TheChek News Flow

Suitors submitted initial bids last week on a collection of assets Linde [ETR:LIN] and Praxair [NYSE:PX] are divesting to secure antitrust clearance, said several sources briefed on the matter.

The German and US industrial gas groups launched a divestiture process earlier this year to sell packages of assets in the Americas and Europe, as reported. The companies have so far provided limited financial information to suitors about the assets, some of the sources said.

German gas supplier Messer Group has partnered with private equity firm CVC Capital Partners to bid for the assets. Matheson Tri-Gas, backed by Taiyo Nippon Sanso [TYO:4091], is interested as well, according to media reports. A few private equity firms have also been taking a look at the assets, the sources said.

As of earlier this week, suitors had not heard back on who is advancing to the next stage of the auction, two of the sources said. Bidders have had the opportunity to bid on all or parts of the assets.

Antitrust authorities in multiple jurisdictions, including Brazil, China, European Union and the US, are reviewing the Linde and Praxair merger, which has an October 2018 long-stop date. The deal would create an industrial gas company with combined revenues of USD 29bn prior to divestitures, as of the merger’s announcement.

The companies have committed to divest assets worth up to EUR 3.7bn in revenue and EUR 1.1bn in EBITDA to close the transaction. Deutsche Bank, Credit Suisse and Goldman Sachs are coordinating the sale process, as reported.

Linde and Praxair declined to comment.

Aston Martin Lagonda, a UK-based luxury car manufacturer, is about to appoint the investment banks Goldman Sachs, Deutsche Bank and JPMorgan as global coordinators on its planned initial public offering, Sky News reported. The report cited insiders who said Aston Martin’s board is believed to have recommended the appointments, which have yet to be signed-off by the carmaker’s owners.

Aston Martin disclosed on 27 February that it was considering strategic options including a possible IPO.

The carmaker is expected to appoint additional banks ahead of the listing, the article said.

London is considered the most likely venue for the IPO, although the company has also considered a New York listing, according to the report.

If Aston Martin chooses London as its listing venue it may choose to list Global Depositary Receipts in New York, the item said, citing insiders for the information.

Aston Martin is also looking to appoint an independent chairman ahead of a flotation, the report continued.

A flotation could value Aston Martin at GBP 4bn (EUR 4.58bn), the item said, without attributing the valuation to a source.

As reported in December last year, Aston Martin’s owners - Investindustrial, Investment DAR and Daimler [ETR:DAI] - hired the investment bank Lazard to advise on a possible sale or listing.

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The Dutch postal companies PostNL [AMS:PNL] and Sandd are considering a consolidation of the two companies, the Dutch daily De Financiële Telegraaf reported, citing Sandd Chairman Ronald van de Laar.

PostNL and Sandd are currently strong competitors, but last year in July the Dutch ministry of Economic Affairs said after doing research it has been found that a cooperation between the two companies could be a solution to deal with a decline in businesses. PostNL has already mentioned earlier that it feels for a consolidation with its main competitor.

Initially Sandd did not seem interested in a consolidation, but Van de Laar has now said that the company is open for this after all, because less and less letters are being sent. Van de Laar did not say who should acquire who, but was quoted saying that all options were open.

Talks will be held between the two postal companies and the ministry of Economic Affairs in just over a week, the report said.

In 2017, PostNL recorded turnover of EUR 3.5bn, Dutch news site NOS reported earlier. Sandd had a turnover of about EUR 195m in 2017, Dutch daily Het Financieele Dagblad said.

De Financiële Telegraaf noted that PostNL owns a 70% market share, while Sandd owns 30%.

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Takeda Pharmaceutical Company Limited [TYO:4502] has said that reported comments made by its chief executive regarding a potential takeover bid for Irish rival Shire [LON:SHP] were aligned with its previous statements. The statement posted on Takeda's website on Friday, 6 April follows:

Takeda Pharmaceutical Company Limited (“Takeda”) notes media reports about comments attributed to Takeda’s CEO Christophe Weber regarding the company’s possible offer for Shire plc (“Shire”). Takeda confirms that Mr Weber's comments were, however, aligned with the statements in our previous press releases. As set out in the press releases “Takeda Statement Regarding Shire plc” on March 28, 2018 in English and “Takeda’s official statement on Shire’s stock fluctuation” on March 29, 2018 in Japanese, clearly defined strategic and financial objectives are core to Takeda’s disciplined approach to acquisitions, including in relation to its dividend policy and credit rating, which are well-established. Any potential offer for Shire, if made, would have to align with this strict investment criteria.

Please refer to the published press releases for details.

In accordance with Rule 2.6(a) of the Code, Takeda must, by no later than 5.00 p.m. (London time) on 25 April 2018, either announce a firm intention to make an offer, subject to conditions or pre-conditions if relevant, for Shire in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer for Shire, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the UK Panel on Takeovers and Mergers (the “Panel”) in accordance with Rule 2.6(c) of the Code.

In accordance with Rule 26.1 of the Code, a copy of this announcement will be published on the Takeda website (https://www.takeda.com/newsroom/) by no later than 12 noon (London time) on 9 April 2018. The content of the websites referred to in this announcement is not incorporated into and does not form part of this announcement.

The Times reported on 6 April that Weber had informed analysts that Takeda was interested in acquiring Shire outright, rather than buying only certain assets. The report cited analysts who attended a meeting with Weber and Takeda’s chief financial officer Costa Saroukos in Tokyo on 5 April for the information.

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The Spanish Government approved, at the Council of Ministers meeting held yesterday (6 April), Abertis Infraestructuras’ [BME:ABE] acquisition of a 32.63% stake in Hispasat currently owned by Elteusat Communications [EPA:ETL], La Vanguardia reported. Once the transaction is complete, the Spain-based concessionaire and toll-road company will hold an 89.69% stake in the French satellite company, the item said.

The transaction could be the step prior to the sale of Hispasat by Abertis to Red Electrica de Espana[BME:REE] (REE), the item pointed.The energy company has repeteadly expressed its interest in submitting a binding offer, but has not advanced details yet, while is waitng for the Government’s greenlight to Atlantia [MI:ATL] and Hochtief [FRA:HOT]’s joint offer for Abertis, expected by next week, La Vanguardia added.

Abertis, on its part and as has been previously reported, agreed to sell Hispasat to REE for EUR 1.149bn in its last General Shareholders Meeting, held last March.

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