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Merger and Acquisition

Twitter Approaches TikTok for a Possible Merger Deal

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TikTok, Twitter in Merger Talks

Following President Trump’s decision to end TikTok reign in the United States and protect the American people against an ‘unusual or extraordinary threat,’ Twitter has approached ByteDance, the Chinese company that owns TikTok to discuss possible merger or acquisition, according to a Wall Street Journal report on Saturday.

President Trump had signed an executive order on Thursday under the International Emergency Economic Powers Act, a law that allows the president to regulate international commerce in an unusual or extraordinary threat.

Part of the executive order read “The spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China continues to threaten the national security, foreign policy, and economy of the United States. At this time, action must be taken to address the threat posed by one mobile application in particular, TikTok.”

Last week, Trump had given TikTok 45 days to sell off its US operations to an American company or face a complete exit from the world’s largest market. Also, American companies are warned to stop doing business with the Chinese video app and other Chinese owned social media companies like WeChat, saying it “threaten the national security, foreign policy, and economy of the United States.”

The threat has led to American companies approaching the Chinese short video app for complete acquisition of North American operations.

Microsoft had announced last week that it was in talks with the company to acquire its US, Canada, Australia and New Zealand operations. On Thursday, Financial Times reported that Microsoft has expanded discussions to TikTok entire operations.

However, on Saturday the Wall Street Journal reported that Twitter is in preliminary discussions for a merger with TikTok. A move that would likely allow Twitter to manage the company’s North American operations in line with Trump’s demand.

Trump had accused Chinese owned companies of working with the Chinese government to access American key data and expose the world’s largest economy to security threats. An accusation the companies have denied over and over again.

While it is uncertain how Twitter plans to raise the money for the acquisition or merger, it would be a herculean task given the company’s present financial position when compared with Microsoft.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

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Merger and Acquisition

Sullivan, Ellis Were Top M&A Legal Advisers by Value and Volume in financial Services Sector in 2021

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Sullivan & Cromwell and Kirkland & Ellis were top M&A legal advisers by value and volume in financial services sector for 2021, finds GlobalData.

Sullivan & Cromwell and Kirkland & Ellis were the top mergers and acquisitions (M&A) legal advisers in the financial services sector for 2021 by value and volume, respectively, according to GlobalData. The leading data and analytics company notes that Sullivan & Cromwell advised on 42 deals worth $105.1 billion, which was the highest value among all advisers tracked. Meanwhile, Kirkland & Ellis led by volume, having advised on 76 deals worth $20.1 billion. A total 3,854 M&A deals were announced in the sector during 2021.

According to GlobalData’s report, ‘Global and Financial Services M&A Report Legal Adviser League Tables 2021‘, deal value for the sector increased by 21.1% from $430.6 billion during 2020 to $521.3 billion during 2021.

Aurojyoti Bose, Lead Analyst at GlobalData, comments: “Kirkland & Ellis was the only advisor that managed to advise on more than 70 deals during 2021. However, it lagged behind in terms of value and did not find a place among the top 10 by value due to involvement in low-value transactions.

“The average deal size of transactions advised by Kirkland & Ellis was just $264.2 million, while it was $2.5 billion for Sullivan & Cromwell. Apart from leading by value, Sullivan & Cromwell also occupied the fourth position by volume.”

Wachtell Lipton Rosen & Katz occupied the second position in terms of value, with 26 deals worth $79.1 billion; followed by Skadden, Arps, Slate, Meagher & Flom, with 54 deals worth $55.9 billion; Simpson Thacher & Bartlett, with 37 deals worth $51.6 billion; and Cravath Swaine & Moore, with nine deals worth $47.6 billion.

Alston & Bird occupied the second position in terms of volume, with 55 deals worth $7.9 billion; followed by Skadden, Arps, Slate, Meagher & Flom, and Sullivan & Cromwell. Willkie Farr & Gallagher occupied the fifth position by volume, with 42 deals worth $13.8 billion.

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Merger and Acquisition

Sub Saharan Africa Mergers and Acquisition Transactions Totalled US$ 129.7 Billion in 2021

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Refinitiv today released the 2021 investment banking analysis for the Sub-Saharan African. According to the report, an estimated US$506.0 million worth of investment banking fees were generated in Sub-Saharan Africa during 2021, 8% less than in 2020 and the lowest annual fee total in the region since 2014.  While debt capital markets underwriting fees increased 128% to US$150.3 million, the highest full year total since our records began in 2000, fees from equity capital markets underwriting, M&A advisory and syndicated lending all declined from 2020. 

Equity fees declined 35% to US$56.9 million, while syndicated lending fees declined 17% to US$216.0 million.  Advisory fees earned in the region from completed M&A transactions reached US$82.9 million, down 38% year-on-year to the lowest annual total since 2003.  Fifty-five percent of all Sub-Saharan African fees were generated in South Africa during 2021, and 25% were earned from deals in the financial sector. Standard Chartered earned the most investment banking fees in the region during 2021, a total of US$37.7 million or a 7.5% share of the total fee pool.

