KKR Submits Offer for $24B Telecom Italia, GIP to Sell Stake in $15B Vena Energy

Private Equity Insights

Chart of the Week: Although dealmakers are still fighting a downward trend in overall exit activity amid higher interest rates, we’ve now seen two consecutive quarters where the average PE exit size has been markedly larger than the lows of 2022. (Read More)

More Insights

• A Key Indicator That Private Equity Exits Will Heat-Up in Early-2024 (Read More)
• Private Equity Case Study: Rackspace Technology (Read More)
• Profile of Blackstone’s Private Equity Operations Team (Read More)

Mega Deal News 

KKR has submitted a binding offer to acquire Italian telecom giant, Telecom Italia SpA. The company is valued at approximately $24 billion, however KKR’s offer excluded a heavily indebted subsea cable business unit that will likely reduce the offer by $1.3 billion. Telecom Italia’s board is expected to vote on the offer immediately, however there is doubt a deal of such size and significance will be passed by government regulators in Italy. (Source)

Global Infrastructure Partners is in the preliminary stages of selling a significant stake in Vena Energy, one of Asia-Pacific's largest renewable energy firms, at a $15 billion valuation. GIP is reportedly entertaining offers for a 51% stake from multiple buyout firms. Vena Energy, notable for its diverse renewable energy projects in the region, has demonstrated financial growth, with an 18% rise in earnings in the first half of the year compared to the previous period. (Source)

KKR is considering exiting European car park operating, Q-Park, at a $4.2 billion valuation. The PE firm has engaged brokers for the deal and is expected to start fielding offers in early-2024. KKR originally acquired the company in 2017. Q-Park currently operates nearly 700,000 parking spaces in over 3,400 commercial parking facilities across seven countries in Europe. (Source)

Searchlight Capital Partners and British Columbia Investment Management Corporation have acquired US telecom company, Consolidated Communications, for $3.1 billion. The take-private deal will allow Consolidated Communications to build out a capital-intensive fiber network without public market scrutiny. (Source)

Blue Wolf Capital has agreed to acquire Canadian logistics company, Logistec, for $1.2 billion. The company operates cargo handling services at 60 ports and 90 terminals in North America. Blue Wolf has committed to investing an additional $200 million in the company, pending the deal's approval. (Source)

Birkenstock’s IPO flopped last week, closing down 12% from its opening price. It took the newly minted public company four days to see a positive day of trading on the stock exchange. Market commentators are saying Birkenstock’s PE owners, L Catterton, mistimed the public offering which was the worst-performing IPO of a $1 billion company since 2021. (Source)

Other Deal News

Elliott Investment Management has accumulated a 14% stake in supply chain software company E2open Parent Holdings Inc. The activist investor is reportedly considering taking the company private after its valuation plunged 50% over the past year. E2open had a valuation of $913 million as of Monday. (Source)

Apollo Global Management has acquired The Restaurant Group (TRG), owner of Wagamama and Frankie & Benny’s, in a $623 million take-private deal. The valuation is a 37% premium to the company’s closing price before the announcement. TRG-operated restaurants have over 400+ locations across the UK. (Source)

Northleaf Capital has acquired a major stake in EV charging station developer, EVPassport, for $200 million. The company has “thousands” of charging stations in 35 US states, as well as in Canada and Mexico. (Source)

Industry News

In the relentless pursuit of returns, private equity sponsors have often ignored the importance of leadership and soft skills in the management teams that run portfolio companies. But now that buyout firms are putting a greater emphasis on operational improvements, they are seeking more well-rounded management teams. (Harvard Business Review) 

Blackstone’s President and COO, Jonathan Gray, says the firm is researching investments in the professional sports teams. While other buyout firms have moved into professional sports, Blackstone has largely avoided the space thus far. That could change soon as Gray says the firm is intrigued by “monopolistic market positions” that sports teams have and the disruption brought by video streaming platforms. (CoStar)

Former Goldman Sachs rainmaker, Byron Trott, raised $13 billion for a new fund at his merchant bank BDT Capital Partners. (Alt Assets)

Angelo Rufino has joined Bain Capital as a senior member of its special-situations group. Previously, Rufino was chief investment officer of Brookfield Special Investments. (Yahoo Finance)

Questions? Email us at news@valueaddpe.com