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FB Roundup: Michael Dell, LafargeHolcim and Hong Leong group

By Michael Finnigan

Michael Dell part of buy-out consortium for family-owned UFC

The family investment office of Michael Dell, founder of the eponymous computer company, has invested in the $4 billion buy-out of the Ultimate Fighting Championship (UFC).?

MSD Capital acquired preferred stock in UFC as part of the purchase of the popular professional mixed martial arts organisation by the US talent agency WME-IMG.?

WME | IMG will also serve as UFC's operating partner and will focus on accelerating the sport's popularity and presence around the world, UFC announced this week.

UFC was majority owned by second-generation brothers Frank and Lorenzo Fertitta who control Red Rock Resorts, a US-based holding company that owns a portion of Station Casinos.

Silver Lake Partners and KKR will join WME-IMG as new strategic investors, along with Dell's MSD Capital and MSD Partners, which will provide preferred equity financing.?

Dell reportedly bankrolled MSD Capital with about $1 billion in seed money in 1998. The investment vehicle owned and controlled by the founder and chief executive of Dell Inc and his family is understood to manage capital of more than $12 billion.?

IMG annually produces more than 52,000 hours of sports programming and arranges to distribute an extra 32,000 hours on behalf of more than 200 clients, including major sports leagues and associations like the All England Lawn Tennis and Croquet Club (Wimbledon), the National Football League, Premier League, Major League Soccer and Euroleague.

Cement titan LafargeHolcim sells Indian unit to family conglomerate

Family-controlled cement maker LafargeHolcim is to sell its Indian unit to second-generation conglomerate Nirma Limited for $1.4 billion.

LarfargeHolcim is controlled by the Schmidheiny, Desmarais, and Sawiris families who hold a combined 25.58% stake in the world's largest cement maker following it's “mega merger” in July last year. It had revenues of CHF29.5 billion ($30.1 billion) in 2015.

Nirma is an iconic Indian consumer conglomerate, founded by Dr Karsanbhai Patel, with annual revenues of $1.5 billion with 18,000 employees. Second-generation managing director Hirenbhai K Patel is reported to have driven through the ambitious LarfargeHolcim deal.

LafargeHolcim has a divestment target of CHF3.5 billion in 2016 and has already completed the sale of its business in South Korea and signed an agreement to divest its minority shareholding in Saudi Arabia. 

The deal is subject to approval by the Competition Commission of India.

Malaysian next gen to take on bigger role in Hong Leong group

Quek Kon Sean, the youngest son of Malaysian tycoon Tan Sri Quek Leng Chan, is set to take on a bigger role in the Hong Leong group's property ventures, according to an anonymous source.

Speaking to news portal AsiaOne, the insider said Kon Sean, 36, resigned this week from his directorship positions in Hong Leong Financial Group and Hong Leong Capital to assume "a new position within the Hong Leong group.”

He added: "Quek (Leng Chan) is said to be making a big foray into real estate and Kon Sean could be the one heading the venture.”

Tan Sri Quek Leng Chan is one of the richest men in Malaysia with an estimated net worth of $5.6 billion, according to Forbes.

Founded as a trading company in 1963, the second-generation company controls 14 listed companies involved in the financial services, manufacturing, distribution, property, and infrastructure development.