DEAL OF THE DAY
Alaska buys TransCanada's stake in LNG megaproject
Alaska has bought Calgary-based TransCanada Corp.'s stake in an LNG megaproject for $64.6-million (U.S.) – another twist in a four-decade quest to build a natural gas conduit from the state's remote North Slope.
Developed by Exxon Mobil Corp., ConocoPhillips Co. and BP PLC, the Alaska LNG proposal includes a 1,300-kilometre pipeline to a terminal at Nikiski, southwest of Anchorage, where the gas would be liquefied for export to Asia as early as 2024. The project's final price tag could reach $65-billion. Story
MERGERS AND ACQUISITIONS
Centric Health sells $245-million in assets to U.S. private equity firm
Specialty Canadian pharmaceutical company, Centric Health, is selling its physiotherapy, rehabilitation and assessments businesses to Audax Private Equity for $245-million in cash and possibly an additional $5-million if certain performance metrics are met.
Centric intends to use the proceeds to pay down debt.
National Bank Financial Inc. and Canaccord Genuity Group Inc. were the financial advisers on the deal.
The move by Centric to sell the assets was motivated by a strategic review that was announced in the summer. Toronto-based Centric has grown its revenue modestly over the past three years, but has struggled with profitability, posting losses in seven of the past eight quarters. The company is heavily indebted and has been having difficulty rolling over existing debt.
Audax Private Equity is part of Audux Group, a U.S. alternative asset management company with more than $6-billion (U.S.) under management. Press release
COS takeover battle heats up as four 'highly credible' parties emerge
Canadian Oil Sands Ltd. (COS) shares spiked after it said more than 25 "parties" had expressed interest in the company in the wake of Suncor Energy Inc.'s $4.5-billion takeover offer.
But the target company stopped short of saying any parties are about to make a rival bid, according to an affidavit filed with securities regulators by RBC Dominion Securities deputy chairman Jamie Anderson. RBC is representing Canadian Oil Sands as it seeks to fend off Suncor's hostile offer.
Four "highly credible" parties have executed confidentiality agreements as of Nov. 19 and are currently reviewing COS, according to the affidavit, which was filed with the Alberta Securities Commission. Story
BAY STREET MOVES
Former Sotheby's executive lands at U.S. real estate startup
Ross McCredie, founder and ex-chief executive officer of Sotheby's International Realty Canada, has resurfaced in a new role for a U.S. real estate startup.
Mr. McCredie departed suddenly from Sotheby's in July after an 11-year run. At the time, no reason was given for his departure.
This week, he started as a consultant with Compass, a privately held, New York-based real estate company that employs agents and operates a listings database in a number of U.S. cities. Compass recently raised $50-million (U.S.) in venture capital funding and has been valued at $800-million. Compass was started in 2012 by engineer Ori Allon and former banker Robert Reffkin. Story
IN CASE YOU MISSED IT
Caisse invests in Australia's TransGrid
The Caisse de dépôt et placement du Québec is plowing ahead with plans to build up its infrastructure portfolio, grabbing on to Australia's "poles and wires."
The Caisse said Tuesday evening that it would invest $1.15-billion as part of a consortium buying a 99-year lease of an electricity distribution business in the Australian state of New South Wales. The deal, worth $9.9-billion total, would turn operations of the 13,000 kilometres of high-voltage power lines, known as TransGrid, over to the consortium. Story
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