America Movil backs sweetened Telefonica deal, Charoen Sirivadhanabhakdi looks to reduce debt with IPO, Pritzker Organization takes timber services company private, Maple Leaf Foods sells biodiesel and rendering business, and the Bettencourts rule out a L'Oreal sale.
Telefonica has received the support of Dutch telecommunications company KPN’s biggest investor, America Movil, to acquire its German mobile unit E-Plus.
America Movil has a 30% stake in KPN and its backing means the deal is likely to go through. It had rejected a previous offer, but agreed to new terms that will see KPN retain a greater stake in E-Plus. The transaction has also been raised to €8.6 billion from €8.1 billion.
America Movil is currently looking to up its stake in KPN to more than 50%. There had been speculation this was to block the E-Plus deal, but America Movil’s backing of the Telefonica deal reveals other motivating factors are at play.
Executives from America Movil are due to meet with Dutch Minister for Economic Affairs Henk Kamp and union representatives from KPN today to discuss their plans for the Dutch company.
Thai beer baron Charoen Sirivadhanabhakdi is reportedly looking to raise upwards of $500 million (€374 million) through a Singapore listing of a property portfolio by the end of the year.
The real estate investment trust would hold serviced residences and hotels, such as the InterContinental Hotel in Singapore, according to Reuters.
The purpose of the IPO would be to refinance part of the debt Sirivadhanabhakdi’s companies took on when they took an $11 billion controlling stake in Fraser and Neave earlier this year, anonymous sources told Reuters.
Sirivadhanabhakdi’s companies include ThaiBev, of which his son Chareon is president and chief executive, and his daughter, Wallapa, is executive director of his property arm, TCC Land. His youngest son, Panote, is a member of the executive board of F&N.
The Pritzker Organization has taken North America’s largest provider of outsourced industrial steel services private in a $688 million deal.
Including the assumption of debt, the deal values TMS International at around $1 billion. TMS provides mill services at 81 sites in 12 countries, but says the Pritzker deal will allow it to expand its international footprint.
The Pritzker Organization is the investment firm of Tom Pritzker and his movie producer sister Gigi Pritzker – two of the 11 heirs to the Pritzker family fortune, built most famously through the family firm, Hyatt Hotels.
Maple Leaf Foods
Canadian food processing firm Maple Leaf Foods, controlled by the McCain family, has entered an agreement to sell its rendering and biodiesel business Rothsay.
The $645 million deal with Texas-based Darling Industry is expected to close by the end of the year, and Maple Leaf Food will use the money to reduce its debt.
It plans to enter an agreement with Darling for by-product recycling services at competitive market rates.
Chief executive Michael McCain said it would give the business a chance to focus on effective capital deployment and profitable growth in the consumer packaged foods market.
The Bettencourt family has spoken out against rumours it plans to sell its stake in cosmetics giant L’Oreal, in which it has a 30.5% share.
In a statement, the family said it wished to reiterate its long-standing commitment to L’Oreal and confirm no disposal of shares was being contemplated.
The Bettencourts have an agreement with Nestle, the next largest shareholder, which owns 29.5% of the company, that offers them the right of first refusal on each others’ stake.
The agreement is due to expire in April next year, which sparked speculation about whether either side might sell.
Nestle has said it will not make a decision on its stake until 2014.