Sunday, July 28, 2019
SFTBY: SoftBank's second Vision Fund gets $108B
Microsoft and Foxconn Technology have joined more than a dozen other investors who have agreed to contribute at least $70 billion to the sequel to SoftBank Group's near $100 billion Vision Fund, as the Japanese conglomerate looks to maintain its rapid pace of deal-making in technology companies around the world.
https://asia.nikkei.com/Business/Companies/Microsoft-and-Foxconn-join-SoftBank-s-108bn-Vision-Fund-sequel
FB - WhatsApp To Roll Out Payments Service In India This Year
FB - WhatsApp To Roll Out Payments Service In India This Year
WhatsApp To Roll Out Payments Service In India This Year
WhatsApp To Roll Out Payments Service In India This Year
Pipeline Companies Top Performing Energy Stocks in Canada This Year
Pipeline Companies Top Performing Energy Stocks in Canada This Year.
Life is difficult for Canadian energy producers with high regulation, carbon taxes and lack of pipelines to global markets. Canadian Energy companies have it tough to compete with US producers with low regulation and favorable business environment in Texas and at Federal Level with Trump.
Life is difficult for Canadian energy producers with high regulation, carbon taxes and lack of pipelines to global markets. Canadian Energy companies have it tough to compete with US producers with low regulation and favorable business environment in Texas and at Federal Level with Trump.
FedEx's threat: Rivals Amazon and Uber aim to slash its business
FDX is at a cross roads. Quarterly results are expected today eve. FDX Valuation has corrected significantly and what a difference a year makes.
Although the valuation is attractive there a few things to consider. FDX is operating with some debt and most Of this debt over last 10 years was used to buy back shares. Risks are related to technology disruption is AMZN emerging as a major competitor going forward and also Uber and other startups looking to disrupt the transportation and delivery market.
Key question is how strong is FDX moat and how well can then manage the business and innovate on this competitive landscape. As long as FDX and UPS were a duopoly the stock commanded a large premium multiple but looks like those days are gone.
I await on the sidelines with caution and follow this company.
https://www.cnbc.com/2019/06/24/fedexs-threat-rivals-amazon-and-uber-aim-to-slash-its-business.html
Although the valuation is attractive there a few things to consider. FDX is operating with some debt and most Of this debt over last 10 years was used to buy back shares. Risks are related to technology disruption is AMZN emerging as a major competitor going forward and also Uber and other startups looking to disrupt the transportation and delivery market.
Key question is how strong is FDX moat and how well can then manage the business and innovate on this competitive landscape. As long as FDX and UPS were a duopoly the stock commanded a large premium multiple but looks like those days are gone.
I await on the sidelines with caution and follow this company.
https://www.cnbc.com/2019/06/24/fedexs-threat-rivals-amazon-and-uber-aim-to-slash-its-business.html
This European country has been ranked the world's best place to live and work - Switzerland
Switzerland has been ranked the best place in the world to live and work, stealing the crown from Singapore which was at the top for five consecutive years.
Brookfield Buys Shanghai Complex From Greenland Group - Mingtiandi - $1.5B Price Tag
Brookfield has been a small investor in China although the first investment was in 2013 with $500M commitment. They have steadily down the China franchise and recently in Apr 2019 they made their biggest office and retail complex purchase for $1.5B in Shanghai.
https://www.mingtiandi.com/real-estate/finance-real-estate/brookfield-buys-shanghai-complex-greenland-group/
https://www.mingtiandi.com/real-estate/finance-real-estate/brookfield-buys-shanghai-complex-greenland-group/
Brookfield may buy controlling stake in debt-ridden Suzlon Energy - $1.6B In Debt Currently
Brookfield may buy controlling stake in debt-ridden Suzlon Energy - $1.6B In Debt Currently.
This is a debt laden renewable energy business in India which has $1.6B debt due to SBI and other lenders.
https://www.livemint.com/companies/news/deals-buzz-brookfield-may-buy-controlling-stake-in-debt-ridden-suzlon-energy-1562814662960.html
This is a debt laden renewable energy business in India which has $1.6B debt due to SBI and other lenders.
https://www.livemint.com/companies/news/deals-buzz-brookfield-may-buy-controlling-stake-in-debt-ridden-suzlon-energy-1562814662960.html
Brookfield Infrastructure announces $750,034,900 equity offering – BAM to Buy $250M worth shares at $42.50
BIP was close to fair value after a long time so I was wondering if this will happen for last few days. BEP also is properly valued if they want to issue more shares.
