Banking M&A Digest #119 (1.4.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

An affiliate of Carlyle Aviation Partners, an aviation investment arm of Carlyle Group, has agreed to buy Fly Leasing, an aircraft leasing company, for an enterprise value of USD 2.36 billion. Fly Leasing manages a fleet consisting of 84 aircraft.

Source: Reuters

CVC Capital Partners, a private equity firm, has agreed to buy 90% of National Bank of Greece insurance business. CVC Capital will pay an amount that values the entire Ethniki unit at EUR 505 million. That includes an earn-out payment of up to EUR 120 million which will be subject to meeting some agreed performance targets.

Source: Bloomberg

Aviva, a UK insurer, has agreed to sell its Polish business to Allianz for EUR 2.5 billion. The deal involves the sale of life and non-life insurance, pensions and asset management businesses and is expected to double Allianz revenues in Poland.

Source: FT

Sovcombank, a Russian lender, has agreed to buy shares in Vostochny Bank, another Russian lender, from Baring Vostok and Finvision. The financial terms of the deal were not disclosed, except that the deal took place “on market conditions”.

Source: FT

Deals On The Table

XP Inc, a Brazilian brokerage, is said to be in discussions to buy a minority stake in AZ Quest Investimentos, an asset manager with USD 2.88 billion under management. AZ Quest is majority owned by Italy’s Azimut Holding. 

Source: Bloomberg

Ripple Labs, a crypto firm, is said to be planning to take a 40% stake in Tranglo, an Asian cross-border payments specialist. Based in Malaysia, Tranglo has processed over 20 million transactions totalling USD 4 billion in value since its inception.

Source: Bloomberg

Societe Generale is said to be in “advanced talks” with both Amundi and State Street to sell Lyxor, its asset management unit. Lyxor is said to be valued at about half the EUR 1 billion it was targeting, with bidders willing to offer about EUR 400-500 million only due to “growth challenges and fallout from the coronavirus crisis”.

Source: Reuters

Banco Santander, a Spanish lender, is said to be willing to offer to buy the 8.3% stake in its Mexican unit it doesn’t already own. The total transaction value could amount to about EUR 550 million.

Source: Reuters

Thanks, But No Deal

Creval, an Italian regional bank, said a takeover offer by Credit Agricole Italia was “a good strategic move, but the price should be at least 23% higher”. Credit Agricole had said in November 2020 that it would spend EUR 737 million to expand its presence in Italy’s consolidating banking sector.

Source: Reuters

Up-and-Comers

Lendable, a fintech providing personal loans on behalf of institutional investors, has been valued at more than GBP 1 billion when insiders sold shares in a secondary sale.

Source: FT

Exciting Numbers

UK consumers have lost more than GBP 135 million in 2020 to increasingly sophisticated deceptions often involving websites of investment providers and private banks.

Source: FT

A Thought Worth Noting

“If taking deposits and granting loans is the only business you have and interest rates are negative it will not be sustainable.”

Gonzalo Gortazar, chief executive, CaixaBank

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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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