CORPORATE DEALS | CORPORATE INSOLVENCY

I'm Kubi Michael Udofia, a PhD-er and an incorrigible Corporate Deal Junkie! This is my "Diary" of Corporate Deals and Bankruptcy/Insolvency Law :)

The $50bn (£29.44bn) which an international arbitration court at The Hague yesterday (July 28) ordered Russia to pay to a group of shareholders for expropriating the assets of former oil giant Yukos,
1. Equates to more than half the entire fund the Russian state has set aside to cover budget holes.
2. Raises the external debt of the Russian state, banks and companies to $770bn. 
3. Raises foreign currency debt of the Russian state, banks and companies to $610bn.

Reckitt Benckiser plans demerger for pharmaceuticals unit | Telegraph [read more]

Reckitt Benckiser, the maker of Cillit Bang, Dettol, Gaviscon and Nurofen, has announced that it will spin-off its one-drug pharmaceutical business into a separate UK stock listing.

Reckitt’s shares have been partly weighed down by the uncertainty around its drug division, which is made up of just one marketed drug, a heroin addiction treatment called suboxone that is dispensed in a dissolvable film […]

BREAKING: BlackBerry to buy anti-eavesdropping firm.

Apple stock is an iPhenomenon - CNNMoney

(Source: jumbiz)

"Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation."
Excerpt from a statement by oil major BP. The British oil firm which has a 20% stake in Russian energy giant Rosneft claims that the sanctions imposed on Russia by the West over the crises in Ukraine has not adversely affected its business so far.
The company’s second quarter replacement cost profits, which strip out volatility in oil prices, were $3.2bn (£1.9bn), up from $2.4bn in the same period in 2013.
European ministers are due to meet today in Brussels to discuss bolstered measures against Russia. BP claims these sanctions  ”could adversely impact” its business in future.

"Any future erosion of our relationship with Rosneft, or the impact of further economic sanctions, could adversely impact our business and strategic objectives in Russia, the level of our income, production and reserves, our investment in Rosneft and our reputation."

Excerpt from a statement by oil major BP. The British oil firm which has a 20% stake in Russian energy giant Rosneft claims that the sanctions imposed on Russia by the West over the crises in Ukraine has not adversely affected its business so far.

The company’s second quarter replacement cost profits, which strip out volatility in oil prices, were $3.2bn (£1.9bn), up from $2.4bn in the same period in 2013.

European ministers are due to meet today in Brussels to discuss bolstered measures against Russia. BP claims these sanctions  ”could adversely impact” its business in future.

Kroger Co, the biggest U.S. supermarket operator, said it would buy online grocery and nutrition products retailer Vitacost.com Inc for about $280m to strengthen its online retailing business. 
The $8 per share offer represents a 27.3% premium to Vitacost shares’ July 4  closing of $6.28 on the Nasdaq. Shares of Vitacost rose 40% to $8.80 in pre-market trading, indicating shareholders were expecting a higher offer.
Israel’s Orbotech is to buy UK-based SPTS Technologies Group, a manufacturer of equipment for the microelectronics industry, from European private equity firm Bridgepoint and others for $370m in cash.Orbotech makes automated optical inspection systems for producers of electronic components such as printed circuit boards and flat panel displays. The deal will expand its presence in Europe and North America and provide SPTS with a greater reach in the Pacific region, especially China.The acquisition will be financed through a combination of cash and about $300m in debt. It will accelerate Orbotech’s growth and diversification strategy, giving it the ability to offer solutions for a broad range of demanding micro manufacturing applications.
Australian gaming machine maker Aristocrat Leisure Ltd has agreed to buy privately owned U.S. peer Video Gaming Technologies (VGT) for $1.28bn. The deal will help Aristocrat grow in the US.Aristocrat plans to fund the acquisition and also refinance existing debt through two new debt facilities worth $1.3bn and A$100m ($93.44m) respectively, as well as an underwritten institutional share placement of A$375m.

Russia plans $50bn Yukos appeal | BBC [read more]

Russia will appeal against a int’l court ruling that it should pay $50bn (£29.5bn) in damages, the biggest compensation package ever.

Russia was told to pay the money to former shareholders in the now defunct oil producer Yukos.

The Hague court said Russian officials had manipulated the legal system to bankrupt Yukos, and jail its boss […]

Court orders Russia to pay $50bn for seizing Yukos assets | Reuters [read more]

An international arbitration court ruled on Monday that Russia must pay $50 billion (£29.44 billion) for expropriating the assets of Yukos, the former oil giant whose ex-owner Mikhail Khodorkovsky fell foul of the Kremlin.

Finding that Russian authorities had subjected Yukos to politically-motivated attacks, the panel made an award to a group of former Yukos shareholders that equates to more than half the entire fund Moscow has set aside to cover budget holes […]

Don’t Know If BlackBerry Can Be Iconic Again: CEO - Bloomberg TV

(Source: jumbiz)

Billionaires win big in dollar store deal - CNNMoney

(Source: jumbiz)

Data from law firm Linklaters shows that activist investors/shareholders have launched 272 global actions in the first half of 2014. This is in contrast with  520 interventions in the whole of 2013.
About 60% of the activist campaigns this year have been successful, with a further 6% of interventions disclosed as “partially successful.”
The most common tactic of activists is to seek board representation — this accounted for 41% of all actions in the first half of this year, compared with just 29% in 2013. 
About 81% of activist interventions in companies between January and June 2014 were in North America — and a majority of these were in the United States.
 “In April 2014, the government began to release “rebased” data that showed a gross domestic product of $510 billion in 2013, compared with $354 billion for South Africa. 
The rebased data also revealed an economy that was far more diverse than previously understood and that, with the right reforms and investments, could become one of the world’s leading economies by 2030. The GDP could hit $1.6tn by then.”
A report by McKinsey Global Institute titled “Nigeria’s Renewal: Delivering Inclusive Growth” noting that Nigeria could be a top-20 economy by 2030 — if the right reforms and investments in trade; agriculture; Infrastructure development; manufacturing and oil and gas.

 “In April 2014, the government began to release “rebased” data that showed a gross domestic product of $510 billion in 2013, compared with $354 billion for South Africa.

The rebased data also revealed an economy that was far more diverse than previously understood and that, with the right reforms and investments, could become one of the world’s leading economies by 2030. The GDP could hit $1.6tn by then.”

A report by McKinsey Global Institute titled “Nigeria’s Renewal: Delivering Inclusive Growth” noting that Nigeria could be a top-20 economy by 2030 — if the right reforms and investments in trade; agriculture; Infrastructure development; manufacturing and oil and gas.