Banking M&A Digest #41 (12.9.2019)

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Corporate Financier’s Notes  

by Aivars Jurcans

Done! And Done

Government of Serbia has agreed to acquire 34.58% of shares in Komercijalna Banka from the European Bank for Reconstruction and Development and the International Finance Corporation. After the transaction the government will own 83,23% of the ordinary shares. 6 potential buyers are said to have expressed interest in privatisation of Komercijalna with non-binding bids due in September. 

Source: Reuters

Prudential Financial has agreed to acquire Assurance IQ, an insurtech which uses data science and machine learning to speed up the application process and sells insurance policies, for USD 2.35 billion. 

Source: Reuters

Deals On the Table

HSBC is said to be preparing to dispose of it money-losing French retail unit. HSBC France has around 300 branches, 800,000 customers and 2% market share in retail deposits and lending.

Source: WSJ

Yes Bank, an Indian lender, is said to be in “advanced level of talks” to sell “a minority stake” to “a global technology company” to strengthen its capital base. Yes Bank’s common equity tier 1 capital stood at 8%, marginally above the regulatory requirement of 7.375%, at the end of June.

Source: Reuters

The parent company of Equity Bank, a Kenya’s lender, has entered into a non-binding agreement to acquire  a controlling stake in Banque Commerciale du Congo, the 2nd largest lender in the Democratic Republic of Congo. BCDC is 25%-owned by the Congolese government and had total assets of USD 706 million at the end of 2017.

Source: FT

Tokyo Century Corp intends to acquire the 75.5% stake it does not already own in Aviation Capital, a US aircraft leasing company, from Pacific Life Insurance for about USD 3 billion and to turn Aviation Capital into a wholly-owned subsidiary.

Source: Reuters

Banco do Brasil, a Brazilian state-controlled lender, is said to be “in advanced talks” with UBS about an investment banking JV by combining BB BI, the Banco do Brasil’s investment banking unit, with UBS’s Brazil division. No payment is expected in the deal.

Source: Reuters

Thanks, But No Deal

Reliance Capital is said to have called off a sale of its general insurance unit to Hero Fincorp. Both parties had been reported as discussing the deal at a valuation of USD 860 million.

Source: Bloomberg

Up-and-Comers

Grab, a ride hailer, is said to be in talks to merge OVO, an Indonesian digital payments firm it owns shares in, with DANA, a local peer backed by Ant Financial, with a view to power ahead of Gojek, its arch-rival. 

Source: Reuters

Exciting Numbers

Hong Kong Exchanges & Clearing unsolicited offer to buy London Stock Exchange at 26x times forward multiple of enterprise value to ebitda.

Source: FT

The 12 biggest US and European investment banks generated USD 76.8 billion in revenue from their trading and advisory operations during the 6-month period, down 11% from 2018.

Source: FT

A Thought Worth Noting

“I don’t think you’ll have zero interest rates in the United States but we’re thinking about how do we be prepared for it.”

Jamie Dimon, CEO, JPMorgan Chase

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Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.

Photo by Joe Taylor on Unsplash

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