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File photo of the Toronto Skyline. Tricon Investment Partners Inc., a subsidiary of Toronto-based real estate management firm Tricon Capital Group Inc., has pulled its planned $140-million initial public offering (IPO) on the Toronto Stock Exchange.File Photo

BUSTED DEAL OF THE DAY

Tricon pulls $140-million IPO because of 'adverse market conditions'

Tricon Investment Partners Inc., a subsidiary of Toronto-based real estate management firm Tricon Capital Group Inc., has pulled its planned $140-million initial public offering (IPO) on the Toronto Stock Exchange.

The company blamed the reversal of course on "current adverse market conditions."

Tricon Investment had planned to invest in residential real estate in the United States and Canada, with a focus on the U.S. sun belt (Texas, Florida and California). Tricon was also looking at providing real estate financing.

The yanking of the Tricon offering is a rarity in what has been a hot Canadian IPO market in 2015. The company filed for its IPO shortly after investors came through a whiplash-inducing August, that saw stock markets around the world push into panic-selling territory on multiple occasions.

Tricon's two-week road show, which kicked off the week of Sept. 14, actually started well. By the end of the first week, the company had $70-million in the bag – halfway there. The second week, the company ran into a brick wall.

"Probably as bad as week as we had in five years," Gary Berman, chief executive officer of Tricon, said in an interview.

"There was Valeant, Concordia Healthcare, the Volkswagen news. Major companies that were basically imploding. And Glencore."

He said that the "generalists" who were thinking of buying into Tricon could not concentrate on Tricon's offering, and the company was unable to raise the additional $70-million. He admitted being "disappointed" that the IPO was canned, but shrugged: "It wasn't meant to be." Press release

MERGERS AND ACQUISITIONS

Synaptics said to shun $4-billion bid

Synaptics Inc., the maker of touch-screen technology used in phones, tablets and computers, rejected an offer from a state-backed Chinese investment group that valued the company at almost $4-billion (U.S.), people with knowledge of the matter said. Full story

China's Tsinghua to take stake in Western Digital

China's state-backed Tsinghua Holdings Co. Ltd. plans to buy a 15-per-cent stake in U.S. data storage company Western Digital Corp., a deal that could draw regulatory scrutiny amid increased national security concerns.

Tsinghua-owned Unisplendour Corp. Ltd. will invest $3.78-billion in Western Digital to boost its technology portfolio and get the right to nominate one representative to the U.S. company's board, the companies said on Wednesday. Full story

FINANCINGS

CPPIB launches energy infrastructure investment effort

Canada Pension Plan Investment Board is creating an investment group focused on mid-stream energy infrastructure in a partnership with a crew of experienced operators.The country's largest pension fund said Wednesday that it would form a vehicle to invest more than $1-billion in the sector in the Western Canadian Sedimentary Basin. Full story http://www.theglobeandmail.com/report-on-business/streetwise/cppib-launches-energy-infrastructure-investment-effort/article26597164/

SoftBank makes investment in SoFi Investment

Online lender Social Finance Inc. confirmed Wednesday that Masayoshi Son's SoftBank Group Corp. has led a new $1-billion investment round in the fintech company.

The new funds will allow SoFi, as the company is commonly known, to charge lower rates on the student, personal and home loans it offers to borrowers and will help accelerate plans to expand into areas like wealth management and deposits, chief executive officer Mike Cagney said in an interview. Full story http://blogs.wsj.com/moneybeat/2015/09/30/softbank-makes-1-billion-fintech-bet-with-sofi-investment/

BAY STREET MOVES

Accounting firm MNP to announce new CEO

Accounting firm MNP LLP is set to announce a new chief executive officer, Jason Tuffs, who says he plans to continue to expand what he says is a firm with an entrepreneurial culture that suits its mostly small and medium-sized business clients.

The firm is set to officially announce Mr. Tuffs, 40, as its new CEO in October. He takes over from Daryl Ritchie, who has overseen much of MNP's growth from a Western-based regional firm into a national presence over the past decade and who stays on as chairman of the board.

Mr. Tuffs says he has his eye on beefing up MNP's presence in Victoria, acquiring a foothold in London, Ont., and then looking toward expansion in Atlantic Canada and Quebec. Full story INSIGHT

Bay Street's smaller dealers are not suffering so badly

These are tough times for independent investment dealers because commodity prices have plummeted, but they should find some solace in knowing it has been worse.

As painful as this market can be for boutique investment banks, with most underwriting and advisory work flowing to the large bank-owned dealers, their situation is not nearly as dire as it was three years ago. Full story Got any Bay Street buzz? If you have any story suggestions for the Daily Deal Roundup, e-mail us at deals@globeandmail.com or nmcgee@globeandmail.com Follow Niall McGee on Twitter: @niallcmcgee

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:00pm EDT.

SymbolName% changeLast
SYNA-Q
Synaptics Inc
-1.27%97.56
TCN-T
Tricon Capital Group Inc
-0.26%15.1
WDC-Q
Western Digital Cp
+0.89%68.24

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