Sept 24 (Reuters) – Swedish property group SBB (SBBb.ST) on Sunday divested 1.16% of its education subsidiary EduCo to Brookfield Super-Core Infrastructure Partners for around 242 million Swedish crowns ($21.73 million) as it looks to bolster its finances.
SBB will hold approximately 49.84% of EduCo after the divestment, following which EduCo will be controlled by Brookfield. The transaction is expected to be completed in October this year.
Sweden is in the grips of a worsening property crisis, with developers grappling with large debts, rising interest rates and a wilting economy. Earlier this year, the International Monetary Fund flagged Sweden’s historically high household borrowing, coupled with debt-driven commercial property firms and their dependence on local banks, as a financial stability risk.
SBB, one of Sweden’s largest commercial landlords, in May initiated a strategic review including a potential sale of all of the company, or some of its business segments, to improve its finances.
As part of the deal announced on Sunday, EduCo will repay part of its inter-company loan from SBB, resulting in the Stockholm-based company receiving approximately 7.8 billion Swedish crowns ($700.46 million) in cash.
SBB’s remaining loan to EduCo will be around 5.5 billion Swedish crowns.
Brookfield bought a 49% stake in EduCo from SBB in November of last year. Discussions with Brookfield to sell the remaining 51% stake broke down in July, dealing a blow to SBB, which was fighting for survival after its shares plunged in May on concerns over its financial position and a refinancing of billions of crowns in debt.
Brookfield Super-Core Infrastructure Partners is the infrastructure fund of Canada’s Brookfield Asset Management(BAM.TO). Brookfield declined to comment.
SBB also said it had decided on a decentralised group structure, wherein the company will establish three wholly, or partially owned business units – Education, Community, and Residential.
($1 = 11.1356 Swedish crowns)
Reporting by Rishabh Jaiswal in Bengaluru; editing by Barbara Lewis and Sharon Singleton
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Sept 5 (Reuters) – Caledonia Investments (CLDN.L) said on Tuesday it would sell its majority stake in wealth manager Seven Investment Management (7IM) to Canada’s Ontario Teachers’ Pension Plan Board for about 255 million pounds ($321.5 million).
The deal furthers the consolidation in Britain’s money management industry as private equity firms look to snap up investment advisers to either sell them to a competitor or publicly list them.
7IM provides wealth management, asset management and platform services to more than 9,000 retail investors and 2,000 intermediaries in the UK.
Caledonia bought the company in 2015 from insurers Zurich Insurance (ZURN.S) and Aegon NV (AEGN.AS).
“Caledonia’s investment philosophy is to focus on growth over the long term, ensuring that our portfolio companies are well-placed for exit when the right time comes for all stakeholders,” said Tom Leader, Caledonia’s head of Private Capital.
“Our investment in 7IM embodies this philosophy.”
Caledonia expects the deal to be completed in late 2023 or early 2024, it said. The company had net assets of about 2.8 billion pounds at July-end.
($1 = 0.7933 pounds)
Reporting by Shashwat Awasthi; Editing by Subhranshu Sahu and Janane Venkatraman
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General view of the Burj Khalifa and the downtown skyline in Dubai, United Arab Emirates, September 30, 2021. REUTERS/Mohammed Salem/File Photo
DUBAI, Aug 14 (Reuters) – Dubai-listed investment bank and asset manager Shuaa Capital’s top shareholder Jassim Alseddiqi is stepping down as managing director and selling his nearly 30% stake, he said on Monday.
Shuaa (SHUA.DU) last year completed a $100 million initial public offering of a special purpose acquisition company (SPAC) on New York’s Nasdaq exchange.
Alseddiqi is leaving Shuaa to pursue “a foray into the world of technology, research, and academia,” he said in a LinkedIn post.
“In line with this transition and my evolving direction and endeavours, I’ve decided to reposition my stake in SHUAA Capital, paving the way for new shareholders.”
Alseddiqi owned 29.99% of Shuaa at the end of 2022, according to the company’s annual report. Direct Access Investment owned 27.3% and Al Baher Real Estate Development owned 8.32%, with no other shareholders owning more than 5% at the end of last year.
Bloomberg News reported on Monday, citing unnamed people familiar with the matter, that Shuaa shareholders that collectively own more than 50%, including Alseddiqi, are looking to sell down their stakes and are in talks with potential advisers.
They would prefer to sell to a single strategic buyer or consortium but might decide not to sell or only sell part of their holdings, Bloomberg said.
Shuaa did not immediately respond to a request for comment.
Founded in 1979, Shuaa has led several big transactions in the Middle East, including as one of four banks on now-delisted Dubai state-owned port operator DP World’s $5 billion initial public offering in 2007, the region’s largest IPO at the time.
