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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.]]>

Argentine Tycoon Elsztain in Takeover Battle for British Falkland Islands Conglomerate

Argentine Tycoon Elsztain in Takeover Battle for British Falkland Islands Conglomerate

FIH is quoted on London’s AIM Alternative Investment Market and incorporated in the United Kingdom, with operations in the Falkland Islands and the UK. Its business activities in the Falklands are conducted by the Falkland Islands Company (FIC), established by Royal Charter in 1852. FIC’s activities include retailing, property, insurance, hotels, shipping and fishing agency services. It is the largest retailer in Falklands with a 60% market share. FIC owns nearly 400 acres of land, with the potential for residential or commercial development. The company also owns 40 residential properties which are available to rent to individuals or business users such as Oil Services companies, Ministry of Defence contractors, and fishing companies. In the UK the group operates a long established passenger ferry service across the mouth of Portsmouth harbour, Portsmouth Harbour Ferry Company (PHFC). In 2008 the group acquired MOMART, a London-based market leader in the handling and storage of fine art and antiquities. Dolphin, which controls a 2.54 percent stake in FIH, said it has written to the board of FIH to request information to enable it to evaluate making a cash buyout offer, at a significant premium to a takeover bid by Staunton Holdings Limited of 300 pence per share, reflecting a total price of £37 million. Staunton’s current bid represents a premium of approximately 27.39 percent to the closing price of 235.5 pence on February 9, 2017, the day prior to its offer. Edmund Rowland, the executive chairman of FIH, is the son of controversial British Conservative Party donor David Rowland. Guernsey, Channel Islands-based Staunton is controlled by the family’s Rowland Purpose Trust 2001. On Friday, March 17, FIH shares closed down 1.53% at 322.50 pence, bringing its total market capitalization to roughly £40 million. Dolphin is said to be seeking to engage in a friendly buyout, with London-based stockbroker Arden Partners plc acting as its financial adviser. However, Staunton and its Blackfish Capital Management affiliate, which together own a 25 percent stake in FIH and are its largest shareholder, said that “it has not entered, and does not wish to enter, into any dialogue with Dolphin in relation to a possible offer.” In addition, Staunton lowered the acceptance condition of its offer from a minimum of 90 percent of FIH shareholders’ approval, to 50 percent. FIH operations in the Falkland Islands date back more than 160 years, when the Falkland Islands Company was granted its Royal Charter. From its early days as a major landowner and sheep farmer, controlling almost half the land area of the islands, the company has steadily widened its activities to provide a broad range of essential services. The company’s main areas of activity embrace retailing (including food, clothing, electrical goods, home furnishings, gifts and DIY), residential and commercial property, the sale and hire of 4×4 vehicles, travel services including flight bookings, airport transfers and luxury coach and walking tours for tourists, insurance, agency services for cruise ships and fishing vessels, and the provision of freight and shipping services to and from the Islands. Dolphin’s Elsztain, who stands atop one of the largest business empires in Latin America, is chairman of Argentina´s largest real estate company IRSA Inversiones y Representaciones SA (ADR)(NYSE: IRS); Argentina´s largest shopping mall owner and developer IRSA Propiedades Comerciales SA (formerly Alto Palermo SA) (NASDAQ: IRCP); Argentina’s leading public-private mortgage bank Banco Hipotecario SA (BCBA: BHIP); leading agri-business company CRESUD (NASDAQ: CRESY); BrasilAgro Sp (ADR)(NYSE: LND; SAO: AGRO3); BACS Banco de Crédito & Securitización SA; and Austral Gold (ASX: AGD) an Australian precious metals mining and exploration company with a portfolio of assets in South America, among others. In addition, Elsztain is the chairman of IDB Group, one of Israel’s preeminent business groups, holding leading corporations in key business sectors alongside an ever-growing, global presence through diverse portfolio companies and joint ventures. Photo: Eduardo Elsztain, Chairman of IRSA, CRESUD, BrasilAgro, Banco Hipotecario and IDB Group.]]>

Argentine Tycoon Elsztain in Takeover Battle for British Falkland Islands Conglomerate

Cresud's $CRESY IDB Hires JPMorgan to Find Exit for Israeli Clal Insurance

Reuters is said to have invested nearly 2.5 billion shekels ($665 million) in IDB, acquired the heavily indebted IDB group from former Israeli tycoon Nochi Dankner when it was structured as a six-layer pyramid with one holding company controlling another and had 16 billion shekels in debt. IDB and Discount combined now reportedly have debt of 5.6 billion shekels. After Elsztain took effective control of IDBD in October 2015, his Buenos Aires-based leading agribusiness Cresud (NASDAQ: CRESY; BASE: CRES) started consolidating IDBD within its financial reports, as of its fiscal quarter ending December 31, 2015. Discount Investment Corp., founded in 1961, remains one of the largest and most prominent holding companies in Israel. It has holdings in companies that are market leaders in their specific fields, including Cellcom, the largest cellular operator in Israel (41.8%); Shufersal, the largest grocery retail chain in Israel (52.9%); Property and Building Corporation, one of the largest real-estate groups in Israel (76.5%); and Elron, a high-tech operating investment company (50.3%). In July 2016, China National Chemical Corp. (ChemChina), agreed to buy out IDB Holding Corp. subsidiary Koor’s remaining 40% stake in Tel Aviv-based Adama Holding Ltd., one of the world’s leading crop protection companies, for $1.4 billion, consisting of $230 million in cash and the assumption of $1.17 billion in debt. The deal valued Adama’s equity at $3.5 billion. Discount Investment Corp. said it would report a capital gain of 690 million shekels ($178.5 million) from the sale to ChemChina, a state-owned enterprise established through a reorganization and consolidation of China’s former Ministry of Chemical Industry Ministry subsidiary companies. With revenues of $45 billion in 2015, ChemChina is China’s largest chemical company. It has more than 140,000 employees, of which 48,000 are outside China. IDB is required to sell its stake in Clal to abide by Israeli regulatory requirements that prohibit holding companies from owning both financial and non-financial businesses. The latest move follows two failed attempts by IDB to sell its 55 percent stake in Clal, one of Israel’s biggest insurers, to Chinese investors. “We are spending a lot of money, time and effort to achieve … a sale,” Elsztain said at a news conference this week, to mark four years since he invested in IDB. “A forced sale will make a tremendous loss to shareholders,” he added, according to Reuters. IDB had an agreement with Israel’s capital markets and insurance regulator that if it did not sell Clal by early 2016, it would have to sell its majority stake in the company piece-by-piece, in tranches of up to 5 percent every four months. The matter is now pending a decision by the Tel Aviv District court. Delek Group (TASE: DLEKG; ADR: DGRLY), another Israeli conglomerate and Israel’s dominant energy company, also faced certain challenges trying to sell its majority stake in insurance company Phoenix Holdings Ltd (TASE: PHOE). However, last month Delek said it signed a binding agreement to sell its 52.3 percent stake in Phoenix to Chinese conglomerate Fujian Yango Group (SZSE: 671), for 1.95 billion shekels ($516 million) in cash. The deal is now subject to regulatory approval. Photo: Eduardo Elsztain, Chairman of IDB, Discount Investment Corp, IRSA, CRESUD, BrasilAgro and Banco Hipotecario.]]>