Capital Calls: Uber union 26 May 2021 Concise views on global finance: UK union’s success in representing drivers may hit potholes in the United States.
Goldman puts “long-term greedy” to work in China 26 May 2021 The Wall Street firm won approval for an asset management venture with local megabank ICBC, despite selling its shares in the lender for a bumper profit nearly a decade ago. Its painstakingly diplomatic exit leaves the door open for Goldman to rehash its old money-making mantra.
Capital Calls: BlackRock/Exxon, Media deals, SPACs 25 May 2021 Concise views on global finance: The giant asset manager will vote for three dissident nominees for Exxon Mobil’s board; boutique adviser LionTree has benefited from a rash of media deals; Lordstown Motors show why blank-check merger projections can’t be relied upon.
Lufax buyback boosts case for direct listings 25 May 2021 Just seven months after an IPO where raising capital was not the main goal, the $31 bln Chinese online lending service is repurchasing a slug of its stagnant shares. Such quick reversals hardly inspire confidence. It’s one more reason to consider new stock-issuance alternatives.
Capital Calls: “Friends” reunion, SPACs in D.C. 24 May 2021 Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.
Bike sharing shifts into a more manageable gear 24 May 2021 Sloppy investment and price wars wiped out stacks of startups. Now survivors are pedalling toward public markets. China’s Hello has teed up an IPO in New York while a SPAC deal values California’s Bird at $2.3 bln. Both lose money, but revenue and regulation issues look fixable.
State lender is India’s surprise steady bank 24 May 2021 The $50 bln State Bank of India is in stronger shape than it was pre-pandemic. Net interest income grew 13% in the fiscal year, helped by its lower ratio of bad loans and a focus on lending to public employees. That’s a big win but a smaller corporate loan book is a worry.
Chinese snack-maker IPO is a little too spicy 21 May 2021 Weilong is aiming to go public in Hong Kong with its oily, salty strips. Sweet sales growth and a juicy profit margin pass the taste test. A March fundraising from Hillhouse and others, however, implied a fiery $9.4 bln valuation. Paying more than 70 times earnings will sting.
Video games give Tencent a break from reality 21 May 2021 Hits like "Honour of Kings" powered a 25% rise in quarterly sales, to $21 bln. New titles should give boss Pony Ma some cover from regulatory threats and fierce competition. The respite may be temporary, but changes in the messaging, music and video divisions hint at what's next.
Capital Calls: Apollo, Microsoft 20 May 2021 Concise views on global finance: The second of the asset manager’s three founders moves on; the software firm is pulling the plug on Internet Explorer.
ByteDance boss live-streams new risk factors 20 May 2021 Zhang Yiming is the latest high-profile boss to step down amid Beijing's tech crackdown. It's a prudent move to ensure a smoother market debut for the $300 bln owner of TikTok and Douyin. The company’s broader executive shakeup also means it would be smarter to take its time.
JD makes most of its underdog position 20 May 2021 Richard Liu's $109 bln web retailer grew first quarter sales by an impressive 39%. Compared to larger and faster-moving rivals like Alibaba, JD is less of a regulatory target so far. Its premium valuation will depend on whether it can keep up in areas like online groceries.
Hong Kong bank deal offers helpful exit ramp 20 May 2021 Chong Hing’s majority owner is offering to buy the rest at a $2.6 bln valuation, or 0.9 times book. That’s less than half the multiple the Guangzhou-backed fund paid in 2013. Greater Bay Area prospects may be promising but the 51% premium can fund better ways to invest in them.
The Exchange: Trip.com CEO Jane Sun 18 May 2021 Where are Chinese travellers headed these days? How is the pandemic changing outbound tourism and business travel? Will China’s recent anti-monopoly regulations affect Trip’s approach to partnerships and deals? Sun shares her views in an exclusive discussion with Breakingviews.
JD’s logistics IPO delivers more value to parent 18 May 2021 Chinese web retailer JD.com wants to value its delivery arm at $34 bln in a Hong Kong IPO, or 128 times adjusted trailing earnings. Expansion costs are eating into profitability at the fast-growing unit. Its parent – and top client – could see more upside than other investors.
Sea has a new reason to play a smart game 18 May 2021 The success of the $114 bln Southeast Asian giant’s gaming unit is tied to third parties like backer Tencent. Developing more of its own hits like “Free Fire” will provide a more stable core to offset losses in areas like e-commerce as rivals Gojek and Tokopedia tie up to compete.
New Danone CEO sweetens shift to financial metrics 17 May 2021 The French dairy giant is poised to make Barry Callebaut CEO Antoine de Saint-Affrique its new boss. He boosted the chocolate maker’s sales and doubled investor returns, though his record on cocoa’s ethical issues is less stellar. Still, Danone investors will welcome the change.
Shimano is too scared of going too fast 17 May 2021 The Japanese bicycle parts maker is riding high on pandemic-related demand. But its refusal to crank up output has aggravated a global bike shortage. The $20 bln family-run firm may worry the boom will fade. But if it doesn’t hit a higher gear, rivals like SRAM could take share.
Japan’s most expensive bank hides in a 7-Eleven 14 May 2021 ValueAct’s tilt at Seven & i involves deciding what to do with its 40% stake in the only Japanese lender trading over book value. Seven Bank mostly runs ATMs, a model threatened by digitisation. Yet it produces double-digit returns on equity, and a way to cash in on immigration.
Chinese podcast IPO starts on shrill note 14 May 2021 Tencent-backed Ximalaya, last valued at $3.7 bln, is going public. It boasts a diversified model of subscriptions, ads and live-streaming sales. But growth is slowing and rival Lizhi, which floated last year, is already underwater. A premium price tag could leave ears ringing.