Technology

Apollo SPAC offers cheap ride on EV hype freeway

28 July 2021

Electric vehicle charging group Allego is listing through one of the buyout firm’s blank-cheque companies for $3 bln. It’s a crowded space, but a valuation multiple of 5 times 2024 sales is less racy than rivals. Still, only booming battery car demand will avoid a short-circuit.

Temping giant pays rich price for staying power

28 July 2021

Switzerland’s Adecco will buy Belgium’s Akka for $2.3 bln. The deal accelerates its shift towards technology consulting and away from low-growth businesses like short-term office workers. But the returns seem thin and rely partly on revenue boosters, which look challenging.

Bolder smoke-free goals can singe BAT discount

28 July 2021

The Camel maker’s first-half sales grew 8% and it’s on track to generate 5 bln pounds in revenue from products like vapes by 2025. Yet its stock trades at half rival Philip Morris International’s multiple. U.S. exposure is partly to blame, but a bigger target would help too.

Tech giants’ next acquisition could be themselves

27 July 2021

Alphabet, Amazon, Apple, Facebook and Microsoft hold around $600 bln of cash. As revenue booms, investors will be keen to see it put to work. Doing deals is a tough sell politically, so buying back more shares could be the logical answer, even with stock prices riding high.

Capital Calls: Grill makers cook their IPOs rare

27 July 2021

Concise views on global finance: Weber and Traeger set conservative prices for their market debuts, leaving something on the table for new investors.

Tencent sends frightening WeChat status update

27 July 2021

Investors wiped $54 bln from the Hong Kong-listed company’s value after it froze user sign-ups on its chat app. Tencent blamed a technical upgrade, reassuring few given regulators have used suspensions to punish other firms. As panic sets in, markets will get harder to calm.

Slimdown can help Worldline get fit for M&A battle

27 July 2021

The $26 bln Paris-listed payments group may sell a unit that makes handheld kit for card transactions. A sale could boost its shares and raise $5 bln to replenish CEO Gilles Grapinet’s war chest. That would help him hoover up smaller players and fend off rivals like Italy’s Nexi.

Tesla comes of age at just the right time

26 July 2021

Elon Musk’s carmaker charged past $1 bln in quarterly profit for the first time. Margins finally rival leaders like Toyota. It’s yet to mature into its $620 bln valuation. But growing pains at Lucid and other upstarts make Tesla’s push to validate its price look less fanciful.

ABB offers lesson in virtue of simplicity

26 July 2021

The $75 bln Swiss industrials giant is selling a power transmission unit to RBC Bearings for $2.9 bln. The rich price vindicates CEO Bjorn Rosengren’s plan to slim down and focus on electrification and robots. That will likely cement a premium valuation versus rival Siemens.

Capital Calls: Duolingo IPO valuation

26 July 2021

Concise views on global finance: The language learning app has increased its price by almost 20%.

Chinese communists are souring on capitalism

26 July 2021

Beijing wants its $120 bln tutoring industry to turn non-profit, wiping billions off U.S.-listed TAL and peers. Fintech giants are being forced to hand intellectual property to state banks. A push to shrink margins and convert private assets into public goods is gaining momentum.

India will give China tech a run for its money

26 July 2021

A hot list of upcoming Mumbai IPOs is captivating foreign funds that scored big backing startups from Shenzhen, Shanghai and beyond. First-time local investors are adding to the frenzy. Zomato’s market debut epitomises the opportunities for similar valuations and returns.

Self-driving is pricey route to car parts future

23 July 2021

Magna International is paying $3.8 bln for Sweden’s Veoneer, which makes systems that help cars steer themselves. It reduces the $25 bln Canadian group’s exposure to combustion engines. But CEO Swamy Kotagiri will have to put his foot down to keep financial returns on the road.

Review: The many unseemly faces of Facebook

23 July 2021

The $1 trillion social network’s ruthless rise is well documented. “An Ugly Truth” captivates with new, disturbing details on recent scandals and CEO Mark Zuckerberg’s handling of the firm’s growing power. The uglier reality is that its 3 billion-plus users aren’t that bothered.

European payments jewels are wasted in bank vaults

23 July 2021

BNP, SocGen, Santander and others process billions of card transactions but the potentially valuable units get no credit within stodgy banks. CEOs may resist spinoffs for fear of missing future growth. Yet sitting on a subscale business means losing ground to digital upstarts.

Shareholders exposed by British defence raid

23 July 2021

Some UK investors complain private equity buyers are stealing listed groups. A mooted 2.6 bln pound bid for Ultra Electronics by Advent-owned Cobham suggests otherwise. The buyer needs chunky cost savings to make it work. A 62% premium implies the market misjudged Ultra’s value.

Capital Calls: Covid fibs, M&A flop, Hard seltzer

23 July 2021

Concise views on global finance: Forcing social media to take down vaccine misinformation is a good step on U.S. content rules. Meanwhile, a German real estate deal fails to get enough shareholder votes, and Boston Beer’s hard seltzer sales fizzle.

South Korea plays foolish game of IPO Whac-A-Mole

23 July 2021

Dizzying valuations are prompting regulators to meddle in stock listings including Krafton’s. It's a misguided attempt to rein in retail traders and an overheating market. Kakao Bank escaping scrutiny is just one indication of how hard it will be to keep up with the frothy deals.

Capital Calls: Twitter, Domino’s Pizza

22 July 2021

Concise views on global finance: Jack Dorsey’s social network reported a 74% bump in revenue despite a slowdown in adding new users; meanwhile, Domino’s Pizza shows one thing that hasn’t abated in 2021 is customers’ love of takeout pies.

China’s nimbler Robinhoods have arrows in reserve

22 July 2021

E-brokerage firms Futu and Up Fintech shed a combined $3.4 bln in market value after Beijing's tech crackdown. Growth may slow, but diverse business models spanning wealth management, IPO underwriting and managing employee stock schemes set them apart from the U.S. firm.