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Market Update

STADA Receives Private Equity Offer, BrewDog Valued at £1 B

Author: Sarla Buch
Last Update: 10:13 AM ET April 10 2017

4:00 PM Frankfurt – BrewDog, the craft brewery, was valued £1 billion in a deal to sell 23% stake to a private equity firm. Elliot Advisors asked BHP Billiton to unify dual-corporate structure. STADA received €4 billion offer from a group of private equity firms.

In London trading, FTSE 100 index edged down 3.62 to 7,345.75 and in Frankfurt the DAX index fell 20.92 or 0.2% to 12,204.19.

In Paris, CAC 40 index slumped 27.60 or 0.5% to 5,107.67.

BrewDog, the U.K.-based privately held beer maker said the American private equity firm TSG Consumer Partners agreed to buy 23% stake valued £213 million. The £100 million will be used for global expansion and £113 million to buy shares from existing investors.

The beer producer’s enterprise value of £1 billion is run by James Watt and Martin Dickie and they defended the decision to sell 23% stake to TSG and said it is not a “sell-out.”

After the deal, James Watt stake will reduce to 25% from 35% and Martin Dickie’s stake will drop to 22% from 30%.

“BrewDog is an ideal fit for TSG''s mission,” managing director of TSG Consumer Partners Blythe Jack said.

“Our new partnership with TSG is a launch pad for us to turbocharge our mission to make the world as passionate about craft beer as we are, but it’s also a validation of our crowd funding model,” co-founder at BrewDog James Watt said.

BHP Billiton Plc advanced 3.4% to 1,331 pence after the activist investor Elliot Advisors approached to the U.K.-based metal and miner to spin off about $22 billion of the U.S. oil assets and list them in New York.

In a letter to BHP, Elliot said that the miner should unify into a single Australian-headquartered company and plan to unlock the value from the dual- corporate structure, demerging its oil business.

Highland Gold Mining Ltd declined 4.3% to 175.93 pence after the Jersey-based gold producer said revenues in the year ending in December soared 10.7% from a year ago to $305.9 million.

Net in the year swung to profit from a year ago to $47.9 million from the loss of $10 million and diluted earnings per share swung to 14.5 cents from diluted loss per share of 3 cents.

Rio Tinto Plc gained 0.5% to 3,270.50 pence after the U.K.-based metals and mining company today announced details of the $4 billion paid in taxes and royalties and more than $35 billion direct economic contribution delivered to host communities in 2016.

Rio added our total direct tax contributions is now more than $50 billion since we first started publishing the report in 2010.

STADA Arzneimittel AG surged 10.6% €64.40 after Germany-based healthcare products maker received legally binding takeover offer through a public tender from the private-equity firms Bain Capital LLC and Cinven Group Ltd for about €4.11 billion or $4.35 billion.

Stada said the consortia offered €65.28 per share and a dividend of €0.72 and the offer envision minimum acceptance threshold of 75% and the offer period is for six-weeks.

Shaftesbury Plc jumped 3.5% to 950.50 pence after the U.K.-based Sunday Times reported that Hong Kong-based Samuel Tak Lee plans to bid for nearly 20% in the real estate developer controlling Carnaby Street, Chinatown and large parts of Soho in London.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc