|Bid||0.00 x 2900|
|Ask||24.48 x 2900|
|Day's Range||24.10 - 24.60|
|52 Week Range||18.30 - 28.73|
|Beta (3Y Monthly)||1.80|
|PE Ratio (TTM)||8.10|
|Earnings Date||Jul 24, 2019 - Jul 29, 2019|
|Forward Dividend & Yield||0.50 (2.09%)|
|1y Target Est||30.04|
KKR today announced a monetization activity update for the period from April 1, 2019 through June 25, 2019. Driven by strategic and secondary sale transactions, KKR estimates it will earn gross realized carried interest and total realized investment income of approximately $325 million on a segment basis for the quarter ending June 30, 2019.
(Bloomberg) -- Combining two badly performing industries usually doesn’t make them any better. Yet that’s what’s underpinning Europe’s most expensive stock.Spain’s Cellnex Telecom SA has become the highest-valued stock on the regional benchmark by serving as a landlord to the ailing telecom industry. While real estate and telecom are among the worst performers on the Stoxx 600 Index this year, Cellnex has soared after snapping up towers from carriers eager to convert their assets to cash, helping them keep up with network investments.“They are in a very sweet spot,” Neil Campling, an analyst at Mirabaud, said by phone. “The only worry at the moment for me is that the stock has moved an awful long way in a very, very short space of time.”The tower company model is fairly new to Europe, in contrast with the U.S., where American Tower Corp. and Crown Castle International Corp. began buying communication sites in the mid-1990s. Since its initial public offering in 2015, Cellnex has seized the relatively open field with aggressive dealmaking, spending 2.7 billion euros ($3.1 billion) just last month on more than 10,000 towers in Italy, France and Switzerland.The company looks set to continue its acquisition spree -- it announced on Tuesday the issuance of as much as 850 million euros in a nine-year convertible bond to fund purchases. The company has increased the number of network infrastructure sites in its portfolio by six-fold to about 45,000 in the past 4.5 years, including ones it has agreements on building for clients.Cellnex has gained nearly 60% in the first half, taking this year’s estimated price-to-earnings ratio to an eye-watering 131, according to data compiled by Bloomberg. That’s beyond such high-growth companies as the Dutch payments prodigy Adyen NA, or computer-games maker CD Projekt SA, which is about to publish its most-hyped title ever. Cellnex declined to comment on the valuation.While Cellnex’s expected revenue growth is much slower than the other names at the top, the surveyed 12 analysts estimate its earnings per share to nearly double from 2019 to 2021. Tower stocks have showed up on investors’ radar thanks to their stable cash flows and good visibility: smaller Italian peer Inwit SpA has also had a good year with a 43% gain so far. Tower contracts are usually signed for a decade or two.“There is a premium being paid for corporates that offer visibility,’’ Guy Peddy, an analyst at Macquarie, said by phone. “Cellnex is the only clear, European, free-from-ownership-issues, tower-focused operator.”Cellnex’s biggest shareholder is Italy’s Benetton family, which owns about 30% of the stock via its investment company Edizione. The family is said to be backing former Telecom Italia SpA head Franco Bernabe to replace Marco Patuano as chairman, Bloomberg reported Monday, citing people familiar with the matter.During the stellar run of the second quarter, Cellnex shares have mostly traded above the average price target, leaving analysts to play catch-up. The gap became the widest ever this week at 3 euros and currently implies a 4.8% downside to the stock, according to 27 estimates in a Bloomberg survey.In Europe, the share of telecommunications infrastructure held by independent tower companies is low compared with other regions, according to an April report by accounting and consultancy firm EY and the European Wireless Infrastructure Association (EWIA). The share of independent tower firms was a mere 17% in 2017, compared with 67% in North America and 42% in the Caribbean and Latin America. Operators