Policybazaar IPO stacks up in a price comparison 4 Aug 2021 The SoftBank-backed insurance and loans marketplace is worth 42 times sales on a mooted $5 bln valuation. Its leading digital market position and blistering growth justify the high multiple, despite rising competition from rivals like Paytm which could beat it on distribution.
Ackman’s SPAC tries to run before it can walk 3 Aug 2021 The hedgie wanted his blank-check vehicle to buy 10% of Universal Music for $4 bln and live on to find a second deal. His structure was already non-standard. Adding exotic features brought a clash with regulators trying to set SPAC norms. Ackman’s next attempt needs to be vanilla.
Private equity enjoys its wet hot American summer 3 Aug 2021 KKR’s earnings more than doubled in the latest quarter, following a pattern set by Blackstone and Carlyle. All are basking in rising valuations, hyperactive M&A and investors’ quest for higher returns. Even a Democrat-led White House is, for now, making the buyout barons richer.
Fear of fatness fuels Pepsi’s $3.3 bln juice deal 3 Aug 2021 The maker of Mtn Dew Cake-Smash is selling seemingly healthier juices lines like Tropicana. Though he’s keeping a finger in the bottle, CEO Ramon Laguarta seems focused on flogging zero-calorie tipple to increasingly obese consumers. That’s why French LBO firm PAI got it cheap.
The Exchange: How UK’s vaccine taskforce did it 3 Aug 2021 Clive Dix was part of a crack team of business execs and scientists that secured Covid-19 jabs for Great Britain. They applied a venture capital approach that can be used to tackle other public sector challenges. The former chairman discusses lessons learned and looming threats.
Capital Calls: Grab, Gaming, SocGen, Stellantis 3 Aug 2021 Concise views on global finance: The Southeast Asian super-app delivers some of the goods; Tencent shares tank after Chinese state-media criticism; the French lender’s investment bank overhauls goals; the carmaker hikes operating margin targets to a chunky 10%.
BP’s oil price boon is a mixed blessing 3 Aug 2021 Rising crude values allowed the $84 bln UK group to raise its payout and give CEO Bernard Looney more funds to pivot away from fossil fuels. But the bonanza could focus investor minds on less speedy rivals with scope to pay higher dividends, like Shell. That may hurt BP’s appeal.
Sanofi M&A punt soothes France’s Covid-19 shame 3 Aug 2021 The $131 bln drugmaker bought U.S-listed Translate Bio for $3 bln. CEO Paul Hudson gets a leg up in hot mRNA technology, which trounced the French group’s traditional vaccines during the pandemic. Shareholder returns look distant, but the cost of standing still may be higher.
Li Auto’s Hong Kong debut extends battery hedge 3 Aug 2021 The New York-traded carmaker aims to raise $1.9 billion by adding an HKEX listing. Unlike peers Xpeng and Nio, it sells hybrids, with no pure-electric models on the road until 2023. It’s a wager on a slower energy transition in China that could bring profitability before rivals.
Goldman and Morgan Stanley recalibrate China glory 3 Aug 2021 The U.S. investment banking duo has pocketed $500 mln, or 37% of the available fees, from advising on offshore stock sales this year. That’s up from just 23% before the pandemic. Their dominance can withstand Beijing’s IPO crackdown, but other trends will be harder to combat.
Square backs a truck onto Wall Street’s front yard 2 Aug 2021 The $29 bln purchase of pay-later firm Afterpay makes Jack Dorsey’s fintech outfit more bank-like but without the historical baggage, dense regulation and lengthy rap sheet. Square is still small next to lenders like JPMorgan, but big enough to force them to change their ways.
Allianz’s DOJ tangle will mostly hit M&A ambitions 2 Aug 2021 The $95 bln insurer’s shares fell 10% after it warned a U.S. Department of Justice probe could materially impact earnings. Allianz boss Oliver Baete has a sturdy enough balance sheet to withstand a substantial hit. It may mean fewer deals to augment his growth strategy, though.
Ferrari’s new boss faces early electric test 2 Aug 2021 The EU wants to ban new fossil fuel-powered cars from 2035. That’s likely to force incoming CEO Benedetto Vigna to accelerate the $42 bln sports-car maker’s plans to shift to battery power. How to do that without denting its luxury margins will require some deft driving.
Capital Calls: Aussie oil deal, Fund services M&A 2 Aug 2021 Concise views on global finance: Santos’ improved and agreed offer for Oil Search comes at a discount to its rejected first attempt; Sanne’s dealmaking poker face looks set to be vindicated.
Sunnier HSBC leaves something for rainy day 2 Aug 2021 The Asia-focused bank more than doubled first-half profit to $10.8 bln to generate a 9.4% return after the scary bad-loan outlook improved. Despite a steady turnaround, boss Noel Quinn is paying just a slim dividend. With the virus resurgent, there’s good reason for caution.
UK plc’s latest sale is far from on the cheap 2 Aug 2021 Ohio-based engineer Parker-Hannifin is buying British rival Meggitt for 7 bln pounds including debt. The 70% premium and promises to keep UK jobs point to measly long-term returns. UK investors’ complaints about opportunistic foreign raiders look less and less credible.
Afterpay’s $29 bln Square deal taps new reality 2 Aug 2021 The instalment-payments darling has defied naysayers for years but faces fresh competition from PayPal and Apple. An all-stock takeover by Jack Dorsey’s fintech outfit comes at a discount to a recent valuation peak. Selling now, though, provides a better chance of success later.
Alibaba can shake off its China discount 2 Aug 2021 The e-commerce titan's shares have tumbled 40% from an October 2020 peak as Beijing cracks down on tech. It’s now trading at a big discount to Amazon even though both are growing profit at about the same rate. Alibaba's resilient businesses should help the valuation gap narrow.
Evergrande’s fire sale risks too little too late 2 Aug 2021 The indebted developer sold stakes worth $418 mln in media unit HengTen to buyers including Tencent after its shares tanked. But it is also lending HengTen $260 mln for five years, interest-free. With its stock and bonds plunging, this deal looks both stubborn and desperate.