AMERICAS
Eldorado Resorts must start paying Caesars Entertainment almost $2.3m a day in so-called ticking fees after failing to meet a deadline to complete its takeover of the casino giant, which was due on March 25.
If the deal between the two major casino operators falls through, Eldorado will have to pay a penalty fee of $837m. The lockdown of local businesses due to coronavirus pandemic has made it difficult for Eldorado Resorts to gain the approvals of local regulators.
Caesars Entertainment is advised by Deutsche Bank, PJT Partners, Skadden Arps Slate Meagher & Flom, Ropes & Gray, and Teneo. Eldorado Resorts is advised by Credit Suisse, JP Morgan, Macquarie Group, Latham & Watkins, Milbank, Cravath Swaine & Moore, and JCIR. Debt financing to Eldorado Resorts is provided by Credit Suisse, JP Morgan, and Macquarie Group.
United Technologies, an American multinational aerospace conglomerate, and Raytheon, a major US defence contractor and industrial corporation, got the US Justice Department's approval for their $121bn merger.
To win US approval, the companies agreed to divest Raytheon's military airborne radios business, including facilities in Indiana and Florida, and United Technologies's military global positioning systems, including a facility in Connecticut. The businesses are to be sold to BAE Systems or another buyer approved by the Justice Department, Reuters reported.
Raytheon is advised by Citigroup, RBC Capital Markets, Shearman & Sterling, Cleary Gottlieb Steen & Hamilton, and Joele Frank. UTC is advised by Evercore, Goldman Sachs, Morgan Stanley, Wachtell Lipton Rosen & Katz, Sullivan & Cromwell, and Maitland.
Marubeni, a general trading company, and Mizuho Leasing, a general leasing company, completed the acquisition of Aircastle, a global company that acquires and leases high-utility commercial jet aircraft to customers throughout the world, for $7.4bn.
"We are pleased to announce the completion of this transaction, which delivers significant value to our shareholders," Peter V. Ueberroth, Aircastle Chairman.
Aircastle was advised by Citigroup, Conyers Dill & Pearman, Skadden Arps Slate Meagher & Flom and The IGB Group. Marubeni was advised by JP Morgan, Mizuho Securities and Clifford Chance. Mizuho was advised by White & Case.
Apax Partners-backed Accurate Background, a provider of compliant, automated workforce screening solutions, completed the acquisition of the CareerBuilder Employment Screening unit of CareerBuilder, a global technology company that provides end-to-end talent acquisition solutions. Financial terms were not disclosed.
"The completion of our acquisition of CBES represents a tangible step forward in leading the industry with one of the most comprehensive workforce screening solutions available. Our combined talent, innovative products and services and scale are exactly what enterprise, mid-market and small business customers need to simplify their background screening processes and ensure they remain fully compliant with today's complex regulatory requirements," Dave Dickerson, Accurate Founder and CEO.
CareerBuilder was advised by Bowstring Advisors, PJT Partners and Sidley Austin. Apax Partners and Accurate were advised by Barclays, Stifel, Latham & Watkins and Simpson Thacher & Bartlett.
Morgan Stanley won US antitrust approval for its $13bn acquisition of the brokerage firm E*Trade Financial. The Justice Department's antitrust division signed off on the takeover without requiring any changes.
The deal is part of Chief Executive Officer James Gorman's strategy of reshaping the Wall Street firm to cater to wealth-management clients. Morgan Stanley has said it expects to close the deal in the fourth quarter.
E*Trade is advised by JP Morgan and Skadden Arps Slate Meagher & Flom. Morgan Stanley is advised by Davis Polk & Wardwell.
The UK Competition and Markets Authority is inviting comments on the planned acquisition of digital reading platform OverDrive by buyout group KKR.
CMA asked for the comments to be provided by April 16, as it is considering whether the deal will create a relevant merger situation, which “may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services”.
KKR is advised by Goldman Sachs, LionTree Advisors, and Simpson Thacher & Bartlett.
Canada's Competition Bureau issued an unfavourable opinion of Air Canada's proposed $544m takeover of Transat, throwing the deal into further uncertainty as the airlines fight to stay viable amid a cratering of revenue.
