Tag Archives: Equity Financing

Paddy Energy and Poker Stars house owners to create on-line playing chief

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DUBLIN (Reuters) – The house owners of Paddy Energy Betfair and Poker Stars have agreed to merge in an all-share deal that may create the world’s largest on-line betting and playing firm by income to reap the benefits of the opening up of U.S. markets.

FILE PHOTO: Paddy Energy emblem is seen behind a keyboard and playing cube on this illustration taken in Sarajevo, September 10, 2015. REUTERS/Dado Ruvic/File Photograph

Flutter Leisure (FLTRE.I), previously generally known as Paddy Energy Betfair, is to mix with Nasdaq- and Toronto-listed Stars Group Inc (TSG) (TSGI.TO), proprietor of Poker Stars, the businesses mentioned on Wednesday.

Following the merger, shareholders of Flutter would personal roughly 54.64% of the brand new firm, with TSG shareholders proudly owning about 45.36%.

The merger is the most recent in a sequence of offers because the trade responds to the rising variety of gamblers utilizing on-line and cellular gadgets and the chance created by the comfort of guidelines on sports activities betting in the USA.

Shares in Flutter jumped 15 p.c in early buying and selling, whereas playing rivals GVC (GVC.L) and William Hill (WMH.L) had been additionally lifted by the prospect of additional consolidation.

Mixed annual revenues would have totaled 3.eight billion kilos ($4.7 billion) in 2018, making Flutter-TSG the most important on-line betting and gaming operator globally, the businesses mentioned.

Flutter CEO Peter Jackson, who will retain his function within the mixed group, mentioned the deal would “turbocharge” Flutter’s current technique and “present world-class capabilities throughout sports activities betting, gaming, every day fantasy sports activities and poker, in addition to higher geographical and product diversification.”

The merged group can have its headquarters in Dublin and its major itemizing in London.

FOX BACKING

The merged group shall be boosted by a partnership in the USA with FOX Sports activities, which can have the fitting to amass an 18.5% stake in Flutter’s FanDuel U.S. enterprise from 2021.

Dublin-based Flutter merged its U.S. enterprise with fantasy sports activities firm FanDuel final yr in a deal it mentioned would create the trade’s largest on-line enterprise in the USA.

TSG had bolstered its British operations final yr when it purchased Sky Betting & Gaming in a $4.7 billion deal.

Flutter has sharpened its concentrate on North America as the doubtless large U.S. market opens up and it faces increased taxes and elevated rules in its major British, Irish and Australian markets.

Betting trade Betfair and Paddy Energy, which runs excessive road betting outlets in addition to a web based enterprise, merged in 2016, though the mixing took longer than anticipated and a toll on product funding for a time.

The merger is predicted to ship pretax value synergies of 140 million kilos per yr, together with alternatives to cross-sell merchandise to 1 one other’s clients in worldwide markets and decrease finance prices, the businesses mentioned.

The deal can be anticipated to spice up Flutter’s underlying earnings per share by at the very least 50 p.c within the first full monetary yr following completion.

Beneath the phrases of the merger, TSG shareholders shall be entitled to 0.2253 new Flutter shares for every TSG share.

Reporting by Graham Fahy; Modifying by Muralikumar Anantharaman and Mark Potter

Our Requirements:The Thomson Reuters Belief Ideas.

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SoftBank turns towards WeWork’s dad or mum CEO Neumann: sources

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(Reuters) – Japan’s SoftBank Group Corp (9984.T), the largest investor in WeWork proprietor The We Firm, is exploring methods to exchange Adam Neumann as chief government of the U.S. office-sharing start-up, 4 folks aware of the matter mentioned on Sunday.

FILE PHOTO: Adam Neumann, CEO of WeWork, speaks to visitors throughout the TechCrunch Disrupt occasion in Manhattan, in New York Metropolis, NY, U.S. Might 15, 2017. REUTERS/Eduardo Munoz -/File Photograph

The uncommon showdown between SoftBank and considered one of its largest investments comes after We Firm postponed its preliminary public providing (IPO) final week, following pushback from perspective traders, not simply over its widening losses, but additionally over Neumann’s unusually agency grip on the corporate.

