Target: Changyou.com Limited (NasdaqGS:CYOU)
- Industry: Technology, Media and Telecom
- Acquirer: Charles Zhang
- Target: Changyou.com Limited
- Size: $2.2 billion
- Consideration: 100% Cash
- Source of Funds: Equity, Debt
- Sell Side Advisor: Not Disclosed
- Buy Side Advisor: Not Disclosed
- Legal Advisor: Kirkland & Ellis
- Expected Close: Not Disclosed
Charles Zhang made a non-binding proposal to acquire Changyou for $2.2 billion on May 22, 2017. Zhang is chairman of Changyou, a subsidiary of Sohu Inc, and CEO of Sohu.
Chanagyou develops and operates online games in China and Sohu is one of China’s oldest Internet content providers.
Charles Zhang will acquire all of the outstanding Class A and Class B ordinary shares of Changyou, including ordinary shares represented by American Depositary Shares (ADS). The offer provides a consideration of $21.05 per share (or $42.10 per ADS) with an implied EV/EBITDA of 6.4x and implied P/E multiple of 12.3x.
Zhang will finance the consideration with a combination of equity and debt capital. The transaction will take Changyou.com off the market at a throwaway price. Publically-traded Chinese companies continue to lack Western investor confidence due to potentially questionable books and practices.
Target: Huntsman Corporation (NYSE:HUN)
- Industry: Basic Materials / Industrials – Diversified Chemicals
- Acquirer: Clariant AG (SWX:CLN)
- Target: Huntsman Corporation
- Size: $6.7 billion
- Consideration: 100% Equity
- Source of Funds: Common Stock
- Sell Side Advisors: Merrill Lynch, Moelis & Company
- Buy Side Advisors: Citigroup Global Markets, UBS Group
- Legal Advisors: Cleary Gottlieb Steen & Hamilton LLP, Homburger AG, Bär & Karrer AG, Kirkland & Ellis LLP, Vinson & Elkins LLP
- Expected Close: Q4 2017
Clariant entered into a definitive agreement to acquire Huntsman Corporation for $6.7 billion on May 21, 2017.
The all-equity transaction will offer a consideration of 1.2196 shares in HuntsmanClariant, the combined company, for each Huntsman share at an implied EV/EBITDA of 8.1x and an implied P/E multiple of 12.6x.
HuntsmanClariant will be incorporated in Switzerland and will be governed by a Board of Directors with equal representation from Clariant and Huntsman. The combined company will have a dual stock exchange direct listing on the SIX Swiss Exchange and the New York Stock Exchange.
The deal will create will create a leading global specialty chemical company. Huntsman was keen to sell off Clariant’s Plastic and Coatings division as the company looks to grow their Oil and Mining Services division in the United States and China.
The deal is expected to generate annual cost synergies over $400 million through a more robust combination of technology, products and talent. The combined company expects $3.5 billion in total value creation and will leverage shared knowledge in sustainability and innovation to develop new products.
Target: Q-Park N.V.
- Industry: Industrials / Infrastructure – Environmental and Facilities Services
- Acquirer: KKR Global Infrastructure Investors I, L.P.
- Target: Q-Park N.V.
- Size: €2.95 billion
- Consideration: 100% Cash
- Source of Funds: Debt
- Sell Side Advisors: ALANTRA, J.P.Morgan
- Buy Side Advisor: ING Capital
- Legal Advisors: Stibbe N.V., Clifford Chance US LLP, De Brauw Blackstone Westbroek
- Expected Close: Q3 or Q4 2017
On May 24, 2017, KKR Global Infrastructure Investors entered into an exclusivity agreement to acquire Q-Park N.V. for €2.95 billion.
The transaction valued Q-Park at an implied EV/EBIDTA of 15.1x and implied EV/Total Revenue of 3.6x. KKR will use €1.4 billion in infrastructure style financing to complete the buyout.
Q-Park designs, upgrades, and operates 870,000 parking spaces in Europe. KKR is a leading, global investment firm that manages investments across multiple asset classes.
Q-Park will utilize KKR’s experience with infrastructure, mobility and the real estate sector to become a leading player in the fragmented parking industry. KKR will also provide Q-park with additional financial capabilities and access to funding for future growth opportunities.
Q-park is concentrated on expanding parking services, utilizing smart technology to provide more efficient service, and investing in parking property to increase its value through effective facility operations.
KKR beat four other candidates, including Macquarie and China Oceanwide, in a bidding war for Q-Park. KKR Global Infrastructure has a strong track record of long-term and sustainable investments in regulated industries and naturally supports Q-Park’s long-term strategy.