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Chinese Giant HNA Buys 25% Stake in OM Asset Management from Old Mutual for $446M

Chinese Giant HNA Buys 25% Stake in OM Asset Management from Old Mutual for $446M

OMAM agreed to acquire a 60% equity interest in Landmark Partners, a global secondary private equity and real estate firm, for $240 million in cash. HNA Capital US is expected to appoint one director to the OMAM board after purchasing a first tranche of 9.95% of OMAM shares, and a second on the completion of the second tranche of 15% of OMAM shares. In both cases, these directors will replace existing nominees of Old Mutual. HNA Group, controlled by its founder and chairman Chen Feng, is a global Fortune 500 company focused on Aviation, Holdings, Tourism, Capital, Logistics and EcoTech. Since its founding in 1993, HNA Group has evolved from a regional airline based on Hainan Island into a global company with over $90 billion of assets, $30 billion in annual revenues and an international workforce of nearly 200,000 employees, primarily across North America, Europe and Asia. HNA’s tourism business is a fast-growing, vertically-integrated global player with market-leading positions in aviation, hotels and travel services. HNA operates and invests in nearly 2,000 hotels with over 300,000 rooms across major markets, and has 1,250 aircraft carrying over 90 million passengers to 260 cities worldwide. As reported by ExitHub last October, HNA agreed to acquire a 25 percent equity interest in Hilton Worldwide Holdings Inc. (NYSE: HLT), from New York global private equity firm Blackstone (NYSE: BX) for $6.5 billion, reducing Blackstone’s interest in Hilton to approximately 21 percent. Earlier in October 2016, Avolon Holdings Ltd., a subsidiary of Bohai Capital Holding Co. Ltd. (SLE: 415) controlled by HNA Group, agreed to acquire the CIT Commercial Air aircraft leasing business of New York-based CIT Group Inc. (NYSE: CIT), for $10 billion. Around the same time, HNA EcoTech said it agreed to acquire Beijing-based information technology (IT) outsourcing services provider Pactera Technology International Ltd. from New York global private equity firm Blackstone Group (NYSE: BX) and other shareholders. The purchase price was reportedly $675 million. In early August 2016, HNA Group agreed to invest $336 million in San Francisco-based RocketSpace, a leading technology accelerator campus and co-working space for high-growth startup, in a strategic joint venture deal to fuel RocketSpace’s global expansion, including China. A few days later, HNA’s subsidiary Hainan Airlines Co. Ltd. acquired a 24% stake in Brazil’s third largest airline Azul SA for $450 million, becoming its largest single shareholder. In February 2016, HNA agreed to acquire Ingram Micro Inc. (NYSE:IM) for $6 billion, the largest Chinese takeover of a US information technology company. Photo: Chen Feng, Founder & Chairman of HNA Group.]]>

Japan's SoftBank to Acquire Fortress Investment Group $FIG for $3.3B

Japan's SoftBank to Acquire Fortress Investment Group $FIG for $3.3B

In September 2016, SoftBank acquired British semiconductor IP company ARM Holdings plc for $32 billion. The company was founded in 1981 and is headquartered in Tokyo, Japan. “Fortress’s excellent track record speaks for itself, and we look forward to benefitting from its leadership, broad-based expertise and world-class investment platform,” said Masayoshi Son, Chairman and CEO of SoftBank Group Corp. “For SoftBank, this opportunity will immediately help expand our group capabilities, and, alongside our soon-to-be-established SoftBank Vision Fund platform, will accelerate our SoftBank 2.0 transformation strategy of bold, disciplined investment and world class execution to drive sustainable long-term growth.” “SoftBank is an extraordinary company that has thrived under the visionary leadership of Masayoshi Son,” said Fortress Co-Chairmen Pete Briger and Wes Edens. “We are very pleased to announce an agreement setting our business on a great path forward as part of SoftBank, while creating significant value for our shareholders. We join a company with tremendous scale and resources, and a culture completely aligned with our focus on performance, service and innovation. We anticipate substantial benefits for our investors and business as a whole, and we have never been more optimistic about our prospects going forward.” Under the terms of the merger agreement, which was unanimously approved by a Special Committee of Independent Directors of Fortress’s Board of Directors and Fortress’s full Board of Directors, each Fortress Class A shareholder will receive $8.08 per share, which represents a premium of 38.6% to the closing price of Fortress Class A common stock on February 13, 2017, and a premium of 51.2% to Fortress’s 3-month volume-weighted average price, excluding dividends. In addition, each Fortress Class A shareholder may receive up to two regular quarterly dividends prior to the closing, each in an amount not to exceed $0.09 per Class A Share. Fortress plans to maintain its current base dividend of $0.09 per share for the fourth quarter of 2016 and, if closing does not occur prior to the applicable payment date, for the first quarter of 2017. Fortress principals Pete Briger, Wes Edens and Randy Nardone have agreed to continue to lead Fortress, and have committed to invest 50% of their after-tax proceeds from the transaction in Fortress-managed funds and vehicles, underscoring a deep alignment with the interests of Fortress’s limited partner investors, and in equity securities of SoftBank and SoftBank-managed funds and vehicles. In addition, the Fortress principals have agreed to vote shares representing an aggregate of 34.99% of the outstanding Fortress voting shares held by them in favor of the transaction. Fortress’s senior investment professionals will remain in place and will retain their significant participation interests in fund performance. Fortress will operate within SoftBank as an independent business headquartered in New York, and SoftBank is committed to maintaining the leadership, business model, brand, personnel, processes and culture that have supported Fortress’s success to date. SoftBank can bring in partners for a portion of the investment. Nizar Al-Bassam and Dalinc Ariburnu of F.A.B. Partners, who arranged the transaction, will continue to advise SoftBank with respect to Fortress. The deal is subject to approval by Fortress shareholders, certain regulatory approvals and other customary closing conditions, and is expected to close in the second half of 2017. J.P. Morgan Securities LLC acted as financial advisor, Weil, Gotshal & Manges LLP and Kirkland & Ellis LLP provided legal counsel, and KPMG LLP acted as accounting and tax advisor to SoftBank. Morgan Stanley & Co. LLC acted as financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP provided legal counsel to Fortress. Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel to the Fortress principals. Evercore acted as financial advisor, and Davis Polk & Wardwell LLP provided legal counsel to the Special Committee of Fortress’s Board of Directors. Photo: Masayoshi Son, Chairman and CEO of SoftBank.]]>

