Reuters News

Millions in projected cost-savings at Refinitiv will be a key consideration for investors mulling the US$13.5 billion-equivalent loan and high-yield bond sale financing the buyout of the business, Reuters reported, citing a note from CreditSights. Blackstone Group agreed to buy a 55 percent stake in Thomson Reuters’ Financial & Risk division, which has been renamed Refinitiv, in January. CreditSights said one of the factors investors will consider is the US$650 million in run-rate cost savings expected to be made in the first couple of years, and how realistic that target is. Blackstone’s track record and its success in cutting costs at other companies it owns will be important.

Investa Office Fund has set September 17 as the date for its shareholders to vote on Blackstone Group’s sweetened A$3.3 billion (US$2.4 billion) bid, Reuters reported. Blackstone declared its A$5.52 per share offer as final. The U.S. private equity giant increased its offer for the Sydney-focused landlord last week in response to a rival bid from Oxford Properties Group, the real estate investment arm of the Ontario Municipal Employees Retirement System (OMERS). The face-off between the North American firms is indicative of a reach for yield by global investors amid strong Australian commercial rents, especially in Sydney, where capacity is tight.

Hexo Corp’s second-largest shareholder urged the cannabis producer to consider strategic options including a sale, saying its stock was undervalued, Reuters reported. Riposte Capital LLC, which has a 2.5 percent stake in the company, said Hexo needs to step up efforts to lower the cost of capital to take advantage of the growth in Canada’s cannabis sector. The New York-based hedge fund investor said Hexo’s market capitalization of about $1 billion was significantly below the US$23 billion market cap of rival Canopy Growth Corp, the only other company with an alcohol partnership.

U.S. buyout giant Blackstone Group LP said it was willing to lift its bid for Australian landlord Investa Office Fund to A$3.3 billion (US$2.4 billion) to beat a rival offer from Canada’s Oxford Properties Group, Reuters reported. Blackstone, seemingly set to seal its takeover until Oxford’s last-minute bid this week, wrote to Investa offering A$12 million above Oxford’s price if Investa agreed, among other conditions, to recommend it and lift the deal’s break fee. Investa said in a statement it intends to work to meet the conditions. Oxford invests in and manages real estate assets on behalf of the Ontario Municipal Employees Retirement System (OMERS).

Great-West Lifeco Inc, Canada’s second-biggest insurance company, is exploring the sale of a collection of insurance contacts that could fetch as much as US$2 billion, sources told Reuters. Goldman Sachs Group Inc is arranging the sale process. Among the parties to have shown interest in the policies include other insurance firms and financial companies. Private equity and specialist investment firms have been significant buyers of run-off insurance blocks, believing they can juice the profits from administering such policies by cutting costs.

Australian office landlord Investa Office Fund said it will study a A$3.3 billion (US$2.4 billion) takeover bid from Canada’s Oxford Properties Group, an offer that was criticized by rival suitor Blackstone Group which also threatened to drop its own bid, Reuters reported. Oxford, the real estate investment arm of the Ontario Municipal Employees Retirement System (OMERS), had lobbed a last-minute offer for Investa this week that was A$90 million higher than Blackstone’s bid which had already won the backing of the target. Investa said it is adjourning a shareholder meeting that was set to vote on Blackstone’s offer while it weighs the attractiveness of Oxford’s bid.

Britain’s Royal Mail Plc has bought Canadian parcel delivery company Dicom Canada for $360 million, adding to its growing operations in a number of U.S. states and across Europe, Reuters reported. The acquisition from U.S. private equity firm Wind Point Partners comes as Royal Mail aims to boost revenue share from outside the United Kingdom through its international unit. Dicom Canada, which offers ground-based parcel, freight and logistics services, operates a network of 28 depots and works with partners to provide pan-Canadian logistics services, Royal Mail said, adding the Montréal-based company had posted good revenue and profit growth in recent years.

Canadian landlord Oxford Properties Group has lobbed a last-minute A$3.3 billion (US$2.4 billion) bid for Australian office owner Investa Office Fund, edging out an earlier offer from U.S. private equity firm Blackstone Group, Reuters reported. The bid lands two days before a scheduled shareholder meeting to approve Blackstone’s takeover that has Investa’s blessings. It caps years of suitors circling Investa as tight supply and strong growth lift rents in Australia, especially in Sydney where Investa’s towers are concentrated. Oxford invests in and manages real estate assets on behalf of the Ontario Municipal Employees Retirement System (OMERS).

Australian property developer Goodman Group Pty Ltd and Canada Pension Plan Investment Board (CPPIB) have committed an extra US$1.75 billion of equity to their Chinese logistics partnership to further expand in China, Reuters reported. The funds, 80 percent of which will come from CPPIB, will take the partners’ total equity commitment to US$5 billion. The investment increase is the latest in China’s logistics industry which is experiencing a boom in demand for warehousing and delivery from e-commerce companies such as Alibaba Group Holding Ltd and JD.com Inc.