AMERICAS
Yageo, a manufacturer of resistors and related equipment, agreed to acquire all of the outstanding shares of KEMET, manufacturer of solid tantalum, and multilayer ceramic capacitors, for $1.8bn.
“The integration will enhance our ability to serve customers in consumer electronics as well as in the high-end automotive, industrial, aerospace, telecom, and medical sectors. I look forward to partnering with KEMET’s employees to drive future growth and deliver enhanced value for our shareholders and customers,” Pierre Chen, Yageo Chairman, and Chief Executive Officer.
Yageo is advised by Citi, Simpson Thacher & Bartlett, and Tsar & Tsai. KEMET is advised by Goldman Sachs and Skadden, Arps, Slate, Meagher & Flom.
Embraer postponed the expected close of its commercial aircraft merger with Boeing, now anticipating the deal will not be finalized until at least March 2020.
Nelson Salgado, Embraer chief financial officer, says the Boeing deal has been delayed again due to an ongoing review of the agreement by European antitrust regulators.
Pinheiro Neto is advising Embraer Commercial Aviation. Simpson Thacher & Bartlett is advising Boeing. Citigroup, Barbosa Mussnich & Aragao, Skadden Arps Slate Meagher & Flom, and Cleary Gottlieb Steen & Hamilton are advising Embraer.
Anheuser-Busch, a manufacturer of alcoholic beverages, agreed to acquire Craft Brew Alliance, an operator of production breweries, for $321m. The transaction is subject to customary closing conditions, including approval by a majority of CBA’s shareholders not affiliated with A-B and certain regulatory approvals. The deal is expected to close in 2020.
“Today’s announcement represents an exciting next step in a long and successful partnership with Anheuser-Busch, whose support for the growth of our business and brands traces back over 25 years. By combining our resources, our talented teammates, and dynamic brands, we will look to nurture the growth of CBA’s existing portfolio as we continue investing in innovation to meet the changing needs of today’s beverage consumers, all while delivering certainty of value to our shareholders,” Andy Thomas, CBA CEO.
CBA is advised by Goldman Sachs and Wachtell, Lipton, Rosen & Katz. A-B is advised by Lazard and Sullivan & Cromwell.
Swedish Orphan Biovitrum, an international specialty biopharmaceutical company dedicated to rare diseases, completed the acquisition of Dova Pharmaceuticals, a clinical-stage pharmaceutical company, for $915m.
“The cadence of upcoming launches and approvals across indications and regions that Doptelet provides enables us to further accelerate growth in our hematology franchise. There is a large unmet medical need within thrombocytopenia, and for us, this is a great opportunity to be able to give patients access to new and improved treatments. Furthermore, we are excited to welcome the 125 professionals from Dova, who will greatly strengthen Sobi’s hematology infrastructure and broaden our value chain in the US,” Guido Oelkers, Sobi President and Chief Executive Officer.
Dova was advised by Evercore, Jefferies & Company, Cooley, and Westwicke. Sobi was advised by Morgan Stanley, Cravath Swaine & Moore, and Mannheimer Swartling.
Main Post Partners completed its investment in SUGARED + BRONZED. (FS)
Main Post Partners, a private equity investment firm, completed its investment in SUGARED + BRONZED, a luxury beauty services company. Financial terms were not disclosed.
Main Post's investment will be used to support new product growth, location expansion, and strategic marketing opportunities to further drive awareness of the company's specialized services for hair removal and sunless tanning.
"We have had the pleasure of getting to know Courtney and Sam over the last several years and have been impressed with the strong foundation they have built. SUGARED + BRONZED is a disruptor in the highly fragmented beauty services space, and we are excited to support the team as they continue to grow their base of loyal clients in both existing and new geographic markets," Josh McDowell, Main Post Partner.
SUGARED + BRONZED was advised by Piper Jaffray, Offit Kurman, Chris Tofalli, and June Collective. Main Post Partners was advised by Morrison & Foerster.
Fortive completed the acquisition of Censis Technologies from Riverside. (FS)
Fortive, diversified industrial growth company, completed its acquisition of Censis Technologies, which provides SaaS-based surgical instrument tracking and workflow solutions, from The Riverside Company. Financial terms were not disclosed.
"Our team had a clear value creation plan going into the investment. We executed on that plan in close partnership with management to drive organic growth, improve the product suite to enhance the company's leadership in the market further, and complete a key add-on acquisition." Loren Schlachet, Riverside Managing Partner.
