June 2023 top M&A deals in emerging markets by region
Emerging Europe
London-listed sports-betting, gaming and interactive entertainment group Entain plc said that its unit Entain CEE was launching a tender offer to buy out Polish peer STS Holding for a consideration of GBP 750mn (EUR 871.4mn). Entain CEE operates as a joint venture with Czech venture capital firm Emma Capital, with an ownership split of 75% and 25% respectively. As part of the deal, STS Holding founders will retain a 10% interest in the company by reinvesting a portion of the sale proceeds into Entain CEE. Prior to this transaction, the Juroszek family held a majority stake of 70%.
Africa and the Middle East
Canadian investment firm Brookfield Asset Management has offered to buy out Emirati payment services provider Network International Holding for GBP 2.2bn (USD 2.74bn). Dubai-based Network International serves more than 150,000 merchants and 200 financial institutions across the Middle East and Africa. In 2022, Brookfield acquired 60% of UAE-based payment processing firm Magnati at a USD 1.15bn valuation. The potential combination, upon successful completion of the tender offer, will create a prominent regional player in the payments sector.
Latin America and the Caribbean
Spanish energy group Iberdrola announced an agreement to sell several power plants in Mexico to the local Government for about USD 6bn on a cash- and debt-free basis. The portfolio includes 12 combined cycle power generation facilities and a wind farm with combined a with an aggregate installed capacity of 8,539 MW. The Spanish firm will keep a total of 13 plants in the country.
Emerging Asia
Passenger and cargo air transportation services provider China Southern Airlines announced plans to raise CNY 17.5bn (USD 2.5bn) through a private placement to finance the expansion of its fleet by 50 aircraft and support its working capital needs. Hong Kong and Shanghai listed China Southern Airlines is a major airline in China, operating domestic, regional, and international services. It is one of China's "Big Three" airlines (alongside Air China and China Eastern Airlines).
EMIS alongside leading global law firm CMS, are pleased to launch the Emerging Europe M&A 2022/23 Report, exploring the trends and data within the region, on both a country and sector basis, in 2022. Download your complimentary copy here.