The watchdog says eliminating the rivalry between the two carriers would result in higher prices, fewer services and ultimately less travel by Canadians on a range of competing routes. The bureau's analysis found that the deal would impact 83 overlapping routes, including 49 between Canada and Europe and 34 between Canada and sun destinations in Florida, Mexico, Central America and the Caribbean.
Air Canada is advised by Morgan Stanley.
Microsoft agreed to acquire Affirmed Networks, a network solutions provider, at a $1.4bn valuation. With Microsoft's focus on 5G and edge computing, Affirmed looks like the ideal acquisition target for a large cloud provider looking to get deeper into the telco business.
"As we've seen with other technology transformations, we believe that software can play an important role in helping advance 5G and deliver new network solutions that offer step-change advancements in speed, cost and security. There is a significant opportunity for both incumbents and new players across the industry to innovate, collaborate and create new markets, serving the networking and edge computing needs of our mutual customers," Yousef Khalidi, Microsoft Corporate Vice President.
Stepan, a manufacturer of speciality chemicals, completed the acquisition of NatSurFact business, a provider of biodegradable and renewable biosurfactant, from Logos Technologies, a provider of technology and program solutions. Financial terms were not disclosed.
"We look forward to building on NatSurFact's work to commercialize these unique surfactants in the coming years. Stepan is actively developing high-performing, advantageous products as a key pillar of our sustainability commitments. NatSurFact's rhamnolipid technology provides an important new option as customers across markets seek to meet new sustainability targets for their products," F. Quinn Stepan, Stepan Chairman, President and Chief Executive Officer.
New York sports club owner Town Sports is in doubt regarding the rescue refinancing deal of Flywheel Sports, a boutique spin studio operator. The coronavirus outbreak delayed the negotiations for the closure of the acquisition. Town Sports is also having difficulties winning the backing of its existing lenders to refinance a $178m loan that matures in November
The purchase of Flywheel’s studio business had been designed to solve part of Town Sports’ debt issues and to bolster revenues for the two companies. Executives hoped that Sports Club members would pay higher monthly dues for access to Flywheel’s high-intensity spin classes.
The Government of Russian Federation completed the acquisition of Venezuelan assets of Rosneft, an oil and natural gas exploration company. Financial terms were not disclosed.
The Russian government acquired the entirety of Venezuelan businesses of Rosneft, including joint ventures of Petromonagas, Petroperija, Boqueron, Petromiranda and Petrovictoria, as well as oil-field services companies, commercial and trading operations.
Starwood REIT completes the acquisition of Boston asset for $614m. (FS, RE)
Starwood, a non-traded REIT managed by Starwood Capital Group, completed its acquisition of the leasehold interest in 60 State Street in Downtown Boston from JP Morgan Asset Management and Oxford Properties Group.
The 38-story tower, located in the heart of Downtown Boston, comprises 911k square feet of office and retail space and a 240-space parking garage.
Starwood was advised by Ropes & Gray. JP Morgan and Oxford Properties Group were advised by Newmark Knight Frank. Debt financing was provided by Metlife and Pacific Life.
Sirius International launches a formal sale process. (FS)
Sirius International Insurance Group, a property and casualty insurance company, is launching a formal divestment process following a strategic review, Bloomberg reported.
The Bermuda-based company decided to pursue a sale after reviewing multiple expressions of interest with its majority shareholder, China Minsheng Investment Group.
Barclays is advising Sirius International's board on the sale.
Cirque du Soleil explores options, including bankruptcy.
Cirque du Soleil Entertainment Group is exploring debt restructuring options that include a potential bankruptcy filing after it was forced to cancel shows because of the coronavirus outbreak, Reuters reported.
The famed Montreal-based circus company, primarily known for its regular shows in Las Vegas venues, had to temporarily lay off most of its staff after social distancing measures were put in place to prevent the spread of the virus.
Cirque du Soleil is working with restructuring advisers to address a cash crunch and its roughly $900m of debt.
Citi prepares poison pills as activists eye damaged targets. (FS)
Citigroup is rushing to help clients adopt defence strategies to make them less attractive targets for hostile takeovers as the coronavirus pandemic leaves them feeling vulnerable, Bloomberg reported.
"We think it's appropriate to advise them on how to protect themselves. Valuations of companies have changed a lot," Tyler Dickson, Citigroup Global Co-Head of banking capital markets and advisory.
Media M&A deals on hold after outbreak wipes out financing.