Riverside was advised by Deloitte, Piper Jaffray, Software Equity Group, and Jones Day.
Industrial Growth Partners, a private equity firm, completed the acquisition of ASPEQ Heating Group, MO-based manufacturer of highly engineered electric‐heating and thermal‐management technologies, from Bunker Hill Capital, a Boston-based private equity investor in lower middle-market companies. Financial terms were not disclosed.
“We were fortunate to recruit an industry veteran of Dave’s caliber from the thermal
products sector to lead an already strong management team and ultimately exceed our investment goals. In addition to Dave’s leadership, we want to recognize the efforts of ASPEQ’s entire senior leadership team for their contributions to the Company’s success, including Jim Killeen, Steve Lincks, Dave Knoebel, Stacey Sappington, and Cindi Ferrell,” Mark DeBlois, Bunker Hill Capital Managing Partner.
Bunker Hill Capital was advised by Hennepin Partners and Morgan Lewis & Bockius. IGP was advised by Kirkland & Ellis.
Rowley Law to investigate the proposed acquisition of Carbonite.
Rowley Law, which represents shareholders nationwide in class actions and derivative lawsuits in complex corporate litigation, is investigating potential securities law violations by Carbonite and its board of directors concerning the proposed acquisition of the company by Open Text. In the deal, stockholders will receive $23 for each share of Carbonite stock that they hold. The transaction is valued at approximately $1.42bn and is expected to close within 90 days.
Carbonite is advised by JP Morgan and Skadden Arps Slate Meagher & Flom. OpenText is advised by Lazard.
ZMC completed the investment in Commentsold. (FS)
ZMC, a private equity firm that manages a diverse group of media and communications enterprises, completed its investment in Commentsold, a provider of multi-channel social commerce technology and managed services to online boutique retailers. Financial terms were not disclosed.
"CommentSold's commerce platform allows an entirely new generation of retailers to thrive online. Brandon has assembled an outstanding team that delivers meaningful results and service levels to its customers. ZMC has been impressed by the company's growth and leadership position and is committed to supporting CommentSold's investments in service and technology. The investment in CommentSold fits ZMC's thematic focus on outsourced, mission-critical technology and services benefiting from the continued shift online of advertising and commerce," Andrew Vogel, ZMC Managing Partner, and Co-Chief Investment Officer.
CommentSold was advised by Evercore and Weil Gotshal and Manges. ZMC was advised by Lowenstein Sandler.
Dyal Capital completed a minority investment in Owl Rock Capital. (FS)
Dyal Capital, a division of Neuberger Berman, completed a minority investment in Owl Rock Capital, an alternative asset manager. Financial terms were not disclosed.
Dyal's investment provides Owl Rock with additional permanent capital to continue delivering highly customized direct lending solutions to US middle-market companies. Owl Rock plans to use all proceeds from the transaction to invest in Owl Rock products, which are expected to include complimentary product launches and strategies in 2020.
"This is an exciting development in the evolution of Owl Rock. Dyal has an outstanding track record of investing in established asset managers like Owl Rock and will be a terrific strategic partner as we execute on our long-term initiatives. We look forward to putting this capital to work to continue growing our platform and delivering attractive risk-adjusted returns to investors." Doug Ostrover, Marc Lipschultz, and Craig Packer, Owl Rock co-founders.
Owl Rock Capital was advised by Kirkland & Ellis and Sard Verbinnen & Co. Dyal Capital was advised by Fried Frank Harris Shriver & Jacobson.
EnerTech Capital-backed IPKeys Power Partners to acquire N-Dimension. (FS)
EnerTech Capital-backed IPKeys Power Partners, a provider of integrated technology solutions for intelligent utilities and smart cities, agreed to acquire N-Dimension Solutions, the public power sector company in cybersecurity monitoring with over 100 utilities served. Ontario based N-Dimension will merge into the IPKeys platform while continuing to serve current customers. Financial terms were not disclosed.
"The integration of N-Dimension into our CLaaS platform enables IPKeys to provide customers with a more robust and comprehensive cybersecurity solution. The investment by EnerTech is especially advantageous because of their proven ability to also provide strategic support and exposure to their influential network of strategic partners," Robert Nawy, IPKeys CEO.
IPKeys is advised by English & Company.
