|Bid||29.67 x 1100|
|Ask||29.68 x 1000|
|Day's Range||29.36 - 29.77|
|52 Week Range||18.30 - 29.95|
|Beta (3Y Monthly)||1.67|
|PE Ratio (TTM)||15.49|
|Earnings Date||Jan 30, 2020 - Feb 3, 2020|
|Forward Dividend & Yield||0.50 (1.70%)|
|1y Target Est||33.58|
(Bloomberg) -- Ron Sim, founder of one of Asia’s largest massage chair makers, is in talks to partner with a unit of Temasek Holdings Pte. and other firms to bid for one of Singapore’s new virtual banking licenses, according to people familiar with the matter.V3 Group Ltd., Sim’s Singapore-based firm, is discussing forming a consortium with Temasek’s Heliconia Capital Management Pte, as well as stored-value card company EZ-Link Pte and property giant Far East Organization Pte, said the people, who asked not to be identified because the discussions remain private. The group plans to seek one of Singapore’s new retail digital banking licenses, they said.The city-state has announced plans to award as many as five digital banking licenses to non-bank firms as it seeks to shake up its financial-services industry and create competition for traditional lenders. Thresholds are higher for the two retail licenses available -- they require S$1.5 billion ($1.1 billion) in paid-up capital as well as local control.Why Asia’s Banking Hubs Are Making Virtual a Reality: QuickTakeA representative for V3 said the firm is committed to developing digital financial offerings for the underserved in Singapore and the region, but didn’t comment on its specific plans. Heliconia, EZ-Link, and Far East Organization declined to comment.Financial TechnologyV3, which owns massage-chair maker OSIM and tea brand TWG, recently created a financial technology unit. It announced Thursday it hired Gan Chee Yen, formerly the chief executive officer of Fullerton Financial Holdings, another Temasek unit, as a senior adviser for the fintech unit. Last year, KKR & Co. said it will invest up to S$500 million ($367 million) for a stake in V3.Far East Organization is Singapore’s largest private real-estate developer, with assets from residential to commercial properties. The company is led by Chief Executive Officer Philip Ng, whose family owns the firm, and is among the ten richest people in Singapore, according to the Bloomberg Billionaires Index.EZ-Link, founded by Singapore’s Land Transport Authority in 2002, supplies a contactless payment system for the nation’s public transport services.Another Temasek unit, Vertex Ventures, is part of a different group that will apply for another digital bank license. The members of the consortium to seek a wholesale permit include peer-to-peer lender Validus Capital Pte, Oversea-Chinese Banking Corp. and Keppel Corp.(Updates with declines to comment from Heliconia, Far East in fourth paragraph; adds Far East background in sixth paragraph.)To contact the reporters on this story: Joyce Koh in Singapore at firstname.lastname@example.org;Chanyaporn Chanjaroen in Singapore at email@example.com;Abhishek Vishnoi in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Marcus Wright at email@example.com, Joyce Koh, Jake Lloyd-SmithFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- One of the private equity industry’s titans called it a “stretch,” and it’s been dismissed as a pipe dream by a bevy of analysts.Yet interviews in recent days with debt-market specialists suggest that KKR & Co. could find a narrow path to finance what would be the biggest leveraged buyout in history: a potential take-private deal for pharmacy chain Walgreens Boots Alliance Inc. that analysts have estimated would need to be funded with at least $50 billion of debt.The challenge for any Walgreens suitor will be raising the necessary money via the markets of choice for private equity firms -- junk-rated loans and bonds -- which have become fragile after an unprecedented borrowing binge left investors with a hangover. Debt funds that financed more than $3.5 trillion of leveraged buyouts in the past decade have become pickier, leaving banks stuck holding more than $2 billion of unsold loans on their balance sheets as recently as last month.But a road map may be hidden in two other recent debt-fueled takeovers: Dell Technologies Inc.’s $67 billion takeover of EMC Corp. in 2016 and Charter Communications Inc.’s $78.7 billion acquisition of Time Warner Cable Inc. that same year.Representatives for KKR and Walgreens declined to comment.Buyout BlueprintJunk-rated Dell and Charter both borrowed heavily in the investment-grade bond market by issuing secured debt. T-Mobile US Inc. is going down a similar route to help pay for its purchase of