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AMERICAS
Galaxy Digital, a diversified financial services and investment management company, failed to acquire BitGo, a digital asset financial services provider, from Jump Capital, a private equity firm, for $1.2bn.
“Galaxy remains positioned for success and to take advantage of strategic opportunities to grow in a sustainable manner. We are committed to continuing our process to list in the US and providing our clients with a prime solution that truly makes Galaxy a one-stop shop for institutions,” Mike Novogratz, Galaxy Digital CEO and Founder.
Turquoise Hill Resources, a mineral exploration and development company, said its special committee terminated a review of Rio Tinto's offer to buy the 49% stake for $2.7bn as it did not reflect the Canadian company's full and fair value.
The committee determined that Rio's offer of $26.57 per share was not in the best interest of Turquoise Hill or its minority shareholders, Reuters reported.
"Rio Tinto remains as committed as ever to the long-term success of Oyu Tolgoi. While we are disappointed by this decision, we will continue to work constructively with the Board of Turquoise Hill to advance the Oyu Tolgoi project," Bold Baatar, Rio Tinto Chief Executive Copper.
Turquoise Hill Resources is advised by BMO Capital Markets, TD Securities and Blake Cassels & Graydon. Rio Tinto is advised by Credit Suisse, RBC Capital Markets, Rothschild & Co, McCarthy Tetrault and Sullivan & Cromwell.
Unity Software rejected an unsolicited proposal to merge with AppLovin in an all-stock deal, keeping it on track to buy competitor IronSource, Bloomberg reported.
The AppLovin proposal, valued at about $20bn when offered August 9, would not reasonably be expected to result in a “superior proposal,” the Unity board said in a statement.
Unity Technologies is advised by Goldman Sachs, Morgan Stanley, Herzog Fox & Neeman, Morrison & Foerster, Richards Layton and Finger and Joele Frank. AppLovin is advised by JP Morgan and Wilson Sonsini Goodrich & Rosati.
Endeavor, an American holding company for talent and media agencies, completed the acquisition of a majority stake in Barrett-Jackson, the premier collector car auction and live events company, for $262m.
"We have long been admirers of Barrett-Jackson and have seen first-hand the scale, excitement and 50 years of tradition surrounding their events. Like IMG, Barrett-Jackson is a pioneer of its industry, and we look forward to working with Craig and his team to build on its impressive legacy across categories including experiences, hospitality, content, marketing and partnerships," Ariel Emanuel, Endeavor CEO.
Barrett-Jackson is advised by Moelis & Co, DLA Piper, Eisner and Perkins Coie. Endeavor is advised by Latham & Watkins.
Audax Private Equity, a middle market private equity firm, agreed to acquire Rensa Filtration, a manufacturer of consumable, mission-critical air filtration products. Financial terms were not disclosed.
"We're thrilled to be partnering with Brandon and the talented team at Rensa to help drive growth, both organically and through strategic M&A. With our investment, Rensa will be well-positioned to deepen relationships with key customers and channels, expand the Company's manufacturing footprint and capabilities, and increase exposure to rapidly growing markets," Joe Rogers, Audax Private Equity Managing Director.
Rensa Filtration is advised by Robert W Baird and Vedder Price. Audax is advised by Lincoln International, Ropes & Gray and FGS Global.
Nexstar Media Group, a diversified media company, agreed to acquire a 75% stake in The CW Network, a commercial broadcast television network, an American media company, from Warner Bros, an American entertainment conglomerate, and Paramount Global, an American multinational mass media and entertainment conglomerate. Financial terms were not disclosed.
“Our acquisition of The CW is strategically and operationally compelling, as it will enable us to leverage our operational experience to improve the Network’s performance through our management of this powerful national platform. We plan to apply the same strict financial standards to operating The CW as we apply to our other businesses,” Perry Sook, Nexstar CEO.
The CW Network is advised by Guggenheim Partners and Paul Hastings. Nexstar Media Group is advised by Kirkland & Ellis, Loeb & Loeb and JCIR.