Media companies, including AT&T and ViacomCBS, are pausing the asset sales worth more than $5bn due to the global coronavirus pandemic, Bloomberg reported.
AT&T's auction of four regional sports networks, ViacomCBS's offloading of its publishing arm, and closely-held Ion Media Networks $3.5bn divestment process have been held up amid a downturn in financing markets.
TorQuest Partners closes fund V at $1.4bn. (FS)
TorQuest Partners, a Canadian private equity firm, announced the final closing of TorQuest Partners Fund V, with $1.4bn in capital commitments.
The target for external commitments for this fund had been set at $1.1bn but got oversubscribed by almost $300m. Fund V will proceed with creating value in middle-market through strategic chance, operational improvements and by integrating acquisitions.
TorQuest was advised by Credit Suisse and Torys.
Tailwater Capital closes fourth fund worth $1.1bn. (FS)
Tailwater Capital, a Dallas-based private equity firm, closed Tailwater Energy Fund IV with $1.1bn in capital worth, including a co-investment for one of Fund IV's platform companies.
Fund IV, which is strongly supported by its investors, will sustain its strategy of partnering with decent management teams to recognize valuable opportunities in midstream infrastructure.
Goldman Sachs hires Mark Maislish from Morgan Stanley. (People)
Goldman Sachs hired a new head of equity syndicate from rival Morgan Stanley, showing that banks are still making selective hires even as the industry begins to pause recruitment amid the Covid-19 pandemic, Financial News reported.
Mark Maislish will join the US bank as head of equity capital markets syndicate for EMEA next month. His arrival follows the departure of John Bentinck van Schoonheten in February.
CityFibre, the UK's largest alternative provider of wholesale fibre network infrastructure, completed the acquisition of FibreNation, a full fibre broadband provider, from TalkTalk Telecom, a company which provides pay television, telecommunications, Internet access, and mobile network services to businesses and consumers in the UK, for £200m ($248m).
"CityFibre's ambitions to take forward our hard work with FibreNation over the last five years, should take us a step closer to that fully connected Britain. The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk's fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price," Tristia Harrison, TalkTalk CEO.
TalkTalk Telecom was advised by Lazard and Tulchan Communications.
Wingtech Technology, a smartphone design manufacturer, agreed to acquire an additional 23.77% stake in Nexperia, a semiconductor manufacturer, for $893m.
Wingtech plans to pay $21m in cash, while the remaining $872m will be settled through the issuance of nearly 68.27m shares at a price of $12.77 apiece. These shares will have a lock-up period of 12 months.
“I am proud of what Nexperia has become and will miss the team. At the same time, I have decided not to seek a prolongation of my four-year tenure. Now is the time for Wingtech to decide on Nexperia’s future leadership,” Frans Scheper, Nexperia CEO.
Sava Re and Triglav, two of Slovenia's largest insurance companies, completed the acquisition of Diagnosticni Center Bled, a healthcare services provider, from ARX Equity Partners, a private equity firm. Financial terms were not disclosed.
The takeover of DC Bled represents an important step for Sava Re and Triglav respectively towards the implementation of their strategic expansion into the Slovenian private health services market.
Qatari investor to buy the Ritz Hotel, inflaming Barclay family tensions. (RE)
A Qatari investor agreed to buy London's Ritz Hotel, one of the capital's most coveted properties, in a deal that has further inflamed tension between feuding sides of the billionaire Barclay family, FT reported.
The deal, came on the same day that the hotel shut its doors for the first time in 113 years after the coronavirus crisis placed London on lockdown. The transaction value and the name of the Qatari buyer were not disclosed.
The buyer was is advised by Macfarlanes.
Air Liquide's disinfectant unit divestment hit by tighter funding. (FS)
The divestment of Air Liquide's German disinfectants unit Schuelke was dealt with a shock when JP Morgan decreased the amount of leverage it is willing to provide, Bloomberg reported.
The change provoked at least one private-equity suitor to drop out of the bidding before the latest round of offers due this week. The lower amount of debt funding, combined with rising price expectations, means that an investment would be less profitable.
European buyout firms Ardian, EQT and PAI Partners submitted non-binding offers last week and have been invited to join the next round. While Air Liquide has been seeking a valuation of as much as $1.1bn, Schuelke could fetch more than initially expected after demand for its products was boosted by the coronavirus epidemic.
