Banking M&A Digest #111 (4.2.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Payoneer, an online payments firm used by Airbnb and Amazon, has agreed to go public by merging with FTAC Olympus Acquisition Corp, a blank-cheque firm. The deal values Payoneer at USD 3.3 billion. The firm expects to collect USD 432 million in revenue in 2021.

Source: Bloomberg

Cairn Capital, a London-based firm owned by Mediobanca (an Italian lender), has agreed to acquire Bybrook Capital, a distressed debt firm, for an undisclosed amount. The deal will add USD 2.5 billion in assets under management and the combined entity will manage a total of USD 8 billion across public, private, credit and debt markets.

Source: FT

Goldman Sachs has increased its holding in MONETA Money Bank, a Czech lender, from 3.22% to 10.45%. The increase makes Goldman MONETA’s biggest shareholder.

Source: Reuters

Deals On The Table

Houlihan Lokey, an investment bank, and Saddle Point Management, an investment firm, are said to be planning to raise USD 250 million through a blank-cheque acquisition vehicle.

Source: Reuters

Eliott, an activist investor, is said to be pushing Sampo, a Finnish financial group, to sell its 15.9% stake in Nordea, a Nordic bank, by the end of 2021. It claims that the deal is expected to create more than USD 8 billion in value for Sampo’s shareholders. 

Source: FT

Prudential is said to be planning to demerge Jackson, its US business, directly to shareholders in Q2 2021 and raise up to USD 3 billion of fresh equity. Prudential is expected to retain a 20% stake in Jackson. 

Source: FT

Coinbase, a cryptocurrency exchange, is said to be planning to list on the stock market via a direct listing. Coinbase claims having more than 43 million users in more than 100 countries.

Source: Reuters

Thanks, But No Deal

Canadian Imperial Bank of Commerce is said not to proceed with the planned USD 797 million sale of a stake in its Caribbean unit after regulators rejected the deal. The deal valued FirstCaribbean at about USD 1.2 billion, less than half of its USD 2.8 billion value when CIBC took over most of the business. 

Source: Bloomberg

Metrics To Watch

Banco Santander, a Spanish lender, trades at 0.5x times tangible book value compared with Lloyds at 0.6x, BNP Paribas at 0.5x and Barclays at 0.4x.

Source: FT

Julius Baer, a Swiss private bank, is trading at 3.4x times its tangible book value. Its cost-to-income ratio fell to 66.4% in 2020, down almost 5 percentage points. 

Source: FT

Commerzbank, a German lender, is aiming to lift its return on tangible equity to between 6.5% and 7.0% by 2024.

Source: FT

Up-and-Comers

Nubank, a Brazilian neobank, has raised USD 400 million from investors led by GIC, a Singapore’s sovereign wealth fund.

Source: FT

Exciting Numbers

Global corporate debt issuance surged to USD 5.4 trillion in 2020, according to data provider Refinitiv.

Source: FT

A Thought Worth Noting

“We cannot control, however, the lightning-fast spread of information and misinformation that takes place on social media.”

Vlad Tenev, co-founder, Robinhood

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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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