Bluescape Clean Fuels, a supplier of gasoline derived from renewable feedstocks, agreed to go public via merger with CENAQ Energy, a special purpose acquisition company focused on energy and energy transition, in a $280m deal.
"We are excited to combine with CENAQ to create Verde Clean Fuels. BCF's product is a proven "drop in" replacement for hydrocarbon-based gasoline and provides significant environmental and economic advantages as compared to traditional gasoline. This combination will not only provide the funding for BCF's planned growth, but also the opportunity to leverage the capital markets experience and management expertise of CENAQ's sponsor group, to create a leading provider of renewable gasoline to the North American markets," Ernest B. Miller, BCF CEO.
CENAQ Energy is advised by Imperial Capital and Vinson & Elkins. Imperial Capital is advised by Baker Botts. BCF is advised by Kirkland & Ellis.
Lumentum, a designer and manufacturer of innovative optical and photonic products, agreed to acquire the telecom transmission product lines of IPG Photonics, an American manufacturer of fiber lasers. Financial terms were not disclosed.
"I am very excited to add such highly complementary and differentiated transceiver product lines and ASIC capabilities, which help to expand our addressable market and augment our technology capabilities. This acquisition brings a talented team developing digital communications ASICs, including coherent DSPs, which complements our silicon and indium phosphide photonic integrated circuit capabilities and creates opportunities for increased vertical integration in future optical transmission modules," Beck Mason, Lumentum SVP and General Manager, Telecom Transmission.
Lumentum is advised by Wilson Sonsini Goodrich & Rosati. IPG Photonics is advised by Centerview Partners and Locke Lord.
SK Group, a collection of global industry companies driving innovations in semiconductors, sustainable energy, telecommunications, and life sciences, led a $750m funding round in TerraPower, a nuclear innovation company.
“TerraPower is committed to solving some of the toughest challenges that face this generation through innovation,” Chris Levesque, TerraPower President and CEO.
TerraPower was advised by Credit Suisse and Perkins Coie.
Godspeed Capital-backed Huckabee Architects, an engineering firm, agreed to acquire Image Engineering Group, a mechanical, electrical, and plumbing design firm. Financial terms were not disclosed.
“We are thrilled to announce the addition of IEG to our platform, whose highly technical MEP engineering capabilities are a key area of expertise for Huckabee as we work to become a diversified, leading national AEC services platform. IEG is a recognized leader within the industry and has gained a tremendous amount of respect for their innovative engineering solutions and the premier client service that IEG’s team brings to each of its projects. We look forward to leveraging the firm’s capabilities to provide Huckabee’s clients a fully comprehensive offering of AEC services and solutions,” Chris Huckabee, Huckabee CEO.
Godspeed Capital is advised by Gasthalter & Co.
AWH, a cannabis operator that owns and operates cultivation facilities to provide easy and accessible products, agreed to acquire Ohio Patient Access, an operator of three provisionally licensed dispensaries. Financial terms were not disclosed.
"This transaction represents an ideal opportunity to maximize our dispensary footprint in Ohio, a state that has near-term potential for adult-use cannabis sales. Going deep in the states in which we operate and being a top provider in each state is critical to sustainable growth and margin expansion. OPA's dispensaries will be situated in populous, limited-license markets that provide us with a contiguous footprint across the state. We look forward to closing this transaction once authorized under Ohio law and to potential adult-use legalization in the mid-term," Abner Kurtin, Ascend Founder and CEO.
Diversified Maintenance, a janitorial and cleaning services provider, agreed to acquire Millers Cleaning Services, a commercial cleaning and janitorial company. Financial terms were not disclosed.
“We are happy to welcome Millers to the Diversified Maintenance family. With our new team members, we are well positioned to accelerate our expansion in Pennsylvania and beyond. Our collective focus remains on providing excellent service to our customers, every day,” Keith McAlpin, Diversified Maintenance President.
Avista Capital-backed Probo Medical, a global provider of medical imaging equipment, parts, repair, and service, agreed to acquire Mi Healthcare, a United Kingdom-based provider of medical imaging equipment and services. Financial terms were not disclosed.
