Private Equity
The Louisiana Public Service Commission has been petitioned for a rehearing of its decision concerning the sale of Cleco Corp (NYSE: CNL), parent of electric utility Cleco Power LLC. The decision, announced last month, turned down the proposed US$4.7 billion sale of Cleco to a consortium of investors led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corp (bcIMC). Cleco and members of the consortium said they want the opportunity to "fully present" the benefits of the deal to regulators and to address related criticisms.
6 min read · 08 March 2016
A securities regulator has ruled that Corus Entertainment Inc need not disclose more details of its $2.65 billion proposal to buy media assets from Shaw Communications Inc, meaning a shareholder vote this week could proceed, Reuters reported. The Ontario Securities Commission's panel issued the ruling in response to an application from private equity firm Catalyst Capital Group, a minority Corus investor fiercely critical of the deal.
2 min read · 08 March 2016
Enercare Inc (TSX: ECI) has agreed to buy SEHAC Holdings Corp, a.k.a. Service Experts, a heating, ventilating, and air conditioning (HVAC) services and repairs specialist based in Dallas, Texas. The acquisition is valued at US$340.75 million and is expected to close in the second quarter of 2016. Enercare, a Canadian home and commercial services and energy solutions business, said the deal will support its expansion in North America, in part through access to the U.S. HVAC services market. Established in 1996, Service Experts is a portfolio investment of U.S. private equity firm American Capital. American Capital acquired the company in March 2013.
10 min read · 07 March 2016
U.K. investment firm The Stirling Funds has released an open letter contending that the proposed $3.2 billion buy of Canadian home improvement retailer Rona Inc (TSX: RON) by Lowe’s Cos Inc (NYSE: LOW) undervalues the preferred shares of the former. The investor has retained ÖstVäst Advisory to seek "fair remedies" for Rona's preferred shareholders. Boucherville, Québec-based Rona's largest investor, the Caisse de dépôt et placement du Québec, has said it would accept Lowe's offer.
3 min read · 07 March 2016
Canada Pension Plan Investment Board (CPPIB) said it has agreed to participate in the initial development of Paradise Birmingham, a 1.8 million square-foot, mixed-use project located outside of London, United Kingdom. CPPIB will commit to a 50 percent share of the £150 million ($285 million) first phase of the £1 billion ($1.9 billion) project, which is jointly owned by Hermes Investment Management and Birmingham City Council. The investment by CPPIB will extend the pension fund manager's regional joint venture with Hermes at Leeds’ Wellington Place, announced in 2014.
5 min read · 07 March 2016
Corus Entertainment Inc’s minority shareholders are set to approve its $2.65-billion bid for Shaw Communications Inc’s media assets, despite vocal opposition from Canadian private equity firm Catalyst Capital Group, sources told Reuters. The shareholder vote is scheduled for March 9.
2 min read · 07 March 2016
Catalyst Capital Group, a fierce critic of Corus Entertainment Inc's $2.65 billion bid for Shaw Communications Inc's media assets, has called on the Shaw family that controls both companies to prove the deal was the result of a fair, competitive process, Reuters reported. Ontario's securities regulator said it would hold a hearing to consider whether to approve the deal in light of Catalyst's complaints.
2 min read · 04 March 2016
British private equity firm TowerBrook Capital Partners has agreed to sell a majority stake in portfolio company Van Geloven BV to Canada's McCain Foods Ltd. No financial terms were released. Based in Tilburg, the Netherlands, Van Geloven is a producer of frozen convenience snacks and foods across a range of brands. Florenceville, New Brunswick-based McCain said the acquisition supports its strategy for growth in European markets. With the deal's close, Van Geloven will operate as a standalone McCain business. TowerBrook, which acquired the company in partnership with management in March 2015, will remain a minority investor.
3 min read · 04 March 2016
Canadian information technology and business process services company CGI Group Inc (TSX: GIB.A, NYSE: GIB) has agreed to repurchase 7.1 million Class A subordinate voting shares currently held by the Caisse de dépôt et placement du Québec. Priced at $56.24 per share, the buyback deal is valued at about $400 million. In 2012, the Caisse invested $1 billion in Montréal-based CGI to support the company's acquisition of the United Kingdom's Logica Plc. The Caisse said the share repurchase represents a portfolio rebalancing that will leave it with about 16.4 percent of CGI’s total outstanding shares.
3 min read · 04 March 2016
Canada Pension Plan Investment Board and state-owned Saudi Agricultural and Livestock Investment Co are among the lead bidders for a minority stake in the agriculture unit of Glencore Plc, Reuters reported, citing a Bloomberg story. Baar, Switzerland-based Glencore aims to slash net debt to between US$17 billion and US$18 billion by the end of 2016, US$1 billion more than previously planned, by offloading more assets amid a prolonged commodities rout.
1 min read · 04 March 2016
