Banking M&A Digest #130 (17.6.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

Islandsbanki, an Icelandic lender (formerly known as Glitnir) which was bailed out by the government in 2008, has confirmed a float price for its initial public offering that values the bank at about USD 1.2 billion.

Source: FT, Bloomberg

Allianz, a German insurer, has agreed to buy a 10% stake in the European arm of American Tower Corp, a telecom towers group, for EUR 530 million. The deal gives ATC Europe a valuation of EUR 8.8 billion, including debt.

Source: Reuters

Credijust, a Mexican small business lender, has acquired Banco Finterra, a local lender, for under USD 50 million. Both banks combined have lent more than USD 2 billion to small and medium-sized businesses.

Source: Reuters

Advent International, a fund manager, has agreed to invest USD 430 million in Ebanx, a Brazilian payments company. The details of the transaction were not disclosed.

Source: Reuters

Insurers Tryg and Intact Financial have agreed to sell their stakes in the Danish unit of Codan, an insurer, to Alm.Brand in a deal valued at USD 2.06 billion.

Source: Reuters

Deals On The Table

ALD, a leasing arm of Societe Generale, is said “to be progressing” in negotiations on a potential combination with LeasePlan, a competitor. LeasePlan manages about 1.7 million vehicles in more than 30 countries and reported about EUR 9.85 billion of revenue last year.

Source: Bloomberg

Sanne, a UK-listed fund administration business, is said to have agreed “to hold talks” with Cinven, a private equity firm, over a potential GBP 1.4 billion takeover. 

Source: FT

UBS and DWS, a German asset manager, are said to be pressing ahead with final bids for NN Investment Partners, the asset management arm of NN Group. NN is said to be looking to raise between EUR 1.4 billion and EUR 1.6 billion from the sale of the business which manages about EUR 300 billion. 

Source: Reuters

Genstar Capital, a buyout firm, is said to be exploring the sale of a minority stake in Apex Group, a provider of administration services to asset management firms, in a deal that will value Apex at USD 5 billion, including debt.

Source: Reuters

Zurich, a Swiss insurer, is said to be looking to sell an Italian portfolio of life insurance policies with an equity value of around EUR 200 million.

Source: Reuters

Thanks, But No Deal

Phoenix Group, a British insurer, is said to be no longer in talks to sell its European business, concluding that “the transaction would not maximise shareholder value”.

Source: Reuters

Up-and-Comers

Credit Sesame, a San Francisco-based credit checking and financial services provider, is said to be planning to file for a US IPO that could value the company at more than USD 2 billion.

Source: Reuters

10X Future Technologies, fintech that specialises in “core banking” platforms (the back-end technology that powers banks’ operations), has raised USD 187 million from BlackRock (a fund manager), CPP Investments (a Canadian pension fund) and existing backers. The details of the transaction were not disclosed but it is said to value 10X at around GBP 500 million pre-money.

Source: FT

Klarna, a Swedish “buy now, pay later” company, has raised USD 639 million in its latest fund raising round which values the company at USD 45.6 billion. This latest round has boosted the company’s valuation by 50% compared with USD 31 billion in March 2021.

Source: FT

Exciting Numbers

The global stock of financial wealth will grow in the next 5 years from USD 250 trillion to USD 315 trillion, powered by increases in North America and Asia with Europe lagging behind.

Source: FT

A Thought Worth Noting

“Any prolonged period of inflation would also probably be supportive of the strategy of buying undervalued companies in the market, or value investing. Such assets generally have higher yields and so a larger part of the present value is from cash flows in the near term. Hence they are less sensitive to shifts in long-run interest rates.”

Seth Bernstein, chief executive, AllianceBernstein

Please note that because of public holiday next week the next issue of Banking M&A Digest will be released on Thursday, 1 July 2021.

To receive your personal weekly copy of Banking M&A Digest please subscribe at http://eepurl.com/gepqdP

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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