Banking M&A Digest #71 (23.4.2020)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Standard Chartered and PT Astra International, an Indonesian conglomerate, have agreed to sell their stake in PT Bank Permata, an Indonesian lender, to Bangkok Bank at a reduced price. The purchase price has been adjusted from 1.77x times Permata’s book value down to 1,63x times. StanChart expects to receive a consideration of about USD 1.06 billion (down from USD 1.3 billion estimated before) from selling its 44.56% stake. 

Source: Reuters

“Mayday”

Land and Agricultural Bank of South Africa, a state-owned lender founded in 1912, has been experiencing a “liquidity shortfall” and is said to be negotiating with its creditors to avoid immediate repayment demands on its borrowings. The bank is responsible for more than a 1/4 of lending to South Africa’s farming sector. 

Source: FT

Follow The Money

Bank of China Aviation, a Singapore-based aircraft leasing company, will buy and lease back to United Airlines on long-term agreements 6 Boeing 787-9 aircraft and 16 Boeing 737-9 MAX aircraft. BOC Aviation had a fleet of 567 planes owned, managed or on order at the end of March 2020.

Source: Reuters

Up-and-Comers

Robinhood Markets, an online brokerage, is said to be raising about USD 250 million at a pre-money valuation of about USD 8 billion. It was valued at USD 7.6 billion after a round of funding in July 2019. 

Source: Bloomberg

Exciting Numbers

The 11,413 M&A transactions worth USD 767 billion announced for 2020 to date are the lowest level since 2013, according to Refinitiv.

Source: FT

Total non-performing loans (NPLs) in the biggest 121 eurozone banks had almost halved in 4 years to EUR 506 billion, or 3.2% or their loan books, by the end of 2019. But Greek, Cypriot, Portuguese and Italian banks still have NPL ratios above 6.0%.

Source: FT

A Thought Worth Noting

“Over the past 5 years, companies could do everything, dividends, share buybacks and M&A, That is no longer the case. Now it is going to be about capital allocation, do investors like you, and do you have a good record on M&A.”

Blair Effron, Centerview Partners

 

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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.

Design by Artis Briedis, Photo by Joe Taylor on Unsplash

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