Corporate Financier’s Notes by Aivars Jurcans
Done! And Done
Allied Irish Bank has bought back Goodbody Stockbrokers, a provider of wealth management, corporate finance and capital markets services, for EUR 138 million. It had been forced to sell it for around EUR 24 million in 2011 as part of a state bailout. The state still holds a 71% stake in the lender.
Oscar Health, a health insurance company, has raised about USD 1.4 billion in an IPO. The company would have a market capitalisation of USD 7.9 billion at that share price level. In 2020, Oscar Health recorded losses of more than USD 400 million on revenues of about USD 460 million.
The UK government has completed a GBP 5 billion final sale of Bradford & Bingley and NRAM, the mortgage lenders which were nationalised after the 2008 financial crisis, to a consortium comprising Davidson Kempner Capital Management and Citibank.
Deals On The Table
UBS, a Swiss lender, is said to be discussing buying another 16% of shares in its Chinese securities unit from Guandong Transportation Group and China Guodian Capital Holdings. The transaction would increase UBS shareholding to 67%.
PayPal is said to be in talks to acquire Curv, a startup which helps companies transfer and store digital currencies.
MetLife, a US life insurer, is said to be exploring options, including sale, for units in Greece, Poland and the Ukraine. The businesses could be valued at more than EUR 500 million.
State Bank of India is said to be preparing its mutual fund JV for an IPO. The lender is expected to raise about USD 1 billion form the offering; the mutual fund which has USD 68.4 billion of assets under management is said to be currently valued at about USD 7 billion.
Robinhood, an online brokerage, is said to be planning to file confidentially for an IPO (which could value it at more than USD 20 billion) as soon as March 2021.
Ares Management, a US investment manager, is said to be planning to buy 60% of the private markets business of AMP Capital, an asset management arm of AMP, for USD 1.06 billion.
In valuation terms, the constituents of the S&P 500 index trade on a multiple of a price to expected earnings over the next 12 months of 22.1x times, according to FactSet. The financials are the cheapest main group within the index at 14.6x times.
A Thought Worth Noting
“The demands for cyber security, technology, and contactless payment systems over the next 3 years require scale, and large US banks will acquire fintech businesses and transform their models.”
Lisa Shalett, chief investment officer, Morgan Stanley Wealth Management
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