Pernod Ricard becomes the owner of Monkey 47 gin brand.
Pernod Ricard purchased the remaining stake in the dry gin brand Monkey 47, making the company the sole owner of the brand.
"This partnership is a clear example of Pernod Ricard's ability to incubate small independent distilleries while respecting entrepreneurial freedom and the brand's core values. However, Monkey 47's success story would not have been possible without Alexander Stein's trust, authenticity and entrepreneurial spirit, for which I am grateful," Alexandre Ricard, Pernod Ricard Chairman and CEO.
Barclays' former corporate broking head joins advisory firm Fenchurch. (People)
Fenchurch Advisory, the City mergers and acquisitions specialist with a focus on the financial services industry, recruited Kunal Gandhi from Barclays, Financial News reported.
Fenchurch appointed Kunal Gandhi as a senior managing director on March 26. Mr. Gandhi was the head of corporate broking at Barclays, having spent a decade at the bank.
APAC
NTPC, a power generation company, agreed to acquire hydro-electricity generation firms THDC and NEEPCO for $1.5bn.
NTPC would be acquiring a 74.49% stake in THDC for $996m and a 100% stake in Neepco for $531m respectively. Post-acquisition, THDCIL and NEEPCO will become subsidiaries of NTPC.
NTPC is advised by SBI Capital Markets.
Private equity firms Tencent Holdings and Temasek Holdings completed the $300m series E funding round in MiningLamp Technologies, a software services provider. Other investors include China Renaissance and Sequoia Capital.
"With the capital injection, MiningLamp can accelerate our efforts to empower our clients to digitise, helping them successfully transform at a time full of uncertainties,” Wu Minghui, MiningLamp Founder, Chairman and CEO.
Korea Corporate Governance Improvement, a Korean private equity fund, agreed to acquire a 14.9% stake in Hanjin Kal, an airline holding company, from Delta Air, a provider of air transportation, for $300m.
"Delta is now going through the fierce headwind coming from the outbreak of Covid-19. Delta is welcome to think of selling down all the shares of Hanjin KAL to KCGI," KCGI.
Dude Solutions, a cloud-based operations software provider, completed the acquisition of Assetic, a cloud-based asset management vendor, from M.H. Carnegie, a private equity firm. Financial terms were not disclosed.
“Combining our product with the Dude Solutions suite is incredibly exciting as this acquisition positions our team to support the growing demand for strategic asset management globally,” Ashay Prabhu and Joel Brakey, Assetic Co-Founders.
Amatil X, the venture capital arm of Coca Cola Amatil, completed the acquisition of Kargo Technologies, trucking marketplace startup. Financial terms were not disclosed.
“Kargo Technologies is our first startup investment in Indonesia and we are excited to be partnering with them to improve our overall logistics capability. Kargo is fulfilling two key land transportation routes for us and we expect this to increase over time as Kargo’s network expands,” Kadir Gunduz, Coca-Cola Amatil President.
Masayoshi Son pledges 40% of his stake in SoftBank to lenders. (FS)
Masayoshi Son pledged an additional 10.1m SoftBank Group shares to lenders in the past two weeks as he unveiled an ambitious plan to overhaul his Japanese conglomerate and silence critics, DealStreetAsia reported.
Son has now committed 227m SoftBank shares as collateral, worth about $8bn. That's about 40% of his 27% stake in the publicly traded conglomerate. The newly pledged shares were worth about $360m.
Goldman and Morgan Stanley receive approvals for majority stakes in China ventures.
Goldman and Morgan Stanley received the permissions from the China Securities Regulatory Commission to raise their stakes in Goldman Sachs Gao Hua Securities and Morgan Stanley Huaxin Securities from 33% to 51% and 49% to 51%, respectively, Reuters reported.
The approvals come as policymakers and authorities step up efforts to shield the world's second-largest economy, beaten by the coronavirus pandemic.
Tata Motors to spin-off cars unit to seek strategic allies.
Tata Motors plans to separate its passenger vehicle (including EVs) business. Assets, IPs and employees directly relatable to the passenger vehicle business will be transferred to the new subsidiary, which will function as a standalone unit, Bloomberg reported.
A break up of PV business from the main entity allows Tata Motors to unlock value in the new body that will house the PV business. Certain shared services and central functions will be retained at Tata Motors to deliver cost efficiencies for the entire group.
