is a partial buyout deal with private equity giant Carlyle and Cepsa
which is an oil and gas company in Spain. Carlyle has agreed to buy
30% stake in Cepsa from a sovereign wealth fund from Abu Dhabi which
is a $3.6 bn deal according to sources who have information about
this transaction. Earlier the Mubadala fund which was looking for a
listing in the stock market had failed in its attempt due to the
wrong valuation. Now with the sale, the total value of the enterprise
is the same as it had earlier attempted and is at $12 bn. The owner
of Cepsa is Abu Dhabi wealth fund Mubadala Investment company.
happy with the result
source from the company said it was happy with the partial buyout and
added, “This is the greatest outcome for Cepsa because public
markets only seem to pay attention to the short term movement in oil
prices and don’t appreciate a company like this.” The oil and gas
company produces 175,000 barrels of oil a day worldwide and has
stakes in two of the fields in Abu Dhabi. It has also many
power-generating assets, operates chemical plants and refineries in
Spain and other parts of the world.
deal to buy 30% of the stakes of Cepsa comes with an agreement that
says Carlyle having the right to buy up to 40% of Cepsa. Last year,
Cepsa had rejected the bid by the US equity giant as it thought the
stock listing would be a better option than selling its stakes. But,
after the listing on the exchange was pulled out due to lack of
interest in the company and also coupled with a bad global market
Mubadala owners who has been the head of the company for three
decades have agreed to sell its stakes. If the deal is approved by
the regulatory bodies it will close by the end of the year.
investment in Cepsa is part of its diversification program outside
its North American shores. The equity group is raising $4 bn for
assets in oil and gas and has to invest $2.4 bn on this deal. As per
the deal agreement, at least two board seats will be allocated to
Carlyle, but Musabbeh Al Kaabi who is a senior executive at Mubadala
will continue to be the chairman of the company.
oil has seen a recovery this year and has reached $70 for a barrel
which had reached $30 in 2016 and Cepsa is making the most of it.
Paul AlbinCepsa To Sell 30% Of Its Stake To Private Equity Firm Carlyle
messaging service Snap Inc beat analysts’ estimates of plunging
user numbers in the last quarter, and the good news has sent the
stock price soaring by around 20%. In the days leading up to the
announcement, there had been worries that the company would continue
to bleed users, but the company announced that the current levels are
going to be maintained. Analysts had estimated that more Snap users
were going to flock to its rival, the Facebook-owned Instagram, but
that has not come to pass.
Chief Financial Officer of Snap Inc said, “We do not foresee a
sequential decline in daily active users in Q1 2019.” In the fourth
quarter, the company recorded a total of 186 million active users
daily. It beat analysts’ estimates of 184.91 million daily active
users. However, at the same time, it should be pointed out that the
number is down 1 million from the same quarter a year ago.
photo messaging app grew in popularity back in the first half of the
decade and its unique feature that removes photographs in seconds
made it particularly useful for users who are concerned about their
privacy. On top of that, the app’s filters that can turn people
into a range of objects or even animals made it incredibly appealing
to younger users. However, much of its unique features were later
incorporated by Facebook’s Instagram, and it ate into Snap’s user
rise has been one of the biggest reasons why Snap has not been able
to perform that well since its initial public offering back in 2017.
Although its shares soared 22% and touched $8.62, it is hard to
overlook that its IPO price was $17 back in 2017. However, Snap did
not have to face the ignominy of a third straight stock price decline
after a quarterly result ever since its controversial redesign. An
analyst at Forrester, Jessica Liu, said, “Snap’s biggest issue
continues to be that it lacks appeal beyond its core user base and
has no visible direction on how to expand or pivot its app beyond
that under-35 demographic.”
app’s next big frontier is to corner at least a portion of the
Android market and to that end; Snap has given access to the Android
app to a small pool of users as of now. The Android app is vital for
any company which wants to gain a toehold in the developing
economies. In those geographies, Android phones are far more popular
than Apple’s iPhone. Snap’s Chief Executive Officer Evan Spiegel
echoed those thoughts regarding the Android app as well. He said,
“There are roughly 2 billion people (internationally) who are on
Android and do not have Snapchat. If we can take even a small
percentage of that, it would make a big difference.”
Paul AlbinSnap Shares Soar as User Numbers Beat Estimates
US President Donald Trump speech at the State of the Union failed to
give any fresh trading catalysts to the market due to which the Asian
shares ended on a subdued note, and the Australian dollar saw a slump
after Central Bank’s possibility of a rate cut.
the markets around China and several markets closed for Lunar New
Year Holiday, the MSCI’s broadest index of Asia-Pacific shares did
not move much outside Japan. While Nikkei gained by 0.3%. In the
other markets, Dow ended with a rise of 0.68%, Nasdaq increased by
0.74 % and S&P 500 gained by 0.47%. The treasury bonds also
increased due to the US data showing US service sector index of 56.7.
