Banking M&A Digest #145 (7.10.2021)

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Corporate Financier’s Notes by Aivars Jurcans

Done! And Done

MetLife, a US insurer, has agreed to acquire a combined 15.27% stake in PNB MetLife India Insurance Company Limited from IGE India and Elpro International. The deal will boost MetLife’s stake in the company to more than 47%.

Source: Reuters

Grab, a Southeast Asian ride-hailing and payments firm, has agreed to increase its stake in OVO, an Indonesian e-wallet firm, from 39% to 90% by purchasing the stakes of Lippo, an Indonesian conglomerate, and Tokopedia, an e-commerce platform. OVO was valued at USD 2.9 billion in 2019.

Source: Reuters

Banco Pan, a Brazilian lender, has agreed to acquire Mosaico, an e-commerce technology company, in an all-share deal.

Source: Reuters

Sun Life Financial, a financial services firm, has agreed to buy DentaQuest, an oral healthcare company, for USD 2.47 billion. The transaction will be financed by using cash and debt.

Source: Reuters

Orange, a French telecoms group, has agreed to buy a 21.7% stake in Orange Bank, its online banking unit, from Groupama, an insurer. Orange will also provide the bank with a EUR 230 million capital increase.

Source: Reuters

Deals On The Table

Government of Japan is said to be planning to reduce its shareholding in Japan Post down to 33%. The government is expected to raise about USD 8.5 billion from the sale of shares.

Source: FT

TradeZero, a Bahamas-based online brokerage that provides free and subscription-based software for stock trading, is said to be in talks to merge with Dune Acquisition Corp, a blank-cheque firm. 

Source: Bloomberg

Ping An Insurance Group is said to be considering a sale of Founder Group’s life insurance business. The deal could potentially value the unit at as much as USD 1 billion.

Source: Bloomberg

AvidXchange, a business payments firm, is said to be looking to raise up to USD 506 million in a US initial public offering that could value the company at about USD 4.4 billion. AvidXchange was valued at USD 2 billion in a funding round in April 2020.

Source: Reuters

Rakuten Group, a Japanese e-commerce firm, is said to be preparing to list Rakuten Bank, its online banking unit, in an initial public offering. 

Source: Reuters

VTB, a Russian state bank, is said to have submitted a bid for Citigroup’s consumer business in Russia in August 2021. The bidding price has not been disclosed. 

Source: Reuters

Not So Fast

Banca Mediolanum is said to not necessarily be willing to sell its 3.3% stake in Mediobanca, an Italian merchant bank, despite the ongoing power struggle.

Source: Reuters

Up-and-Comers

Monzo, a UK neobank, has withdrawn its application for a US banking license after it was told by regulators it was unlikely to be approved.

Source: FT

Exciting Numbers

Buyout groups paid an average premium of 45% [over the share price] for European [public] companies in 2021, the highest since the data company Refinitiv’s records began in 1980.  In the US, the premiums hit 42% in 2021, the highest since 1999.

Source: FT

The disclosed value of M&A deals involving investment managers reached USD 38.9 billion in 2020, the highest since the financial crisis, according to the investment bank Piper Sandler.

Source: FT

A Thought Worth Noting

“Right now we’re in a period where there’s tremendous competition in the [private equity] industry. There’s over USD 1 trillion of dry powder in buyouts alone that’s looking to do deals. We will absolutely see prices go up when competition is that stiff.”

Brenda Rainey, managing director – private equity practice, Bain & Co

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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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