Sprint Corp.In Charter’s case, it pledged security to new and existing bonds issued by higher-rated Time Warner to ensure the debt remained investment-grade. Dell used a similar strategy when it bought investment-grade rated EMC. Walgreens’s debt could be segregated into two borrowing structures at a holding company level and an operating company portion, with investment-grade debt placed on the latter.In doing so, Dell and Charter won access to the most stable part of the corporate debt market, where investors are still buying heavily as an alternative to low or negative-yielding assets elsewhere. At the same time, they limited their reliance on leveraged finance markets, where sentiment can shift quickly and prove costly.Both companies did tap those markets, but with more manageable offerings. Bankers who asked not to be identified estimated that Walgreens would be able to raise between $10 billion and $20 billion of junk-rated debt to fund a buyout.Other market participants, who asked not to be named because they weren’t authorized to speak publicly, said KKR still might need to find a deep-pocketed third-party investor to help put more equity into the deal.Or it may seek to spin off a portion of Walgreens to lessen its financing needs. The company’s European operations could potentially bring in $18 billion to $20 billion, CreditSights analyst James Goldstein said in a phone interview.\--With assistance from Nabila Ahmed and Robert Langreth.To contact the reporters on this story: Natalie Harrison in New York at firstname.lastname@example.org;Lisa Lee in New York at email@example.com;Davide Scigliuzzo in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Shannon D. Harrington at email@example.com, Boris KorbyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Headlands Research, a KKR-backed next-generation site organization seeking to profoundly impact the clinical trial landscape, today announced that it has acquired six clinical research centers across the U.S. and Canada, establishing a strong foundation to fulfill its mission to make high-quality therapeutics available to patients in an expedited manner. Headlands Research aims to disrupt the status quo by leveraging patient-centric best practices to significantly increase the number of people who take part in trials and exceed industry standards with the highest quality data.
Zac Barnett and Richard Wheelahan, III By Oliver Estreich How does governance come into play for institutional asset managers. One key area is how leverage is managed, according to Richard Wheelahan, III, and Zac Barnett, the Co-Founders of Fund Finance Partners. Over the past decade Richard has advised fund sponsors and lenders, both as […]
(Bloomberg) -- KKR & Co. has formally approached drugstore giant Walgreens Boots Alliance Inc. about a deal to take the company private, in what could be the biggest-ever leveraged buyout, people familiar with the matter said.The New York-based private equity firm has been preparing a proposal to potentially buy out shareholders of Walgreens Boots, said the people, who asked not to be identified because discussions are private. It’s unclear how feasible the transaction would be, given the need for large amounts of financing, and Walgreens Boots and KKR could decide against pursuing a deal, the people said.Walgreens Boots shares closed 5% higher to $62.25 on Monday in New York. Its bonds in Europe fell.Walgreens Boots, led by Chief Executive Officer Stefano Pessina, has been reviewing a potential deal with a financial adviser to take the company private amid buyout interest, Bloomberg News reported last week. Some buyout firms looked but decided against pursuing such a big deal, people with knowledge of the matter said at the time.There’s no certainty the deliberations will lead to a definitive takeover offer, the people said. Representatives for Walgreens Boots and KKR declined to comment.Record BuyoutDeerfield, Illinois-based Walgreens Boots has a market value of about $56 billion and $16.8 billion of debt. At that size, a take-private of the company would top the largest leveraged buyout in history: the 2007 sale of utility TXU Corp. to KKR and TPG, which was worth about $45 billion including debt, according to data compiled by Bloomberg.This wouldn’t be Pessina’s first ambitious private equity deal with KKR. Pessina partnered with the buyout firm to acquire Alliance Boots in 2007.That deal came at the height of the buyout boom and underscored the challenges of financing jumbo take-privates, as banks struggled at the time to find buyers for the loans to pay for that deal. But it