London-based XIO Group to Acquire Israeli Investment House Meitav Dash for $386M

London-based XIO Group to Acquire Israeli Investment House Meitav Dash for $386M

XIO acquired Israel-based Lumenis Ltd. (NASDAQ: LMNS), the world’s largest energy-based medical company for surgical, ophthalmology and aesthetic applications, for $510 million, as reported by ExitHub. XIO Group is a global multi-billion dollar alternative investments firm headquartered in London, with operations in the United Kingdom, Germany, Switzerland, Hong Kong and mainland China. The firm’s strategy is to identify and invest in market-leading businesses across North America and Europe and to assist these companies in capitalising on untapped opportunities in high growth markets, particularly in Asia. XIO Group, founded in 2015, seeks to deploy more than $5 billion of committed capital for global transactions, says the company. Athene Li and Joseph Pacini co-founded XIO Group in 2014 and co-lead the firm. Previously, Li was head of China for Olympus Capital and worked as an investment banker for Merrill Lynch and Bear Stearns. The firm’s CEO Pacini previously served as managing director and head of Alternative Investments Strategy Group (Asia Pacific) for BlackRock and head of Alternative Investments for JPMorgan in Asia. “The acquisition of Meitav Dash is an ideal fit for XIO’s strategy,” said Pacini. “We received an offer from this international fund a few months ago and even though we weren’t interest in a sale the offer was good enough that we thought we should examine it,” Meitav chief executive Ilan Raviv told Reuters. The boards of both companies have approved the deal, subject to regulatory and shareholder approval. BRM Group’s chairman and co-founder Eli Barkat reportedly owns a 28.5 percent stake in Meitav, while Meitav’s co-founder, chief investment officer and chairman Zvi Stepak holds a stake of more than 27 percent in the company. Both have committed to voting in favor of the deal. Meitav’s 800 employees reportedly hold options worth 50-100 million shekels. Raviv, Barkat and Stepak are expected to continue managing the Meitav group after the closing. Photo (L-R): Zvi Stepak and Eli Barkat.]]>

New York's Safra Bank Acquires Israeli Bank Hapoalim's Private Banking Business in Miami

New York's Safra Bank Acquires Israeli Bank Hapoalim's Private Banking Business in Miami

“We are determined to play a leading role in the consolidation of the private banking market,” said Jacob J. Safra, vice-chairman of Safra National Bank. “Our capital strength, family ownership and 175 years of experience give us great flexibility to do such transactions.”

“We look forward to welcoming the clients and employees of Bank Hapoalim in Miami to our organization,” said Simoni Morato, CEO of Safra National Bank of New York. Bank Hapoalim’s private banking business in Miami fits perfectly with the strategic vision of the J. Safra Group and Safra National Bank of New York, and we are confident we will add immeasurable value to clients.” The J. Safra Group, with total assets under management of over $194 billion and aggregate stockholders equity of $15.4 billion, is controlled by Jacob’s father, billionaire Joseph Safra, based in Sao Paulo, Brazil. The group consists of privately owned banks under the Safra name, real estate and agribusiness investments and other holdings. The group’s banking interests, which have over 160 locations globally, are Safra National Bank of New York headquartered in New York City; J. Safra Sarasin, headquartered in Basel, Switzerland; and Banco Safra, headquartered in Sao Paulo, Brazil; all independent from one another from a consolidated supervision standpoint. The group’s real estate holdings consist of more than 200 premier commercial, residential, retail and farmland properties worldwide, such as New York City’s 660 Madison Avenue office complex and London’s iconic Gherkin Building. Its investments in other sectors include, among others, agribusiness holdings in Brazil and Chiquita Brands International Inc. There are more than 28,000 employees associated with the J. Safra Group, with deep relationships in markets worldwide. The deal is expected to be completed during the first quarter of 2017, subject to regulatory clearance. Bank Hapoalim, Israel’s largest bank, was established in 1921 by the Israeli trade union federation Histadrut and the Zionist Organisation. The bank was owned by the Histadrut until 1983, when it was nationalized, and was held by the Israeli government until 1996, when it was sold to a group of investors led by the late Ted Arison. It is currently controlled by Arison Holdings through an equity stake of about 20 percent, which is owned by Ted’s daughter Shari Arison. As of the end of 2015 Hapoalim had over $110 billion in assets, with nearly $8.5 billion in equity capital and almost 12,000 employees worldwide. Hapoalim has been chosen as Bank of the Year in Israel for 2015, by The Banker, a publication of the Financial Times Group. Photo: Jacob J. Safra, Vice-Chairman of Safra National Bank. (Bilan)]]>