Ferguson to acquire S. W. Anderson. (FS)
Ferguson, which offers products for heating and ventilation, fabrication, facilities supply, and residential construction, agreed to acquire S. W. Anderson, an HVAC equipment and supplies distributor. Financial terms were not disclosed.
“Ferguson is committed to growing our business in the New York metro area, which is one of the largest and most attractive markets in the USA. S.W Anderson complements our existing HVAC business, including Wallwork, by offering additional product lines to our customers and even greater choice. Through these acquisitions, Ferguson can now offer an even wider selection of equipment to meet our customers’ needs,” Kevin Murphy, Ferguson Enterprises CEO.
Ferguson is advised by Brunswick.
Williams Aerospace and Manufacturing completed the acquisition of Aerospace Welding.
Williams Aerospace and Manufacturing, a global company for defense aircraft sustainment and a Kellstrom Defense subsidiary, completed the acquisition of Aerospace Welding, an OEM approved provider of welding services. Financial terms were not disclosed.
"The addition of the highly skilled Aerospace Welding workforce coupled with the unique welding capabilities of the business, bolster our ability to accelerate product deliveries to our global customers. Our further investment in AWI's capabilities and continued OEM certification will continue to ensure that all internal and external customers receive the highest level of quality and customer service." Scott Wooden KDA President of Engineered Products.
Kellstrom Defense was advised by Russ August & Kabat.
The Jordan Company-backed Young Innovations to acquire PuraGraft. (FS)
The Jordan Company-backed Young Innovations, a global supplier of dental products, agreed to acquire PuraGraft, a supplier of biomaterial solutions for bone and tissue regeneration. Financial terms were not disclosed.
"PuraGraft takes great pride in delivering an exceptional customer experience to oral surgeons, periodontists, and other doctors placing implants with a robust product line specifically designed to address this specialty segment. We are excited to support the continued growth of PuraGraft with the PuraGraft team, management, and business partners as a part of our broader global portfolio." Dave Sproat, Young Innovations CEO.
PuraGraft is advised by BRG Capital.
DCC Health and Beauty Solutions, which manufactures a diverse range of nutritional, cosmetic and pharmaceutical products, agreed to acquire Ion Laboratories, a provider of contract manufacturing and related services to the growing health supplements and nutritional products market in the US, for $60m.
"DCC Health & Beauty Solutions provides high-quality services to leading health and beauty brand owners, specialist retailers, and direct sales organizations. The acquisition of Ion significantly enhances our presence in the US market, and Ion will work closely with both Elite One Source and DCC Health & Beauty Solutions' European businesses to cross-sell the full breadth of the Group's comprehensive offering for health & beauty brands." Donal Murphy, DCC Chief Executive.
DCC Health and Beauty is advised by Powerscourt.
BBM Logistica, one of the logistics operators of road transport in Mercosul, agreed to acquire Translovato, a provider of less than truck-load services. Financial terms were not disclosed.
"The logistics sector is sizeable and fragmented in Brazil, with more than BRL140bn ($33.6bn) annual revenues and not a single player with more than 5% share. There is significant room for growth and consolidation. With the combination of organic expansion and selected acquisitions, maintaining our focus on complete solutions to our clients, we can double our revenues each three to five years during consecutive cycles," Andre Prado, BBM CEO.
BBM is advised by Tamer.
Five Points Capital-led consortium completed the acquisition of GrammaTech. (FS)
Five Points Capital-led consortium completed its acquisition of GrammaTech, a developer of software-assurance tools and advanced cybersecurity solutions. Five Points capital partnered with Pleasant Bay Capital, Crescendo Capital, Capital Southwest Corporation for this acquisition. Financial terms were not disclosed.
"GrammaTech's founders, Tim Teitelbaum and Thomas Reps, positioned the company well for continued expansion in the growing application-security market. We are excited to build on that foundation and to take advantage of the many opportunities available to GrammaTech." Mike Dager, GrammaTech new CEO.
Henkel to acquire DevaCurl from Ares Management. (FS)
Henkel, which manufactures industrial, commercial, and consumer chemical products, agreed to acquire DevaCurl, a premium professional haircare brand, from Ares Management. Financial terms were not disclosed.
"This acquisition is part of our strategy to expand our position in attractive and fast-growing markets and categories. It will complement and further strengthen our Professional Hair business," Hans Van Bylen, Henkel CEO.
