German tile manufacturer Braas Monier have announced in a press release that they are willing to sell the company to U.S. firm Standard Industries, but the valuation by the Americans of around two billion dollars is too low.
Braas received terms last week which included the offer to purchase each of their shares for 30 euros in cash, representing a 20 percent premium over the stocks finishing price before official talks began. Standard already owns prominent roofing outfits Siplast and SGI.
A Braas spokesperson said that Standard had “neglected to add any control premium to the offer” and that they have “most definitely undervalued the company.”
David Millstone, chief executive at Standard Industries was quick to reassure employees that any potential merger would not involve job cuts or other cost saving restructuring.
“Our aim is to make Standard a major player in the global roofing sector. In order to do that we must continue consolidating so we can compete with the firms at the top of the ladder. We are getting bigger and employing a larger workforce, we are not downsizing companies we acquire,” Millstone said.
Analysts say the newly created entity would employ nearly 20,000 people and have over five billion dollars worth of sales per year. Standard desperately wants to add a pitched residential roofing specialist to their group as their current operations focus mainly on flat roofs. The company have been looking to get a foothold in Europe, where only 15 percent of its earnings come from. The remaining 80 percent comes from its domestic U.S. sales.
“It’s hard to say at the moment which way this one is going to go,” said James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International in a note to clients. “Many of the bigger shareholder groups like 40N Latitude are ready to let their share of the company go, and it’s a substantial share at around 35 percent. But there are a lot who will hold out with an offer like the one Standard have tendered. It’s a little on the short side most unbiased observers would agree.”
A representative of Lucerne Capital, which owns 7 percent of Braas said in a phone interview, “having gone over the Standard offer with the board we can confidently say that we have no intention of letting our shares go for that price. The offer doesn’t reflect the potential benefits.”
Saturday, September 17, 2016
Friday, September 16, 2016
Turbine firm up-scales after new acquisition
According to a press release by the company’s CEO, German turbine manufacturer Nordex is looking to up-scale their orders after January’s takeover of Spain-based rival Acciona.
Nordex will be hoping to attract orders in the one hundred to two hundred megawatts range, and they say they are better prepared for higher volumes.
“Nordex is currently active in many small markets but they are obviously looking to make a move, especially in the United States,” said James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International in a phone interview.
In one of many consolidation mergers in the renewable energy sector, Nordex announced plans to spend $800 million to purchase Acciona Wind Power in November of 2015 and completed the deal early this year. It’s a clear sign the company is trying to get a better foothold in Europe as it prepares to branch out globally.
Lars Bondo Krogsgaard, the Nordex chief executive, said that future synergies from the merger, which currently are estimated at 100 million euros, might be greatly increased down the line.
“There is definitely a possibility that the merger could have a much more beneficial effect on synergies than our analysts previously forecast,” he said in a statement.
Krogsgaard will be hoping a move into the U.S. market will boost orders towards the end of this year. He took over as CEO last December and has drawn accolades for his forward thinking style.
Nordex will be hoping to attract orders in the one hundred to two hundred megawatts range, and they say they are better prepared for higher volumes.
“Nordex is currently active in many small markets but they are obviously looking to make a move, especially in the United States,” said James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International in a phone interview.
In one of many consolidation mergers in the renewable energy sector, Nordex announced plans to spend $800 million to purchase Acciona Wind Power in November of 2015 and completed the deal early this year. It’s a clear sign the company is trying to get a better foothold in Europe as it prepares to branch out globally.
Lars Bondo Krogsgaard, the Nordex chief executive, said that future synergies from the merger, which currently are estimated at 100 million euros, might be greatly increased down the line.
“There is definitely a possibility that the merger could have a much more beneficial effect on synergies than our analysts previously forecast,” he said in a statement.
Krogsgaard will be hoping a move into the U.S. market will boost orders towards the end of this year. He took over as CEO last December and has drawn accolades for his forward thinking style.
Thursday, September 15, 2016
UK exhibition firm looks for overseas expansion with Penton offer
With a view to expanding their business information and trade show division into the United States, British group Informa Plc announced on Wednesday they were in final talks with U.S. info-services company Penton. The deal is thought to be worth over a billion dollars.
Sources close to Informa say the firm will set up a new debt and equity structure they hope will raise 800 million pounds in order to finance the deal. The money will go to equity outfits MidOcean Partners and Wasserstein & Co, who are currently handling Penton.
Informa has been desperate to grow its global exhibitions business and the current deal will give them much needed exposure in the U.S. where they want to earn approximately half their revenue. Business exhibitions and trade fairs are big earners in the U.S. with over 80 large scale shows per year.
