Fly Intel: Wall Street's top stories for Thursday » 16:3307/0907/09/20
WBA, BBBY, MHK, BA, SNE, TCEHY, DIS, KKR, VERI, MCHP, HQY, PLUG
The Dow and S&P 500 saw…
Sony announces $250M strategic investment in Epic Games » 14:1407/0907/09/20
KKR, DIS, TCEHY, SNE
Sony (SNE) and Epic Games…
Sony (SNE) and Epic Games announce that Sony has agreed to make a strategic investment of $250M to acquire a minority interest in Epic through a wholly-owned subsidiary of Sony. "The investment cements an already close relationship between the two companies and reinforces the shared mission to advance the state of the art in technology, entertainment, and socially-connected online services," Sony said. "Epic's powerful technology in areas such as graphics places them at the forefront of game engine development with Unreal Engine and other innovations. There's no better example of this than the revolutionary entertainment experience, Fortnite. Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games, but also across the rapidly evolving digital entertainment landscape," added Kenichiro Yoshida, Chairman, President and CEO, Sony Corporation. Other investors in Epic include Tencent (TCEHY), Disney (DIS), and KKR (KKR).
KKR price target raised to $41 from $34 at Keefe Bruyette » 09:0807/0907/09/20
Keefe Bruyette analyst…
Keefe Bruyette analyst Robert Lee raised the firm's price target on KKR to $41 from $34 and keeps an Outperform rating on the shares after the company said it will acquire Global Atlantic, a retirement and life insurance company with about $70B of invested assets. The analyst views the transaction "very favorably," saying it meaningfully increases KKR's presence in the retirement annuity industry with a company generating 15%-plus returns on equity.
|Over a week ago|
KKR to acquire Global Atlantic Financial Group » 06:0207/0807/08/20
KKR & Co. and Global…
KKR & Co. and Global Atlantic Financial Group announced the signing of a strategic transaction where KKR will acquire all of the outstanding shares of Global Atlantic, a leading retirement and life insurance company. After closing, Global Atlantic will continue to operate as a separate business with its existing brands and management team. Under the terms of the agreement, KKR will pay Global Atlantic shareholders an amount equal to 1.0x Global Atlantic's Book Value as of the date of closing, subject to an equity roll-over for certain existing shareholders. As of March 31, 2020, Global Atlantic's Book Value was approximately $4.4B. KKR expects to fund the acquisition, net of equity roll-over participation, from a combination of cash on hand, proceeds from potential minority co-investors and the issuance of new debt and/or equity by KKR. The investment in Global Atlantic will be held on KKR's balance sheet and through a proprietary vehicle established for others to invest alongside KKR's balance sheet, not in any client funds. Upon close, Global Atlantic will continue to be run by its existing senior leadership team led by Allan Levine, Global Atlantic's Chairman and Chief Executive Officer. The transaction, which is expected to close in early 2021, is subject to required regulatory approvals and certain other customary closing conditions.
KKR to acquire controlling stake in J.B. Chemicals for INR745 per share » 11:2807/0207/02/20
KKR announced that it has…
KKR announced that it has entered into a definitive agreement to purchase a controlling stake in J.B. Chemicals & Pharmaceuticals, an Indian pharmaceutical company specializing in branded formulations. As part of the agreement, KKR will acquire its stake from the founding Mody family at a purchase price of INR745 per share and make an open offer for an additional 26% of the Company. Details of the open offer will be disclosed at the appropriate time. KKR will fund this investment from Asian Fund III. The transaction is subject to regulatory and other customary approvals.
KKR acquires two industrial distribution properties for $260M » 07:3207/0107/01/20
KKR announced the…
KKR announced the acquisition of two industrial distribution properties totaling approximately 2.5 million square feet for an aggregate purchase price of approximately $260 million. KKR said in a release, "The two properties are the first industrial properties acquired by KKR's core plus real estate strategy. The newly acquired properties are located in major markets of Chicago and Charlotte. Both are state of the art fulfillment centers with an average vintage 2017. The properties were 100% leased at acquisition to a high quality, investment grade tenancy on a long term basis. The properties were acquired through separate transactions with two different sellers."
CyrusOne CEO appointment could reignite sale speculation, says Wells Fargo » 10:3506/2906/29/20
Wells Fargo analyst Eric…
Wells Fargo analyst Eric Luebchow noted that CyrusOne (CONE) has appointed Bruce Duncan, who has a long track record in the real estate industry and "a history of deal making," but doesn't appear to have any data center experience, as President and CEO. Luebchow imagines that the appointment could reignite the previous news that CyrusOne was exploring a potential sale, though he also noted that former CEO Gary Wojtaszek said the company was "not pursuing a sale" in October of last year. The analyst, who also noted that Duncan previously served as a senior advisor to KKR (KKR), has an Overweight rating on CyrusOne shares.
KKR, Apollo suitors for wealth unit of National Australia Bank, Reuters reports » 06:4306/2906/29/20
KKR, APO, NABZY
KKR (KKR) and Apollo…
KKR (KKR) and Apollo Global (APO) have carried out due diligence on National Australia Bank's (NABZY) wealth management unit and are considered prospective buyers, Paulina Duran of Reuters reported, citing three sources familiar with matter. The MLC unit could reportedly bring in over $688M. KKR's interest comes just after an agreement in May to acquire 55% of the Commonwealth Bank of Australia's wealth unit for A$1.7B. Reference Link
KKR acquires stake in First Gen through voluntary tender offer » 05:1306/2906/29/20
KKR announced that,…
KKR announced that, following the completion of the voluntary tender offer period by Valorous Asia Holdings, an entity owned by KKR investment funds, the Offeror has accepted all of the 427,041,291 common shares of First Gen Corporation that were tendered by shareholders at the close of the tender offer, representing approximately 11.9% of First Gen's outstanding common shares. KKR said in a release, "The Offeror intends to acquire all of these tendered common shares at a price of 45c per common share on July 1, the cross date previously set out in the Offeror's tender documents, representing a total investment value of $192.2M. First Gen is one of the Philippines' largest independent power producers and is a subsidiary of First Philippine Holdings Corporation. First Philippine Holdings is controlled by the Lopez family and is one of the most established conglomerates in the Philippines. The Company primarily generates power through renewable energy and indigenous fuel sources such as natural gas, geothermal energy from steam, hydro-electric, wind, and solar power. First Gen has 3,492 megawatts of installed capacity in its portfolio, which accounted for 21% of the Philippines' gross power generation in 2019. KKR makes its investment from its Asia Pacific infrastructure strategy."
Borden Dairy approved for sale to Capitol Peak Partners, KKR » 15:3206/2606/26/20
Borden announced the…
Borden announced the start of a new chapter with Capitol Peak Partners and its affiliates acquiring substantially all Borden assets following completion of a court-supervised sale process. Capitol Peak will assume majority ownership of the new company, and KKR, an existing lender to Borden, will be a minority investor. Following the transaction, Borden will be appropriately capitalized, and the business will remain intact, including all plants, branches, routes and the Borden brand. The newly reorganized Borden will be able to continue employment for approximately 3,300 Borden employees and service for Borden customers. Borden initiated voluntary reorganization proceedings on Jan. 5, 2020, to pursue a financial restructuring designed to reduce its current debt load, maximize value and position the company for long-term success. Today, the court granted approval of the approximately $340M sale. Upon closing of the transaction, Borden's former controlling and majority equity holders, ACON Investments and Grupo Lala, respectively, will no longer have ownership interest in the business. Capitol Peak and KKR will establish a new board of directors. The transaction, which is subject to certain closing conditions, including the entry of a final order, is expected to be finalized in mid-July.