Pinduoduo polishes New York’s tech IPO crown 27 Jul 2018 The shopping app’s shares rose 40 pct in their U.S. debut, valuing it at $34 bln. New York has lost some marquee China tech floats to Hong Kong of late, but those it won have mostly outperformed Fragrant Harbour debutants. The Big Apple is still the host with the most.
Yum China deserves more than a cheap takeout 27 Jul 2018 Hillhouse is reportedly in talks to buy the KFC operator. It looks opportunistic given Yum’s knockdown valuation. If successful, the Beijing investment outfit gets a China consumption play with Western-style governance, and its tech savvy could supersize the $14 bln company.
Australian media mega-merger price looks generous 27 Jul 2018 Newspaper publisher Fairfax Media agreed to a $1.6 billion buyout bid from broadcaster Nine Entertainment. Consolidation in the country’s media industry was inevitable given recent liberalisations. But Nine shareholders have reason to be displeased by the premium offered.
Indian tycoon winner of Trump-China metals scrap 26 Jul 2018 Hindalco is snagging aluminium producer Aleris for $2.6 bln after CFIUS concerns torpedoed a previous bid from a Chinese buyer. Hindalco’s U.S. arm Novelis is paying more, but the numbers stack up. Mogul Kumar Mangalam Birla is smartly taking advantage of the trade war for now.
Nomura trading loss exposes delusions of adequacy 26 Jul 2018 The Japanese bank reported a 91 percent decline in first quarter earnings thanks to a $67 mln pre-tax loss at its investment bank. Unless boss Koji Nagai can tame trading volatility, his 10 percent return on equity target by 2020 looks increasingly far-fetched.
Xi takes trade war gloves off by blocking Qualcomm 26 Jul 2018 Beijing's effective veto of the chipmaker's bid for NXP likely wasn't what President Trump expected when he lifted a ban on China's ZTE. But in weaponising monopoly law, President Xi has found a blunt response to security-based U.S. tariffs. Escalation is getting ugly quickly.
Qualcomm is set to pitch life without NXP 25 Jul 2018 The $90 bln chipmaker’s $44 bln purchase of its rival could die on Wednesday unless Beijing gives it an 11th-hour nod. Traders seem to think that’s unlikely. Going it alone won’t be easy for Qualcomm, but in the 21 months since striking the NXP deal it has not stood still.
China’s peer lender pain will hurt the little guy 26 Jul 2018 Scores of peer-to-peer lenders have imploded since last month thanks in part to a regulatory clampdown. Consolidation is inevitable, and helpful for big players like Lufax. But the $200 bln industry’s travails will make it harder for struggling small companies to find credit.
China Tower offering sends the right signals 25 Jul 2018 The phone-mast giant set a fair price range for its $9bln IPO. It also limited sales to cornerstone investors, attracting not just friends and family. It’s a welcome change to how SOEs are dumped in Hong Kong. A solid debut could inspire others to follow this friendlier approach.
Macau casinos could lose VIPs to junket upstart 25 Jul 2018 Suncity boss Alvin Chau helps bankroll half of the gaming hub’s big-spenders. He also aspires to running his own casinos and could coax clients to try new markets like Vietnam. That may mean fewer high rollers at Wynn Macau, Galaxy and others when China’s slowdown bites.
Alibaba ad deal completes Carlyle engineering feat 25 Jul 2018 Jack Ma’s e-commerce titan is buying a stake in $24 bln Focus Media, some from the U.S. private equity firm. Carlyle led a 2013 New York buyout and profitable reverse merger into Shenzhen, but a complex structure and rigid rules made exiting hard. Alibaba provides the lucky coda.
Lax corporate governance damns China Inc 24 Jul 2018 A new report reveals slow progress improving clarity and accountability. Weak controls are so rampant that foreign and local investors alike prefer state dinosaurs to independent companies. More boardroom meddling by Beijing will further deter investment in the private sector.
China’s fiscal nudge betrays growth jitters 24 Jul 2018 The government is adding some $10 bln of corporate tax cuts as part of a broader policy push. It follows tussles between the central bank and the finance ministry over how to support an economy that just expanded 6.7 pct. Speed is as much a priority as rebalancing growth.
Japan’s $11 bln Line treads a very fine one 24 Jul 2018 The chat app’s shares have bounced around since its 2016 IPO as user growth proves elusive. Line bumbled its way from ride-hailing to music-streaming, and is now aiming at fintech. It’s a promising market, but trading at over 100 times earnings leaves little room for error.
Bank of Japan’s trial balloon shot down on runway 23 Jul 2018 Bond yields and the yen rose after Reuters reported the central bank was debating whether to scale back monetary stimulus. The move would be good for bank investors. But the scale of the market reaction and economic reality will make it hard for Governor Haruhiko Kuroda to act.
Indian buyer sows better outbound M&A seeds 23 Jul 2018 In the country’s biggest overseas deal in years, UPL will double in size acquiring Platform Specialty’s agrochemicals unit for $4.2 bln. Backing from TPG and ADIA help, and there’s no risky bridge loan. The Shroff family may outdo other local tycoons who have ventured abroad.
China’s pharma scandals sully healthcare cleanup 23 Jul 2018 Quality control problems at two drug makers in July have angered politicians, frightened consumers and destroyed over $2 bln in shareholder value. They come despite an earnest campaign to toughen standards. Big heads will probably roll. Better medicine may result.
KKR’s Taipei deal hints at Asian daring 23 Jul 2018 The buyout firm led by Henry Kravis is leading a $1.6 bln takeover of chemicals maker LCY. Taiwan has been a tough market for private equity, including KKR. Slow growth and tensions with China add concerns. As dry powder in the region grows, the risk calculus may be changing.
UK takes space leap as it leaves EU orbit 20 Jul 2018 Exiting the European Union has cast a cloud over Britain’s membership of the Galileo satellite-navigation project. Going it alone could leave the government with a big bill. Building Europe’s first launch pad, though, taps into strong demand for new commercial satellites.
HNA’s market thaw provides only cold comfort 20 Jul 2018 Three listed units of the troubled Chinese conglomerate lost a combined $1.5 bln in value after long trading halts ended. It signals a lack of confidence about HNA’s restructuring plans as it regroups without its late chairman. Pity investors trapped by a 10 pct downside limit.