Thursday, 6-Aug-2020

Daily Round -Up

∆ Last 1 Year – Global Indices Today’s Insights

❖ Microsoft may possibly buy TikTok for as much as $30bn ❖ New York-based Blackstone is flush with $156bn in dry

powder cash as investors continue to bet big on the firm

Nasdaq ASX200 100 Euronext HIS TSX BSESENSEX DJI 225 Nikkei S&P500 FTSE 100 FTSE amid the uncertainty caused by the Covid-19 pandemic ❖ Blackstone, the world’s largest alternative asset manager with $564bn in assets, is also currently focused on growing

its life sciences group 39.9% 39.9% ➢ Has spent more than $1bn this year investing in drugs

15.4% that target high cholesterol, kidney disease in children

9.9% and devices for diabetes patients

4.6% ❖ Healthcare is betting on a boom in online care and 2.7% 1.5% consultations spurred by the coronavirus crisis ➢ Demand for virtual healthcare has skyrocketed as the pandemic kept patients from visiting doctors, with one

recent study estimating 46% of Americans now use

(4.1%) (4.6%)

(7.3%) telehealth, up from 11% in 2019 ➢ Pre-COVID-19, the total annual revenues of U.S. (15.2%) telehealth players were an estimated $3bn, whereas consultants McKinsey & Company now estimate up to $250bn of U.S. healthcare spending could be virtualized Avg. Sector valuations: EV/EBITDA ❖ Sampo has been looking to expand into non-life insurance and beyond Nordic markets ➢ Sampo Oyj is a Finnish financial company made up of the parent company Sampo plc

❖ Telkom Kenya shelved its plan to merge its business with 18.9x 18.9x the Kenyan unit of India’s Bharti Airtel, citing challenges of securing the required regulatory approvals for the deal ❖ China’s biggest video game and social media company

Tencent Holdings is driving a merger of Twitch-like game

16.0x 16.0x 15.6x streaming platforms Douyu and Huya, as it seeks to consolidate its dominance in the industry

➢ Both Huya and DouYu are listed in the United States, 13.3x

12.8x with a combined market capitalization of $10bn

12.1x ❖ Comcast shelves plan to take on CNN with new 11.6x international channel ❖ The UK based chip designer Arm is reportedly receiving acquisition interests from key Apple suppliers including

Taiwan Semiconductor Manufacturing Co. and Foxconn

Energy

Utilities Materials

Industrials

Technology

HealthCare Consumer Information Business Services

Discretionary Communications Consumer Staples Consumer ❖ NordStar Capital acquired Corporation ➢ Torstar owns and manages a group of , As of Jun 30, 2020 including the , , The multiples are calculated using the 500 largest US Waterloo Region Record, St. Catharines Standard, companies