"We have long known the Probo team, and we are excited for the future of bringing Mi Healthcare into the Probo family. The combination with Probo connects us to a significant platform that allows both organizations to grow faster together, and brings a set of resources to our customers and employees that is unmatched in our sector," Mark Edwards, Mi Healthcare CEO.
Boston Scientific, a biomedical/biotechnology engineering firm and multinational manufacturer of medical devices, agreed to acquire Obsidio, a privately-held company that has developed the Gel Embolic Material technology used for embolization of blood vessels in the peripheral vasculature. Financial terms were not disclosed.
"The GEM technology combines benefits of currently available embolics, such as precise control of a solid and malleability of a liquid, to create a unique technology that offers procedural efficiency and a more personalized therapy for patients. This acquisition strengthens our interventional oncology and embolization portfolio with a differentiated solution for physicians and their patients suffering from hemorrhages, cancer and other debilitating conditions," Peter Pattison, Boston Scientific President, Interventional Oncology and Embolization, Peripheral Interventions.
KnownHost, a privately held professional web hosting company, completed the acquisition of Comfort Host, a provider of web hosting services, from Cloud Equity Group, a private equity firm with an investment focus in companies within the technology-enabled business services. Financial terms were not disclosed.
"We're very proud of what we've accomplished during our partnership with ComfortHost. Over the past six years, the company has experienced tremendous growth and has further solidified its position as a market leader in high-performance hosting services. KnownHost is the perfect new partner to help ComfortHost continue its momentum, and we look forward to hearing about its ongoing innovation and success," Sean Frank, Cloud Equity Group Managing Partner.
Inspired Entertainment in bid to buy slot machine maker PlayAGS.
Gaming equipment provider Inspired Entertainment has made a $370m offer to acquire slot machine maker PlayAGS, Reuters reported.
Inspired has offered $10 per share in cash to acquire PlayAGS. PlayAGS shares had ended trading on Thursday at $6. They jumped on the news on Friday and closed up 25% at $7.52.
Laredo Oil announces acquisition of additional mineral rights.
Laredo Oil, an oil exploration and production company, announced that its wholly owned subsidiary, Lustre Oil Company, continues to acquire mineral rights in certain northeastern Montana core development areas. Since October 2021, Laredo Oil has increased its acreage in these areas from 24k net acres to the current 45.2k gross and 37.9k net acres.
"Our acquisition strategy has allowed us to lease acreage in the Western Williston Basin in Montana at what we believe to be a fraction of the cost of acreage in other comparable basins. Additionally, we believe that our knowledge of the area enables us to selectively add to our accumulated leases going forward," Mark See, Laredo Oil Chairman and CEO.
Home Capital rejects the takeover bid five years after Buffett’s rescue.
Home Capital Group, the Canadian mortgage lender that Berkshire Hathaway helped rescue five years ago, says it turned down an approach from an unnamed buyer because the price was too low.
Toronto-based Home Capital didn’t disclose the exact amount of the offer but said it was more than $22.38 a share — the maximum price on a stock buyback it recently announced. That means the takeover approach valued the company at least $930m. The shares closed Friday at $22.38 in Toronto, Bloomberg reported.
The board determined the cash offer “undervalues the company’s shares and falls short of reflecting Home Capital’s intrinsic value and its future growth potential,” Home Capital said in a statement Monday. The unnamed third party had “previously made an unsolicited, non-binding proposal” to buy the company, but that offer was subsequently terminated,” it said.
New York Times taps Bank of America amid the ValueAct challenge. (FS)
The New York Times has turned to Bank of America and law firm Sidley Austin for advice on handling a potential board challenge from ValueAct Capital Management.
ValueAct, a San Francisco-based hedge fund, disclosed on Thursday that it owns a nearly 7% stake in the New York Times and argued the newspaper company could grow more quickly by aggressively marketing its all-access digital bundle that gives subscribers more than basic news, Reuters reported.
The structure of the board would give ValueAct scope to challenge the company for one of the other four board seats in a shareholder vote. The New York Times is working with bankers and lawyers to prepare for this possibility.
Brazil's Petrobras agrees with Keppel Shipyard on building a new FPSO platform.