was lucrative for KKR. By the time it exited the company more than nine years later, the firm generated about $7 billion for fund investors on an investment of $2.1 billion, Chief Financial Officer Bill Janetschek said in 2017.This time, a deal would require Walgreens Boots to sell some $55 billion of debt, according to CreditSights Inc. estimates. If raised in the junk markets, that would amount to the biggest such sale ever.The money would have to come from markets where banks have struggled in recent months to find buyers for riskier, leveraged buyout loans, as investors weigh the risks of lending at the peak of a record-long credit boom.It’s a tough time do such a large deal, according to Stephen Schwarzman, head of the Blackstone Group Inc., one of the world’s largest private equity firms.“It might be possible,” Schwarzman said last week at a Reuters Newsmaker event in New York. “It’s a huge stretch doing things over $50 billion.”Under PressurePessina, 78, took his current role after Walgreen Co. acquired the part of Alliance Boots that it didn’t already own for about $15.3 billion in 2014. The company’s businesses range from established retail chains in the U.S. and Europe to the lesser-known pharmacy supplier Alliance. He owns a 16% stake in Walgreens Boots, according to data compiled by Bloomberg.A buyout would give Walgreens Boots time to adapt to a fast-changing retail landscape, free from the quarter-by-quarter demands of public shareholders.The company is under immense pressure from online competitors including Amazon.com Inc., that have chipped away at sales of household and beauty items. While top rival CVS Health Corp. has grown into a vertically integrated health-care giant, Walgreens Boots has doubled down on shops, announcing pilot partnerships with retailers including grocer Kroger Co.Walgreens Boots is the largest retail pharmacy in the U.S. and Europe, with more than 18,750 stores in 11 countries, according to its most recent annual report. Its wholesale arm has more than 400 distribution centers that deliver to more than 240,000 pharmacies, doctors, health centers and hospitals. It operates Walgreens and Duane Reade stores in the U.S. and Boots outlets in Europe and Asia. Three-quarters of its revenue stems from the U.S. pharmacy business.The company had sought to buy rival Rite Aid Corp. In 2017, the companies scrapped the merger amid regulators’ concerns that it would hurt competition in the U.S. drugstore market. Walgreens Boots instead bought roughly 2,000 stores from Rite Aid.(Updates share price in third paragraph, adds additional detail in eighth paragraph.)\--With assistance from Robert Langreth, Kiel Porter and Nabila Ahmed.To contact the reporters on this story: Ed Hammond in New York at firstname.lastname@example.org;Aaron Kirchfeld in London at email@example.com;Dinesh Nair in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ben Scent at email@example.com, ;Daniel Hauck at firstname.lastname@example.org, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The blue-chip stock index spent most of the morning in negative territory, weighed down by concern over prospects for a trade deal and the increasingly violent protests in Hong Kong.
A leveraged buyout of the drugstore company would be tough to pull off, given the company’s size and the amount of equity likely needed to finance a deal.
The 6.3% rally in Walgreens Boots Alliance Inc.'s stock , after a Bloomberg report of KKR & Co.'s interest in a leveraged buyout of the drugstore chain, was the leading gainer of the 8-of-30 Dow Jones Industrial Average components gaining ground in morning trading Monday. The stock's $3.74 price gain was adding about 25 points to the Dow's price, which was down 99 points, or 0.4%. Walgreen's stock remains the worst performing Dow stock over the past 12 months, as it has shed 23.6% over that time period. The 2nd-worst performer over the past year is Pfizer Inc.'s stock , which has lost 16.5%.
Shares of Walgreens Boots Alliance rallied 6.4% toward a 7-month high in morning trading Monday, after Bloomberg News reported that the private equity giant KKR & Co. had approached the pharmacy chain about a buyout. If the deal moves forward, which could be valued at north of $70 billion, it would be the largest leveraged buyout ever. Like other pharmacy retailers, Walgreens is facing pressure from a combination of weak retail shares and drug reimbursement pressure. Reuters first reported last week that the company was considering going private. Walgreens stock is down 7.8% year-to-date, while the Dow Jones Industrial Average has rallied 18.2%.
