Banking M&A Digest #89 (27.8.2020)

Posted by

DIGEST_photo_1920x1080_02_5

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. 

Source: Reuters

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.

Source: Bloomberg

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. 

Source: Reuters

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.

Source: FT

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.

Source: Reuters

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. 

Source: Bloomberg

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.

Source: FT

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.

Source: Bloomberg

RBL Bank, an Indian lender, is said to be planning to raise USD 209 million by issuing shares to 5 investors. 

Source: Bloomberg

The Money Trail

Goldman Sachs is said to be considering raising a venture and growth fund of around USD 2 billion in 2021.

Source: Bloomberg

Exciting Numbers

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.

Source: WSJ

Financial Lingo

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.

Source: FT

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

 

To receive your personal weekly copy of Banking M&A Digest please subscribe at http://eepurl.com/gepqdP

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s