could free up 28 billion euros if that share grew to 50%, the report estimates.Race to BuyOne risk to Cellnex’s tower campaign across Europe is competition for assets. The region’s emerging tower business is “not a one-horse race,” analysts at Kempen warned in a note last month, saying that Cellnex losing out on deals could lead to investor disappointment. In 2016, American Towers teamed up with Dutch pension fund PGGM Fondsenbeheer BV, beating Cellnex to win Antin Infrastructure Partners’ French phone towers.While American Towers has been more focused on emerging markets since, there’s a possibility that a private equity firm such as KKR & Co. Inc. would join the party, Giles Thorne, an analyst at Jefferies said in a note on Tuesday, keeping his buy rating and raising his price target by more than 50%.“The one candidate that has the assets and scope on paper to replicate Cellnex’s march across Europe is KKR,” Thorne said. “Its actions suggest it doesn’t see the regional synergy case for cross-border M&A. This may yet change.”Additionally, some telecom carriers see network quality as an important competitive advantage and are reluctant to relinquish control of their top sites. Tim Hoettges, chief executive officer of Deutsche Telekom AG -- which is not a client of Cellnex -- has spoken of “golden sites” as a category of differentiating network infrastructure locations the company wouldn’t be willing to share.Yet overall, tower companies are well placed to benefit from industry-specific drivers, including increased data consumption, Josh Sambrook-Smith, a thematic equity analyst at Sarasin & Partners, said by phone.“You have all the other super exciting, long-term trends,” said Sambrook-Smith. “This is just a relatively safe way to play it.”(Updates share prices from the 6th paragraph, chart)To contact the reporter on this story: Kit Rees in London at email@example.comTo contact the editors responsible for this story: Beth Mellor at firstname.lastname@example.org, Kasper Viita, Celeste PerriFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
KKR, a leading global investment firm, today announces the appointment of Jérôme Nommé as a Member, effective from 1 September 2019. Based in Paris, Jerome will lead private equity investing in France and represent KKR working with KKR’s specialized teams across all investment platforms, including Infrastructure, Real Estate and Credit.
(Bloomberg Opinion) -- A bidder offers a 650 million-euro ($740 million) premium for a smaller rival and the stock market rewards it by raising its own market value by 1.3 billion euros. No prizes for guessing who got the better side of the deal in Capgemini SE’s agreement to by smaller French consulting peer Altran Technologies SA for 3.6 billion euros in cash. Altran shareholders should ask whether management got the best price.The acquisition makes strategic sense, adding engineering and R&D services to Capgemini’s core IT consulting offer. The buyer’s growth has been less impressive than that of peers lately, and sensible M&A offers the potential for a pick-up.Financially, the transaction looks good value for Capgemini. Altran’s shares collapsed last year after the group revealed a forgery in the Aricent business it acquired from KKR & Co. While the stock had recovered a lot prior to Capgemini’s deal, the damage wasn’t fully repaired. The takeover premium here is a humdrum 22% over Monday’s closing price and a more conventional 30% only when measured over the last three months’ average.A year ago, Altran implied it had the capacity to be generating nearly 600 million euros of operating profit in 2022. Add to that cost savings of around 85 million euros – the middle of the range Capgemini says is achievable – and the total 5 billion-euro investment (including assumed net debt) looks capable of earning a 9% post-tax return inside three years. That should be good enough for Capgemini shareholders. And revenue synergies would only lift this higher.True, this is a relatively large purchase for Capgemini, capitalized at 19 billion euros, so integration could be a distraction. The company’s leverage will shoot up, given the cash paid out to