Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Sea Ltd, a Singapore tech startup, has acquired PT Bank Kesejahteraan Ekonomi, an Indonesian lender. The details of the deal were not disclosed. Sea raised almost USD 3 billion in a stock offering in December 2020 to be spent on business expansion.
Deals On The Table
SoFi, an online lender, is said to go public in a USD 8.7 billion deal with Social Capital Hedosophia V, the 5th special purpose acquisition company set up by Chamath Palihapitiya and Ian Osborn. SoFi projects about USD 1 billion of adjusted net revenue in 2021.
Source: FT, WSJ
NCR Corp is said to have offered to buy Cardtronics, a manager of a network of 285,000 ATMs across 10 countries, for more than USD 1.7 billion in an all-cash deal.
Thanks, But No Deal
Visa has called off its deal to buy Plaid, a fintech startup, for USD 5.3 billion after the US Department of Justice sued to block the transaction on antitrust grounds.
Walmart, a US discount retailer, is said to be partnering with Ribbit Capital, a venture capital firm which backs Robinhood (a stock trading platform), and Credit Karma, a personal finance startup, to create a new fintech firm.
Bakkt Holdings, a cryptocurrency platform majority-owned by Intercontinental Exchange, is said to have plans to go public through a merger with VPC Impact Acquisition Holdings (a blank-cheque firm). The deal values Bakkt at approximately USD 2.1 billion.
Large US banks’ excess capital stands on average, at 18% of their market capitalisation, suggesting they could buy back a meaningful proportion of their own shares.
A Thought Worth Noting
“A 3% cost of funds and a 6% return on a mortgage? Those days aren’t coming back. How do you grow customers? Not on price – the cost of capital is already zero. Not on service – you can’t compete with Apple or Google.”
Dave Ellison, portfolio manager, Hennessey Funds
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