Quality Power Solutions, a manufacturer of power transmission equipment, agreed to acquire Access Power, a provider of internet services. Financial terms were not disclosed.
The acquisition gives Quality Power Solutions an additional support hub, to further grow their UPS and backup power services. The expansion into Minnesota and the Dakotas with local technicians on staff will allow Quality Power Solutions to serve the Midwest better and provide premium UPS service more efficiently to customers.
"We are extremely excited to announce our acquisition of Access Power. We look forward to growing our premium UPS service in Minnesota and surrounding areas and will continue the uninterrupted power service mission that Access Power was founded on," Mike Bergum, Quality Power Solutions Director of Sales.
Access completed the acquisition of EDM Americas' RIM Business.
Access, the privately-held records and information management company, completed the acquisition of the RIM Business of EDM Americas, the US information management company. Financial terms were not disclosed.
"The sale of our RIM business provides evidence of our continued focus on building and strengthening our market-leading positions in digital mailrooms and scanning services, outbound print solutions, and innovative digital solutions which help our customers better connect with and serve their customers. We aim to grow our business through these digital transformation offerings and remain confident in our ability to strengthen our market-leading position," Jimmy Eyerman, EDM Americas President.
The Sterling Group completed the acquisition of Camco Manufacturing's Liquids division. (FS)
The Sterling Group, a Houston-based middle-market private equity firm, through its portfolio company Highline Aftermarket, completed the acquisition of Camco Manufacturing's Liquids division, a nationwide manufacturer of windshield wash, RV antifreeze, and diesel exhaust fluid. Financial terms were not disclosed.
"Over 50 years, the Caine family has built a fantastic Liquids business at Camco, with a reputation for high-quality products and exceptional customer service. We are excited to combine the strengths of the Liquids business with Highline's seven plants and 14 distribution centers to better serve customers nationwide. This combination is a perfect strategic fit and enables Highline's growth ambitions. I welcome Liquids employees and customers to Highline," Darcy Curran, Highline Aftermarket CEO.
Occidental considers $700m sale of Anadarko assets in Colorado.
Occidental Petroleum is soliciting bids for oil and gas properties in Wyoming and Colorado that it acquired when it purchased Anadarko Petroleum, hoping the assets will fetch up to $700m, Reuters reported.
Occidental offered about 200k acres in the Denver-Julesburg Basin of Wyoming and Colorado that produce $66m a year in cash flow, mostly in mineral royalties.
Occidental is advised by RBC Capital Markets.
T-Mobile's chief executive in discussions to become WeWork's new boss. (People)
John Legere, the chief executive of T-Mobile US, is in talks to become the next chief executive of WeWork following the withdrawal of co-founder Adam Neumann. Mr. Legere has administered T-Mobile US for the past seven years and is reportedly one of several candidates for the WeWork job.
The search for a new WeWork chief executive comes after the business accepted a $10bn financing deal from Japanese conglomerate SoftBank.
Walgreens buyout to be a test for bond investors’ appetite. (FS)
KKR’s proposal to acquire Walgreens Boots Alliance sets up a test for debt markets, where a tide of cash has sent borrowing costs lower, but investors have worried about risky deals. The listed pharmacy group carries about $15bn in net debt, accounting for about one-fifth of its enterprise value.
But a private equity-backed takeover would typically entail borrowing far more: when KKR bought Alliance Boots in 2007, the firm leaned on credit markets for as much as 80% of the £11.1bn ($16.4bn) acquisition price.
Cybersecurity firm ForeScout considers a sale.
Cybersecurity company ForeScout Technologies is exploring strategic options, including a possible sale, after activist investors built a stake, Bloomberg reported.
The San Jose, California-based company is working with a financial adviser. A final decision on pursuing a sale has not been made, and the company could decide to remain independent.
Adam Neumann's family considered bidding for Barneys New York. (FS)
WeWork co-founder Adam Neumann’s family office explored investing in Barneys New York during the retailer’s recent bankruptcy, Bloomberg reported.
166 2nd Financial Services, which is led by former Soros Fund Management executive Ilan Stern, reviewed helping finance a bid for the storied US luxury department store operator.
Dean Foods to fill for bankruptcy protection.
Dean Foods said it filed for Chapter 11 bankruptcy protection, months after the owner of TruMoo chocolate milk and Meadow Gold ice creams ended a strategic review and decided to remain as a standalone firm.