Shares of Walgreens Boots Alliance jumped Monday morning after Bloomberg reported that the private-equity giant KKR has formally approached the pharmacy retailer about a leveraged-buyout offer.
(Bloomberg) -- KKR & Co. is considering an initial public offering of Chinese digital marketing company Cue Holdings Ltd. that could raise as much as $400 million, people with knowledge of the matter said.The company is working with financial advisers on the potential share sale, which could take place as soon as the first half of next year, according to the people. It has been considering Hong Kong and the U.S. as potential listing venues, the people said, asking not to be identified because the information is private.Chinese companies have raised $16 billion from overseas IPOs this year, down from $39 billion during the same period in 2018, according to data compiled by Bloomberg. No final decisions have been made, and details of the IPO could change, the people said. A representative for KKR declined to comment.Cue seeks to help Chinese companies with their digital marketing strategy to boost their business growth. Its clients include consumer brands, financial institutions, online gaming companies and internet service providers.In August, Cue completed a series A financing round led by Anchor Equity Partners to fund research and development, add-on acquisitions and improvements in Cue’s products and services. KKR, which was Cue’s founding investor, and Princeville Global also participated.(Updates with IPO volume in third paragraph.)To contact the reporters on this story: Manuel Baigorri in Hong Kong at email@example.com;Cathy Chan in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com, Ben Scent, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
PHILADELPHIA , Nov. 7, 2019 /PRNewswire/ -- FS KKR Capital Corp. (NYSE: FSK), a leading publicly traded business development company focused on providing customized credit solutions to private middle market ...
Private equity giant KKR & Co Inc. wants to raise $15 billion for a new Asia-focused buyout fund. According to Reuters, the New York-based firm (NYSE: KKR) will begin fundraising in the first quarter of 2020 and expects to close the fund by June. Should it raise that much, it would break KKR's own 2017 record of a $9.3 billion fund.
Global private equity group KKR & Co Inc is targeting a record $15 billion (£11.7 billion) for a new Asia-focused buyout fund, three sources with knowledge of the plan told Reuters. Buyout groups including Bain Capital, Blackstone , Carlyle , and KKR are increasingly focusing on Asian investments as lower valuations and corporate restructuring throw up new opportunities in key markets. KKR's fundraising will start in the first quarter of 2020, with the aim of achieving first close, an important milestone indicating the fund has crossed a minimum threshold and can begin making investments, by June, the people said on Thursday.
(Bloomberg Opinion) -- A $70 billion buyout of Walgreens Boots Alliance Inc. would be straight out of the Stefano Pessina playbook. While the circumstances behind the informal talks between the company and private equity firms, including KKR & Co, are unknown, as the chief executive and largest shareholder of the drugstore chain, Pessina was probably at the forefront. Any deal would be impossible without the backing of the Italian billionaire who owns 16% of the group.Pessina has spent more than four decades building his pharmaceutical distribution and retail empire through swashbuckling deals. He has been patient, adding to the group piece by piece. But he’s also been opportunistic. With shares in Walgreens down by about 24% over the past year, he may have spotted his chance to extract the group from the public markets.Indeed, he’s been here before. In 2006, Pessina merged his company Alliance UniChem with Boots. A year later he took the combined group private — with KKR — in a $16 billion deal, Europe’s biggest buyout at the time.Acquiring Walgreens would dwarf Alliance Boots. It would probably need several financial sponsors and substantial debt funding. Walgreen’s leverage is already fairly high. Net debt will be about 1.8 times Ebitda at the end of the current financial year, according to Bloomberg analyst estimates.The retail business generates cash. Even so, this might not be the best time to gear up. The Alliance Boots buyout saddled the group with about $12 billion of debt, just as the global economy was hit by the financial crisis. With concerns about a U.S. recession escalating, there’s a risk of history repeating itself.What’s more, the retail landscape has shifted dramatically over the past decade. Amazon.com Inc. is a much more muscular force than it was in 2007 and seems to targeting the pharmaceutical business. Meanwhile, Walgreens faces other rivals such as Ulta Beauty Inc. in the U.S. and A.S. Watson Group, which owns Britain’s Superdrug.To keep up, the privately owned