Reporting by Yousef Saba; editing by Barbara Lewis
Our Standards: The Thomson Reuters Trust Principles.
[1/2]The logo of Renault is seen at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 15, 2023. REUTERS/Gonzalo Fuentes
TOKYO/PARIS, July 26 (Reuters) – Nissan (7201.T) will invest up to $663 million in Renault’s (RENA.PA) new electric vehicle unit, the automakers said on Wednesday, as they finalised terms of their restructured partnership after months of negotiation clouded by tension.
Sealing the deal is likely to be seen as a positive. Talks between the two had dragged on months longer than expected, Reuters has reported, due in part to Nissan’s concern about protecting its intellectual property in future collaborations.
The agreement now frees up both companies to focus on the more pressing problem of navigating the fast-changing industry landscape. For Nissan, that means contending with an increasingly grim outlook for foreign automakers in China, the world’s biggest car market.
The Japanese automaker said China remained a challenge after reporting that it nearly doubled first-quarter profit, and lifted its full-year outlook, helped by a weaker yen, and better sales in Japan and North America.
CEO Makoto Uchida told a briefing he expected the earnings recovery in the world’s second-largest economy to take some time, adding Nissan would give more details on a new line-up for the Chinese market by autumn.
“Unfortunately, our sales outlook is now falling far below our production capacity,” he said of China, adding that he had he recently visited the country and held talks with joint venture partner Dongfeng Motor Group.
Chinese auto brands are on track to account for just over 50% of the cars sold in their home market this year thanks to a growing dominance in electric vehicles, consultancy AlixPartners said this month.
AMPERE INVESTMENT
Nissan said it would invest up to 600 million euros ($663 million) in Renault’s electric vehicle unit, Ampere. Renault, meanwhile, will lower its stake in Nissan to 15% from around 43%, putting their relationship on equal footing.
The investment in Ampere is consistent with Nissan being a strategic investor and securing a board seat on the new company, Nissan said.
Questioned on how many members the board will have, a Renault spokesperson replied it had not yet been fully decided.
Sources have said Ampere could be valued at up to 10 billion euros. Nissan had flagged in February that it would invest a maximum 15% in Ampere, but the exact size of its stake remained unclear.
U.S. chip giant Qualcomm has already said it will invest in Ampere, and Nissan and Renault’s junior partner, Mitsubishi Motors, has said it wants to decide about any potential investment before the unit’s initial public offering, which could happen during the first half of 2024.
The companies said the overhaul was subject to regulatory approvals and completion was expected in the fourth quarter of 2023.
($1 = 0.9053 euros)
Reporting by Gilles Guillame in PARIS and Daniel Leussink in TOKYO; Editing by David Dolan and Miral Fahmy
Our Standards: The Thomson Reuters Trust Principles.
NEW DELHI, July 7 (Reuters) – India’s Reliance Retail, run by Asia’s richest man Mukesh Ambani, has been valued at $92-96 billion by two global consultants, a source with direct knowledge of the matter told Reuters, in a move that could signal plans for an eventual IPO.
Reliance had appointed independent valuers EY, which valued the company at $96.14 billion, and BDO, which priced it at around $92 billion, the source said, declining to be named as the details are confidential.
Reliance, EY and BDO did not immediately respond to requests for comment.
Reliance Retail includes Ambani’s core retail businesses, including digital and brick-and-mortar stores. It is fully owned by Reliance Retail Ventures, which also houses other retail operations such as international partnerships and the billionaire’s consumer goods business.
The valuations show consultants estimate Ambani’s businesses are growing fast. In 2020, Reliance Retail Ventures raised 472.65 billion Indian rupees ($5.72 billion) by selling a 10.09% stake, valuing it at roughly $57 billion based on current exchange rates.
Investors at the time included KKR, the Saudi Public Investment Fund, General Atlantic and the UAE’s Mubadala.
News of the valuation comes ahead of a possible initial public offering (IPO) of Reliance’s retail division. Ambani has said he plans to list his retail operations at some point, but has so far not given a timeline or details of his plans.
EY valued Reliance Retail at 884.03 rupees per share, while BDO valued it at 849.08 rupees, the source said.
Reliance Retail has in recent years partnered with a slew of global brands to launch and expand their presence in India. From fashion to food, its partner brands include Burberry, Pret A Manger and Tiffany.
Reporting by Aditya Kalra in New Delhi, M. Sriram and Dhwani Pandya in Mumbai and Chris Thomas in Bengaluru; Editing by Savio D’Souza, Louise Heavens and Mark Potter
Our Standards: The Thomson Reuters Trust Principles.
