Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Munich Re’s Ergo unit has acquired a 24.9% stake in Taishan Property & Casualty Insurance through a capital increase.
Deals On The Table
Banco Indusval, a Brazilian mid-sized lender, is said to be planning to delist from the highest governance section of the stock exchange and make a tender offer to its minority shareholders.
Massachusetts Mutual Life Insurance Company is said to be exploring a sale of its retirement services division. The division has about USD 175 billion of assets under management and administration and could fetch about USD 2 billion.
Thanks, But No Deal
Amigo Loans, a UK subprime lender providing guarantor loans to borrowers with bad credit histories, has ended its sale process after an unnamed potential acquirer that offered GBP 100 million for Amigo had withdrawn from the process.
Apollo Global Management, a US asset manager, is said to be considering to exit its investment in Aion Capital Partners, a JV with ICICI Bank, an Indian lender, over the next few years. Aion had assets under management of USD 660 million on 31 March 2020.
Metrics To Watch
Deutsche Bank expects that its 2020 credit losses will range between 35bps and 45bps of its loan book; that is up from 17bps in 2019.
Follow The Money
PayPal has made an investment in GoPay, a fintech arm of Gojek (an Indonesian payment, food delivery and ride-hailing app operator). The size of the investment was not disclosed but according to a regulatory filing PayPal owns 0.6% of GoPay.
The amount of debt in the eurozone that is considered unlikely to ever be fully repaid already stands at more than EUR 0.5 trillion, including credit cards, car loans and mortgages.
The so-called “insurtech” companies raised just over USD 1 billion in 2019, according to CB Insights.
A Thought Worth Noting
“Under current circumstances, when the world came to a full stop in a month, there is no such thing as doing too much. If there is inflation, that is a small price to pay. The big social-political-economic problem is the loss of jobs and income.”
Carl Weinberg, chief economist, High Frequency Economics
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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.