Brazilian state-run oil company Petrobras said on Monday it has signed a contract with Singapore's Keppel Shipyard for it to build its new P-80 FPSO platform, which will be installed at the Buzios oilfield.
P-80 will have the capacity to produce 225k barrels of oil and process 12m cubic meters of natural gas per day, the company said in a securities filing. Output is expected to start in 2026, Reuters reported.
The P-80, which will cost $2.9bn, will have capacity to produce up to 225k barrels of oil per day, process up to 12m m3/day of gas, and store more than 1.6m barrels. The project foresees the interconnection of 14 wells, 7 of which are oil producers and 7 injectors.
Qatar-backed martial arts firm Group One eyeing US IPO. (FS)
Group One, the company behind mixed martial arts brand One Championship, is considering a US initial public offering after previously exploring a listing via a blank-check firm.
Group One is changing its legal domicile to the Cayman Islands from its current one in Singapore as a step towards a potential US listing. The company plans to notify the Accounting and Corporate Regulatory Authority, the Singaporean regulator, as early as Monday, Bloomberg reported.
The MMA firm in December raised $150m in an equity financing round led by Guggenheim Investments and Qatar Investment Authority. The round gave Group One a post-money valuation of $1.35bn.
Butterfly closes $1bn food-focused fund. (FS)
Butterfly, a Los Angeles-based private equity firm specializing in the food sector, recently announced the closing of its sophomore fund. Nearly doubling in size from the previous vintage, the fund closed with commitments of $1bn from a wide range of partners including institutional investors, family offices, entrepreneurs, and food investors.
“We are beyond excited to announce the closing of this sophomore fund and are overwhelmed by and thankful for the receptivity and support we have received from our investors and their confidence in our team,” Adam Waglay, Butterfly Co-Founder and Co-CEO.
Texas Teachers makes $350m commitment to $30bn target Brookfield infrastructure fund. (FS)
Teacher Retirement System of Texas has made a commitment of $350m to the fifth global infrastructure fund from Brookfield. Brookfield's previous global infrastructure fund, BIF IV, raised $20bn at its final close in February 2022, significantly in excess of its original $17bn target, and the firm is expecting similar strong support for its latest fund.
In addition to the BIF commitment, TRS of Texas has added I Squared Capital Advisors as a new manager in its infrastructure portfolio through a $100m investment in the ISQ Growth Markets Infrastructure Fund, which has a $2.5bn target to invest in emerging markets assets.
EMEA
Pemberton, an alternative credit specialist, provided financing to support global asset management firm CVC Fund's acquisition of Neolith, a specialist in the design and production of sintered stone services serving multiple end-markets.
Pemberton has financed Neolith since September 2019, when it supported independently managed investment company InvestIndustrial's acquisition of the company. The transaction marks Pemberton's first deal with CVC Funds, which purchased Neolith after InvestIndustrial put the company up for sale earlier this year.
CVC is advised by Freshfields Bruckhaus Deringer, Perez Llorca and Grupo Albion. Debt financing is provided by Pemberton. InvestIndustrial is advised by Bain & Co, Evercore, KPMG, Uria Menendez and Maitland.
GRO Capital, a private equity fund, agreed to acquire a majority stake in Netigate, a provider of cloud-based experience management platform. Financial terms were not disclosed.
“Netigate is currently on an exciting journey to become Europe’s leading experience platform in the mid-market. With the increasing competition for both talent and customers, capturing and taking action on feedback across the entire employee and customer journeys is essential for companies’ competitiveness and survival. With GRO Capital, we now have strong support and investment to further our goal of being the leader in the mid-market,” Mikkel Drucker, Netigate CEO.
Netigate is advised by Houlihan Lokey.
Lundin weighs sale of $1bn copper-zinc mine in Portugal.
Lundin Mining is weighing the sale of a copper and zinc mine in Portugal that could be valued at about $1bn.
The Toronto-based company is speaking with potential advisers as it explores options for the Neves-Corvo mine in southern Portugal, Bloomberg reported.
A sale is likely to draw interest from rival mining firms. Deliberations are ongoing, and Lundin may also decide to retain the asset.