Out of $750M being raised at $42.50 BAM is buying $250M worth so they will keep their 30% ownership interest. Stock may drop from $44 to $42.50 but they must be planning more acquisitions to be doing this. The Recent US Railroad acquisition (GWR) for $8.4B including debt which BIP was only funding $500M Equity, so most like more acquisitions might be announced in next few months.
Out of $750M being raised at $42.50 BAM is buying $250M worth so they will keep their 30% ownership interest. Stock may drop from $44 to $42.50 but they must be planning more acquisitions to be doing this. The Recent US Railroad acquisition (GWR) for $8.4B including debt which BIP was only funding $500M Equity, so most like more acquisitions might be announced in next few months.
Reliance Telecom Tower deal in India could be one.
https://bip.brookfield.com/press-releases/2019/07-11-2019
https://bip.brookfield.com/press-releases/2019/07-11-2019
Brookfield, Reliance inch closer to a towering deal (Telecom Tower Deal)
$3.7B deal overall to invest in #1 Telecom Tower Asset business in India with 170K towers. Is worked out well that earlier 2017 deal with Anil Ambani company ($1.1B deal) for 45k towers fell through.
Will be interested to see breakdown of how much is co-investment and how much is BIP/BAM funding of this.
With 20 year contract with Reliance Jio and option to add new customers to these towers let’s hope this deal works our well. With 4G coming to India’s 1 Billion consumers this is going to be a sure shot winner with steady returns.
https://m.economictimes.com/industry/telecom/telecom-news/brookfield-reliance-inch-closer-to-a-towering-deal/articleshow/69749074.cms
Thursday, July 4, 2019
Brookfield Business Partners announces equity offering and concurrent private placements of ~$800M
Brookfield Business Partners (NYSE:BBU) agreed to issue 8.76M limited partnership units, on a bought deal basis, to a syndicate of underwriters co-led by TD Securities, Scotiabank, BMO Capital Markets, Credit Suisse and HSBC Securities at $39.40/unit for gross proceeds of ~$345M.
Concurrently, Brookfield Asset Management will purchase 6.61M redemption-exchange units of Brookfield Business Partners at offering price for ~$250M, as well as issue 5.077M via private placement to OMERS for gross proceeds of ~$200M.
Underwriters have an over-allotment option to purchase up to an additional 1.314M units, and if over-allotment option is exercised in full, the gross offering size would increase to ~$847M.
Brookfield Business Partners intends to use the net proceeds for general corporate purposes.
Concurrently, Brookfield Asset Management will purchase 6.61M redemption-exchange units of Brookfield Business Partners at offering price for ~$250M, as well as issue 5.077M via private placement to OMERS for gross proceeds of ~$200M.
Underwriters have an over-allotment option to purchase up to an additional 1.314M units, and if over-allotment option is exercised in full, the gross offering size would increase to ~$847M.
Brookfield Business Partners intends to use the net proceeds for general corporate purposes.
I suspect Brookfield plans a large P/E deal in the near future or a number of small deals. Their last purchase was Johnson Controls Power Solutions (Car Battery Business) acquires for $13.2B including dent ($3B Equity and $10B Debt).
+++
Brookfield Business Partners announces equity offering and concurrent private placements of ~$800M
https://seekingalpha.com/news/3472865
+++
Brookfield Business Partners announces equity offering and concurrent private placements of ~$800M
https://seekingalpha.com/news/3472865
Bond Yield Plunge Leads to Unexpected Outcome After 10 Year Bull Market
Bond Yield Plunge Leads to Unexpected Outcome After 10 Year Bull Market.
Nobody would have predicted US 10 year bond yields at 2% after 10 year bull market in stocks. Japan and EU good credit country yields up to 10 years are close to zero or negative. Hard to make any sense of this.
This again goes to show that markets are unpredictable and many times consensus view can be completely wrong.
Nobody would have predicted US 10 year bond yields at 2% after 10 year bull market in stocks. Japan and EU good credit country yields up to 10 years are close to zero or negative. Hard to make any sense of this.
This again goes to show that markets are unpredictable and many times consensus view can be completely wrong.
Hudson Yards developer Oxford Properties Plans one of Canada's biggest projects - 2 Office Towers & 800 Apartments at Cost US$3.5B
Hudson Yards developer plans one of Canada's biggest projects.
Plans include 2 Office Towers 58 and 48 floors & 800 Apartments and 200k SFT Retail. Location is just north of CN Tower and Rogers Centre.
https://www.bnn.ca/1.1278754.1561549470
Plans include 2 Office Towers 58 and 48 floors & 800 Apartments and 200k SFT Retail. Location is just north of CN Tower and Rogers Centre.
https://www.bnn.ca/1.1278754.1561549470
Genesee & Wyoming Inc. to Be Acquired by Brookfield Infrastructure and GIC in $8.4 Billion Transaction - BIP Equity $500M
BIP is paying $500M Equity. I wonder if Equity is $2B overall and debt is $6.5B as then BIP will get 25% ownership. However Singapore Investment Fund GIC is co-investor so they may own 50% and Brookfield Group might own other 50% in which case BIP exposure will be lower.
