WELLINGTON, New Zealand – KKR & Co. has purchased New Zealand’s premium pet food company, Natural Pet Food Group, and will support its international expansion as affluent pet owners increasingly seek “high-quality, low-carb” food for their diets. animal.
The acquisition, whose financial terms were not disclosed, was funded by KKR Asian Fund IV, the global investment firm said on Monday.
Natural…
Cheree Kinnear explains the key points of purchasing Silver Lake.
New Zealand Rugby Players Association boss Rob Nichol is confident they will find a deal with Rugby New Zealand on the Silver Lake deal soon, but some questions still need to be answered.
The disagreement between the two parties is the only thing preventing the sale of 12.5 percent of future commercial revenue to the US fund manager for $ 387 million after the provincial unions unanimously approved the sale.
Speaking to Martin Devlin of Newstalk ZB, Nichol said there were still some key points between the NZRPA and NZR that were preventing a deal from being agreed.
“There was a lot of narrative in the media this week and that’s great, but what we’re working on is something we’ve been doing for 25 years in rugby,” said Nichol. “This is a professional process of collective negotiation, we involve a mediator because we have found it very useful in the past.
“We will get there. We will get a deal, no doubt about that, and the settlement will be fair and reasonable, it will be appropriate. It will probably be one to consider an arrangement like Silver Lake, but also contemplate if it does not. happens. It will work for us to progress, it will only take a little while. “
Nichol said it “would be very good” if the parties could reach an agreement next week, because after several meetings they were in the process of reporting back to their shareholders.
While player payouts under the new agreement are reportedly one of the issues between the two, Nichol said that’s not the case and the players want the 36 percent they have now, but are more worried about the future of the game after the game. report from BDO suggests a scenario where NZR could become a loss-making venture by 2025 and live off its capital reserves if it takes out a deal with Silver Lake.
“We need each other, we need community, we need to be one, and I think one of the things we are looking for under the Silver Lake deal is we bring other people into the partnership,” said Nichol.
“This is the first time in 150 years we have thought about doing it. In 95-96, we decided against it. We fought against it. We didn’t keep up with the rest of rugby, and how well has it worked us out? This was a big decision, and we will not rush.
“We’re going to be methodical in asking the right questions, and when I look at the financial models associated with it and some of the risks we’re talking about, that’s where rubber really hits the ground.”
Stakeholders in New Zealand Rugby, the island’s Pacific island game governing body, have voted unanimously to sell a 12.5% stake in its commercial rights to US private equity firm Silver Lake.
The vote in favor of the NZ $ 387 million investment came despite opposition from the New Zealand Rugby Players Association, including players on the country’s most famous team, the All Blacks.
Players have expressed concern that the game could become too commercialized if the proposed private equity investment was made: the fear other sports players also came up with a voice in the last few months.
Without player association ratification, the deal could be canceled. In a statement, the NZR said it would continue talks over the coming weeks with the NZR in an effort to find a solution.
According to New Zealand Rugby, the deal will bring important investment to grassroots rugby and technology and help to keep New Zealand players from moving to clubs in Europe and Japan.
Silver Lake’s stock portfolio in clubs and sporting events includes the mixed martial arts Ultimate Fighting Championship and Manchester City football club in the English Premier League.
To contact the author of this story with feedback or news, email Mark Latham
KARACHI: Realizing the presence of several dangerous fighters in his weight category, Pakistan’s premier taekwondo fighter Haroon Khan is confident he can deliver a breakthrough in the Asian Qualifiers for the Tokyo Olympics scheduled for May 20-22 in Amman, Jordan.
“I know that in our -58kg we have some tough fighters including Halwani from Jordan, Mohsin Raeesani from Afghanistan and fighters from Uzbekistan and Kazakhstan. I know their strength and plan to beat them, ”said Quetta’s Haroon of ‘The News’ on Thursday.
“I’m in good shape, I’m currently in Quetta undergoing hard training,” said Haroon, who won gold at the 2019 South Asian Games in Nepal.
But he was quick to add that it was important for him to get over the tangled rings on Jordan’s tour. “I will fight for the first time since appearing at the 13th Asian Games in Nepal in December 2019,” said Haroon. “When you continue to appear at international events consistently, you feel more confident. But the coronavirus has made things difficult, “said Haroon, who trains under the tutelage of coach Pervez Ahmad Raeesani in Quetta.
“It’s my dream to qualify for the Olympics and I will perform well in Amman,” he said.
Haroon shot to fame when he performed excellently at the World Championships in Manchester in 2019. He beat 2016 European gold medalist Mourad Laachraoui of Belgium in round 32. In round 64, Haroon beat Ralph Honeine from Lebanon. However, he lost to Portuguese player Rui Braganca in the pre-quarter-finals.
