Goldman Sachs' M&A Advising - Australia

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Goldman Sachs' M&A Activities - Australia

Goldman Sachs advised on 5 M&A deals in Australia and are now advising on 2 not-yet-finalized deals. The concluded deals are Unibail-Rodamco's acquisition of Westfield Corporation; Zurich Insurance Group's acquisition of the life insurance businesses of Australia & New Zealand Banking Group Ltd.; Warburg Pincus-backed ESR buying back the remaining shares of Propertylink; China Reinsurance (Group) Corp. buying all the equity of Chaucer Holdings Ltd.; and BHG Capital buying Navitas.

Deals that Goldman Sachs advised on in Australia since 2018

Unibail-Rodamco x Westfield Corporation

Brief description:

  • Unibail-Rodamco and Westfield Corporation were considered as two of the largest players in the real estate industry. By buying Westfield, Unibail-Rodamco wanted to consolidate and strengthen its market presence.
  • Combined, Unibail-Rodamco-Westfield has 102 shopping centers in 13 countries while Westfield had 35 shopping centers in the US and the UK.
  • The deal makes Unibail a global property leader, with a $72.2 billion market value and strategic presence in 27 countries.
  • Under the conditions of the deal, Westfield security holders were given a combination of cash and shares in Unibail-Rodamco, valuing each Westfield security at $7.55.
  • Goldman Sachs advised Unibail-Rodamco in this deal.

Zurich Insurance Group x Australia & New Zealand Banking Group Ltd.

  • The date of the transaction: June 3, 2019
    • Names of all companies: Zurich Insurance Group, Australia and New Zealand Banking Group Ltd.
    • Positions/roles of the companies involved in the M&A: Zurich Insurance Group acquired the life insurance businesses of Australia & New Zealand Banking Group Ltd., which came under the brand name, One Path Life.
    • The deal amount : $2 billion

    Brief description:

  • Through this deal, Zurich Insurance Group became a major life insurance company in the Australian retail life insurance sector.
    • Through this deal, Zurich Insurance Group widened its distribution footprint and got access to about 6 million new customers in Australia.
    • The deal also includes a condition that binds Zurich to use the distribution channels of Australia and New Zealand Banking Group Ltd. for 20 years to distribute life insurance products.
    • Goldman Sachs advised Zurich Insurance Group in this deal.
    • The full details of this deal is available behind a paywall at Zephyr in their M&A portal.

    ESR x Property Link

  • The date of the transaction: November 14, 2018
  • Brief description:

    • The deal provides Propertylink security-holders an opportunity to increase the value of their securities.
    • The agreed offer price is 4.3% higher than the initial offer price put forth by ESR.
    • ESR made this deal to get access to high-quality industrial assets in the context of the rising e-commerce sector and demand for warehouse facilities.
    • Goldman Sachs advised Property Link in this deal.
    • The full details of this deal is available behind a paywall at Zephyr in their M&A portal.

    China Re x Hanover Insurance

  • The date of the transaction: December 28, 2018
    • Names of all companies: China Reinsurance (Group) Corp., Chaucer Insurance Co. DAC (Chaucer Dublin), Hanover Australia Hold Co. Pty Ltd (SLE)
    • Positions/roles of the companies involved in the M&A: China Reinsurance (Group) Corp. bought all the shares of Chaucer Holdings Ltd. which is the major portion of Hanover Insurance Group’s Lloyd’s international specialty business.
    • The deal amount : $930 million to $940 million.

    Brief description:

  • The deal expands China Re's global footprint as Chaucer is a "top quartile player in the Lloyd’s market".
    • China Re intents to move Syndicate 2088 into the managing agency of Chaucer but this will be subject to regulatory approval.
    • The acquisition will help China Re to synergize its existing business platforms, products and technical expertise with those of Chauser.
    • Goldman Sachs advised Hanover Insurance in this deal.
    • The full details of this deal is available behind a paywall at Zephyr in their M&A portal.

    BGH Capital x Navitas Limited

  • The date of the transaction: March 25, 2019.
  • Brief description:

  • The deal will enable BGH Capital to have more offshore educational business opportunities.
    • The deal puts a Scheme Implementation Deed (“SID”) between Navitas and BGH BidCo A Pty Ltd, a new business entity owned by a consortium of BGH Fund, AustralianSuper, entities associated with Mr. Rodney Jones, and certain limited partners of the BGH Fund.
    • Goldman Sachs advised Navitas in this deal.
    • The full details of this deal is available behind a paywall at Zephyr in their M&A portal.

    Additional Information

    L Catterton Asia puts R.M. William brand for sale

    Pro Medicus announced an on-market share buy-back

    • Pro Medicus has announced that it will buy back up to $10.36 million of outstanding shares for capital management purposes.
    • Goldman Sachs Australia is the broker on behalf of Pro Medicus.
    • The buy-back commenced on April 1, 2019, and will close on March 31, 2020.


    Sources
    Sources

    Quotes
    • "The acquisition reinforces Zurich’s strategy of focusing on protection and less capital-intensive savings products, said Zurich. Further, Zurich added, the acquisition is in line with the group’s M&A strategy, focused on building leading positions in attractive markets while releasing capital from non-core operations. As part of the transaction, Zurich’s existing independent financial adviser (IFA) and bank distribution channels in Australia will be broadened by a 20-year agreement with ANZ to distribute life insurance products through bank channels. This cooperation agreement strengthens Zurich’s business by giving it access to ANZ’s customer base served through more than 630 branches, and additional capabilities in independent distribution channels"
    Quotes
    • "R.M. Williams, the quintessentially Australian brand, is believed to be up for sale with a price tag between A$400 million and A$500 million (€247m to €309m). It’s controlled by private equity firm L Catterton Asia, which has appointed Goldman Sachs to seek out interested buyers and run the auction."
    • "L Catterton has been a major shareholder since 2013 when it bought a 49.9% stake from former News Corp Australia executive Ken Cowley. It took control a year later. The company hasn’t confirmed that it’s seeking to exit the investment although Fairfax Media, which first reported the story, is confident that the sale will happen."