Altran’s shareholders and the target’s existing high leverage following the Aricent deal. But these additional risks are tolerable given the overall logic.As for Altran shareholders, they get an offer valuing the group roughly where Capgemini trades on forward earnings. The target doubtless feels the offer captures the value of its own strategic plan, otherwise it wouldn’t be recommending the transaction. Still, it looks like Capgemini could have afforded to pay more here.Altran shareholders will hope for a counterbid. Accenture may be tempted to look, although the target could be too big, and Capgemini already has backing from shareholders with 11% of the stock. The shares, trading just below the bid, aren’t pricing in a gatecrasher. It would take an activist and full-blown shareholder rebellion to force Capgemini higher.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Shares of online rail-ticketing company Trainline Plc ended their debut trading day up 17%, giving optimism to investors ahead of other large European listings slated for next week.The stock closed at 411 pence in London, in one of the best debuts among large European companies this year. Trainline, which now has a market value of just under 2 billion pounds ($2.5 billion), priced its IPO at 350 pence a share, near the top end of its targeted range.The IPO is the second-largest in the U.K. this year after Network International’s April debut, which raised 1.1 billion pounds in one of Europe’s biggest listings of 2019. It also resulted in a good return for private equity backer KKR & Co, which made four times its investment at the offer price of 350 pence, according to a person familiar with the matter.Trainline’s strong debut may be a good sign for other large listings slated for next week, including the London float of Bharti Airtel’s Africa unit, which is selling 744 million new shares in an offer valuing the carrier at as much as $4.5 billion. Across the continent, Volkswagen’s truck unit Traton is also set to debut in one of the most highly-anticipated IPOs of the year. The planned offering values the business at as much as $18.6 billion.KKR acquired London-based Trainline in 2015 for an undisclosed sum from Exponent Private Equity, pre-empting an IPO that would have valued the firm at about 500 million pounds, people familiar with the matter said at the time. KKR will remain Trainline’s largest shareholder after the IPO.The company floated 56.5% of its business in a 951 million pound-offer that includes the sale of 32 million new shares and 240 million shares by existing shareholders, it said in a statement. Trainline also won the support of fund manager Baillie Gifford, who committed to invest 200 million pounds as a cornerstone investor.Trainline will use the IPO proceeds to raise its profile and fund expansion plans. The company works with about 220 rail and coach companies to offer customers fares for travel in 45 countries mainly in Europe and Asia. It increased its reach across Europe in 2016 with the acquisition of Captain Train, one of the most popular Continental rail ticket re-sellers. It said in its prospectus that revenue has grown at a compound annual growth rate of 18% for the past three fiscal years, while net ticket sales have had a growth rate of 20%.J.P. Morgan Securities Plc and Morgan Stanley & Co. International Plc were sponsors. The two banks, along with KKR Capital Markets Ltd., were also global co-ordinators and bookrunners. Barclays Bank Plc and Numis Securities Ltd. were bookrunners.(Adds closing price)To contact the reporter on this story: Swetha Gopinath in London at email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, Beth Mellor, Paul JarvisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Radiant Life Care Private Limited (“Radiant”), a leading Indian hospital management company promoted by Abhay Soi and backed by KKR, has completed the previously announced acquisition of a 49.7% stake in Max Healthcare Institute Limited (“Max Healthcare” or “MHC”) from South Africa-based hospital operator Life Healthcare. Abhay Soi will now lead Max Healthcare as Chairman of its Board and Executive Council.