IK Partners prepares Quanos exit, Raymond James advises. (FS)
IK Investment Partners is getting ready to exit its portfolio asset Quanos Content Solutions, a German digital documents and business software provider, Unquote reported.
Established in 1989, IK Partners is a European private equity firm which has successfully supported and rewarded its investors and business partners by placing people at the centre of its strategy.
Saudi billionaire made a $500m Russia bet at war onset.
Saudi billionaire prince Alwaleed Bin Talal invested more than $500m in Russian firms around the time of Moscow’s invasion of Ukraine, in a sign of the careful political position the Gulf state has maintained with its OPEC+ partner.
Prince Alwaleed’s investment firm, Kingdom Holding, acquired depositary receipts issued by Gazprom, Lukoil, and Rosneft in February, Bloomberg reported.
No specific dates for the investments were given, and the Saudi firm didn’t respond to questions about whether it still owned them. The value of all those depositary receipts dropped rapidly after the war began when trading in Moscow was halted, and western sanctions were imposed on Russia.
Key Ukrainian adviser says new $5bn IMF loan would reassure other creditors.
Securing a new $5bn loan from the IMF would help reassure Ukraine’s other creditors that the war-torn country’s macroeconomic situation was under control, Reuters reported.
Fresh financing from the International Monetary Fund for around 18 months could serve as the anchor for a larger package of $15bn to $20bn to help Ukraine weather the economic crisis caused by Russia’s invasion, the adviser, Oleg Ustenko, said.
He said Ukrainian officials were in touch with the global lender about the potential request, adding that the goal should be to move forward as quickly as possible.
Thoma Bravo to open new London office. (FS)
Thoma Bravo, one of the private equity players in the global software investment space, is to open its first office in London.
The firm has signed an agreement to take two floors of Norfolk House, a newly-redeveloped office block in St James’s Square, in London's West End, adding to its existing offices in Chicago, Miami, and San Francisco.
The move will see Thoma Bravo join an influx of PE firms to St James's Square, with Cinven, Glendower, Astorg, and PAI all having offices there.
Thoma Bravo is one of the largest private equity firms in the world, with more than $114bn in assets under management as of March 31, 2022.
E.ON backs Future Energy Ventures on the launch of the Independent Climate Tech Fund. (FS)
E.ON’s current venturing team, Future Energy Ventures, has established a new, independent Luxembourg-domiciled venture capital fund, Future Energy Ventures Fund I. E.ON, one of Europe’s largest operators of energy networks and energy-related infrastructure, has committed to be an anchor investor in the fund.
The fund will focus primarily on Series A and B investments in digital and scalable business models that aim to transform the traditional energy value chain towards net zero. The fund has three core investment themes within the energy sector: future energy, future cities, and future technologies. It aims to funnel 100% of its capital toward sustainable investments in accordance with Article 9 of the SFDR regulation. It will target the innovation hubs of Europe, North America and Israel. With a total target size of $256m.
APAC
Thoma Bravo, an American private equity and growth capital firm, offered to acquire Nearmap, an Australian aerial imagery technology and location data company, for $755m.
Nearmap, whose offerings are used in surveillance, architecture, engineering and construction, said it had received several other expressions of interest, but none of them was considered to be in the best interest of shareholders.
Nearmap is advised by Citigroup, DLA Piper and Citadel Magnus.
S&P Global, a financial information and analytics provider, completed the investment in Handshakes, a Singapore-based DataTech company. Financial terms were not disclosed.
Handshakes is a data analytics and AI technology solution that employs proprietary data and AI techniques to transform how organizations conduct business, due diligence and compliance activities.
Billionaire behind big nickel short plans to sell steel assets.
Tsingshan Holding, the nickel giant owned by billionaire Xiang Guangda, is in advanced talks to sell some of its stainless-steel assets in Indonesia to China Baowu Steel as part of a strategic review.
State-controlled Baowu, the world’s biggest crude steel producer, is likely to acquire controlling stakes in some integrated production lines owned by Tsingshan at Indonesia Morowali Industrial Park in Central Sulawesi province, Bloomberg reported.
