CKI’s push into energy-metering looks smart 26 Jul 2017 Hong Kong tycoon Li Ka-shing’s infrastructure firm is frontrunner to buy Germany's Ista, Reuters says. That should mean steady cashflows plus higher returns than regulated utilities. A mooted price of more than $5.2 bln looks decent, at roughly 11 times EBITDA.
C-suite stasis hurts India’s non-performing banks 26 Jul 2017 While New Delhi has ditched bosses of some flailing state banks, private lenders with lots of bad loans have stuck with the status quo. Axis and ICICI have each had their chief since 2009 and significantly lagged rivals. A lack of movement at the top holds back corporate India.
India’s pesticide kings have fertile base for M&A 25 Jul 2017 UPL may bid more than $4 bln for part of Platform Specialty, the U.S. group backed by Bill Ackman's hedge fund, Reuters says. While overseas deals have led many Indian companies astray, a trim balance sheet and a solid deal-making history offer a chance to rewrite the record.
Hong Kong’s IPO naming and shaming hits new low 25 Jul 2017 AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.
HNA shines dim light on ownership 25 Jul 2017 A restructuring of the acquisitive Chinese conglomerate’s shareholding structure is meant to allay concerns about opacity. It loses two mysterious investors and will now be majority owned by a pair of charities. More clarity is welcome, but this web still looks pretty tangled.
Grab rides two trends to $6 bln valuation 24 Jul 2017 The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.
Beijing sours on private-sector independence 24 Jul 2017 Bureaucrats who once encouraged foreign takeovers are now second-guessing private deals by Dalian Wanda, HNA and others. Tech stars like Tencent are being force-fed shares in state dinosaurs. The Communist Party has grown overconfident in its ability to micro-manage.
Abe’s weakness puts Japan reform momentum at risk 24 Jul 2017 A period of unusual political stability helped Prime Minister Shinzo Abe shake up the economy. But his approval ratings have crashed. He is more likely to respond with populist spending than doubling down on reform. If that fails to shore up his support, he may be replaced.
IPO baggage weighs heavier on ZTO 21 Jul 2017 A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.
Free phones power Mukesh Ambani’s tech ambitions 21 Jul 2017 India's richest man has seriously upped the ante in the country’s mobile war. His Reliance Jio network is offering free internet-enabled handsets, potentially reaching 500 mln more people. A strong oil refining business means he can worry about recouping the investment later.
Air India fix would give Modi reform miles 21 Jul 2017 The carrier is a travelling advertisement for India's inefficiencies. It has made losses for nine years and turnaround efforts have failed. A sale may push a multi-billion dollar writedown on lenders, but would validate Prime Minister Modi's reform credentials.
Blackstone’s Asia move shows Eastern promise 21 Jul 2017 Blackstone plans to raise its first Asia private equity fund, Reuters reported, catching up with rivals like KKR. The timing looks smart, as toppy U.S. values make Asia look more attractive. Still, a correction in the region could give the global fund's investors a nasty shock.
China’s new carbon market faces pricing pratfall 21 Jul 2017 China is about to launch the world’s biggest carbon market, after sharply reducing its scope to a few core sectors. The scheme can help foster cleaner, leaner industry. But success is likely to be limited by dodgy data, distorted pricing, and Beijing's distrust of market forces.
Soccer world will miss Chinese sugar daddies 20 Jul 2017 State media has questioned Suning’s purchase of Inter Milan, part of a $3 billion mainland soccer splurge, amid an offshore M&A clampdown. The acrobatic financing of AC Milan may attract Beijing’s attention next. Benching Chinese buyers could hurt cash-strapped European clubs.
Alibaba rewrites its e-commerce playbook 20 Jul 2017 China's online giant is trumpeting "new retail": a push into bricks-and-mortar shopping. That could help sustain high growth. But abandoning the asset-light model which has been Alibaba's unique selling point will weigh on profits.
Wanda and Sunac go back to M&A 101 20 Jul 2017 The Chinese developers have been forced to rejig their $9 bln property deal. The result is a less fiddly structure with a third party. That might get the sale through, but Wanda's long list of problems make it unclear if it is any closer to its bigger goal of listing onshore.
Hadas: No auction often beats a bad auction 19 Jul 2017 Governments and Google are fans of auction theory, which teaches how to extract the highest bids for assets like radio spectrum or online ads. But the branch of economics cannot say if the price is fair. Auctions too often confuse consumers and tarnish the image of capitalism.
Einhorn’s bold Toshiba play has just enough logic 19 Jul 2017 The Greenlight boss unexpectedly took a stake in the beleaguered Japanese group, betting it's hit bottom. That's gutsy, but not necessarily reckless: Toshiba is closer to selling its chip business, which could give it much-needed financial relief and unlock value in other units.
Malaysia power IPO will test 1MDB stain 19 Jul 2017 China Nuclear wants to float assets acquired for $2.3 bln from disgraced 1MDB. A Kuala Lumpur listing may smooth local misgivings over Chinese ownership. But it is unclear if investors are ready to look beyond the fund scandal. Recent listings also suggest it will be a hard sell.
Australian banks can digest capital hike move 19 Jul 2017 Regulators in Oz have aggressively hiked capital requirements for big banks. The caution is warranted given the finance sector's concentration and record household debt. A grace period will soften the blow for lenders, but outsized returns could be a thing of the past.