(Bloomberg Opinion) -- It should be easy to dismiss a takeover that is cheap enough to be called a take-under. Yet the bid for Oriflame Holding AG by its founding Jochnick family has prompted some embarrassing choices by the board and some of the beauty group’s biggest shareholders. They are bizarrely backing an offer they admit fails to capture the group’s full value.Directors of companies with dominant family shareholders like this have a special obligation to protect minorities on the register. It’s a live issue. The Jochnicks own 31% of Oriflame. At Axel Springer SE, the Springers are trying to take the German publisher private with the help of buyout firm KKR & Co.Sadly, the Oriflame situation shows a dispiriting lack of conviction. The independent directors say the 8.9 billion Swedish kronor ($950 million) offer for the shares not already owned by the family doesn’t reflect the “full intrinsic value of the company.” Such a statement should lead to a vigorous defense. It wouldn’t be difficult to attack a bid that values the business at a 35% discount to its peer group, based on estimated earnings. Nor would it be a stretch to suggest its timing may be opportunistic: The offer came after the shares had fallen nearly 60% in the preceding 13 months.Instead, the directors have reached just the opposite conclusion: a recovery is a long way off, the short-term risks to the share price are high, and consultant PwC says the offer is fair, so, in fact, shareholders should accept.Call it quantum governance. Like subatomic particles, Oriflame’s independent committee is in two places at the same time.Some of the company’s top shareholders seem to have been influenced by this, as you might expect. Swedish state pension funds AP1 and AP4 say the offer undervalues the company – yet they will accept. This is despite their clearly stated commitment to invest for the long term.It is easier to excuse the funds than the board. Their decision isn’t against the interests of the company as a whole, given the family should be a good owner. Redeploying capital into other investments may well deliver higher returns if the funds have smart investment ideas; the bid offers a chance to exit hard-to-sell stakes at a premium instead of a discount. Nevertheless, selling out jars with their patient investment philosophy.The independent directors, to their credit, looked for a counter-bidder – a tough job given the family's blocking stake. But they should have also sought a better deal from the family by suggesting ways the company could boost its value without a takeover. A standard toolkit is available: Oriflame could take on more debt to fund a buyback or special dividend. It could tell its story better. The snag is that a defense needs a defiant leader – and the longstanding CEO is sitting on the sidelines, having recused himself from the independent committee. The Jochnicks have indicated they want to keep current management.At both Oriflame and Springer, shareholders can be grateful the bids provide the option of getting out at a premium. But if Oriflame shareholders really believe in the long-term prospects of the company, you would expect them to hang on.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Edward Evans at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Optiv Security, a global cybersecurity solutions integrator delivering end-to-end cybersecurity solutions, today announced that for the third consecutive year, it has ranked as the top pure-play security solutions integrator on The Channel Company’s 2019 SP500. “Our unique approach to cybersecurity is aligned to new business models. “The companies on this year’s list represent an incredible combined revenue of $320 billion, a sum that attests to their success in staying ahead of rapidly changing market demands,” said Bob Skelley, CEO of The Channel Company.
Let's take our own look at KKR. In the daily bar chart of KKR, below, we can see that prices corrected sharply lower late last year, not reaching a low until late December. KKR made only a modest bounce up to a high in early May. Prices crossed above and below the moving averages several times.
KKR today announced the release of its 2019 mid-year outlook piece by Henry McVey, Head of Global Macro and Asset Allocation (GMAA). In this environment we think that more investors will migrate towards secular growth stories where there is a meaningful potential for cash flow to compound.