When asked about his knee injury, Haroon said he is completely fit now. “I have fully recovered now. There is no problem, ”said the warrior.
The president of the Pakistan Taekwondo Federation (PTF) Col Wasim hoped Haroon would do well. “Haroon is an accomplished and well-groomed fighter. He has also trained in Korea and Japan and knows very well how to handle his battles, ”said Wasim. “He is Pakistan’s great hope,” he added.
If you can’t pass right away, Haroon still has a chance based on the location of the IOC Tripartite Commission. There are eight taekwondo venues.
In Amman, Haroon will be accompanied by Taimur Saeed (80kg), UK-based Aneela and Zoya Sabir. Taimur is in Karachi, Zoya is training in Rawalpindi, while Aneela, through the support of the Pakistan Taekwondo Federation (PTF), has had some tough training with British Olympic athletes in Manchester. The top two boxers in each class of the Asian Qualifiers will qualify for the Tokyo Olympics. This event was planned last year but was postponed due to Covid-19.
Classic convertible loans, a popular financing instrument in the venture capital sector, can also be an investment option for private equity investors at a time when attractive equity investments in Germany are very competitive. In particular, in the context of growth investment, which is often akin to venture capital conditions, convertible loans may be a better alternative when further capitalization is sought alongside the main investor (private equity).
From a venture capital perspective, convertible loans are very flexible financing instruments that are often available on short notice and can usually be completed without much effort. Convertible loans can be characterized by a loan component and a conversion component and are usually found in the early stages of the company’s existence, when the parties were still difficult to evaluate their inception.
However, convertible loans are increasingly being used by private equity investors to develop growing investment opportunities. The terms and conditions of the convertible loan must then be adjusted accordingly. This provides different scenarios for investors to consider, such as a leading private equity investor looking for additional investors. In this case, the lead investor will have a concrete idea of their investment that will allow them to let other, more prudent private equity investors make more senior investments for them, allowing for predictable and attractive returns based on a fixed interest rate, plus options. equity investment later. This is even more so if private equity investors replace corporate debt financing, that is often an alternative route to get further funding.
Another example might be a situation where a private equity investor wants to postpone an equity investment decision while also being willing to invest in a more senior instrument with subsequent options for conversion to equity at an attractive conversion rate (via a predetermined internal rate of return).
German banking supervisory regulations, for credit transaction licenses, must be observed for any convertible loan, regardless of whether the loan is provided by venture capitalists or private equity investors. Although convertible bonds do not require such a license, parties often find this alternative too expensive and inflexible.
Such regulatory permit requirements can be avoided if investors have control over the company from a corporate perspective. Such control can be based, for example, on voting agreements or on transfers of share securities. In the latter process, the borrower’s shares would become collateral for the lender and would be sufficient to meet regulatory control requirements, as opposed to a single share pledge, which would only provide collateral but no control.
Security transfer
Of course, such control is not often desired by the parties, but there may be situations where shareholders believe in the growth of their business and are therefore willing to accept the transfer of such guarantees to enable the company’s next step in growth.
With regards to adaptation of convertible loans, private equity investors want to retain as much freedom as possible. In addition, investors will expect to be able to convert at any time, to exclude discontinuation by the company and, even in the event of a major investor’s exit, to be paid or still allowed to convert. Unlike in the case of venture capital, the company’s conversion or valuation is not based on the next round of financing (including potential discount or valuation limits) but on the pre-agreed internal rate of return of the primary investor’s equity investment or, alternatively, the pre-approved internal rate of return of instruments that can be converted in case of conversion.
In addition, private equity investors will request certain veto rights that can be supported by small equity participation, allowing appropriate minority protection rights in shareholder meetings for investors. Finally, especially in the case of foreign private equity investors, a common “gross tax” on financing can be included in the documentation.
Interest in the growth sector in Germany is growing and will continue to grow. Private equity investors are increasingly investing in the growth sector in part because of high competition for mature companies and attractive business models. Convertible instruments are a good vehicle for investing in this area which is characterized by a higher risk of reducing structural exposure.
Foot on the door
Throughout 2021, we expect private equity investors to use the convertible loan situation as an additional option to enter attractive target company doors even if the current situation / valuation does not (yet) allow direct equity investment.
From a corporate perspective, we feel this arrangement could also be a good option for avoiding debt financing by banks at an early stage, which usually provides for a stricter regime in terms of agreements.
Dr. Nikolaus von Jacobs is a partner and Matthias Weingut is a partner focused on private equity as well as mergers and acquisitions at law firm McDermott Will & Emery in Munich.