"The recent outbreak of Covid-19 virus increases the challenges faced by the business. This decision is the first step in our plans to secure mutually beneficial strategic alliances for the domestic PV business and help secure its long-term viability," Tata Motors.
Singapore Airlines obtains $13bn rescue package to relieve Covid-19 shock.
State investor Temasek Holdings and others put together a funding package of c. $13.3bn for Singapore Airlines in the single most significant rescue for an airline slammed by the coronavirus pandemic, DealStreetAsia reported.
The massive financing plan, which drove SIA shares down as much as 10.5%, underscores the depth of financial trouble for the global airline industry, with nearly one-third of the world's aircraft already grounded because of the pandemic.
Yes Bank to raise up to $2.14bn.
A newly appointed board of a private lender Yes Bank announced a plan to gather up to $2.14bn with institutional placement or rights issue, DealStreetAsia reported. The decision was made after receiving a $1.3bn of equity capital infusion from State Bank of India and seven private lenders.
On January 10, the bank's previous board and shareholders had agreed on a capital raising plan of $1.3bn through equity issuance. On March 5 the Reserve Bank of India restrained the lender and ministry of finance issued a reconstruction plan under which Yes Bank handed SBI 48.2% of its stake.
HDFC Life Insurance sells its shares on the stock exchange.
HDFC Life Insurance, a wholly-owned subsidiary of Standard Life Aberdeen, sold 50m shares on the National Stock Exchange of India and the Bombay Stock Exchange.
The share sale resulted in receiving c. £237m ($292m). The proceeds will be used for general company purposes. The transaction was launched on the back of strong stock price performance amidst an extremely volatile environment.
“This deal marks the re-opening of Indian equity capital markets and demonstrates that investors continue to be bullish on strong high quality India names," Kaku Nakhate, Bank of America Country Head.
Standard Life was advised by Bank of America Merrill Lynch.
Singapore's Vickers Venture Partners raises $200m for $500m Fund VI. (FS)
Singapore-based Vickers Venture Partners, a venture capital firm, raised $200m for its $500m Fund VI that is meant to finance deep tech startups both in Asia and worldwide, DealStreetAsia reported.
Finian Tan, Vickers Venture Founder and Chairman, is planning to gather remaining $300m within the 13 month period, acknowledging the difficulties of fitting in this timeframe amid coronavirus outbreak.
"I think anybody who can reach their fundraising targets in these current times would be very, very happy. We do have some interested limited partners with sizable cheques, so we will just push on and raise as much as we can. If we have to take a few months off to slow down, we can't help it. But we think we have a good story to tell, and when people start re-focusing again, we believe we'll get some traction," Finian Tan, Vickers Venture Founder and Chairman.
Activist funds defeated at Kirin and Toshiba Machine. (FS)
Shareholders of Kirin Holdings backed their management in a closely observed vote, declining a proposal by London-based Independent Franchise Partners, which owns a 2% stake, to exit businesses outside beer and use proceeds to repurchase shares worth $5.54bn, Reuters reported.
In another proxy fight, Toshiba Machine managed to push through controversial anti-takeover measures to fend off a hostile bid by a fund backed by veteran activist investor Yoshiaki Murakami.
Tencent-backed WeDoctor picks banks for Hong Kong IPO. (FS)
WeDoctor, one of China's largest online healthcare startups, selected JP Morgan, Credit Suisse and CMB to lead its Hong Kong IPO, Bloomberg reported. WeDoctor, backed by Tencent Holdings, joins a growing contingent of tech giants hoping to revolutionize a traditional healthcare industry after the coronavirus pandemic underlined its weaknesses.
The startup could become one of the largest technology companies to brave volatile public markets in 2020. The details of the offering could change, given that discussions are ongoing. More banks may be invited to join the deal.
Blackstone pays the first $240m tranche for Coffee Day’s IT park. (FS,RE)
Amid a nationwide lockdown in the wake of Covid-19 breakout, Blackstone Group went ahead to pay Coffee Day Group $240m — the first tranche of the $360m deal to acquire Coffee Day Group's Global Village Technology Park, DealStreetAsia reported.
The money from the sale of the 90-acre tech park on the outskirts of Bengaluru will be used for repaying the debts of Cafe Coffee Day's associate firms and their promoters.
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