Infrastructure

Data-center valuations enter the metaverse

15 Nov 2021

CyrusOne has struck a deal with buyout firm KKR for a rich $15 bln, while peer CoreSite is selling itself to American Tower for $10 bln. Both deals show from different angles how financial and industrial buyers are banking on the arrival of Silicon Valley’s new virtual reality.

Capital Calls: BT’s fibre, Ford vs. Toyota, SocGen

4 Nov 2021

Concise views on global finance: Leaner broadband rollout boosts the UK telco’s defences against uppity investor Patrick Drahi; the two carmakers trade at similar multiples despite the Japanese outfit’s racier performance; the next leg of the French bank’s revamp will be harder.

African phone-mast IPO priced for smooth safari

11 Oct 2021

IHS, which operates 30,000 towers across the continent, is listing in New York after an aborted attempt in 2018. Though its exposure to turbulent Nigeria is a worry, telecom kit has proved its worth in chaotic places. A market value of up to $8 bln reflects a generous discount.

Telefonica can play hard to get in fibre sale

6 Oct 2021

The 23 bln euro Spanish telco may flog a chunk of its super-fast domestic broadband network. With the fibre rollout almost done and debt vaguely in check, Telefonica isn’t desperate for the cash. That means it can wait for a buyer ready to top the reported 15 bln euro valuation.

Capital Calls: Pandora, Facebook files pack punch

4 Oct 2021

Concise views on global finance: A leak with rich people’s offshore activities and a Facebook exposé reinforce perceptions with facts; GitLab’s float shows Microsoft’s wise 2018 buy; Volvo IPO aims to supercharge EV plans; BT’s bid to rule UK broadband may face U.S. competition.

Drahi drags satellite M&A into near-earth orbit

4 Oct 2021

France’s Eutelsat rejected the telecom billionaire’s $3.2 bln bid. If a follow-up offer succeeds, Drahi could pursue a cost-saving merger with rival SES, whose TV-signal business is also succumbing to gravity. A chunky spectrum refund from the U.S. government makes a deal easier.

Pricey private equity IPO rides road and rail boom

16 Sep 2021

French Infrastructure boutique Antin is raising 550 mln euros in Paris. It’s a chance to profit from Europe and America’s plans to boost investment, though closely held shares mean investors only get a passenger seat. Stellar growth is needed to justify a 4 bln euro valuation.

Capital Calls: Fake crypto news summons regulation

13 Sep 2021

Concise views on global finance: Litecoin's value jumped more than 30% after a phony press release about a partnership with Walmart.

Capital Calls: New York City is on climate notice

2 Sep 2021

Concise views on global finance: Cities with a higher number of wealthier residents will be able to combat climate related events.

Capital Calls: Delta Air Lines’ vaccine stick

25 Aug 2021

Concise views on global finance: The U.S. carrier will charge unvaccinated stateside employees $200 per month towards healthcare. Adding some push to the pull of incentives makes sense.

Time to demolish old ideas about infrastructure

10 Aug 2021

The $1 trln Senate plan will fix roads and railways but leaves out childcare and education. That’s foolish because all have the same goal: to get Americans working more efficiently in better jobs for more years. A too-narrow definition of infrastructure holds the economy back.

Asia $5 bln property deal builds on a big pivot

5 Aug 2021

Hong Kong-listed ESR is buying fellow real estate manager ARA, its second big acquisition in months. It’s a bet that asset owners want to swap their offices and shops for exposure to fast-growing logistics and data centres. The region’s expanding REIT markets will help.

Aussie takeover refuseniks toss hitchhiker’s guide

4 Aug 2021

Sydney Airport, Iress and Altium all spurned bids with a 42% premium, the famed sci-fi number that answers the ultimate question of life. Playing hard to get, as target Spark has done, is part of the M&A game. Hubris, however, has a way of leading to remorse in the deal universe.

Capital Calls: Bank mergers, GlaxoSmithKline

28 Jul 2021

Concise views on global finance: U.S. lender Citizens helps make the case for consolidation with its $3.5 billion acquisition of New Jersey-based Investors Bancorp. A pandemic drug bounty may help the UK pharma group’s CEO Emma Walmsley see off activist Elliott.

Greener anti-flood investments will be win-win

26 Jul 2021

Germany’s worst natural disaster in decades and deluges in China have sparked calls to build more dams and reservoirs. There are better ways to protect people, land and buildings from both too much and too little water. These alternatives will also appeal to investors.

Capital Calls: JEDI’s demise, Toyota’s weird world

6 Jul 2021

Concise views on global finance: The cancelation of a $10 bln U.S. government cloud contract shows negotiating big projects is sometimes a matter of guesswork. Meanwhile, the auto firm that pioneered just-in-time manufacturing is cashing in on a chip stockpile and red-hot market.

Sydney airport bid needs high-flying guesstimates

5 Jul 2021

Shares took off after infrastructure funds offered $17 bln for Australia’s top aviation hub just after the hermit country halved its arrivals quota. The 42% premium is still below pre-pandemic prices. Even if travel resumes, the opportunistic bid rests on blue-sky thinking.

Atlantia’s M&A treasure chest has use-by date

30 Jun 2021

The infrastructure group is due a $10 bln cash windfall from the forced sale of its Italian motorway unit. Airports or toll roads are in high demand, while mobile payments bets are risky. Without a clear target, CEO Carlo Bertazzo should return more cash to investors or cut debt.

Drahi’s mystery pounce gives BT plenty to ponder

28 Jun 2021

The Franco-Israeli tycoon may have used derivatives to collar 12% of the British telco. Such deals typically cap an investor’s economic exposure. Buying the underlying shares would align his interests with those of other holders and let him benefit from a BT broadband shakeup.

Getlink’s Brexit blues may have happier M&A ending

25 Jun 2021

The $9 bln Channel Tunnel operator has been hit by travel curbs and reduced UK-France trade. Shares a fifth below pre-Covid peaks don’t reflect recovering traffic flows or duty-free sales. A decades-long concession increases the appeal to yield-hungry infrastructure funds.