The US dollar held firm and ended at 96.104 above last week’s 95.162.
However, it fell short by 0.1% compared to yen.
was said in Trump’s State of the Union Speech?
in his Tuesday speech vowed to build the border wall in the Mexican
border and said that the Democratic attempts at ‘ridiculous
partisan investigations’ could potentially dent US prosperity.
Moreover, there was no mention of any real progress made between
China and the US in the trade negotiations which did not help the
investors in any way. COO at Rakuten Securities, Sydney said that
‘The market had much more hopes that he would come up with
something concrete. We didn’t get it’.
is another round of negotiations and trade talk that is likely to
start in Beijing next week to look for a deal on averting the
increase in taxes on Chinese products by the United States and also
look for a deal on the American IP row. The talks are to be held
before the Mar’ 2 deadlines. There is also reports that the talks
will be headed by Steve Mnuchin who is the Treasury Secretary and by
Robert Lightizer who is the US Trade Representative.
Aus Dollar slumped?
Australian shares rose by 0.5%, but the Australian dollar fell by 1%
to reach its one-week low of $0.7153 after Reserve Bank Of Australia
said that there might be rate cuts if unemployment increases and
inflation is low though the bank is optimistic about the economic
growth. The RBA governor in his speech said that ‘Over the past
year, the next-move-is-up scenarios were more likely than the
next-move-is-down scenarios. Today, the possibilities appear to be
more evenly balanced’.
Paul AlbinTrump Speech: Asian Shares Subdued, Aussie Dollar Falls
Cotten aged 30 who is the founder of a Canadian digital platform that
trades cryptocurrencies died prematurely in December and about
$137.21 million in digital currency is now frozen in user’s
accounts as he was the only person who had the password to gain
access. According to the Facebook page of the company, Quadriga CX,
Cotten died due to issues which resulted from Chron’s disease. The
company’s Facebook page that announced the death of its founder on
Jan 14 said that he died while he was volunteering in an orphanage in
which trades in Litecoin, Bitcoin, and Ethereum has about 363,000
users registered on the platform and of which 115, 000 users are
affected as their accounts are frozen which is worth Canadian $250
million. An affidavit was filed for creditor protection last week in
the Nova Scotia Supreme Court. In the affidavit filed on behalf of
the company by Cotten’s wife Jennifer Robertson, she said that the
main computer on which he worked on has a ‘cold wallet’ of
cryptocurrencies and that it is only accessible physically and not
online. That essentially means that after the founder’s death, more
than C$180 million coins are in cold storage. She said that she is
not aware of the password or the recovery key and that she had no
involvement in her husband’s business. Even after searching
repeatedly and thoroughly she could not find the password written
down anywhere. Robertson in the same affidavit has claimed that she
has contacted experts and has had ‘limited success in recovering a
few coins and some information from the computer and cell phones.
reason behind the company being in the crisis is in the light now, is
because of the way the cryptocurrency funds are stored. For quicker
access and for making payments or withdrawals the currency is stored
in hot wallets and to protect it from hackers, and stealers funds are
kept in cold wallets. Cold wallets contain more money and are used
only when there is a shortage of funds in the hot wallets. In this
particular case, the CEO of Quadriga has stored all the currencies in
cold wallets, and he is the only person who has the password for
these transactions. The laptop that was used for moving finds from
hot wallet to cold wallet by Cotten is locked and encrypted, and that
leaves the exchange paralyzed after his death.
Paul AlbinQuadriga Founder Dies And Millions Of Dollars Frozen
per a leading official newspaper, the Food and Drug Administration of
Chongqing Yuzhong District is looking forward to making use of
technology for its day to day operations.
the idea is to apply the blockchain technology for a robust
supervising process which would in a way strengthen food and drug
quality assurance with better control on the product life cycle and
steps for anti-counterfeiting measures.
Ke, who is the CEO of Prime Number Chain Technology Chengdu Co
confirmed that the company is in the process of developing blockchain
which will be used by the government. This would not only help
improve the government’s various regulatory steps and measures but
will also improve the efficiency of the supervision to a great
extent. The blockchain traceability system will provide a centralized
management system for managing traceability information. This would
make it easy for enterprises seeking permit queries and information
one of the latest developments, China’s Cyberspace Administration
has designed new regulations for blockchain firms that are operating
in the country.
it was in the news that China’s self-regulatory
financial institutions and
the China Banking Association is looking forward to launching a
blockchain-based platform for greater efficiency across sectors. It
is called “China Trade Finance Inter-bank Trading Blockchain
Platform” which aims at using blockchain to make transactions,
trade finance and other financial services very efficient.
Paul AlbinChinese Government to use Blockchain for Food and Drug Administration
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