Banking M&A Digest #90 (3.9.2020)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

IRB Brasil Resseguros, a Brazilian reinsurer, has completed a private capital raising exercise by selling USD 11 million worth of shares at an auction on the Sao Paulo stock exchange to an existing shareholder.

Source: Reuters

IOOF Holdings has agreed to buy the financial advisory arm of National Australia Bank for USD 1.1 billion. The price is said to be lower than the book value. 

Source: Reuters

Deals On The Table

China Post Life, a life insurance arm of China Post Group, is said to be seeking to raise about USD 2.2 billion from investors. The company is seeking a valuation of no less than its book value.

Source: Bloomberg

BV (formerly known as Banco Votorantim), a bank controlled by Votorantim Group and Banco do Brasil, is said to have relaunched its plan to list on the Sao Paulo stock exchange through an IPO (after halting the process in March due to coronavirus pandemic). The original plan involved raising about USD 898 million.

Source: Reuters

Sayonara

23 Capital, a lender to the football and entertainment industries backed by George Soros, is said to be winding down its USD 1 billion loan book. 

Source: FT

Up-and-Comers

Nuvei, a Montreal-based supplier of payment technology to the sports betting industry as well as to other vendors, has filed for an IPO in Canada. The company was valued at USD 2 billion in December 2019 when it raised USD 270 million in equity.

Source: Bloomberg

Exciting Numbers

US government debt held by the public is projected to reach or exceed 100% of US gross domestic product for the 12 months ended September 30, a milestone not hit since World War II.

Source: WSJ

There are now 488 private companies valued at more than USD 1 billion – unicorns in Silicon Valley parlance – up from 315 this time in 2019.

Source: FT

According to Citigroup, the average European bank will make a return on tangible equity of barely 2% this year and 5% next. Even in the US ROTE projections for 2020-21 average only 10%.

Source: FT

A Thought Worth Noting

“We’re still in an environment where anything with a yield is an easy sell.”

Richard McGuire, strategist, Rabobank

 

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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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