Here, Law360 breaks down the deal rumors from the past week that you need to be aware of.
Coronavirus Scares Carlyle Into Delaying Planned Atotech IPO
The coronavirus has caused Carlyle Group to hit the pause button on plans for an initial public offering of German chemicals and equipment company Atotech Ltd., according to a Reuters report from Friday, Jan. 31. According to the report, Carlyle has concerns that the alarming spread of the virus might have a negative effect on Atotech's IPO valuation for multiple reasons, including because the company has production facilities and other "business exposure" in China. About 38% of the company's revenue comes from its business in China, the report noted. It was not clear when Carlyle might restart plans for the IPO. The company filed for its IPO on Jan. 16, saying it was preliminarily planning to raise $100 million, although that figure is often a placeholder used to calculate fees and can be significantly raised as the process moves forward. Atotech is being advised on its IPO plans by Latham & Watkins LLP.
HNA Restarts Sale Process For Swissport
HNA Group is once again trying to sell airport services business Swissport International AG, with Reuters reporting on Wednesday that the Chinese conglomerate is willing to do so even though it could face a significant loss on its original $2.8 billion investment. According to the report, HNA is in talks with multiple private equity players, including Apollo Global Management and Cerberus Capital Management. Brookfield Asset Management is another potential suitor, and Bain Capital and Centerbridge Partners could also look to get in on the auction for Swissport, the report said. HNA is hoping to net at least $2.3 billion in a deal, but offers are expected to value Swissport at only $2 billion or slightly more. Back in October 2018, HNA was reportedly shopping Swissport, and at the time the company hoped to come to terms on a deal worth around $3 billion.
Elliott Aims Activist Eye At SoftBank
Elliott Management Corp. has accumulated a sizable stake in SoftBank Group Corp., and the activist investment firm is in talks with the Japanese conglomerate about how it could bolster its value, Reuters reported on Thursday. According to the report, Elliott believes decision-making for SoftBank's Vision Fund could be improved, and also is asking the company to consider share buybacks. A separate report from the Wall Street Journal noted Elliott's stake is worth more than $2.5 billion. A SoftBank spokeswoman was quoted in the Reuters report as saying the company "always maintains constructive discussions with shareholders regarding their views on the company and we are in complete agreement that our shares are deeply undervalued by public investors."
Cards Against Humanity Buys Satirical Website ClickHole
Popular party game Cards Against Humanity has agreed to buy satirical website ClickHole.com from private equity-backed G/O Media, according to a Monday report from BuzzFeed News. According to the report, as part of the deal, ClickHole's owners will become the majority owners of the site. The Wall Street Journal previously reported that a deal for ClickHole would likely be worth less than $1 million. The Onion, which formed ClickHole, is not part of the deal and will remain under the ownership of G/O Media, the report said. The report cited an interview with Max Temkin, co-founder of Cards Against Humanity, noting Temkin said the deal will enable ClickHole to hire additional staff. ClickHole will continue to operate as an independent entity, according to the report. G/O Media was acquired by private equity firm Great Hill Partners for an undisclosed amount in April.
SpaceX Plans Spinoff For Starlink
SpaceX is preparing to spin off its Starlink satellite constellation business, which is meant to help expand broadband access in the U.S., according to a Thursday report from Bloomberg. The report cited comments made by Gwynne Shotwell, chief operating officer for Starlink, who said at a private investor conference that while the company is currently private, it's "the right kind of business that we can go ahead and take public." The conference was hosted by JPMorgan Chase & Co. and took place in Miami, the report said. No further details were disclosed.
Siccar Point Doesn't Accept Chrysaor's $1.6B Takeover Offer
Discussions concerning a potential acquisition of oil and gas company Siccar Point Energy by larger rival Chrysaor have stalled after the two companies were unable to agree on terms, Reuters reported on Friday, Jan. 31. According to the report, there was a "large gap between their price expectations." Per the report, Chrysaor had made a proposal worth about $1.6 billion and was the only suitor to offer to buy the company in its entirety. Siccar Point is owned by private equity firms Blackstone Group and Blue Water Energy, which were seeking a valuation of about $3 billion, the report said. It's possible Siccar ends up selling only certain assets to other buyers, the report noted.
BP Seeks To Sell Stake In Algerian Gas Plant
U.K. oil and gas giant BP Plc is looking to sell a stake in an Algerian gas facility, Reuters reported on Thursday. According to the report, BP had been in talks with Russia's Rosneft, but those discussions collapsed, and BP is now seeking new suitors. BP hopes to fetch about $2 billion through the sale of a 45.89% stake in a natural gas plant in the Algerian city of In Amenas. The plant was the target of a terror attack in 2013, the report said.
Tinder Owner Eyes Fellow Social Media Co.
Match Group Inc., which is the owner of Tinder, is interested in buying fellow social media app developer Meet Group, Bloomberg reported on Thursday. According to the report, the approach was merely preliminary, and there's no guarantee the companies end up coming to any sort of deal or even enter serious talks. No potential price tag was disclosed.
--Editing by Janice Carter Brown.
For a reprint of this article, please contact reprints@law360.com.