This was a blow for SoftBank, which hoped for We Firm’s IPO to bolster its income because it seeks to woo traders for its second $108 billion Imaginative and prescient Fund. It invested in We Firm at a $47 billion valuation in January, but inventory market investor skepticism led to the startup contemplating a possible valuation within the IPO earlier this month of as little as $10 billion, Reuters reported.

Administrators on We Firm’s seven-member board which are aligned with SoftBank are deliberating learn how to exchange Neumann as CEO, the sources mentioned. Benchmark Capital, one other huge investor in We Firm, would additionally like Neumann to step apart, one of many sources mentioned.

No problem to Neumann has but been tabled, the sources mentioned. A We Firm board assembly to debate Neumann’s future might be held as early as this week, one other of the sources mentioned.

One possibility that SoftBank is contemplating is asking Neumann to develop into interim CEO whereas a headhunting agency is employed to search out an exterior alternative, the primary supply mentioned.

The sources requested to not be recognized as a result of the matter is confidential. We Firm and SoftBank declined to remark, whereas Neumann and Benchmark Capital couldn’t be instantly reached for remark. The Wall Avenue Journal first reported on SoftBank exploring methods to exchange Neumann as CEO.

As co-founder of the We Firm, Neumann holds particular voting shares that allow him to dismiss dissident board administrators and shoot down any problem to his authority. Nonetheless, SoftBank may select to not again We Firm’s IPO or present it with extra funding. It has already funded the cash-burning start-up to the tune of $10 billion, and was discussing committing one other $1 billion to the IPO.

We Firm mentioned final week it’s aiming to develop into a publicly traded firm by the tip of the 12 months.

In an indication of the deteriorating relations between SoftBank and WeWork, Neumann didn’t take part in a gathering of executives of corporations backed by SoftBank that occurred in Pasadena, California, final week and was organized by SoftBank CEO Masayoshi Son, based on two folks aware of the matter.

Reporting by Anirban Sen in Bengaluru and Joshua Franklin in New York; Extra reporting by Greg Roumeliotis in new York and Rishika Chatterjee in Bengaluru; Modifying by Sonya Hepinstall and Daniel Wallis

Our Requirements:The Thomson Reuters Belief Ideas.

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After LSE’s sharp rebuff, HKEX begins investor attraction offensive

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LONDON (Reuters) – Hong Kong Exchanges and Clearing (0388.HK) is embarking on a three-week attraction offensive with London Inventory Trade (LSE.L) traders because the Asian buying and selling home tries to salvage its proposed $39 billion takeover provide.

FILE PHOTO: The title of Hong Kong Exchanges and Clearing Restricted is displayed on the entrance in Hong Kong, China January 24, 2018. REUTERS/Bobby Yip/File Photograph

LSE’s board is refusing to have interaction with HKEX after emphatically rejecting its method on Friday. The LSE described HKEX’s provide as essentially flawed, saying it could not meet its strategic targets and got here with a excessive threat of being blocked by regulators.

LSE has stated it desires to stay with its plan of shopping for knowledge and buying and selling firm Refinitiv for $27 billion.

However HKEX has vowed to press on, and has arrange conferences with a collection of LSE’s high traders over the following few weeks, in response to two individuals acquainted with the matter, elevating the possibilities that it might make a hostile provide.

One top-25 investor advised Reuters that they had a gathering booked with HKEX later this month and that there might be a hostile method. Others stated they have been eager to listen to extra moderately than dismissing the deal instantly in favor of the Refinitiv tie-up.

“We’d count on there to be some synergy (within the HKEX deal) each when it comes to company overheads and expertise,” stated James Bevan, chief funding officer at CCLA. He added that whereas he was broadly supportive of the Refinitiv deal, he had some considerations in regards to the knowledge agency’s development technique.

HKEX has till Oct. 9 to make a agency provide or stroll away.

HKEX declined to touch upon the deal past its assertion on Friday that it could proceed to have interaction with LSE shareholders and that its provide was of their greatest pursuits.

LSE didn’t reply to a request for touch upon Sunday.