The Texas-based firm said it was in talks over a potential sale of its assets with Dairy Farmers of America. Dean Foods has been struggling in recent years as health-conscious US consumers shift to non-dairy and private-label alternatives.
“We continue to be impacted by a challenging operating environment marked by continuing declines in consumer milk consumption,” Eric Beringause Chief Executive Officer.
Hyatt considers bidding for Xenia's $500m Kimpton portfolio.
Hyatt Hotels has emerged as a bidder for a portfolio of Kimpton hotels owned by Xenia Hotels & Resorts, Bloomberg reported. Xenia has received multiple offers for the portfolio, which could fetch about $500m.
"We continue to evaluate opportunities to invest in the growth of our business while maintaining our commitment to reduce our portfolio of owned real estate," Franziska Weber Hyatt spokeswoman.
Brian Link and Sameer Singh named Citi's North America M&A co-heads. (People)
Citigroup said that Brian Link and Sameer Singh would become co-heads of North America mergers & acquisitions effective immediately, Reuters reported.
“These appointments come at a time when North America is driving an even larger share of the global M&A market, including half of all $1bn+ deals and three out of every four mega-deals,” global and regional leaders of Citi’s newly formed Banking, Capital Markets and Advisory group.
MGM looks for investors for MGM Grand and Mandalay Bay Venture. (RE)
MGM Resorts International and MGM Growth Properties are seeking an investor for a joint venture that would own at least two prominent Las Vegas properties, Bloomberg reported.
The duo has solicited interest in the MGM Grand Hotel & Casino and the Mandalay Bay Resort & Casino from investors that have historically bet on gaming properties.
EMEA
Osram requested shareholders to back a $5bn takeover bid from Austria’s AMS, as it said it would cut costs and not pay a dividend after having posted a loss for the fiscal year ending in September, hit by a downturn in the auto industry.
Shareholders have until December 5, 2019, to accept the offer.
In the fiscal year ended in September, Osram posted a $378m net loss, down from a $207m profit in the year-earlier period, Reuters reported.
Bain is advised by Credit Suisse, Goldman Sachs, JP Morgan, Macquarie Group, Kirkland & Ellis, Camarco, and FTI. Osram is advised by Lazard, Perella Weinberg Partners, Freshfields Bruckhaus Deringer, Gleiss Lutz, and Hengeler Mueller. AMS is advised by PwC, Bank of America Merrill Lynch, HSBC, UBS, Herbst Kinsky, Linklaters, Allen & Overy, Schellenberg Wittmer, and Brunswick Group.
AbbVie locked in c.$70bn in orders for what could be a $28bn bond sale to help finance its acquisition of Allergan as investors gather to buy a piece of the most massive bond sale this year.
The drugmaker is capitalizing on some of the cheapest borrowing costs of the year, with risk premiums over Treasuries at the lowest level since October 2018. That should encourage more borrowers to come forward, with investment-grade syndicate desks projecting another $17bn in sales this week on top of AbbVie’s expected offering, Bloomberg reported.
Allergan is advised by Evercore, JP Morgan, Arthur Cox, Slaughter & May, Wachtell Lipton Rosen & Katz, Weil Gotshal and Manges, and Sard Verbinnen & Co. AbbVie is advised by Morgan Stanley, PJT Partners, Kirkland & Ellis, Matheson, McCann FitzGerald, and Abernathy MacGregor Group.
Reverence-backed Advisor Group to merge with Ladenburg Thalmann for $1.3bn. (FS)
Reverence-backed Advisor Group, an independent wealth management firm, agreed to merge with Ladenburg Thalmann Financial Services, a publicly-traded diversified financial services company, for $1.3bn.
"We are confident this transaction will help our advisors accelerate the growth of their businesses while enabling them to benefit from the highly personalized service experience they have always enjoyed, under a very similar multi-custodial, multi-clearing, and multi-brand structure," Richard Lampen, Ladenburg Thalmann Chairman, President, and CEO.
Ladenburg Thalmann Financial Services is advised by Jefferies & Company, Sullivan & Cromwell, and Sard Verbinnen & Co. Reverence Capital is advised by Gladstone Place Partners. Advisors Group is advised by Eversheds, Greenberg Traurig, Kirkland & Ellis, and Haven Tower Group.
