Liz Truss Couldn't Outlast a Lettuce

October 22, 2022

Good Morning,

Ruapehu Alpine Lifts' survival plan will be pitched to creditors in May, Jarden confirmed the split of its wealth and investment banking arms, EnergyAustralia has been hit by a cyber attack, Liz Truss has resigned as the UK PM, the German parliament has approved a €200B rescue package, Elon Musk plans to lay off 75% of twitter's workforce, Banks have been saddled with $30B (USD) in unwanted debt & Deutsche Bank laid off dozens of origination and advisory staffers.

Let's jump in.

Before The Bell

Markets

  • Most of the global markets were down as investors digested earnings in the US and rising government bond and treasury yields.

Earnings

  • Mainfreight shares rallied 3.05% after a 66% increase in first-half profits and a 33% increase in revenue. (Stuff)

  • Blackstone beat Q3 earnings estimates; however, it reported a 16% YoY drop on the same metric amid a sharp drop in asset prices. It also marked down the value of its investment portfolio, causing its stock to fall ~4.5% yesterday. (RT)

  • Snap Inc. shares plummeted 25%+ AH after reporting weaker-than-expected Q3 revenue numbers. It also announced plans to cut 20% of staff as part of a major restructuring. (CNBC)

News Summary

  • Ruapehu Alpine Lifts' survival plan will be pitched to creditors in May. (Stuff)

  • Datagrid is expected to ask the New Zealand government for support. (Stuff)

  • A national public transport ticketing system is to be introduced in New Zealand. (Herald)

  • Jarden has confirmed the split of its wealth and investment banking arms. (NBR)

  • EnergyAustralia has been hit by a cyber attack. (9 News)

  • The Australian government is slapping a $500m (AUD) efficiency dividend on government departments in next week's federal budget. (AFR)

  • Liz Truss has resigned as the UK PM, and currently, Boris Johnson, Rishi Sunak and Penny Mordaunt have received backing to replace her. (BBC)

  • Amazon could pay UK customers up to 900 million pounds in compensation. (BBC)

  • The French state will support any initiative that boosts Renault's alliance with Nissan. (RT)

  • The German parliament has approved a €200B rescue package to combat the energy crisis. (RT)

  • Italy is close to forming a new government. (BBC)

  • Turkey has slashed interest rates by 1.5% despite inflation being 83%. (CNBC)

  • Hans Niemann sued Magnus Carlson and Chess.com for libel for $100m (USD). (BBC)

  • Elon Musk plans to lay off 75% of twitter's workforce. (BBG)

  • Twitter's share price has dropped over reports of a potential US national security review. (BBG)

  • Google has been fined $161m (USD) for unfair practices by India. (BBC)

  • Hong Kong's consumer inflation has hit its highest level since 2015. (BBG)

  • Banks have been saddled with $30B (USD) in unwanted debt due to risk exodus. (BBG)

  • Deutsche Bank laid off dozens of origination and advisory staffers within its investment -banking division globally. (BBG)

  • Haas has signed MoneyGram as their new title sponsor in a multi-year deal. (F1)

Deal Flow

Investments/ M&A

  • India is seeking a $7.7B (USD) valuation for IDBI Bank in its 60.72% stake sale in the Mumbai-listed lender. (BBG)

  • Jared Kushner's family retail-estate firm Kushner Cos has made a hostile bid for its rival Veris Residential that would value the company at $4.3B (USD). (RT)

  • Orix Corp, a Japanese financial services group, decided it could invest $2B (USD) in the Toshiba buyout. (RT)

  • Investment firm Bain Capital is among the firms considering bidding for Indian polyester film-maker Polyplex Corp. The company is expected to be valued at $1B (USD) +. (BBG)

  • Spanish renewable energy investor Everwood is in talks to sell its 6.1 GW solar asset portfolio. It could fetch a price of €750m. (RT)

  • Morgan Stanley's infrastructure investment arm is considering selling its 40% stake in German renewable firm PNE. It's believed to be valued at ~€560m. (RT)

  • Exxon Mobil, an oil and gas company, has sold its Montana oil refinery to oil and gas exploration and production company Par Pacific in a $310m (USD) deal. (RT)

  • Brazilian meatpacker Minerva has acquired the Australian Lamb Company for ~$260m (USD). (RT)

  • NZX-listed NZ Rural Land Co, a rural landowner, has acquired a 2400-ha pine forest estate in the Manawatū/Whanganui region for $63m. It will be leased for carbon farming. (NBR)

  • Activist investor Starboard Value has taken a 7.4% stake in data centre business Vertiv. (BBG)

  • Telenor and True Corp's merger to form the largest telco in Thailand has received approval from Thailand's telecommunications regulator. (BBG)

  • Bryon Trott's merchant bank, BDT & Co, will merge with Michael Dell's MSD Partners. (BBG)

  • Microsoft is in advanced talks to increase its investment in OpenAI. (WSJ)

  • Boost Mobile founder Peter Adderton wants to buy back the wireless service and keep current owner Dish Network Corp from merging with a blank-check company. (BBG)

  • French engineering group Systra is looking to buy Australian rail companies. (AFR)

VC & Fundraising

  • BeReal raised $60m (USD) in a series B round earlier this year. (TC)

  • Ocean-climate VC Propeller has raised $100m for its new fund. (TC)

Equity Raises

  • Biotech firm Prime Medicine was valued at $1.8B (USD) in its NASDAQ debut. (RT)

  • Australian parking garage operator Best in Parking is said to be seeking to raise between €300m and €400m via an IPO at a €1B valuation. (BBG)

  • Bayanat, a geospatial and data analytics firm owned by Abu Dhabi's G42, is set to raise $171m (USD) in an IPO backed by US PE firm Silver Lake and Abu Dhabi's International Holding Co. (BBG)

  • State oil firm ADNOC has invited banks to pitch for roles in an IPO of its marine services and logistics unit. (RT)

  • Instacart, a food delivery company, has shelved plans for its 2022 IPO. (BBG)

Debt 

  • Emirates Central Cooling System Corp, known as Empower, a district cooling business, has borrowed $1.5B (USD) from the Emirates NBD Bank PJSC, which is expected to invite other lenders to participate in the loan. (BBG)

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