19th October 2017 was the deadline Unilever gave to private equity bidders to submit first offers for its spreads business, which comprises margarine brands such as Country Crock, Flora, and I Can’t Believe It’s Not Butter. Buyers can bid for the entire business unit or for regional packages. The sale is led by Morgan Stanley and Goldman Sachs and is expected to be executed by the end of 2017.
THE RIDE-HAILING IPO RACE
On October 19th, Lyft announced a new round of $1 billion in financing led by CapitalG, Alphabet’s growth-focused venture capital fund. The capital raise increases Lyft’s valuation by just under 50%, from $6.9 billion to $11 billion. The investment is accompanied by CapitalG partner David Lawee assuming a seat on the Board of Directors at the startup. Taking advantage of competitor Uber Technologies’ recent corporate troubles, Lyft’s new valuation is their most recent strategic play in steps toward expansion and increased market share.
TOSHIBA MEMORY DEAL
On October 24, 2017, Toshiba Corporation held an extraordinary shareholder’s meeting where Toshiba’s shareholders approved the Share Purchase Agreement (SPA). Toshiba had agreed to enter this agreement with K.K. Pangea, a special acquisition company formed to buy all shares of Toshiba’s wholly owned subsidiary, Toshiba Memory Corporation (TMC). K.K. Pangea (Pangea) consists of a consortium of companies, most notably Bain Capital Private Equity, Apple, Dell Technologies Capital, and SK Hynix. This deal, which may or may not close, has several issues that could prevent success. The deal’s value ultimately comes out to an estimated $18 billion.
HELLMAN & FRIEDMAN CARDS NETS A/S
San Francisco-based private equity firm Hellman & Friedman LLC announced on September 25th that it had agreed to acquire Nets A/S for 33.07 billion Danish Krone, or $5.3 billion. Hellman & Friedman is joining Singapore wealth fund GIC Pte Ltd. and funds managed by advent International Corp. and Bain Capital Ltd. (the latter two are already major shareholders in Nets). Hellman & Friedman has offered 165 Danish Krone per share for the company, which represents a 27% premium. Investors owning 46% of Nets have agreed to tender their shares.