(Bloomberg) -- KKR & Co. is nearing a deal to exit part of its stake in Weststar Aviation Services Sdn., Southeast Asia’s biggest provider of helicopters for the offshore energy industry, people with knowledge of the matter said.The private equity firm is in advanced talks to sell a portion of its 40% Weststar holding to the company’s controlling shareholder, Malaysian businessman Syed Azman Syed Ibrahim, according to the people. Weststar could be valued at about $2 billion including debt, the people said, asking not to be identified because the information is private.KKR, which has been an investor in Weststar since 2013, has seen delays to its attempts to sell out after a global slowdown in the energy industry hurt demand for oilfield services. Weststar started preparations the next year for an initial public offering in Kuala Lumpur, though the plan was later put on hold.After selling part of its stake to Syed Azman, KKR will consider options for its remaining holding over the next year, the people said. It could opt to revive an IPO of Weststar or sell the rest of its stake to Syed Azman or another investor, the people said.Any deal would add to the $57 billion of private equity transactions involving Asian targets announced this year, data compiled by Bloomberg show. No final decisions have been made, and there’s no certainty the discussions will lead to an agreement, the people said.A spokesman for Weststar confirmed Syed Azman is in talks with KKR on its stake in the Malaysian company and declined to comment further. A representative from KKR declined to comment.KKR bought the stake in Weststar, which was its first Malaysian investment, for about $200 million. Since then, Weststar has nearly doubled its revenue and expanded into new markets including the Middle East, Africa and Timor-Leste, according to the people.The company plans to add around 10 more helicopters to its fleet, from about 30 currently, and is diversifying into areas such as search and rescue operations and emergency medical services to reduce its reliance on the energy industry, the people said.Besides Weststar, KKR is also exploring a potential sale of Goodpack Ltd., a Singaporean provider of intermediate bulk containers that could fetch at least $2 billion, people familiar with the matter said earlier this month.(Updates with deal volume in fifth paragraph.)To contact the reporters on this story: Elffie Chew in Kuala Lumpur at email@example.com;Joyce Koh in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, Ben Scent, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
KKR & Co. Inc. (“KKR”) (KKR) today announced that it has priced an offering of $500,000,000 aggregate principal amount of its 3.750% Senior Notes due 2029 (the “notes”) issued by KKR Group Finance Co. VI LLC, its indirect subsidiary. The notes are to be fully and unconditionally guaranteed by KKR & Co. Inc. and its subsidiaries, KKR Management Holdings L.P., KKR Fund Holdings L.P. and KKR International Holdings L.P. KKR intends to use the net proceeds from the sale of the notes, together with cash on hand, to redeem in full the $500 million aggregate principal amount outstanding of its 6.375% Senior Notes due 2020 issued by KKR Group Finance Co. LLC and pay the related redemption premium and all fees and expenses related thereto.
Many investors, including Paul Tudor Jones or Stan Druckenmiller, have been saying before the Q4 market crash that the stock market is overvalued due to a low interest rate environment that leads to companies swapping their equity for debt and focusing mostly on short-term performance such as beating the quarterly earnings estimates. In the first […]
Bob Beauchamp, who served as CEO of Houston-based BMC Software Inc. from 2001 to 2016, is glad to be leading the enterprise software company once again. Beauchamp returned as interim president and CEO April 1, after leaving BMC Software in 2016. “I’ve always been kind of a geek, and I love new technologies,” Beauchamp told the HBJ.
Market expectation that the US Federal Reserve will cut rates, possibly as early as this year, has sent investors fleeing the loan market. High yield bond funds saw a similar spike in outflows in the week ending June 5 with US$3.2bn withdrawn, the highest since December, Lipper data showed. Loan funds make up just 11% of the total leverage loan market, according to LPC, a historic low since mid-2016.
KnowBe4, the company that has dominated headlines after nearing a billion-dollar status while pushing for more cybersecurity training in the Tampa Bay area, has now reached unicorn status. The tech term is given to companies that have reached a billion-dollar value, and the latest $300 million investment from private equity firm KKR & Co. (NYSE: KKR) put the Clearwater-based company over the top, with significant participation from existing investors Elephant and TenEleven Ventures. "We built KnowBe4 to serve an important market need and it's very, very gratifying to have reached this milestone as evidence that we're doing what we set out to do," Stu Sjouwerman, CEO of KnowBe4, said in a release.