HONG KONG, June 29 (Reuters Breakingviews) – There’s plenty to like about Swire Pacific’s (0019.HK) Coca-Cola sale. The Hong Kong-based property-to-aviation conglomerate on Wednesday evening said it is handing its U.S. drinks subsidiary to its parent for $3.9 billion, allowing it to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific (0293.HK) and other holdings recover soon.
Around $1.5 billion from the expected proceeds will be distributed back to shareholders, while the rest will go towards strengthening Swire’s balance sheet. Both are welcome moves. Net debt at Swire is expected to fall by a third, to HK$38 billion ($4.9 billion) after the sale. The expanded cash pile will be able to cover 7.3 times the company’s borrowing costs, compared to 6 times at the end of last year – a useful buffer amid rising interest rates. Moreover, a special dividend equal to more than what the company has paid out over the past three years combined looks generous for investors who have seen Swire’s Hong Kong shares return a negative 13% since the start of 2023.
Operationally, not much changes. As part of the transaction the Hong Kong-based group has a 13-year contract to keep running Swire Coca-Cola USA, which will allow the conglomerate to maintain its lucrative manufacturing, marketing and distribution deals with the global drinks behemoth. It’s a clever way to dispose an asset without having to part with the business.
For such a cosy deal – the buyer is Swire’s 60%-controlling shareholder John Swire & Sons – the price looks satisfying too. At the implied 12.4 times enterprise value to adjusted 2022 EBITDA, the unit is valued just shy of $30 billion Coca-Cola Europacific Partners (CCEPC.L), which boasts superior margins and growth.
Little wonder Swire’s Hong Kong shares rallied as much as 8% on Thursday morning. Even so, the stock still trades at a dismal 50% discount to its net asset value, per Citi estimates. A property slump in Hong Kong and China, combined with a tough recovery for Cathay Pacific to bounce back to pre-pandemic levels, has weighed on the conglomerate, which owns 45% of the city’s troubled flagship carrier. The Coke sale is refreshing for investors, but only until the rest of Swire Pacific regains its fizz.
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CONTEXT NEWS
Hong Kong conglomerate Swire Pacific on June 28 announced it will sell its Swire Coca-Cola USA subsidiary for HK$30.4 billion ($3.9 billion) in cash to its 60%-controlling shareholder, John Swire & Sons. The company expects a gain of HK$$22.8 billion.
Upon completion of the sale, Swire Pacific will distribute HK$11.7 billion in special dividends to its shareholders. The company also plans to enter into a 13-year agreement to provide management services to Swire Coca-Cola USA and receive an annual fee of at least HK$117 million.
The deal is conditional upon the approval of independent shareholders.
Swire Pacific’s Hong Kong shares were up 5.5% to HK$61.00 on during early morning trading on June 29.
Editing by Antony Currie and Thomas Shum
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
NEW DELHI, May 13 (Reuters) – The Securities and Exchange Board of India (SEBI) has proposed regulating all online platform that offer fractional ownership of real estate assets, in a bid to provide protection to small investors.
Fractional ownership typically refers to small investment holdings of real estate assets. A number of web based platforms have mushroomed in the past three years which allow investors to invest in malls, warehouses, buildings and so forth.
The minimum investment on these platforms typically range from 100,000 rupees to 250,000 rupees.
“The lack of standard, uniform selling practices and lack of independent valuation, or of diligence of information or materials provided to potential investors could result in investors falling prey to mis-selling,” said SEBI, the nation’s market regulator, in the discussion paper late on Friday.
A discussion paper is normally the first step ahead of formulating new rules by SEBI.
The regulator proposed that such platforms must be registered under Regulatory Framework for Micro, Small and Medium REITs, where it should have separate trustees, sponsors and investment managers.
The sponsor and investment manager should have a net worth of 20 million rupees and 10 million rupees, respectively, the regulator said.
The underlying real estate assets offered on these platforms are similar to the real estate or property defined under the REIT Regulations, said SEBI in the discussion paper.
Globally such fractional ownership has been in existence since 2015 in markets such as the United States and United Arab Emirates.
Reporting by Jayshree P Upadhyay
Editing by Shri Navaratnam
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BENGALURU/SINGAPORE, May 6 (Reuters) – Singapore state investor Temasek Holdings (TEM.UL) is considering investing $100 million in Indian jeweller BlueStone for a stake of about 20%, two sources with direct knowledge of the matter told Reuters.
The investment would value Bengaluru-based BlueStone, also backed by venture capital firm Accel and Indian industrialist Ratan Tata, at close to $500 million, said one of the sources, who declined to be identified as the matter is private.