REGULATORY RISK

A supply near HKEX stated the Asian buying and selling home was assured some LSE traders have been fascinated by their provide and that it had an opportunity of success. They identified that round 15 of the highest 20 LSE shareholders additionally had stakes in HKEX.

However the previous decade has seen a collection of makes an attempt at cross-border change offers fail, thwarted by regulators and politicians even when each firms have favored the deal.

HKEX says it has had “constructive” preliminary discussions with regulators and policymakers. Nevertheless, regulatory sources in Britain and Italy – the place LSE owns Borsa Italiana – stated that they had but to carry substantive talks with HKEX on the deal.

HKEX will probably be relying on its lead banker – Moelis’s Caroline Silver – to assist it pull off what can be a significant coup if it succeeds.

One of the vital outstanding change bankers, Silver labored on LSE’s takeover of Borsa Italiana in 2007 when at Morgan Stanley, and represented London Metallic Trade when HKEX purchased it in 2012.

“Her modus is kind of easy: she is aware of everyone within the change and monetary infrastructure world, she understands the markets … and he or she runs a really disciplined course of,” stated Martin Abbott, London Metallic Trade’s former chief govt.

Further reporting by Sinead Cruise, Carolyn Cohn and Huw Jones; Writing by Rachel Armstrong; Enhancing by Dale Hudson

Our Requirements:The Thomson Reuters Belief Rules.

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PG&E evaluating proposal from hedge funds Knighthead Capital, Abrams Capital

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FILE PHOTO: PG&E works on energy strains to restore harm attributable to the Camp Hearth in Paradise, California, U.S. November 21, 2018. REUTERS/Elijah Nouvelage/File Photograph

(Reuters) – Energy producer PG&E Corp (PCG.N) mentioned on Friday it’s evaluating a proposal from hedge funds Knighthead Capital Administration and Abrams Capital Administration to offer fairness capital commitments supporting a plan to reorganize the corporate.

“The Firm has acquired the financing proposal from Abrams and Knighthead and is evaluating it, together with the backstop dedication letters and associated supplies, in session with the Firm’s advisors. The Firm will reply to the proposal sooner or later,” PG&E mentioned in a press release.

Shareholders Knighthead Capital and Abrams in a letter to PG&E on Thursday proposed elevating $15 billion in fairness to fund a deliberate reorganization of the facility producer, which is going through big liabilities from California wildfires.

The proposed fundraising, a rights providing of latest shares, is the most recent effort to rescue PG&E, which sought Chapter 11 chapter safety earlier this 12 months after extreme wildfires in 2017 and 2018 resulted in additional than $30 billion in liabilities.

Knighthead and Abrams pledged to buy a portion of the provided fairness if shares are left unsold by way of a so-called backstop dedication.

Reporting by Kanishka Singh in Bengaluru; Modifying by Leslie Adler

Our Requirements:The Thomson Reuters Belief Rules.

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Vale shareholders push to loosen company control over board elections

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FILE PHOTO: The logo of the Brucutu mine owned by Brazilian mining company Vale SA is seen in Sao Goncalo do Rio Abaixo, Brazil February 4, 2019. REUTERS/Washington Alves/File Photo

SAO PAULO (Reuters) – Minority shareholders of Brazilian iron ore miner Vale SA have enough votes to request that board members be elected independently using a cumulative voting system and not in a single vote approving all names proposed by controlling shareholders, the company said in a filing.

Broker Vic DTVM and fund Geracao Futuro Lpar proposed Patricia Bentes as an independent member, challenging a list of 13 candidates presented by the company’s controlling shareholders.

Vale said in the securities filing on Saturday the election of its board members may occur on Tuesday under the new cumulative voting system.

In March, Vale proposed enlarging its board by adding one independent member two months after nearly 300 people died in a mining dam operated by the company.

The proposed names include three independent board members and nine appointed by controlling shareholders. Vale’s board of directors currently has 12 members.

Shareholders are seeking to strengthen Vale’s new board by proposing executives with more experience in mining, sustainability and corporate governance issues.

Vale’s controlling shareholders are Bradespar SA, Japan’s Mitsui & Co Ltd and Litel, which holds the stakes of some Brazilian pension funds.

