Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
ConsenSys, a Brooklyn-based tech startup, has acquired Quorum, the JPMorgan Chase’s blockchain platform. The financial terms of the deal were not disclosed.
Shanghai International Trust has agreed to sell its 49% stake in China International Fund Management, a mutual fund business, to its counterpart JPMorgan Chase for USD 1 billion. The price is a 51% premium over the appraised value of the stake.
Afterpay, Australia’s buy-now-pay-later company, has agreed to buy Pagantis, its Spanish peer, from NBG Corporate SLU for a minimum consideration of EUR 50 million.
Administrators of Wirecard, the collapsed German payments company, have agreed to sell the remnants of its UK business to Railsbank, a UK startup backed by Visa. The deal would involve Wirecard’s UK payment card technology, clients and some staff. The financial terms of the deal were not disclosed.
Waterdrop, a Chinese online insurance technology platform (founded in 2016), has raised USD 230 million in a new funding round led by Swiss Re, a reinsurer. It is said that Waterdrop was valued at nearly USD 2 billion in the funding round and that Swiss Re itself had invested USD 100 million.
Deals On The Table
MetLife, a US insurer, and AMMB Holdings, a Kuala Lumpur-listed company, are said to be “exploring options” for AmMetLife Insurance, their Malaysian life insurance business. Potential transaction is expected to fetch as much as USD 600 million.
Ant Group is expected to trade at a 25x to 30x times earnings multiple and is aiming at a valuation of USD 200 billion to USD 300 billion in its dual-listing in Hong Kong and Shanghai.
South Street Securities, a firm that specialises in borrowing and lending via repurchase agreements, is said to be exploring strategic options including a possible sale. The company, which has projected 2020 revenue of about USD 104 million, is expected to fetch more than USD 300 million.
RBL Bank, an Indian lender, is said to be planning to raise USD 209 million by issuing shares to 5 investors.
The Money Trail
Goldman Sachs is said to be considering raising a venture and growth fund of around USD 2 billion in 2021.
According to UBS research, the European Central Bank is currently buying between EUR 9 billion and EUR 10 billion of investment-grade corporate bonds a month as part of its bond-buying program.
Reversal rate – a rate below which it becomes more attractive to hold physical cash than to deposit money in a bank and at which point lending is subdued and starts to fall.
A Thought Worth Noting
“Absent a forceful policy response, the current pandemic is likely to put substantial pressure on [European] banks’ profitability due to rising loan-loss provisions and defaults, at a time when euro area banks’ profitability is already depressed, mostly due to structural reasons.”
Isabel Schnabel, board member, European Central Bank
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