Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Finablr, a UAE payments company, has agreed to a takeover from Prism Advance Solutions, a company co-founded by Guy Rothschild. The transaction is expected to provide Finablr working capital and let the group to restructure its debts.
Social Capital Hedosophia III, a blank cheque company owned by Chamath Palihapitiya (a former Facebook executive), has agreed to merge with Clover Health, an insurance company backed by Google, in a USD 3.7 billion deal. Launched in 2013, Clover provides insurance services to about 50,000 elderly people via the US government-backed plan Medicare.
Nexi, an Italian payments firm, has agreed on a merger with SIA, its rival, to create a group with EUR 1.8 billion in annual revenue. The all-share deal gives SIA an equity value of EUR 4.6 billion and will hand Nexi about 70% of the merged company.
Banca Monte dei Paschi di Siena, an Italian lender, has agreed on a EUR 8 billion sale of bad loans to Amco, a state-owned asset manager.
NEC has agreed to buy Avaloq Group, an unlisted Swiss financial software company, for USD 2.2 billion. Avaloq which provides financial asset management software reported sales of USD 664 million in 2019.
Goldman Sachs has agreed to buy General Motor’s credit card business in a transaction valued at about USD 2.5 billion.
Sydbank, a Danish lender, has agreed to buy Alm.Brand Bank, its rival, for USD 289 million, which is equal to 95% of book equity.
Deals On The Table
Nexi is said to have made a non-binding bid for Nets, a Danish payments firm. A group led by Hellman & Friedman, a US buyout firm, bought Nets for about USD 5.2 billion in a deal completed in 2018.
Sampo, a Finnish investment company, is said to possibly consider selling its stake in Nordea Bank, a Nordic lender, in “the coming years”. Sampo holds a 19.9% stake in Nordea and is the largest shareholder in the bank.
Unicaja and Liberbank, two Spanish lenders, are said to be holding “informal talks” about a potential tie-up to create the country’s 5th biggest lender with total assets of over EUR 100 billion.
LV, a life insurer, is said to be in exclusive talks with Bain Capital, a private equity firm, over a deal that could value the company at more than GBP 500 million.
AmeriHome, a mortgage lender, is said to have filed for a US IPO. The size of the offering was not disclosed.
The Money Trail
HPS Investments, a US specialist debt investment group which manages USD 65 billion in assets, has completed fundraising for its latest USD 9 billion “mezzanine” debt fund. HPS is one of the few who can single-handedly underwrite loans as large as USD 1 billion.
Macy’s, a US department store chain, is said to be taking “a small stake” in Klarna, a Swedish buy-now pay-later group valued at USD 10.6 billion, as part of a partnership that would allow its customers to split up online purchases into 4 interest-free payments.
The collective wealth of billionaires globally hit USD 10.2 trillion in summer of 2020, according to UBS, exceeding the previous high set in 2017. The total number of billionaires reached 2,189, up from 2,158 in 2017.
A Thought Worth Noting
“All central banks around the world are facing a lot of pressure for liquidity. Now is not the time to hoard gold, the hospitals need money.”
Bernard Dahdah, analyst, Natixis
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