AI-Driven Crypto M&A

UK PE leveraged loan defaults are soaring, US IPOs are having their best start since 2021, Asia M&A fees hit a decade low, SCOTUS stripped SEC of major enforcement powers, and crypto caught M&A fever.

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Litquidity Capital
June 28, 2024

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Good Morning,

Hopefully everyone has recovered from last nights debate. UK PE leveraged loan defaults are soaring, US IPOs are having their best start since 2021, Asia M&A fees hit a decade low, SCOTUS stripped SEC of major enforcement powers, and crypto caught M&A fever.

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Let’s dive in.

Before The Bell

As of 06/27/2024 market close.

Markets

  • US stocks closed relatively flat ahead of the presidential debate and fresh inflation data

  • Canada's TSX index rose to a two-week high

  • China 10Y and 30Y treasury futures rose to a record high

  • Cocoa futures fell for a sixth-straight day to $7,361 as crop fears ease 

Earnings

  • Walgreens plunged 22% after missing Q3 earnings and slashing its FY outlook amid a challenging consumer environment; the chain plans to close ~700 stores (CNBC) 

  • Nike fell 13% on a Q4 sales drop and poor FY forecast due to weak demand (RT)

  • Full calendar here

Headline Roundup

  • Fed's Bowman not yet ready to cut rates (RT)

  • US IPOs are seeing their best start since 2021 (BBG)

  • Leveraged loan defaults soar 250% as BoE warns on PE challenges (FT)

  • Asia M&A fees fell to an eleven-year low amid slow deal flow (RT)

  • Asia dollar bond sales hit its highest level since January 2023 (BBG)

  • Chinese money flows into bonds despite central bank warnings (RT)

  • India set for billions of inflows as bonds join JPMorgan index (FT)

  • SCOTUS curbed SEC enforcement powers in 6-3 decision (AP)

  • ETFs are debuting at record pace this year (FT)

  • Top-rated European CMBSs set for first losses since 2008 (FT)

  • IMF warns US to tackle debt despite robust growth (RT)

  • Novel protection could curb loopholes in junk bond deals (RT)

  • JPMorgan disputed Fed's stress test results (CNBC)

  • New EY chief rules out reviving plan to split in two (FT)

  • Goldman deployed its first GenAI tool across the firm (WSJ)

  • UBS will create new wealth unit GWM Solutions (RT)

  • Ten big banks will pay $46M to settle swaps rigging case (BBG)

  • NFL hit with $4.7B antitrust verdict over 'Sunday Ticket' (FT)

  • Meta to face lawsuit alleging it prefers foreign workers over US citizens (RT)

  • VC 8090 Industries shuns AI / tech with 275% return in industrials (BBG)

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Deal Flow

M&A / Investments

  • Aramco is set to take a 10% stake in the Renault-Geely thermal engine JV Horse Powertrain at a $7.9B valuation (RT) 

  • PE firm Hg is considering a minority stake sale in French software company Septeo at a potential $4.3B valuation (BBG) 

  • Shale drillers SM Energy and Northern Oil and Gas agreed to acquire assets in Utah’s Uinta Basin from XCL Resources for $2.6B in cash (BBG) 

  • TPG agreed to acquire a majority stake in digital business services firm Altimetrik at a ~$1.5B valuation (BBG) 

  • CVC will acquire UK infrastructure contractor M Group Services for ~$1.3B (BBG) 

  • Nokia is exploring an acquisition maker of optical telecom equipment maker Infinera, which has a $1.2B market cap (BBG) 

  • French materials firm Saint-Gobain will buy UAE-peer FOSROC for ~$1B (RT)

  • O&G firm Hilcorp agreed to acquire Italy's Eni's upstream assets in Alaska for ~$800M (RT) 

  • Korea's SK Bioscience will acquire a 60% stake in German CDMO IDT Biologika from Klocke Gruppe in a $244M deal (RT) 

  • Aditya Birla-owned UltraTech Cement acquired a 23% stake in India Cements for $226M (BBG)

VC

  • Battery startup Sila raised a $375M Series G led by Sutter Hill Ventures (TC)

  • AI chip startup Axelera AI raised a $68M Series B from the EIC Fund, and others (TC)

  • KarmaCheck, a tech-based solutions for background checks, raised a $45M Series B led by Parameter Ventures (FN)

  • Orby AI, a GenAI platform for enterprise automation, raised a $30M round led by NEA, Wing VC, and WndrCo (FN)

  • Innatera, an ultra-low power neuromorphic processor startup, raised a $21M Series A extension led by Innavest and InvestNL (FN)

  • French AI-as-a-service startup Dust raised a $16M Series A led by Sequoia (TC)

  • K-12 education platform MagicSchool AI raised a $15M Series A led by BCV (BW)

  • Supercede, a UK reinsurance tech platform, raised a $15M Series A led by Alven (FN)

  • Canadian ISP OS gaiia raised a $13.2M Series A led by Inovia Capital (FN)

  • Illumex, a GenAI data-readiness platform for LLMs, raised a $13M round led by Cardumen Capital, Amdocs Ventures, and Samsung Ventures (TC)

  • Enterprise permissions startup AuthZed raised a $12M Series A led by General Catalyst (BW)

  • Family fintech app Bling raised a $12M Series A led by Owl Ventures (EU)

  • Pear, a retail ecommerce enablement platform, raised a $10M Series A led by Stage 2 Capital (PRN)

  • Vertus Energy, a waste-to-X industrial biotech startup, raised an $8.75M seed round led by Energy Capital Ventures (FN)

  • Synthflow, a German SME-focused AI voice assistance platform, raised a $7.4M seed round led by Singular (TC)

IPO / Direct Listings / Issuances / Block Trades

  • FIFA is seeking to raise $1B-$2B to expand its free streaming service FIFA+ (BBG) 

  • Toyota and Desno are planning to offload stakes in vehicle parts supplier Aisin for over $1.3B (BBG) 

  • Indian lender RBL Bank will raise up to $779M via a QIP and debt sale (RT) 

  • PE firm L Catterton and insiders raised $756M from a Birkenstock share sale (BBG)

  • E-comics firm Webtoon climbed ~9% in its trading debut after its $315M IPO (BBG) 

  • Korean-game developer Shift Up will price its IPO at the top end to raise $313M (RT)

  • Indian whisky maker Allied Blenders and Distillers' $180M IPO received $3.1B worth of bids (RT) 

Bankruptcy / Restructuring

  • Rite Aid is seeking court approval for a restructuring plan to cut $2B in debt and give control to a group of lenders (RT) 

  • SCOTUS rejected Purdue Pharma's bankruptcy plan to fund opioid epidemic relief efforts in exchange for civil immunity for the Sackler family (WSJ)

Fundraising

  • VC The General Partnership raised $300M for its second fund (AX)

Crypto Corner

  • Coinbase sued SEC and FDIC for illegally blocking FOIA requests (TB)

  • VanEck filed for Solana ETF, SOL jumps in response (CD)

  • Mt. Gox will distribute ~$9B in Bitcoin repayments to creditors (TB)

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