Banking M&A Digest #83 (16.7.2020)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

GoHealth, a Chicago-based online broker of health insurance, has raised USD 913.5 million in an IPO. The IPO gives it a valuation of close to USD 6.6 billion, while only 10 months ago Centerbridge Partners invested in it at a USD 1.5 billion valuation.

Source: Reuters

Petershill, a unit of Goldman Sachs that invests in alternative investment firms, has acquired a stake of “below 10%” in Permira, a private equity firm. The deal is said to value Permira at more than EUR 5 billion. 

Source: Reuters

NIBC, a Dutch bank, has agreed to a proposed takeover by Blackstone despite the lowered bid in light of the Covid-19 pandemic. The revised bid values NIBC at just over EUR 1 billion vs EUR 1.36 billion previously.

Source: Reuters

Sul America, a Brazilian insurer, has concluded a sale of its auto unit and other businesses to Allianz, a German insurer, for USD 597 million. The deal was originally announced in August 2019.

Source: Reuters

Deals On The Table

Cattolica Assicurazioni, an Italian insurer, is said to have agreed to tender all of its shares in UBI Banca, an Italian lender, to the takeover bid launched by Intesa Sanpaolo. Cattolica raised its stake in UBI to 1% in late February 2020.

Source: Reuters

The Italian government is said to be expecting to exit its 68% holding in Banca Monte Dei Paschi di Siena (a lender founded in 1472 and rescued by the government in 2017) by 2021. The government paid EUR 6.48 a share for its stake while the current stock price is EUR 1.54 per share.

Source: Bloomberg

Metrics To Watch

Citigroup’s shares have tumbled by 1/3 since February 2020 and are trading at 6.5x times its 2019 earnings.

Source: FT

Oldenburgische Landesbank, a German lender owned by a consortium including Apollo (a US private equity house), reported a return on equity of 10.4% in 2019 making it one of the few German banks to earn its cost of capital (estimated at 10%). While the bank still has 126 branches and retail generates 1/2 of its revenues, 20% now comes from specialised lending such as financing takeovers, commercial real estate and shipping.

Source: FT

Up-and-Comers

Root, a US-based insurtech specialising in motor insurance, is said to be in talks to raise USD 1 billion from investors and could be looking at a potential IPO following the success of the Lemonade floatation in early July 2020.

Source: FT

Exciting Numbers

The US biggest listed health insurers – UnitedHealth Group, Cigna, Anthem and Humana – have collectively added about USD 160.5 billion to their market values since late March 2020.

Source: FT

In Q1 2020 Robinhood users traded 9x times as many shares as E-Trade customers and 40x times as many shares as Charles Schwab customers, per dollar in the average customer account. 

Source: WSJ

A Thought Worth Noting

“May and June will prove to be the easy months in terms of this recovery. Now we’re really hitting the moment of truth in the months ahead.”

Jennifer Piepszak, CFO, JPMorgan

 

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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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