Category Archives: emerging market

Quindell in talks over possible sale of division

Quindell is exploring the sale of parts of its business, as the UK insurance claim processor attempts to focus on generating cash.

The company has been a target for short sellers that have raised doubts about its business model and have pointed specifically to cash flow as an issue. Quindell said on Friday it had “entered into exclusivity arrangements with a third party in respect of the possible disposal of an operating division of the group”.

Quindell logo

It declined to give details on what part of the company was up for sale, but its main operating divisions include professional services, which contains the main insurance claims business, and digital solutions, which develops products such as telematics for cars that report on vehicle performance.

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KKR sells remaining stake in Alliance Boots

According to Yahoo Finance, KKR today announced the sale of its remaining stake in Alliance Boots to Walgreens Boots Alliance, Inc., the new holding company of Walgreen & Co., following the exercise by Walgreens of the call option to acquire the remaining 55% of Alliance Boots as the second step of the overall transaction. In August 2012, Walgreens acquired 45% of Alliance Boots in the first step of the overall transaction.

Dominic Murphy, Member, Head of KKR operations in the United Kingdom commented: “The investment in Alliance Boots adds to our track record of partnering with European entrepreneurs to build global companies and industry leaders. Since Alliance Boots was taken private in 2007, a strong investment program has led to a transformation of the company, both at the retail and distribution side, and to a strong international expansion across Europe, the Middle East and Asia. In 2012, we created, together with Walgreens, the world’s largest pharmacy-led health and wellbeing enterprise. Since then, Alliance Boots and Walgreens have made strong progress in executing on all synergies and plans, allowing the announcement today of the full combination.””

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VSE Corporation Signs Agreement to Acquire Companies Held by Killick Aerospace

VSE Corporation (VSEC) announced today that it has signed a definitive agreement to acquire four business units from Killick Aerospace Group, consisting of Prime Turbines (including both U.S. and Germany-based operations), CT Aerospace, Kansas Aviation and Air Parts & Supply Co. The companies to be acquired specialize in maintenance, repair and overhaul (MRO) services and parts supply for corporate and regional jet aircraft engines and engine accessories. The initial purchase price payable upon the closing is approximately $184 million in cash. The purchase agreement also includes potential post-closing payments of up to $40 million if CT Aerospace, Kansas Aviation and Air Parts & Supply Co. surpass certain thresholds of earnings before interest, taxes, depreciation and amortization (“EBITDA”) during the first two years after the closing and one additional post closing payment of $5 million if such companies surpass a certain EBITDA threshold during any 12-consecutive month period in 2014 and 2015. Other purchase price adjustments also may be required based on certain post-closing determinations, including in respect of the closing net working capital and certain inventory and equipment.

The four business units combined sales and income before taxes are estimated to be approximately $111 million and $22 million, respectively, for the year ending December 31, 2014. Such estimated results are not necessarily indicative of future financial performance and the actual results of the four business units for 2014 may differ from the estimated results. The four business units have approximately 185 employees.

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Eastern Property Holdings announces acquisition of 100% of the A-Class office building Hermitage Plaza in Moscow

Eastern Property Holdings (“EPH” or the “Company”) would like to announce that it has acquired ownership of the A-Class office complex Hermitage Plaza located in Tverskoy central district of Moscow, in the center of Moscow`s business life. The cash payment for the acquisition of the property amounts to US$ 195 million, subject to possible post-completion adjustments.

Hermitage Plaza is a multi-storey A-Class business center fronting on Garden Ring, one of Moscow`s most important transport routes, and located in proximity to the Kremlin area and close to Mayakovskaya and Novoslobodskaya metro stations. The business center was fully renovated and opened in 2006. Hermitage Plaza with a total leasable area of above 30,000 sqm is fully rented out to mainly one tenant, Russian Telecommunication Company Vimpelcom.

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Acquisition of Securities of Caza Gold Corp.

Polygon Mining Opportunity Master Fund (the “Fund“), today announced that it has completed the acquisition of 88,160,000 units of Caza Gold Corp. (the “Company“), each unit consisting of one common share of the Company and one common share purchase warrant entitling the holder to purchase one common share at a price of $0.05 per share until December 30, 2019, for an aggregate purchase price of CAD$4,408,000 (the “Investment“) by way of private placement pursuant to a definitive investment agreement (the “Investment Agreement“) entered into on December 18, 2014 between the Fund and the Company. A copy of the Investment Agreement can be found on the Company’s profile at www.sedar.com. The Fund is a Cayman Islands exempted company that operates as a private investment fund which invests primarily in mining companies and other mineral related businesses and opportunities.

Pursuant to the Investment and the acquisition of the common shares and warrants thereto, the Fund acquired 88,160,000 common shares and 88,160,000 warrants. Immediately prior to the completion of the Investment, the Fund beneficially owned or exercised control over 21,342,499 common shares and 20,833,333 warrants entitling the holder to purchase one common share. Accordingly, the Fund beneficially owned or exercised control over approximately 49.0% of the issued and outstanding common shares of the Company on a non-diluted basis and approximately 65.5% of the issued and outstanding common shares of the Company on a partially-diluted basis (assuming the exercise of its warrants). The Fund now beneficially owns or exercises control over approximately 78.9% of the issued and outstanding common shares of the Company on a non-diluted basis and, upon exercise of all of its warrants, approximately 88.2% of the issued and outstanding common shares of the Company on a partially-diluted basis.

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Shake Shack IPO filing comes amid a hunger for premium burgers

According to Reuter, Shake Shack Inc’s filing this week for an initial public offering underscores a question for investors and foodies alike: How hungry are U.S. consumers for another burger chain?

A key part of Shake Shack’s growth strategy involves expanding its locations beyond its New York base, and investors and analysts are bullish on its prospects.

Passersby walk in front of the Shake Shack restaurant in the Manhattan borough of New York, December 29, 2014. REUTERS/Keith Bedford

They say there is room for more “fast casual” restaurants that offer higher quality burgers, a variety of toppings and in some cases, beer and wine. Shake Shack’s burgers are described in its preliminary prospectus as all-natural and hormone- and antibiotic-free.

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Time Warner, CBS Seen as Candidates for Merger: Real M&A

Time Warner Inc. (TWX) and CBS Corp. (CBS) have flirted for years. A marriage now may make more sense than ever.

CBS shares, while trading near thehighest price since the company andViacom Inc. (VIAB) split seven years ago, fetch the lowest valuation versus earnings when compared with its five largest U.S. peers, according to data compiled by Bloomberg. Gabelli & Co. said buying the most-watched broadcast network would give Time Warner, owner of cable channels such as CNN and TNT, more negotiating leverage to win higher fees from pay-television systems that carry its programming.

A merger “makes a lot of sense,” Michael Morris, a Richmond, Virginia-based analyst at Davenport & Co., said in a telephone interview. “With the amount of collaboration they do, investors see it as a possibility as well.”

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