company would need to invest, as well as service its debt.Walgreens also has a huge number of stores, which may need to be pruned. While it might be easier to close shops away from the glare of the public markets, terminating leases is expensive.Pessina — and more importantly any private equity backers — will need an exit eventually should the buyout succeed. Last time he was able to persuade Walgreens to purchase Alliance Boots. There’s no such obvious contender now. The group could relist on the public market, but potential holders would have to be convinced that the investment case was different this time around.After conquering the U.S. Pessina has long had China in his sights, and has already made several investments there. It’s possible that he wants to tie up with an Asian operator to create his ultimate goal: a truly global pharmaceutical distribution and retail group. Given the trade tensions between the U.S. and China that might not be so easy right now. But things might look better after five years — a typical private equity holding period.At 78, some other executives are heading for the beach. But Pessina has shown no signs of slowing down. In fact, another mega buyout may just be the next step in his global ambitions.\--With assistance from Chris Hughes.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- The month of October brought some jumbo unitranche loans to the direct lending market. It also brought declines in the quality and terms of broader deals, according to some participants.Private debt firms were tapped for at least two large transactions -- a $1.6 billion refinancing loan for insurance brokerage Risk Strategies and a $788 million transaction for foodservice equipment parts distributor Parts Town LLC. The deals are part of a trend toward bigger unitranche loans, which blend first-priority and subordinated debt into one, so the yield is typically higher than for the first-lien loan.Still, Ares Capital Corp. saw a slow down in deal activity, Michael Smith, co-president of the firm said Oct. 30. The $14.5 billion private debt vehicle had been selected to lend about $665 million, and was working on a pipeline of about $265 million of potential deals, he said.“While these levels are below average, we have seen a recent pickup in our activity and expect the typical year end push we usually see,” Smith said on an investor call. “Furthermore, should the market experience similar volatility as we saw in the fourth quarter of last year, we could have a more active quarter than today’s backlog and pipeline imply.”October Deals*According to PrivCoFalling QualityThough future deal flow signs are encouraging, quality and pricing are both on the decline, according to Tom Newberry, head of private funds at debt shop CVC Credit Partners.“This is another indicator of late cycle behavior, where the easier deals have been done and you see tougher transactions,” Newberry said. “The overall quality we’ve seen is not what we’re accustomed to, but you can find good deals to do if you search and are more diligent.”Pricing on a true first-lien loan is typically around 550 to 650 basis points over Libor, down about 50 basis points from this time last year, according to Newberry.In the middle market, where borrowers typically have $15 million to $50 million in Ebitda, lenders are struggling to fundraise in a competitive landscape, according to Albert Periu, chief executive officer of lower middle-market lender Neptune Financial Inc.“There are people getting squeezed here,” Periu said. “If you’re not playing a differentiated story, you’re having trouble right now.”(Corrects description of Parts Town in second paragraph of story published Nov. 1. Earlier versions of this story corrected attribution in third and fourth paragraph and context around lenders getting squeezed in deckhead and eighth paragraph.)To contact the reporter on this story: Kelsey Butler in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Natalie Harrison at email@example.com, Sally Bakewell, Adam CataldoFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
KKR & Co. has closed its latest fund, which it intends to use for European investments. The New York-based company (NYSE: KKR), under the helm of billionaires George Roberts and Henry Kravis, pooled together about 5.8 billion euros ($6.4 billion) in capital for its fifth European Fund.
Private equity firm KKR & Co said on Tuesday it had closed its latest buyout fund European Fund V, which was focused on transactions in core Western Europe markets, at 5.8 billion euros ($6.44 billion). New York-based KKR focuses on upper mid-market deals in the range of 500 million euros to 2 billion euros in equity value, with the ability to go higher selectively, like with the 6.8 billion euro deal for Unilever's spreads business. Out of the more than 140 limited partners that committed to the fund, 55% were from the Americas, 25% from Europe, Middle East and Africa and 20% from Asia.