“The next logical progression for our exhibition division is a move into the U.S. territory,” said Informa chief executive Stephen Carter in a Reuters TV interview. “Penton has been on our radar for a while due to the diversity of brands they are involved in. They match the fields we would like to pursue such as aviation, technology and telecoms.”
Two years ago Informa purchased U.S. exhibition operator Hanley Wood and took over many prominent global events such as World of Concrete, China Beauty Expo and Arab Health. The exhibition division of Informa, which also publishes market data, academic books and news, accounted for over 20 percent of the company’s revenue last year.
James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International commented on the deal, “Informa want to be more active in the U.S. as it is one of the most attractive areas with regard to accretive earnings. It’s a huge positive for them to be completing the deal so quickly and a great follow up to their Hanley Wood acquisition.”
Coleman said he expects the addition of Penton to increase earnings by at least 8 percent after the first full year. Shares for the company rose 5 percent to 710.2 in London’s early morning session.
Specialists in the field don’t expect Informa to stop there, and say we should expect to see more action from them in M&A in the very near future, going after potential targets such as Tarsus Group and UBM.
Sources close to Informa say the firm will set up a new debt and equity structure they hope will raise 800 million pounds in order to finance the deal. The money will go to equity outfits MidOcean Partners and Wasserstein & Co, who are currently handling Penton.
Informa has been desperate to grow its global exhibitions business and the current deal will give them much needed exposure in the U.S. where they want to earn approximately half their revenue. Business exhibitions and trade fairs are big earners in the U.S. with over 80 large scale shows per year.
“The next logical progression for our exhibition division is a move into the U.S. territory,” said Informa chief executive Stephen Carter in a Reuters TV interview. “Penton has been on our radar for a while due to the diversity of brands they are involved in. They match the fields we would like to pursue such as aviation, technology and telecoms.”
Two years ago Informa purchased U.S. exhibition operator Hanley Wood and took over many prominent global events such as World of Concrete, China Beauty Expo and Arab Health. The exhibition division of Informa, which also publishes market data, academic books and news, accounted for over 20 percent of the company’s revenue last year.
James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International commented on the deal, “Informa want to be more active in the U.S. as it is one of the most attractive areas with regard to accretive earnings. It’s a huge positive for them to be completing the deal so quickly and a great follow up to their Hanley Wood acquisition.”
Coleman said he expects the addition of Penton to increase earnings by at least 8 percent after the first full year. Shares for the company rose 5 percent to 710.2 in London’s early morning session.
Specialists in the field don’t expect Informa to stop there, and say we should expect to see more action from them in M&A in the very near future, going after potential targets such as Tarsus Group and UBM.
Wednesday, September 14, 2016
Havana trip opportunity for Abe to bring up Korean missile issue
In a rare visit to Cuba, Japanese PM Shinzo Abe will take part in the usual greasing of economic ties that he has been focusing on with his trip to many emerging nations this year, but the trip will also give the Japanese premier a much needed chance to discuss North Korea’s nuclear and missiles program, a recent worry for the nation.
Cuba is just recently emerging from decades of economic and political isolation but is still one of the few allies North Korea has. This will be the first time the Communist-ruled country will welcome a leader from Japan.
In 2015 Cuba finally normalized economic ties with the United States, which lifted their long time embargo on the nation. Shinzo Abe will be hoping to emulate Barak Obama’s successful visit last year and sit down for friendly talks with the country’s leader Raul Castro.
East Asian countries were stunned by arms testing by North Korea last week, the fifth time the country has performed nuclear missile tests, and the biggest to date. In response, Japan, the U.S. and South Korea have been in extended diplomatic talks to solidify their alliance.
Yoshihide Suga, the Japanese Chief Cabinet Secretary, told a press meeting he was “looking forward to meaningful and co-operative discussions with Cuba regarding the issues of North Korea’s nuclear and missile testing in the region.”
Predictably, the U.S. government has called on the United Nations to send a quick and stern message to North Korea asking them to give up their pursuit of a nuclear arsenal. The U.S. envoy to Pyongyang said Washington was still “prepared to take part in sensible dialogue.”
Since full diplomatic and trade ties were restored between Cuba and the U.S. over a hundred American companies have visited Havana to try and expand U.S. business operations there. Japan is likewise keen to enter the Cuban market.
“Although the trade embargo has made business with Cuba nearly impossible, the time is right to attempt reconciliation with the island,” said James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International in an email to investors. “There are huge opportunities there as with all emerging markets. Tokyo doesn’t want to miss a trick and let the U.S. make too many inroads into the territory.”
Cuba is just recently emerging from decades of economic and political isolation but is still one of the few allies North Korea has. This will be the first time the Communist-ruled country will welcome a leader from Japan.
In 2015 Cuba finally normalized economic ties with the United States, which lifted their long time embargo on the nation. Shinzo Abe will be hoping to emulate Barak Obama’s successful visit last year and sit down for friendly talks with the country’s leader Raul Castro.