Reporting by Carolina Mandl; Editing by Bill Trott

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Uber to kick off investor road show with IPO terms on Friday

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(Reuters) – Ride-hailing company Uber Technologies Inc will unveil terms for its initial public offering on Friday, telling investors it will seek to be valued at between $80 billion and $90 billion, according to people familiar with the matter.

The valuation sought is less than the $120 billion valuation that investment bankers told Uber last year it could fetch, and closer to the $76 billion valuation it attained in its last private fundraising round last year.

Uber’s moderation of valuation expectations reflects the poor stock performance of its smaller rival Lyft Inc following its IPO last month. Lyft shares ended trading on Thursday down 22 percent from their IPO price amid investor skepticism over its path to profitability.

Uber will unveil on Friday an IPO price range of between $44 and $50 per share, based on which it would raise between $8 billion and $9 billion, the sources said. This would rank it as the largest IPO since that of Chinese e-commerce giant Alibaba Group Holding Ltd in 2014.

In addition, some Uber insiders will also sell their own shares in the IPO, the sources said. Reuters reported earlier this month that all the Uber shares sold in the IPO could be worth around $10 billion.

Uber also plans to unveil on Friday its last sale of stock as a private company, the sources said. The identity of the investor involved in the private placement could not immediately be learned.

The investor roadshow will kick off in earnest on Monday, setting the stage for Uber to debut on the New York Stock Exchange in early May.

For the roadshow, Uber’s top executives will travel the Unites States and make a stop in London to drum up investor interest in the IPO, sources said.

The sources asked not to be identified because the matter is confidential. Uber declined to comment. The price range was reported earlier by Bloomberg News.

Two other IPOs this month, those of online scrapbook company Pinterest Inc and video conferencing company Zoom Video Communications Inc, have performed much more strongly than Lyft. Uber, however, has chosen to still value itself conservatively.

“People are more cautious than they were 4 weeks ago,” said Duncan Davidson, general partner at Bullpen Capital, an early-stage venture capital investment firm.

Uber operates in more than 70 countries. In addition to ride hailing, its business includes bike and scooter rentals, freight hauling, food delivery, and an expensive self-driving car division.

The ride-hailing startup has disclosed it has 91 million users, but growth is slowing and it may never make a profit. Uber in 2018 had $11.3 billion in revenue, up around 42 percent over 2017, but below the 106 percent growth the prior year.

During the IPO roadshow, Uber’s chief executive, Dara Khosrowshahi, will be tasked with convincing investors that he has successfully changed the company’s culture and business practices after a series of embarrassing scandals over the last two years.

Those have included sexual harassment allegations, a massive data breach that was concealed from regulators, use of illicit software to evade authorities and allegations of bribery overseas.

Uber is reserving some shares in the IPO for drivers who have completed 2,500 trips among other criteria.

AUTONOMOUS DRIVING

Last week, Uber’s autonomous vehicle unit raised $1 billion privately from a consortium of investors, including top Uber shareholder SoftBank Group Corp, giving the company a much-needed funding boost for its self-driving ambitions.

Last year, Uber settled a legal dispute over trade secrets with Alphabet Inc’s Waymo self-driving vehicle unit. Waymo, in its lawsuit, had said one of its former engineers who became chief of Uber’s self-driving car project took with him thousands of confidential documents.

FILE PHOTO: Uber’s logo is displayed on a mobile phone in London, Britain, September 14, 2018. REUTERS/Hannah Mckay

One advantage Uber will likely seek to play up to investors is that it is the largest player in many of the markets in which it operates. Analysts consider building scale crucial for Uber’s business model to become profitable.

Lyft, which was valued at $24.3 billion in its IPO, has focused only in the U.S. and Canadian markets.

“Investors are now asking for more clarity on how ride-sharing companies will monetize data they are collecting and if this is a scalable business,” said Jordan Stuart, a client portfolio manager for Federated Kaufmann funds who often purchases stock in IPOs.

Reporting by Joshua Franklin in New York and Heather Somerville in San Francisco; additional reporting by Jennifer Ablan in New York; editing by Bill Rigby, Meredith Mazzilli and Chris Reese

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