The potential deal could boost BlueStone’s plans to expand aggressively in India, the second-largest jewellery consuming nation behind China, as demand surges after the pandemic.
The jeweller has previously disclosed plans to open 300 stores by 2024. It has over 150 stores now, according to its website.
BlueStone operates in a market that is dominated by thousands of small and large local independent jewellery stores, but also branded outlets like Titan Company-owned (TITN.NS) Tanishq and CaratLane, and Kalyan Jewellers (KALN.NS).
Unlike many traditional jewellers, companies like BlueStone and CaratLane also offer online sales.
While Temasek’s interest in investing in Bluestone has been previously reported, Reuters is first to report details of an investment amount, the potential valuation and other financial details of the potential deal.
Temasek is doing due diligence on the transaction and a deal could be struck as early as July-September if talks are successful, said one of the sources.
BlueStone CEO Gaurav Kushwaha did not immediately respond to Reuters’ request for comment, while Temasek declined to comment.
Temasek has been investing $1 billion annually in India over past six years and its underlying exposure to India is $16 billion, which is over 5% of Temasek’s global $297 billion portfolio, its India head Ravi Lambah told the Economic Times last month.
The deal talks also come at a time when many Indian startups have been struggling to raise fresh funds, forcing them to delay IPOs and sack employees as investors question their sky-high valuations. Startups raised just $2 billion in the first quarter of 2023, 75% lower than the same period of last year, according to data firm CB Insights.
Reporting by Chris Thomas in Bengaluru and Yantoultra Ngui in Singapore; Editing by Kim Coghill
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April 27 (Reuters) – Jefferies Financial Group Inc (JEF.N) shares surged more than 5% on Thursday after Japan’s Sumitomo Mitsui Banking Corp (SMBC) said it will combine its U.S. equity and M&A business with the U.S. investment bank.
As part of a deal, SMBC’s parent, Sumitomo Mitsui Financial Group (8316.T), will expand its U.S. presence and boost its stake in Jefferies from 4.5% to as much as 15%, the companies said in a joint statement Thursday.
“This will give us access to more, and larger, public companies,” Jefferies President Brian Friedman told Reuters. “This is hugely strategic and deeply long-term.”
The deal gives SMFG the right to nominate a member of Jefferies’ board of directors. It expands collaboration between SMBC and Jefferies, which have worked together on cross-border mergers and acquisitions, healthcare and leveraged finance since 2021.
The transaction will enable Jefferies to offer more lending capabilities, with the help of SMFG’s balance sheet, alongside its traditional advisory work.
SMFG has long been eager to crack the U.S. and other major overseas capital markets. Its SMBC Nikko Securities unit, formerly Citigroup Inc’s (C.N) Japanese broker and a key investment banking unit that SMFG bought in 2009, has a limited footprint abroad.
SMFG’s bigger domestic rival, Mitsubishi UFJ Financial Group Inc (8306.T), has boosted its U.S. presence through a $9 billion investment in Morgan Stanley (MS.N) in 2008, which gave MUFG some 20% ownership of the Wall Street bank.
The Financial Times first reported the news on SMBC and Jefferies.
Reporting by Kanjyik Ghosh in Bengaluru; Editing by Savio D’Souza
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NEW YORK, April 3 (Reuters) – Rockefeller Capital Management, a wealth manager and financial advisory firm, sold a 20.5% equity stake to Canada’s IGM Financial Inc (IGM.TO) for about $622 million, the companies said on Monday.
The investment will fuel Rockefeller’s ambitions to double client assets in three to five years from a current $100 billion.
“We’ve got a significant opportunity” to grow in the U.S., Rockefeller CEO Gregory Fleming told Reuters in an interview.
“Our core focus is on advisers,” he added, referring to its current wealth managers and potential new hires who would help to expand the company’s 44 offices in the U.S.
Rockefeller manages money for the eponymous family and other ultra-high net worth clients. The new IGM stake brings the backing of another wealthy family, the Desmarais, in Canada. Viking Global Investors remains Rockefeller’s biggest shareholder.
The deal negotiations began in the fall, despite a softening economic outlook, Fleming said. The payment to Rockefeller is due on June 2, IGM said in a statement.
“Purchasing an ownership stake in Rockefeller is a risk-smart entry to the U.S. market,” IGM CEO James O’Sullivan said. “It has the potential to drive meaningful earnings growth for IGM over time.”
Fleming is an industry veteran who previously led Morgan Stanley’s wealth and investment management arms. As chief operating officer of Merrill Lynch, he helped steer the Wall Street firm through the financial crisis and its acquisition by Bank of America in 2008.
Reporting by Lananh Nguyen; Editing by Jamie Freed
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