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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.]]>

@BainCapital to Transfer Edcon Control to Creditors in Debt-For-Equity Swap

@BainCapital to Transfer Edcon Control to Creditors in Debt-For-Equity Swap

Bain Capital and Goldman Sachs (NYSE: GS) agreed to acquire a majority stake in Carver Korea, a leading Korean cosmetics company, in a deal valued at over $300 million. “This important milestone in the history of the Edcon Group follows the recent payment deferral implemented in May 2016 and the securing of R1.5 billion of bridge financing under new Facilities A1 and A3 of the existing Super Senior Liquidity Facility Agreement,” said Edcon Group’s chief executive Bernie Brookes. “Our operational turnaround plans are already well underway and the finalisation of the process to reduce our debt will ensure Edcon remains the largest South African clothing retailer, but that it also returns to its former status as the leading clothing retailer in South Africa,” he added. The restructuring is expected to materially improve the liquidity position of the Edcon Group to ensure ongoing operations as well as address the current high structural leverage and cash interest burden on the operating company, the company said. The extended maturities and additional funding should facilitate the ongoing operational turnaround and allow management to refocus onto running the business and executing its strategic plan. The restructuring is also expected to alleviate concerns of key stakeholders such as suppliers, landlords and credit insurers. A new governance structure will be put in place, including provisions relating to transfers of shares, pre-emption rights, tag-along rights and drag-along rights, board composition and reserved matters requiring the consent of specific majorities of shareholders, the company said. Johannesburg-based Edcon has been in operation for more than 80 years and has expanded its footprint to include 1,542 stores as at March 26, 2016. Edcon’s Edgars division includes Edgars, Boardmans, Edgars Active, Edgars Shoe Gallery, Red Square and the group’s mono-branded stores such as Topshop Topman, Tom Tailor, Dune, Lucky, T.M. Lewin, Lipsy, Salsa, River Island, Vince Camuto, Calvin Klein, Inglot, La Senza and Accessorize whose products, are also available through Edgars stores, serving principally middle and upper income markets. Edcon’s Discount division includes Jet, JetMart and Legit, serving principally middle to lower income markets; and CNA, the group’s stationery, books, games, movies, music, hi-tech electronics and mobile retailer. The group offers credit and insurance products to its customers through strategic partnerships with third parties. Edcon’s primary operations are in South Africa where the group generated 88 percent of its retail sales in fiscal year 2016. The rest of its operations are in neighbouring Namibia, Botswana, Lesotho, Swaziland, Mozambique, Ghana, Zimbabwe and Zambia, where it operates 213 retail outlets.]]>

Steinhoff $SNH Raises Bid to Acquire @Poundland in Revised £610M Deal

Steinhoff $SNH Raises Bid to Acquire @Poundland in Revised £610M Deal

its previous offer valued at £597 million, giving Steinhoff more than 900 shops in Britain, Ireland and Spain. Steinhoff already owns the high street brands Harveys Furniture, Bensons for Beds, Sleepmaster, Cargo, and Pep&Co in the UK. The offer price of 227 pence represents a premium of approximately 43.4% to Poundland’s closing price of 158.25 pence on June 13, 2016. The move comes only a few days after Steinhoff agreed to acquire Mattress Firm Holding Corp. (NASDAQ: MFRM), the largest US mattress retailer, for $2.4 billion. “The Poundland Directors, who have been so advised by J.P. Morgan Cazenove and Rothschild as to the financial terms of the Offer, consider the revised and final terms of the Offer to be fair and reasonable,” Steinhoff said in a statement, adding that “the Poundland Directors intend to recommend unanimously that Poundland Shareholders vote in favor” of the deal. “The Poundland Board is pleased to recommend SEAG’s increased all-cash offer which presents Poundland shareholders with an opportunity to realise their shareholding at an improved price and on an enhanced premium to Poundland’s undisturbed share price,” said Poundland chairman Darren Shapland. “By offering Poundland shareholders an improved cash offer we aim to bring certainty to the transaction,” commented Steinhoff CEO Markus Jooste. On July 14, Elliott Capital Advisors, the UK arm of US hedge fund activist investor Elliott Management, reported a 13.2% stake in Poundland, putting pressure on Steinhoff to increase its previous offer. Elliot’s stake is said to be controlled via contracts for difference (CFD). A CFD is an agreement between two parties – the investor and the CFD provider – to pay each other the change in the price of an underlying asset, in this case Poundland shares. “Analysts say that Elliott is engaging in ‘bumpitrage,’ where an activist investor wrestles control following a takeover offer in the hope of squeezing out better terms,” according to the Financial Times. Elliott Management has more than $27 billion of assets under management. Its flagship hedge fund Elliott Associates LP was founded in 1977 by billionaire Paul Singer. The firm has offices in New York, London, Hong Kong and Tokyo. Poundland conducted its IPO on the London Stock Exchange at 300 pence a share in March 2014. “Its shares have plunged in value over the past year due to poor trading, competition from discounters such as Aldi and Lidl and its £55 million takeover of 99p Stores, which was delayed by a competition inquiry,” said The Guardian. “During the six-month investigation by the regulator, 99p Stores lost its credit insurance, which meant the retailer was cut off by many suppliers, leaving it with empty shelves and resulting in the departure of 1,000 staff,” the British newspaper added. In 2011, Steinhoff acquired Conforama, Europe’s second largest retailer of home furnishings, with over 200 stores in France, Spain, Switzerland, Portugal, Luxembourg, Italy and Croatia. In 2015, South African low-end retail investment and holding company Pepkor became a member of the Steinhoff group. Steinhoff International is a South African-based integrated retailer that manufactures, sources and retails furniture, household goods and general merchandise in Europe, Australasia and Africa. Steinhoff was founded in 1964 by Bruno Steinhoff in Westerstede, Germany and moved its headquarters to South Africa in 1998. It went public on the Johannesburg Stock Exchange. In December 2015, Steinhoff moved its primary listing to the Frankfurt Stock Exchange and founded a new Dutch holding company based in Amsterdam, while its management remained in South Africa. Investec Bank plc is acting as financial adviser to Steinhoff. J.P. Morgan Cazenove is acting as joint financial adviser and corporate broker to Poundland. Rothschild is acting as joint financial adviser to Poundland. Shore Capital is acting as corporate broker to Poundland in this transaction. Linklaters LLP are providing legal advice to Steinhoff. Freshfields Bruckhaus Deringer LLP are providing legal advice to Poundland.]]>