“There’s no doubt that blockchain makes the securities industry
MOREûEFlCIENTûANDûMOREûROBUSTûANDûACCESSIBLEvû
MYLES MILSTON, CEO OF START-UP GLOBACAP, P
Capital markets week ahead:
Thomson Reuters, Xiaomi, EFSF
TERMINAL BUILDING Monday is the
DEADLINEûFORûINVESTORSûTOûGETûTHEIRûlRSTû
piece of Blackstone’s biggest deal since the
CRISISûnûITSû53BNûACQUISITIONûOFûAû
controlling stake in Thomson Reuters’
lNANCIALûDATAûANDûTECHNOLOGYûBUSINESS û
WHICHûINCLUDESû)&2û!û53BNûBRIDGEû
loan backing the transaction is in the
market, with banks and investors being
asked to submit their commitments before
the end of the day.
4HEûBRIDGEûLOANûISûTHEûlRSTûPIECEûOFûAû
53BNûDEBTûPACKAGEûBACKINGûTHEû
DEALû!û53BNûTERMûLOANûHASûALREADYû
been marketed to large institutional
investors, and is expected to launch
once regulatory hurdles that have
delayed the deal have been passed.
Demand for the loans will be an
interesting bellwether of risk appetite –
the deal is the biggest leveraged buyout
transaction to hit markets since the
heady days of 2007.
HOLD THE PHONE Trading begins on Monday in
SHARESûOFû8IAOMIûFOLLOWINGûITSû(+BNû
53BN û)0/ûLASTûMONTH ûINûWHATûWASûTHEû
biggest technology listing in four years. All
eyes will be on how the stock performs given
that the deal priced at the bottom of the
marketing range – valuing the Chinese
SMARTPHONEûMAKERûATû53BN ûJUSTûOVERûHALFû
what it had been hoping for a few weeks
earlier.
BAILOUT MONEY The European Financial
Stability Fund, which has helped disburse
more than €270bn of bailout money to
Cyprus, Greece, Ireland, Portugal and Spain
over the past few years, is expected in bond
MARKETSûWITHûITSûLATESTûRElNANCINGûDEALû)Tû
WILLûBEûTHEûlRSTûDEALûSINCEû%UROPEANûLEADERSû
agreed to let the bailout fund play a bigger
ROLEûINûEUROZONEûlNANCESû7ILLûTHATûHAVEû
any impact on pricing?
DIMON GEEZER JP Morgan and Citigroup kick
off the second-quarter reporting season on
&RIDAYû"ANKSûSTRUGGLEDûINûTHEûlRSTûTHREEû
months of the year, as volatility returned to
markets, hitting the pace of dealmaking and
LEADINGûTOûDIFlCULTûTRADINGûCONDITIONSû*0- û
which tops the underwriting and advisory
league tables, should offer a decent
benchmark for the health of markets since
then.SWELLING PIPELINE German mail order
and e-commerce company Otto Group is
expected to launch a hybrid bond
transaction. It comes as the pipeline of
hybrid deals continues to grow. Swiss
cement maker LafargeHolcim is also
planning a deal, although allegations
that it funded armed groups in Syria to
keep a factory open have delayed the
transaction. Belgian electricity
transmission company Elia is also
planning a deal.RISING FROM THE ASHES Subscription for
a £950m rights issue from UK insurance
company Phoenix Group ends on
Monday. It is raising funds to help pay for
its acquisition of Standard Life
Assurance, a £2.9bn deal announced
earlier this year. It is just 18 months since
its last rights issue: at the end of 2016, it
did a £735m capital raising to help fund
its purchase of Abbey Life from Deutsche
Bank.HOT PROPERTY US commercial real estate
lRMû#USHMANûû7AKElELD ûISûEXPECTEDûTOû
launch its long-awaited IPO in what will be
a short window before the summer break.
Cushman, a top three global agency with
ûOFlCESûINûûCOUNTRIESûANDû53BNûOFû
REVENUESûLASTûYEAR ûHASûBEENûONûlLEûCONlDENTIALLYûWITHûTHEû3%#ûSINCEû!PRILû
The deal has been widely mooted since
early 2017.DRIVING UP THE PRICE Swiss engineering
lRMû/ERLIKONûHOPESûTOûRAISEûUPûTOû
3&RMû53M ûFROMûTHEûLISTINGûOFû
ITSû'RAZIANO&AIRlELDûSUBSIDIARYûONû
Tuesday. The deal could lead to a full
separation of the two: the base deal will
see Oerlikon selling 87% of its subsidiary,
but that could rise to 100% if the
greenshoe is exercised.
'RAZIANO&AIRlELDûSUPPLIESûGEARSûANDû
transmissions systems for hybrid and
electric cars.TURN OF EVENTS A result is due on
Wednesday for a £265m rights issue from
UK exhibitions and conferences business ITE
Group. The company is raising capital to
part-fund the purchase of Ascential’s events
business for an enterprise value of £300m.
Subscription for the rights issue runs to
Tuesday. It is fully underwritten by joint
bookrunners Investec and Numis.LAST WEEK IN NUMBERS
A$500,000 – Penalty paid by Goldman
Sachs over its role as underwriter of a
block trade in 2015
€1.5bn – Demand for Intesa Sanpaolo’s
õBNûCOVERED ûTHEûlRSTû)TALIANûBANKûBONDû
sale since mid-April
14 points – Rally in Wind Tre bonds after
VEON announced that it is selling its 50%
stake to CK Hutchison
¥119.5bnûnû4HEûSIZEûOFûAûlVE
TRANCHEûDEALû
from French lender BPCE in the Samurai
market