This is a high priced acquisition so it won’t make sense when we look at 25 times earnings multiple towards end of current economic cycle. I suspect the deal will be leveraged higher and plan must be to invest an additional few $Billions in organic growth projects over next 5-10 years to connect more businesses and customers to the 120 short line rail tracks and to grow earnings. This is the only way this acquisition will make sense.
62.5% of GWW holders will need to approve the deal. US State Dept.(Canadian and Singapore based foreign owners involved) will need to approve as foreign buyers are involved. US Transportation will need to approve as railroads are regulated assets in US. Australia and UK approvals also required. Overall Brookfield have a good reputation and they were able to get the US Nuclear Westinghouse deal done so odds are this will get done by Jan 2020.
https://seekingalpha.com/pr/17559959-genesee-and-wyoming-inc-acquired-brookfield-infrastructure-gic-8_4-billion-transaction
This is a high priced acquisition so it won’t make sense when we look at 25 times earnings multiple towards end of current economic cycle. I suspect the deal will be leveraged higher and plan must be to invest an additional few $Billions in organic growth projects over next 5-10 years to connect more businesses and customers to the 120 short line rail tracks and to grow earnings. This is the only way this acquisition will make sense.
62.5% of GWW holders will need to approve the deal. US State Dept.(Canadian and Singapore based foreign owners involved) will need to approve as foreign buyers are involved. US Transportation will need to approve as railroads are regulated assets in US. Australia and UK approvals also required. Overall Brookfield have a good reputation and they were able to get the US Nuclear Westinghouse deal done so odds are this will get done by Jan 2020.
https://seekingalpha.com/pr/17559959-genesee-and-wyoming-inc-acquired-brookfield-infrastructure-gic-8_4-billion-transaction
Brookfield Renewable to invest ~$500M in solar JV X-Elio with KKR
Brookfield Renewable to invest ~$500M in solar JV X-Elio.
Spain-based X-Elio has about 273 MW of operating capacity, 1,413 MW under construction, and a broader 4,800 MW development pipeline across major solar markets in Spain, the U.S., Mexico, Chile, and Japan.
https://seekingalpha.com/news/3475637
Spain-based X-Elio has about 273 MW of operating capacity, 1,413 MW under construction, and a broader 4,800 MW development pipeline across major solar markets in Spain, the U.S., Mexico, Chile, and Japan.
https://seekingalpha.com/news/3475637
Brookfield Preferred Bidder to Acquire Australia’s Retirement Home Operator Aveo Group
Brookfield is Preferred Bidder to Acquire Australia’s Retirement Home Operator Aveo Group.
I light of recent capital raise of $800M by BBU I expect them to pursue this deal.
BBU also acquired Australia’s private hospital and NZ Lab operator Healthscope in Jan 2019. They have indicated in 2018 presentations that they plan to target healthcare industry in Australia, EU and North America.
Aveo has 93 retirement villages all over Australia.
It is small company currently valued at A$1.15B Market Cap. The company builds retirement communities and also provides many services. Brookfield can leverage this platform to grow and gain knowledge in the sector before expanding in other geographies.
I light of recent capital raise of $800M by BBU I expect them to pursue this deal.
BBU also acquired Australia’s private hospital and NZ Lab operator Healthscope in Jan 2019. They have indicated in 2018 presentations that they plan to target healthcare industry in Australia, EU and North America.
Aveo has 93 retirement villages all over Australia.
It is small company currently valued at A$1.15B Market Cap. The company builds retirement communities and also provides many services. Brookfield can leverage this platform to grow and gain knowledge in the sector before expanding in other geographies.
Brookfield Bids for Spanish and Portuguese Hydro Company - $2B
Brookfield looking at Bid for Spanish and Portuguese Hydro Company for approx $2B. The company is 23% owned by Chinese company and after a failed buyout is looking to reduce leverage and sell non-core assets and has put up the assets for sale.
Brookfield owns solar and wind assets in Spain already and is in a position to consolidate. It also has renewable power assets in UK, Ireland and a large real estate business in Europe.
Brookfield owns solar and wind assets in Spain already and is in a position to consolidate. It also has renewable power assets in UK, Ireland and a large real estate business in Europe.
Subscribe to:
Posts (Atom)