Banking M&A Digest #123 (29.4.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

New York Community Bancorp has agreed to buy Flagstar Bancorp, another US regional bank, in an all stock deal for USD 2.6 billion.

Source: Reuters

AZA Finance has agreed to buy South Africa’s Exchange4Free to become the biggest non-bank provider of currency exchange and treasury services in Africa. The value of the deal was not disclosed.

Source: Bloomberg

Peel Hunt, a UK broker, has struck a deal with Santander, according to which the bank will underwrite transactions for the broker.

Source: FT

Piraeus Bank, a Greek lender, has raised almost EUR 1.4 billion from investors reducing the Greek government’s stake from 61% to 27%. The proceeds will be used to reduce the non-performing loans from 45% in 2020 to less than 10% in the next 12 months and to 3% by the end of 2024.

Source: FT

Allfunds, a Spanish fund distribution platform, raised EUR 1.9 billion in an initial public offering on Euronext Amsterdam. The firm was valued at EUR 7.2 billion when it was priced. 

Source: FT

Deals On The Table

Vienna Insurance Group is said to be discussing adding a Hungarian partner to its proposal to buy Aegon NV’s eastern European arm for EUR 830 million to overcome government resistance to the deal. 

Source: Bloomberg

NN Group, a Dutch insurer, is said to be considering a sale of NN Investment Partners, its asset management division, which has about EUR 300 billion in assets under management. 

Source: FT

Credit Suisse is said to be raising USD 1.9 billion of capital from investors to rebuild its balance sheet after the back-to-back crises involving Archegos Capital and Greensill Capital.

Source: FT

Thanks, But No Deal

Hartford Financial Services, a US insurer, is said to have rebuffed 2 additional unsolicited takeovers from Chubb, its rival, the highest of which valued the company at USD 25 billion.

Source: FT

Metrics To Watch

Deutsche Bank’s return on tangible shareholder equity stood at 7.4% in Q1 2021 and was close to its 8% target for 2022.

Source: FT

UBS reported a return on tangible equity for Q1 2021 of 14%. 

Source: FT

HSBC’s return on tangible equity rose 6 percentage points in Q1 2021 to 10.2%.

Source: FT

Handelsbanken’s, a Swedish lender, cost-to-income ratio is expected to drop below 50% in 2021 and could fall below 44% by 2023.

Source: FT

Up-and-Comers

Current, a fintech startup, has raised USD 220 million in a funding round led by Andreessen Horowitz that lifted its valued by 3-fold to USD 2.2 billion. Founded in 2015, Current is a digital bank with more than 3 million users.

Source: Reuters

Lendify, a Swedish digital lender, has been bought by Lunar, a Danish upstart bank. The deal is said to have taken place “at a sharp discount” to Lendify’s previous valuation. 

Source: FT

Exciting Numbers

According to data from Dealogic, this year 875 initial public offerings each raising at least USD 1 million have been clinched globally.

Source: FT

Bank losses from the implosion of Archegos Capital have surpassed USD 10 billion.

Source: FT

A Thought Worth Noting

“It will be crucial to see whether companies will give strong enough guidance [on the next quarter] to sustain very high valuations. The evolution of the economic cycle next year could be a slowing of the recovery, and this would be a difficult transition for investors.”

Gergely Majoros, portfolio adviser, Carmignac

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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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