Michael Dell has cake and eats it with VMware 15 Apr 2021 His IT conglomerate will spin off a $53 bln stake in the listed cloud business after extracting a chunky dividend. Cleaning up Dell’s balance sheet and separating VMware benefits both. With Michael Dell in control of Dell and chairman of VMware, the M&A drama also could double.
Grab’s $40 bln debut comes with twin airbags 13 Apr 2021 The Southeast Asian taxi-to-fintech firm is going public at a sales multiple twice Uber’s. U.S. SPAC sponsor Altimeter is contributing to a $4 bln PIPE and signing a long lockup. It’s a smart way to underwrite an amped-up valuation and sets a template to speed others to market.
Beijing makes Ant’s credit less addictive 13 Apr 2021 The central bank is curbing the fintech giant's $260 bln consumer loans business. Surging household debt is raising alarm bells, so it looks prudent to make it harder to borrow for online purchases. But the overall effect will weaken Ant’s biggest appeal to its vast user base.
Jardine dissenters start packing Bermuda shorts 13 Apr 2021 Fewer than half of minority investors backed the $36 bln Hong Kong conglomerate’s offer to simplify its structure. The rare dual-holding setup means the deal will still go though. But it sets up a series of showdowns with hedge funds in the UK territory’s courts.
China’s rectified internet will be fairer, duller 14 Apr 2021 Having fined e-commerce giant Alibaba $2.8 bln, President Xi Jinping is widening his net to other hot tech companies. Halting monopolistic practices is welcome, but entrepreneurs and investors must start pricing in the risk of a sweeping, unfocused and indefinite crackdown.
Honest is a baby consumer firm on the make 12 Apr 2021 Jessica Alba’s eco-friendly diaper company filed to go public and could be worth some $3 bln due to fast-growing sales and a focus on wellness. It’s also a tempting target for bigger groups gobbling up startups. But any whiff of brand insincerity is just one of many risks.
How to play the post-Covid return to getting it on 12 Apr 2021 Rich-country birth rates fell in 2020 amid economic uncertainty, reduced social life, postponed nuptials and fertility treatments. The patter of tiny feet will return as lockdowns end and economies bounce. Diaper producers and formula makers like P&G and Reckitt stand to benefit.
India Insight: Electric cars charge up tycoons 12 Apr 2021 A drive on Mumbai’s pot-holed roads in Tata’s slick Nexon EV brings to life an opportunity that disruptors Tesla, Reliance and Uber rival Ola are all chasing. Incumbents are playing down the potential, but India is set for the fast lane of the battery-powered vehicle revolution.
Rio finds gold plating for Mongolia copper mess 12 Apr 2021 The $131 bln miner and its partner Turquoise Hill have made peace over financing the troubled Oyu Tolgoi project. It’s a deft solution that tries to get most stakeholders to pitch in. Other prickly issues remain, like getting back into Ulaanbaatar’s good books. But it’s progress.
Capital Calls: Netflix, GameStop 9 Apr 2021 Concise views on global finance in the Covid-19 era: The video-streaming service sprays webs of money to secure movies; GameStop’s “Chewy of Gaming” strategy.
Gaming weakness puts Ubisoft on M&A last life 9 Apr 2021 Shares in the “Assassin’s Creed” publisher have languished since a failed takeover by Vivendi in 2018. Despite a pandemic boost, CEO Yves Guillemot’s $10 bln group suffers from dour profitability. That leaves him open to attack by rivals like Activision Blizzard or Tencent.
China wealth management ventures build on sand 9 Apr 2021 Western funds like BlackRock are partnering with local banks to tap a market forecast to hit $23 trln in assets by 2030. It’s the latest rush into a promising financial sector where foreigners can take majority stakes. But control may prove illusory while hidden risks abound.
Memory giants delay consolidation at own risk 9 Apr 2021 Selling Japan's Kioxia to a larger rival would help rationalise a sector prone to price wars and over-capacity. Regulatory risks and volatile returns may deter buyers like the $107 bln Micron. Without more scale, though, chip champions will be vulnerable to Chinese entrants.
Capital Calls: Cellebrite good times 8 Apr 2021 Concise views on global finance in the Covid-19 era: The Israeli cracker of mobile-phone encryption is going public via a SPAC at a $2.4 billion valuation.
CVC’s Toshiba bid puts a breakup on the table 7 Apr 2021 The buyout barbarians at Tokyo’s gates may be offering more than $20 bln for the conglomerate. Toshiba has been struggling amid governance issues. But its assets could collectively be worth more than double CVC’s bid. Carving up the company could give shareholders a better deal.
India’s shopping aisle cleanup risks bigger mess 1 Apr 2021 Amazon and Walmart would have to treat small and large vendors alike and could be forced to shed stakes in their wholesale arms. The leaked draft rules overlook e-commerce realities. And targeting foreigners sits especially uneasily after Reliance’s international cash call.
Capital Calls: Elon Musk, LeBron James 1 Apr 2021 Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.
Chinese AI dragon confronts fiery new realities 1 Apr 2021 Megvii wants to raise over $900 mln in a Shanghai IPO after a U.S. blacklist torpedoed its 2019 Hong Kong listing. Revenue growth is slowing and losses widening, as Beijing proceeds with its own crackdowns. It also may not be the best time to have Alibaba and Ant as big backers.
Xiaomi becomes ultimate electric-car test driver 31 Mar 2021 The smartphone maker is spending $10 bln to expand into smart vehicles. There are no shortcuts to success. But it has ample resources, manufacturing experience and a formidable founder, Lei Jun. If Xiaomi falters, it could prompt other tech industry EV wannabes to steer clear.
Hong Kong softens the G in ESG 30 Mar 2021 A new proposal would limit access to information about company bosses. Labyrinthine structures and easily confused names make such data invaluable for bank and investor due diligence. Going against the tide of governance and disclosure will taint the city’s business standing.