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Niagara Falls Review, , and ❖ Bank Central Asia (BCA) expects to complete its acquisition Peterborough Examiner of agriculture-focused Rabobank Indonesia by the end of the third quarter of this year Consumer, Retail & Leisure ❖ Fairstone finalized the acquisition of Berkshire-based planning firm Chiltern House after it completed the ❖ Spiffbet is set to acquire the parent company of Goliath consolidator's two-year integration period Casino, a Swedish online casino operator that mainly ➢ Chiltern House, based in Bracknell, is a whole-of- targets higher spending players market adviser specializing in the management of ➢ Valuation: In a deal that still has to be approved, investment and retirement portfolios Spiffbet will offer Goliath shareholders new shares in ➢ The firm has 500 clients, four advisers and seven Spiffbet corresponding to a value of around SEK2.6mn support staff. The deal sees Faristone gain £2.6m gross (€252,518) fee income and £400mn funds under management ❖ Click&Boat, a boat rental company, acquired the Spanish company Nautal Technology ➢ Financials: Click&Boat, aims to reach $115mn in 2021, compared to $57mn already achieved in 2019 ❖ Apple acquires Mobeewave to pursue contactless payment ➢ Nautal, over the last 5 years has managed to increase ➢ Valuation: Apple is reportedly paying US$100mn for the value of its bookings by more than $11.4mn the acquisition ❖ Zynga Inc. (Nasdaq: ZNGA), an interactive entertainment ❖ xxx Healthcare player, announced to acquire Istanbul-based Rollic, a mobile games developer and publisher ❖ Blackstone Group is set to buy a majority stake in ➢ Valuation: 80% of Rollic for $168mn in cash Ancestry.com, the business known for family history ➢ Rationale: With this acquisition, Zynga enters the research and DNA testing hyper-casual market – one of the largest and fastest ➢ Valuation: The deal, valued at $4.7bn including debt, growing gaming categories on mobile will be the first acquisition by Blackstone’s largest ever ➢ Rollic has a portfolio of Popular Hyper-Casual Games private equity fund with more than 5mn Mobile DAUs and 65mn Mobile ➢ After the deal closes, Blackstone will own about 75% MAUs and GIC will still hold about 25% of Ancestry.com ❖ TTEC Holdings (NASDAQ: TTEC), a global Customer ➢ Target: Ancestry.com has more than 3mn paying Experience as a Service (CXaaS) partner, announced to subscribers and more than 18mn people in its DNA acquire VoiceFoundry network. It sells at-home DNA testing kits to ➢ VoiceFoundry deploys Amazon Connect as well as customers, competing with 23andMe Inc. other AWS services that focus on creating intelligent ❖ Teladoc Health (TDOC.N) announced to acquire chronic interactions across all engagement channels care provider Livongo Health ❖ Italy’s top commercial broadcaster Mediaset (MS.MI) ➢ Valuation: EV of $18.5bn announced to be ready to start talks with its second largest ➢ Rationale: The deal will give Livongo’s customers, who investor Vivendi (VIV.PA) after it dropped plans for a pan- typically get physiotherapy and other proactive European broadcasting platform which the French group treatments for chronic illnesses through coaches on its opposed system, direct access to physicians who can write ➢ The row between the two companies started after prescriptions for them Vivendi pulled out of a deal to buy Mediaset’s pay-TV ❖ Heritage Cannabis Holdings Corp announced to acquire business in 2016, instead building up a 29% stake in Opticann Mediaset which the Italian group considered hostile ➢ Opticann is a Colorado based oral and topical ❖ Telecom Italia (TIM) in talks with Open Fiber to create a cannabinoid company single ultra-fast broadband network in Italy ➢ Valuation: In 2018, Opticann was acquired by Aurora ➢ TIM sees a mid-to-high single digit decrease in its Cannabis for $3.2bn domestic service revenue this year compared with a low-to- mid single digit fall forecast in March Financials ❖ China’s biggest video game and social media company Tencent Holdings is driving a merger of Twitch-like game ❖ British motor insurer Hastings (HSTG.L) announced to be streaming platforms Douyu and Huya, as it seeks to bought by Finland’s Sampo (SAMPO.HE) and South Africa’s consolidate its dominance in the industry Rand Merchant Investment (RMI) (RMIJ.J) ➢ Both Huya and DouYu are listed in the United States, ➢ Valuation: EV of £1.66bn pounds ($2.2bn) with a combined market capitalisation of $10bn ➢ Rationale: Sampo has been looking to expand into ❖ Byju's, the Learning App, acquired India -based WhiteHat Jr non-life insurance and beyond Nordic markets ➢ Valuation: EV of $300mn ➢ India based unicorn, Byju’s is valued between $10- $10.5bn

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▪ Earlier this week, DST Global, the investment firm led by Russianbnaire Yuri Milner, was in advanced stages of investing an estimated $400mn into the company ❖ UV Asset Resolution Co Ltd (UVARCL) offered bid of

~$2.3bn to acquire Reliance Communications and

committed to pay 30% of the sum upfront within 90 days ❖ AVCtechnologies announced to acquire Kandy Communications, an industry-leading proprietary, multi- tenant, highly scalable cloud communications platform, from Ribbon, in an all-stock transaction ❖ U.K.- based chip designer Arm is reportedly receiving acquisition interests from key Apple suppliers including Taiwan Semiconductor Manufacturing Co. and Foxconn ➢ Valuation: Representatives of SoftBank Group, which bought Arm four years ago for $32bn

Energy & Power

❖ MEA ranks top in oil & gas M&A deals at $11bn in Q2 2020 ➢ At the country level, the United Arab Emirates topped the list in terms of deal value at $10.12bn. ➢ In terms of volumes, North America emerged as the top region for oil & gas industry M&A deals globally, followed by Asia-Pacific and then Europe

Metal & Mining

❖ Aguila American Gold Limited signed a Letter of Intent to secure through Joint Venture the WUSA Epithermal Gold Project, a district-scale, underexplored, permitted and drill ready epithermal gold-silver project located within the Western Cascades, OR ➢ Rationale: “With gold achieving historic highs, this is an exciting time to gain the opportunity to explore a

district scale project with a gold discovery in drilling

only recently made”

Industrials

❖ Architect Equity acquired a majority share in Solution Net Systems ➢ Solution Net Systems is a global supplier of automated logistic systems and automated supply solutions

Real Estate

❖ Sabra Health Care REIT (Nasdaq: SBRA) announced the

$18.4mn sale of a skilled nursing and transitional facility

leased to operator Genesis HealthCare ❖ The Ensign Group acquired the real estate and operations of a post-acute care campus in Tempe, AZ ❖ Porch, a real estate technology firm announced plans on to go public on the Nasdaq at a valuation of $523mn ➢ Financials: Porch reported revenue of $57mn in 2019

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