The talks started in April, and the assets for sale include production plants of stainless steel and nickel pig iron. A deal could be worth $3bn to $4bn. The two sides have already agreed on several key terms and are currently discussing details such as operations and sales after the acquisition.
India's Yulu Bikes in talks with Canada's Magna to raise funds for new battery entity. (FS)
Electric mobility startup Yulu Bikes is in advanced discussions to raise significant capital from Canadian auto parts maker Magna International for Yulu Energy, a newly-formed entity for managing its two-wheeler battery charging and swapping business, DealStreetAsia reported.
Yulu Bikes is an Indian electric bicycle and scooter rental startup that is backed by Bajaj Auto, Blume Ventures, 3One4 Capital, WaveMaker, and Rocketship. It has operations in Bangalore, Pune, Greater Mumbai, and Bhubaneswar.
Malaysia Airlines signs provisional deal for 20 Airbus A330neos.
Malaysia Airlines has signed a provisional agreement to acquire 20 Airbus A330neos to replace its aging fleet of A330 widebody jets in a deal that also involves aircraft leasing company Avolon, Reuters reported.
The airline will buy 10 of the planes from Airbus and then execute a sale-and-leaseback deal with Avolon, with the other 10 leased directly from Avolon, the carrier said on Monday.
Cashed-up Bailador eyes Aussie tech sell-off. (FS)
Australia’s only listed venture capital business Bailador is hunting for opportunities in the tech sell-off, flush with cash after wins from exiting a significant proportion of its portfolio investments last financial year.
The tech-focused fund’s cash profile has jumped to almost 50% after fully realising investments in advertising measurement company Standard Media Index and open-source database business Instaclustr in the second half of financial year 2021-22.
Hong Kong’s Hang Seng Bank explores insurance deals.
Hang Seng Bank, a Hong Kong-based lender majority owned by HSBC, is seeking an insurance partner after its existing agreement with Australia’s QBE Insurance Group expired.
Hang Seng Bank is working with a financial adviser as it explores a so-called bancassurance partnership, which could be valued at more than $100m. Under such an agreement, an insurer typically pays an upfront amount to sell its products in the bank’s branches, Bloomberg reported.
Insurance firms seeking to expand in Hong Kong have expressed preliminary interest in the transaction. QBE could also propose a new partnership deal, building on its existing relationship.
Thailand targets $62bn investment in the industrial east over five years.
Thailand is aiming for $62bn of investment in the country's industrial east over the next five years, as the country attempts to boost long-term economic growth, Reuters reported.
The 2023-2027 plan in the Eastern Economic Corridor will include investments such as electric vehicles and medical technology, government spokesman Thanakorn Wangboonkongchana said in a statement.
The government expects $11.3bn to $14.1bn in investment per year, which will help the economy grow by 5% a year from 2024.
Chinese NYSE delistings could pave the way for an audit deal with US.
The move to delist five Chinese state-owned enterprises from the New York Stock Exchange could pave the way for Beijing to strike an audit deal with the United States, ending a more than decade-old dispute, analysts and advisers said on Monday.
The five SOEs, including oil major Sinopec and China Life Insurance, whose audits have been under scrutiny by the US securities regulator, said on Friday they would voluntarily delist from the NYSE, Reuters reported.
The US Securities and Exchange Commission had in May flagged the five and many others as failing to meet US auditing standards, and the delisting signals China could compromise on allowing US auditors to access the accounts of private Chinese companies listed in the United States.
Hong Kong audit watchdog expands probe into Evergrande's unit.
Hong Kong's audit regulator said on Monday it initiated an inquiry into the financial statements of China Evergrande Group's property services unit and its former auditor after questions were raised following the developer's probe into seized deposits worth $2bn of the unit.
The Financial Reporting Council said in a statement it was investigating the 2020 and first half of 2021 financial statements of Evergrande Property Services, as well as the audit carried out by PwC on its 2020 annual accounts, Reuters reported.
"The FRC identified questions about the classification of restricted bank deposits and other loans, the measurement of pledge guarantees given and the disclosure of related party transactions in the accounts, and related questions about the audits," it said.
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