East Asian countries were stunned by arms testing by North Korea last week, the fifth time the country has performed nuclear missile tests, and the biggest to date. In response, Japan, the U.S. and South Korea have been in extended diplomatic talks to solidify their alliance.
Yoshihide Suga, the Japanese Chief Cabinet Secretary, told a press meeting he was “looking forward to meaningful and co-operative discussions with Cuba regarding the issues of North Korea’s nuclear and missile testing in the region.”
Predictably, the U.S. government has called on the United Nations to send a quick and stern message to North Korea asking them to give up their pursuit of a nuclear arsenal. The U.S. envoy to Pyongyang said Washington was still “prepared to take part in sensible dialogue.”
Since full diplomatic and trade ties were restored between Cuba and the U.S. over a hundred American companies have visited Havana to try and expand U.S. business operations there. Japan is likewise keen to enter the Cuban market.
“Although the trade embargo has made business with Cuba nearly impossible, the time is right to attempt reconciliation with the island,” said James Coleman, Managing Director and co-head of Portfolio Trading at Softbank CIBC International in an email to investors. “There are huge opportunities there as with all emerging markets. Tokyo doesn’t want to miss a trick and let the U.S. make too many inroads into the territory.”
Tuesday, September 13, 2016
Slovakian JLR factory to begin construction, contractors chosen
Work on a new factory that will produce luxury cars for Jaguar Land Rover (JLR) has begun in Slovakia after the firm nailed down two contractors for the job.
Japanese group Takenaka and Czech company Vces will join the project and see the $1 billion undertaking through to completion.
In a statement by JLR, a spokesperson said the construction of the new plant, estimated at $800 million, will employ a workforce of around 3,000 and will create thousands of extra jobs involving a broad network of suppliers that it will invest $200 million in.
A Slovakian department of commerce representative, Mikhail Sobotney said the project “will be a huge boost for the country.”
JLR mentioned that the new plant will feature state of the art conveyor belt technology from German robotics maker Kuka, and they expect the factory to be operational in January 2018.
Operations manager Alexander Wortberg told a press gathering, “This is a hugely exciting time for JLR and we are looking forward to getting started producing fantastic models of Jaguar. There will be two different models of the Land Rover each with a few variants.”
Although an official decision has not been made yet, the plan is to double the capacity of the plant from the initial 160,000 cars per year to over 320,000 by 2025 with further investment.
Some observers thought Britain’s decision to leave the European Union in June would affect JLR’s future investments in the financial bloc, but the company’s chief executive Ralf Speth was quick to tell journalists, “This is the biggest single investment JLR have taken part in for a very long time and the largest ever direct investment in Slovakia by a foreign firm. The UK might be leaving the E.U. but for us the bloc is still of great importance.”
The automotive sector is a primary source of revenue for the Slovakian nation, making up 25 percent of its total exports.
“Effectively Slovakia is the biggest per capita car maker in the world,” says Softbank CIBC International Managing Director and co-head of Portfolio Trading James Coleman. “It may be a poor nation currently but it is also the fastest growing in the E.U.”
Japanese group Takenaka and Czech company Vces will join the project and see the $1 billion undertaking through to completion.
In a statement by JLR, a spokesperson said the construction of the new plant, estimated at $800 million, will employ a workforce of around 3,000 and will create thousands of extra jobs involving a broad network of suppliers that it will invest $200 million in.
A Slovakian department of commerce representative, Mikhail Sobotney said the project “will be a huge boost for the country.”
JLR mentioned that the new plant will feature state of the art conveyor belt technology from German robotics maker Kuka, and they expect the factory to be operational in January 2018.
Operations manager Alexander Wortberg told a press gathering, “This is a hugely exciting time for JLR and we are looking forward to getting started producing fantastic models of Jaguar. There will be two different models of the Land Rover each with a few variants.”
Although an official decision has not been made yet, the plan is to double the capacity of the plant from the initial 160,000 cars per year to over 320,000 by 2025 with further investment.
Some observers thought Britain’s decision to leave the European Union in June would affect JLR’s future investments in the financial bloc, but the company’s chief executive Ralf Speth was quick to tell journalists, “This is the biggest single investment JLR have taken part in for a very long time and the largest ever direct investment in Slovakia by a foreign firm. The UK might be leaving the E.U. but for us the bloc is still of great importance.”
The automotive sector is a primary source of revenue for the Slovakian nation, making up 25 percent of its total exports.
“Effectively Slovakia is the biggest per capita car maker in the world,” says Softbank CIBC International Managing Director and co-head of Portfolio Trading James Coleman. “It may be a poor nation currently but it is also the fastest growing in the E.U.”
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