Quadrum Capital completed the acquisition of a stake in Royal Sens. (FS)
Quadrum Capital, a nationally operating investment company with offices in the eastern and western Netherlands, completed its acquisition of the stake in Royal Sens, an international producer of high-quality labels for food and non-food packaging. Financial terms were not disclosed.
The acquisition of Royal Sens by Quadrum Capital is in line with the company's long-term growth strategy and enables an accelerated roll-out of Royal Sens's investment plans.
"We have experienced strong growth in recent years and have ambitious investment plans to continue this growth. The choice to sell Royal Sens to Quadrum Capital fits in seamlessly with this. Quadrum Capital shares our long-term vision and brings with it knowledge and financial strength. As Companies, we also share the same core values, with "entrepreneurship, craftsmanship, reliability, and quality. This provides us with the ideal ingredients to further expand Royal Sens's strong position." Jan Geitenbeek, Royal Sens CEO.
Royal Sens was advised by Fortaleza Capital, BarentsKrans, and Amstone. Quadrum Capital was advised by Accuracy, De Breij, Zuidbroek, and Atlas.
BC Partners' €1.2bn ($1.3bn) acquisition of Bulgarian telecom company Vivacom is legally disputed by Empreno Ventures, which is seeking the cancellation of the sale.
BC-backed United Group announced its takeover of Vivacom on November 7, with the acquisition expected to close in the second quarter of 2020. Empreno, which owned 43.3% of Vivacom's former parent company V2 Investment, issued legal proceedings against BC Partners and United Group in the District Court of Luxembourg.
Vivacom is advised by Lazard and CMS. Buyers are advised by Citigroup, LionTree Advisors, Paul Weiss Rifkind Wharton & Garrison and Prosek Partners.
Swedish telecoms operator Telia won conditional EU antitrust approval on Tuesday for its $957m bid for Bonnier Broadcasting, a move allowing it to compete with big internet players such as Netflix and Amazon. The European Commission said Telia had offered a series of concessions to address its concerns, including media plurality in Sweden and Finland, Reuters reported.
Telia pledged to provide rivals with fair, reasonable, and non-discriminatory access to its free-to-air and basic pay-TV channels, as well as to premium pay-TV sports channels in Sweden and Finland, the EU competition enforcer said.
Telia is advised by Lazard, Stella, Castren & Snellman, Mannheimer Swartling, and Brunswick Group. Bonnier is advised by SEB Corporate Finance, Deloitte, and Roschier Attorneys.
Reggeborgh to take Dutch builder VolkerWessels private for $694m. (FS)
Dutch investor Reggeborgh proposed to buy all shares in building company VolkerWessels KVW it does not already own, in a bid with a total value of €630m ($694m).
Reggeborgh has a 63.5% stake in the builder and is now offering other investors €22.2 ($24.5) for each share they own. That bid represents a 25% premium on the closing price of VolkerWessels on October 28, a day before the company first announced the intentions of its majority shareholder and is fully supported by the company's board.
“At the time of the IPO, Reggeborgh’s intention was to become a long-term minority shareholder in VolkerWessels over time. However, circumstances have changed to the extent that we are currently in a situation that it is no longer possible to achieve this objective. The European peer group of VolkerWessels has de-rated, and share prices of Dutch construction companies suffer from additional pressure as a result of increased uncertainty related to environmental regulations," Henry Holterman, Reggeborgh Group CEO.
VolkerWessels is advised by ABN AMRO, ING Bank, and Linklaters. Reggeborgh is advised by Kempen, NIBC, and Allen & Overy.
Mediaset, a mass media company, agreed to acquire an additional 5.5% stake in ProSiebenSat.1, a European mass media company, for $187m, raising its stake to 15%.
"The friendly acquisition of a stake in ProSiebenSat.1 is a long-term choice, aimed at creating value with an increasingly international outlook. It strengthens our existing industrial relationship. Mediaset is proud to invest in the future of free-to-air European television. And it is with the future precisely in mind, that the Mediaset Group, by becoming a shareholder of ProSiebenSat.1, confirms its esteem for the current management," Pier Silvio Berlusconi, Mediaset Chief Executive Officer.
Alberto Nagel and Leonardo Del Vecchio continue battle for Mediobanca. (FS)
Mediobanca’s boss Alberto Nagel, 54, and Leonardo Del Vecchio, who in less than two months has become the bank’s top investor, are squaring off in a battle for control that is rattling the world of Italian finance.