(Bloomberg Opinion) -- Closing a leveraged buyout in Germany can be as painful as pulling teeth. That isn’t deterring KKR & Co. as it tries to grab a stake in the country’s most influential publishing business.The U.S. private equity firm’s 6.8 billion-euro ($7.7 billion) deal to take Axel Springer SE private with its founding family comes with some big compromises. They only highlight the lengths to which firms have to go to deploy their burgeoning pools of capital.This is far from a conventional LBO. Friede Springer, of the newspaper publisher’s founding family, and Mathias Doepfner, its chairman and CEO, aren’t selling their combined 45% holding and will stay in the driving seat.KKR is bidding for a minimum 20% stake. If it succeeds, the next step would be to delist Axel Springer. The U.S. firm would be left with only a simple minority stake and joint control of the business alongside the founding family.The management, strategy and capital structure are unlikely to change dramatically. KKR may be able to apply leverage to the vehicle that holds its shares, using dividends paid by Axel Springer to fund the interest payments on the debt. That wouldn’t provide much of a lift to the private equity firm’s returns.The path to a decent gain here most likely lies in expanding Axel Springer’s classifieds businesses and bringing the company back to the market at the sort of valuation commanded by the likes of Rightmove Plc and Auto Trader Group Plc. Shares of the two companies trade at more than twice the 11 times estimated Ebitda multiple ascribed to Axel Springer in this transaction. Throw in some acquisitions in listings, and the publishing arm, which includes newspapers Bild and Die Welt, would become marginal from a financial perspective.Classifieds generate roughly 40% of Springer’s revenue, but the division’s margins significantly lag those of rivals in the listings market. Boosting them will require hefty spending on marketing and digital functionality. A profit warning accompanying the deal only rams home the message that the performance of this company is going to get worse before it gets better.Still, this isn’t a big outlay for KKR. Buying out all the minorities, excluding other family members, would cost roughly 3 billion euros. Debt funding might cut that by a third. Without the turbo-boost of leverage, making a 20% internal rate of return will be tricky: essentially, the value of Axel Springer’s unlisted shares would have to double over the next five years.The question is whether KKR has done enough to get this over the line. The takeover of German healthcare group Stada Arzneimittel AG was a tortuous affair. A private equity bid for Scout24 AG, another German classified ads business, foundered after failing to win sufficient support from investors.The 40% premium the buyout firm is offering over Axel Springer’s undisturbed stock price will be hard for minority shareholders to resist – all the more so given a counter-bid is unlikely to emerge at this stage given the involvement of the family in the sales process.That may make KKR’s job of sealing the deal easier. That’s just as well. It will need to save its energy for getting the investment to make money.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Toorak Capital Partners (“Toorak”), a leading real estate loan investment platform, today announced that it has obtained an increased investment from KKR, a leading global investment firm. KKR increased its capital commitment to $500 million after committing $250 million to the company in 2018, following the firm’s initial commitment of $75 million in 2016. The investment comes as Toorak completed more than $2.5 billion in investments across more than 8,000 loans in 45 states and the U.K., more than doubling the company’s $1 billion milestone of total loans purchased at this time last year.
Enter KKR & Co., which is seeking to buy out minority shareholders with an offer that values Axel Springer SE at 6.8 billion euros ($7.7 billion). Friede Springer and CEO Mathias Doepfner, who together hold more than 45% of the company, are betting that the private-equity company’s clout and deep pockets will help them with the transition online. Axel Springer, which bought Business Insider in 2015 for $343 million, has languished since the stock peaked early last year, as investors watched digital-media rivals fold and worried about Google and Facebook Inc. encroaching on online classifieds, which have become one of Springer’s growth engines while it pares back its print publishing assets.
The United Nations estimates that its 17 Sustainable Development Goals—a list of initiatives ranging from zero hunger to clean energy—will require annual commitments of private capital from $5 trillion to $7 trillion globally over the next decade. Impact investing, which aims to overcome environmental and social challenges while making a financial return, is one of Wall Street’s fastest-growing asset classes. Since the term “impact investing” was coined in 2007, $502 billion has been invested globally in assets deemed to be making a difference, according to a first-of-its-kind attempt to measure them done this April by the Global Impact Investing Network.
President Donald Trump said on Tuesday he would hold up a trade deal with China unless it agrees to four or five major points, reheating tensions between the two sides. The STOXX 600 fell 0.44% by 0816 GMT, tracking Asian markets lower, with the tariff-sensitive technology sector down 0.76%.
KKR is out with its Global Macro Trends report that says the team is increasingly worried about a more synchronized downturn occurring next year. Yahoo Finance's Jen Rogers, Myles Udland and Julia La Roche discuss.
Stocks are soaring, looking to close out a strong week touching new records on the Dow and S&P. But are there buying opportunities in this market? Charlie Bobrinskoy is Ariel Investments Vice Chairman and Head of Investment Group, and he says cyclical stocks are what's cheap right now, while defensive stocks are what's expensive. He talks with Yahoo Finance's Julie Hyman, Adam Shapiro, Jared Blikre and Brian Cheung.