Private Equity
Chinese groups have shown “broad interest” in buying Potash Corp of Saskatchewan’s stake in Chilean lithium producer SQM, Reuters reported, quoting Potash Corp Chief Executive Jochen Tilk. Potash has agreed to divest its 32 percent stake in SQM, as well as minority stakes in ICL-Israel Chemicals Ltd and Arab Potash Co, to comply with regulators’ concerns in China and India about its merger with Agrium Inc. Lithium is a key component in building electric vehicles. China is the world’s biggest consumer and producer of lithium products, Tilk said. Rio Tinto, Canada’s Wealth Minerals Ltd and Chinese private equity firm GSR Capital are considering a bid for the SQM stake, banking sources told Reuters last week.
1 min read · 29 November 2017
Canadian private equity firm Walter Capital Partners has invested in Sustainable Produce Urban Delivery Inc (SPUD.ca), a Vancouver-based omnichannel grocery company. As part of the deal, the financial terms of which were not disclosed, several existing SPUD.ca institutional and individual investors made additional commitments. Founded in 1997, SPUD.ca's model is focused on the delivery of fresh, organic produce and groceries through an online platform. Led by CEO Peter van Stolk, the company will use its partnership with Walter to expand its omnichannel operations. SPUD.ca is also backed by Canadian impact venture capital firm Renewal Funds.
3 min read · 28 November 2017
Canadian mortgage lender Home Capital Group Inc said this week that West Face Long Term Opportunities Global Master LP had sent it a draft statement alleging misrepresentation and claiming $70 million in damages, Reuters reported. Home Capital, Canada’s biggest non-bank lender, had agreed on a settlement with the Ontario Securities Commission in June and accepted responsibility for misleading investors about problems with its mortgage underwriting procedures. West Face confirmed that it had opted out of that settlement and raised its claim directly with Home Capital. West Face Long Term Opportunities Global Master LP is managed by West Face Capital, a Toronto-based alternative investment firm.
1 min read · 28 November 2017
Canadian activist investor Smoothwater Capital Corp has increased the offer for its take-private acquisition of Equity Financial Holdings Inc (TSX: EQI), a Toronto-based provider of residential first mortgage loans through its affiliate, Equity Financial Trust Co. Smoothwater agreed to increase the purchase price to $10.25 per share from $9.75 per share. The change implies an equity value of close to $110 million. The deal, announced last month, will prior to closing see Smoothwater, an existing shareholder, joined by Hennick & Co, Freycinet Ventures and others as capital partners.
3 min read · 27 November 2017
Canadian miner Dalradian Resources Inc has filed a planning application and secured a new tranche of funds to build Northern Ireland’s first major underground gold mine, Reuters reported. Dalradian acquired mineral rights in 2009 to more than 80,000 hectares of land in Northern Ireland, including the Curraghinalt gold deposit. This week it announced that it had submitted the planning application and secured an extra $78.25 million in funding from Orion Mine Finance Group and Osisko Gold Royalties Ltd, two big North American mine finance firms. The application is for Dalradian to run the proposed mine for an initial 20 years, though the company says it has the potential to produce gold for decades longer.
2 min read · 27 November 2017
Canadian luxury retailer Hudson’s Bay Co (TSX: HBC) said shareholders representing almost two-thirds of outstanding common shares now support the proposed $632 million (US$500 million) equity investment in the company by Rhône Capital. Hudson's Bay previously said it had written consent from shareholders representing more than 50 percent of shares. The Ontario Securities Commission will hear an appeal concerning the deal in December. U.S. hedge fund Land & Buildings launched the appeal after the Toronto Stock Exchange conditionally approved the Rhône investment.
2 min read · 27 November 2017
Renova Energia SA’s board has approved Brookfield Asset Management Inc’s proposal to acquire a controlling stake in the Brazilian renewable energy company for 1.4 billion reais (US$433 million), Reuters reported. Brookfield will buy new units, which consist of preferred and common shares, for 6 reais each, according to the filing by Renova stakeholder Light SA. Reuters was first to report the negotiations between Brookfield and Renova in March. The deal, which began with a proposal to acquire a minority stake, evolved into an offer to control the renewable energy company in July. The long-awaited sale is part of an asset divestment program that Companhia Energetica de Minas Gerais, which controls Renova, began to pay off debt.
1 min read · 27 November 2017
The Ontario Securities Commission (OSC) adjourned a hearing this week of U.S. activist hedge fund Land & Buildings Investment Management’s appeal against a conditional approval for a US$500 million ($636 million) investment in luxury retailer Hudson’s Bay Co from Rhône Capital, Reuters reported. The OSC said the hearing will be held from December 6. Land and Buildings had appealed against the Toronto Stock Exchange’s conditional approval for the Rhône investment. Earlier this month, Hudson’s Bay said it had written consent for the investment from shareholders representing well over 50 percent of its outstanding common shares.
1 min read · 24 November 2017
U.S. oil services company Weatherford International has appointed advisers including Morgan Stanley to sell units starting in the first quarter of 2018, banking sources told Reuters. Sources said the company was looking to offload the artificial lift business, the wellheads and the drilling tools units, and the international pressure pumping assets. Potential bidders for the pressure pumping assets included U.S.-based Superior Energy Services, Canada-based pressure pumper Calfrac Well Services, and private equity-backed energy funds. Calgary's Calfrac last year entered into a $200 million strategic financing partnership with Alberta Investment Management Corp (AIMCo).
2 min read · 24 November 2017
Canadian specialty food products company Premium Brands Holdings Corp (TSX: PBH) has acquired all or part of three U.S. food businesses for about $200 million (US$156.5 million). The deals include the 100 percent buy of Raybern Foods LLC, a Hayward, California-based maker of branded specialty sandwiches for the U.S. retail market. Raybern's was sold by U.S. private equity firm TSG Consumer Partners. Premium Brands also bought 100 percent of sandwich maker Buddy's Kitchen Inc, and a 50 percent stake in artisan bread maker Shaw Bakers LLC. Vancouver's Premium Brands is backed by Canadian private equity firm Pender West Capital Partners.
5 min read · 23 November 2017