At stake is the future direction of Mediobanca, a venerable institution more than seven decades old. Billionaire tycoon Del Vecchio says Mediobanca should reduce its focus on consumer finance and instead of beef up its traditional investment banking business through acquisitions.
Nagel said he would look for mid-sized acquisitions and did not rule out a more significant deal in wealth management, which he said could be funded through a sale of the bank’s stake in insurer Generali. Under a new business plan to 2023, the bank also pledged to return up to €2.5bn ($2.8bn) to shareholders via dividends and share buybacks, up from €1.6bn ($2bn) in the past four fiscal years.
South Africa's Telkom considers new acquisition.
South Africa's Telkom said it was in discussions over a potential acquisition even as a spike in debt costs pushed half-year profits down by more than a third.
The company, 40% owned by the state, has been investing heavily in its mobile business to drive growth, but also adding to a debt burden. Telkom said in a stock exchange announcement it was in discussions concerning a potential acquisition - one move that it has previously warned could cause push debt up further.
"We are always on the lookout for the right asset at the right price. We have taken a view growth in data will continue unabated," Sipho Maseko, South Africa's Telkom CEO.
Cerberus pressures Deutsche Bank to remove chairman. (FS) (People)
Cerberus, the third-largest investor in Deutsche and a paid adviser to the bank, has been a leading voice of dissent, as investors in Deutsche Bank are calling for the removal of its chair Paul Achleitner, who has presided over years of costly restructurings and high share price falls at the German lender.
The private equity firm Cerberus and other shareholders — including fund managers at JP Morgan and Black Rock — have taken a negative view of Achleitner's performance and want him to stand down from the board before his term ends in 2022.
APAC
FWD, life and medical insurance agent, agreed to purchase Vietcombank-Cardif Life Insurance, a life insurance joint venture between Vietcombank and BNP Paribas Cardif. The transaction is subject to regulatory approvals. Financial terms were not disclosed.
"WD Vietnam - the unit assigned by FWD Group to directly implement the partnership - has a prominent advantage in digitalizing all business processes, with a solid strategy of developing diversified, simple and suitable products for each customer segment that aligns with the Digital Banking Transformation and Retail Banking Operation Development Strategy of Vietcombank," Nghiem Xuan Thanh, Vietcombank’s Chairman.
FWD Group is advised by Sard Verbinnen & Co.
Unison, an independent private equity firm with operations in Japan, Korea, and Singapore, agreed to acquire Kyowa, which develops, manufactures, and sells branded and generic pharmaceutical products, from Lupin, a pharmaceutical company, for $526m.
"We are very pleased to partner with Unison, a leading healthcare-focused private equity player. This transaction will build upon the strong foundation our team has established in Japan. We acquired Kyowa in 2007, and since then, have made a material difference to the Japanese healthcare system with the affordable medicines we brought to the market. This transaction is aligned with our vision to focus on our key markets and strategic priorities to achieve sustainable growth in the mid to long-term. The deal proceeds will be utilized to strengthen Lupin's balance sheet as well as provide growth capital to support organic and inorganic initiatives for our focus markets". Vinita Gupta, Lupin CEO.
Lupin is advised by Nomura. Unison is advised by Jefferies.
Hyundai Development, a comprehensive real estate services provider, agreed to invest $1.7bn in Asiana, a provider of air cargo, and passenger transportation services. Shares in Asiana jumped 7.7% following the announcement.
South Korean airlines are struggling to be profitable and keep a lid on debt as they deal with rising competition from budget rivals, falling tourism traffic between South Korea and Japan, higher fuel costs, and unfavorable currencies.
Vodafone considers pulling out of India after court ruling.
UK-based mobile giant Vodafone reported a loss of £1.6bn ($2bn) after a ruling by India's top court threatens to land it with huge fees and penalties. The firm has described it as a critical situation and warned it could pull out of the country, where it is the largest foreign direct investor. The court judgment against the telecoms industry relates to a decade-long battle over the calculation of license and other regulatory fees.
"In October, the Supreme Court in India ruled against the industry in a dispute over the calculation of license and other regulatory fees, and Vodafone Idea is now liable for very substantial demands made by the Department of Telecommunications in relation to these fees. We are actively engaging with the government to seek financial relief for Vodafone Idea," Nick Read, Vodafone Chief Executive Officer.
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