian companies that list overseas will have to launch on a domestic bourse under policy changes being considered by government officials, a move that global investors fear will harm valuations, Reuters reported.
India stated it would allow local firms to list abroad to better access foreign capital for growth, but the rules have yet to be decided. Currently, only some types of securities such as depository receipts can be listed in foreign markets, and only after the companies go public in India.
The new policy, aimed at helping local firms achieve more favorable valuations, could be a shot in the arm for Indian unicorn start-ups. The time period under consideration for such a requirement ranges from 6 months to 3 years.
Ant-backed Zomato plans 2021 IPO.
Zomato, an Indian food delivery startup, will file for an initial public offering in the first half of 2021, joining a rash of consumer internet companies raring to go public.
"Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year," Deepinder Goyal, Zomato Founder and CEO.
Blackstone raises $1.9bn for Asia core-plus real estate funds. (FS)
The Blackstone Group has raised a total of almost $1.9bn for five of Asia-focussed real estate funds, as it continues to grow its pile of capital to make property investments in the region.
The buyout giant had launched the core-plus real estate funds in 2013 to invest in stable assets in prime markets across North America, Europe and Asia. These funds invest with a more modest risk profile and lower leverage.
TRI-AD to form an $800m global investment fund.
Toyota Research Institute - Advanced Development, a software and technology company, will create Woven Capital, an $800m global growth-stage investment fund.
Woven Capital will be part of the new Woven Planet Holdings Group, and it will support the group by investing in growth-stage companies that are developing innovative technologies and business models in areas such as autonomous mobility, automation, artificial intelligence, machine learning, data and analytics, connectivity, and smart cities.
"Woven Capital's investments will enable us to weave together a global portfolio of partners and technologies that will deliver long-term value to our customers, stakeholders, and society. Woven Capital will also enable us to make growth-stage investments in companies in the Toyota AI Ventures portfolio as they look to raise additional capital," James Kuffner, TRI-AD CEO.
Vedanta seeks to raise funds for India delisting by $600m.
Vedanta Resources, a global diversified metals and mining company, is in talks with banks for a further $600m to finance the delisting of its Indian unit, Bloomberg reported.
The London-based commodities conglomerate has already secured $3.15bn in loans and bonds to buy back the shares it doesn't hold in Vedanta. The company would use the extra funds to cover any shortfalls for the proposed offer of the delisting.
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