MERGERS & ACQUISITIONS

The value of announced M&A transactions with any Sub-Saharan African involvement reached US$129.7 billion during 2021, more than four-times the value recorded during 2020 and the highest full-year total since our records began in 1980.  The high dollar-value was boosted by the Naspers/Prosus share swap in May, and Redefine Properties’ offer for the remaining shares in retail property company EPP, which together were worth a more than US$70 billion.  The number of deals increased 13% from 2020 to a four-year high of 853.

M&A involving a Sub-Saharan African target reached US$79.6 billion, again lifted by the share swap to an all-time record annual total, while the number of deals increased 21% over the previous year.  Inbound deals, involving an acquiror outside of Sub-Saharan Africa, increased 164% to US$20.1 billion, while outbound M&A reached an all-time high of US$42.3 billion.

High technology was the most targeted sector by value in Sub-Saharan Africa during 2021, while the materials sector saw the highest number of deals in the region.  South Africa was the most targeted nation, with US$63.7 billion in M&A announcements over the year, equivalent to 80% of total activity recorded in the region.

With advisory work on deals worth a combined U$52.1 billion, Morgan Stanley held the top spot in the financial advisor ranking for deals with any Sub-Saharan African involvement during 2021.

EQUITY CAPITAL MARKETS

Sub-Saharan African equity and equity-related issuance reached US$1.4 billion during 2021, down 43% compared to 2020 and the lowest annual total since 2005.  The number of issues declined 38%, again to a 16-year low.  Issuers in South Africa raised more in the equity capital markets than any other Sub-Saharan African nation during 2021, a total of US$979.6 million, followed Mauritian and Ugandan issuers.

Follow-on offerings raised US$1.3 billion in 2021 with Pepkor Holdings, Lighthouse Capital and financial services group FirstRand Ltd among those in the region raising new equity funds from follow-ons in 2021.  Just one initial public offering was recorded in the region during 2021, MTN Uganda raised U$163.0 million listing on the Uganda Securities Exchange in December. Investec and Goldman Sachs share first place in the Sub-Saharan African ECM underwriting league table during 2021, each with a 24% market share. 

DEBT CAPITAL MARKETS

Sub-Saharan African debt issuance totalled US$43.5 billion during 2021, up 125% from the value recorded during 2020 and the highest full-year total since our records began in 1980.  The number of new offerings brought to market increased 46% over 2020 to a four-year high of 73.  South Africa was the most active issuer nation during 2021, accounting for 26% of total bond proceeds, followed by Ivory Coast and Nigeria with 22% and 16%, respectively.  DCM activity from Government & Agencies accounted for 51% of issuance during full year 2021, while financial sector issuance accounted for 26%. Citi took the top spot in the Sub-Saharan African bond book runner ranking during 2021, with US$6.7 billion of related proceeds, or a 16% market share.

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Merger and Acquisition

Nigerian Owned Pleasures Magazine Founder Adedotun Olaoluwa Acquires American Media Giant Gannett’s Shares

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Globally acclaimed Dotmount Communications Group, publishers of Pleasures Magazine today announced its acquisition of Gannett Co.Inc’s shares, a highly respected diversified news and media information company that operates in broadcasting, publishing, and digital, in a move expected to enhance the Dotmount Communications’s global reach with comprehensive integrated services for a strong stable of clients and projects.

Gannett (GCI) is a diversified news and media information company that operates in broadcasting, publishing, and digital. The most famous brand the company owns is USA Today. Its broadcasting segment runs 43 TV stations; its publishing segment provides daily content through more than 80 daily publications and more than 400 non-daily local publications; and its digital segment covers content through digital platforms, digital marketing services, and an online HR software solution.

“In just ten years of existence, the parent company of Pleasures Magazine, Dotmount Communications Group has made an extraordinary impact in the ever-evolving world of media and digital marketing — establishing itself as an emerging dominant player in the field, we are thrilled with this addition to our growing roster of media platforms,” says Adedotun Babatunde Olaoluwa, President and Executive Chairman of Dotmount Communications Group.

“We respect and recognize that chairman Mike Reed has been at the forefront of thought leadership about the convergence of media platforms – and his team’s abilities will be great assets for our firm.”

Dotmount’s new acquisition comes on the heels of a string of acquisitions over the past two years. Since fall 2019, the company has snapped up shares from major media companies.

Dotmount Communications Group, an international strategic communications consultancy that uses an in-depth understanding of public, commercial and political drivers to provide insightful strategic counsel and meet complex communications challenges.

The group has over the years supported government, corporate and private entities, delivering sophisticated communications programmes that shape awareness, guide opinion and enhance understanding on a national, regional and international basis.

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