Private Equity
Adventus Zinc Corp, a recently formed Canadian mining company, has closed an $8 million seed financing. The investors include U.S. private equity firm Resource Capital Funds, U.K. private equity firm Greenstone Resources, and an affiliate of Altius Minerals Corp, a Canadian mining royalty business. Toronto-based Adventus, which acquired from Altius a portfolio of zinc exploration projects in Ireland and Canada, said the funds raised will be used to develop these assets and acquire new zinc projects. The company also filed a preliminary prospectus with Canadian regulators for a proposed $3 million initial public offering.
8 min read · 21 December 2016
Brazilian construction conglomerate Odebrecht SA is in advanced talks on selling its majority stake in a US$5 billion natural gas pipeline project in Peru to Canada’s Brookfield Asset Management, Reuters reported, citing an interview with Peru’s finance minister. The two companies and the government of Peruvian President Pedro Pablo Kuczynski reached an agreement on Friday, Alfredo Thorne said. Techint Group would also join the pipeline project as a junior partner and would be tasked with pipeline construction.
2 min read · 21 December 2016
Chorus Aviation Inc (TSX: CHR), owner of Jazz Aviation and Voyageur Aviation, has launched Chorus Aviation Capital, a regional aircraft leasing subsidiary. The new affiliate, which will be led by President Steven Ridolfi, will be backed by a $200 million investment by Canadian holding company Fairfax Financial Holdings Ltd. Fairfax will acquire convertible debt units of Chorus, which if fully exercised will give the investor about 16.5 percent of all issued and outstanding shares. The proceeds will be used in part to fund the growth of Chorus Aviation Capital. Chorus has its headquarters in Halifax.
5 min read · 21 December 2016
Alberta Investment Management Corp (AIMCo) has agreed to acquire an ownership stake in Howard Energy Partners (HEP), a San Antonio, Texas-based diversified midstream company. The deal, expected to close in Q1 2017, will see AIMCo take an interest of about 28 percent, making the pension fund manager the second largest unit-holder in the company. The seller is EnLink Midstream Partners, which has backed HEP since its founding in mid-2011. The transaction, the terms of which were not disclosed, follows AIMCo's initial commitment in August of up to US$500 million of Series B preferred units of HEP.
3 min read · 21 December 2016
Acasta Enterprises Inc (TSX: AEF), a Canadian special purpose acquisition corporation, said that 89 percent of its shareholders have approved its proposed acquisition of three businesses. Last month, Acasta said it will acquire Apollo Health & Beauty Care, JemPak Corp and Stellwagen Finance Co, which together have an estimated enterprise value of about $1.1 billion. The round of deals is expected to close on January 3rd. Acasta, which previously reported raising more than $100 million in connection with the acquisitions, recently updated the number to $134 million.
3 min read · 20 December 2016
Canadian private equity firm TorQuest Partners has acquired Can Art Aluminum Extrusion Inc, a Brampton, Ontario-based producer of aluminum extrusions. No financial terms were released. Established in 1988, Can Art makes aluminum extrusions as inputs into products used in North American automotive, building and construction, and consumer durable applications, among others. TorQuest Managing Partner Eric Berke said the deal is the first of TorQuest Partners Fund IV, which raised $925 million in June. In October, PE Hub Canada interviewed Berke and Senior Managing Partner Brent Belzberg about Fund IV and TorQuest's other 2016 deals, including McKeil Marine Ltd and PolyCor Inc.
3 min read · 20 December 2016
Side letters have long been in use in the private equity market, helping to interpret, supplement, modify and establish the terms contained in fund agreements and related documents. But while side letters are negotiated and entered into with increasing frequency, their enforceability and the preferential terms contained in them cannot be taken for granted, write Torys LLP Associates Emma Brady and Sarah Carter in an exclusive PE Hub Canada feature article. Brady and Carter cite as evidence a recent case involving investors in Facebook's IPO.
5 min read · 20 December 2016
Mitel Networks Corp (TSX: MNW) has agreed to sell its mobile division to Xura Inc, a portfolio company of U.S. private equity firm Siris Capital Group. In exchange, Mitel will receive $350 million in cash, a $35 million non-interest bearing promissory note, and an equity interest in the partnership that will own both Xura and the mobile business. The deal is expected to close in Q1 2017. Ottawa-based Mitel said the decision to sell is strategic and will allow it to refocus on the unified communications and collaboration (UCC) market. Earlier this year, Siris Capital acquired Polycom Inc, which had previously agreed to merge with Mitel.
4 min read · 20 December 2016
Amaya Inc's founder David Baazov said on Tuesday he had ended talks to buy the Canadian online gambling company because some shareholders were demanding a higher premium. Baazov, Amaya's former chief executive, offered to buy the company in mid-November in a deal valued at about US$4.1 billion. Including debt and transaction costs, the deal was for US$6.7 billion. Baazov and four private investment funds were to have financed US$3.65 billion of the deal.
1 min read · 20 December 2016
Canadian label and packaging maker CCL Industries Inc said it would buy Innovia Group, which supplies the new British plastic five pound note that has fallen foul of vegetarians, for around $1.13 billion. The acquisition of U.K.-based Innovia is expected to make Toronto's CCL the world leader in the fast-growing polymer banknote market. CCL is buying Innovia debt free and net of cash from a consortium of U.K. private equity investors managed by The Smithfield Group LLP.
2 min read · 19 December 2016
