SoftBank Group to sell Brightstar in latest asset sale

TOKYO (Reuters) – SoftBank Group Corp 9984.T said on Friday it would sell U.S. cellphone distributor Brightstar for an undisclosed price, as the Japanese conglomerate divests major assets to raise cash.

The company said in a statement it would sell Brightstar Global Group to a newly formed subsidiary of Brightstar Capital Partners for consideration consisting of cash as well as a 25% stake in the newly formed subsidiary.

The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close by March 31, 2021, SoftBank Group said.

Sensex rises nearly 200 points in early trade, Nifty tops 11,550

Sun Pharma was the top gainer in the Sensex pack, rising around 3%.

Domestic equity benchmark Sensex jumped nearly 200 points in early trade on September 18 tracking gains in index majors TCS, Reliance Industries and Sun Pharma amid positive cues from Asian peers.

The 30-share BSE index was trading 186.37 points or 0.48% higher at 39,166.22; while the NSE Nifty rose 62.70 points or 0.54% to 11,578.80.

Sun Pharma was the top gainer in the Sensex pack, rising around 3%, followed by Tech Mahindra, Tata Steel, TCS, Titan, PowerGrid, NTPC, Reliance Industries and Asian Paints.

On the other hand, HUL, Bajaj Auto, Maruti and Nestle India were among the laggards.

In the previous session, Sensex ended 323 points or 0.82% lower at 38,979.85, while Nifty fell 88.45 points or 0.76% to 11,516.10.

Meanwhile, exchange data showed that foreign institutional investors sold equities worth ₹249.82 crore on a net basis on September 17.

According to traders, positive start in Asian equities nudged domestic stocks higher.

Bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading with gains in mid-day deals.

However, stock exchanges on Wall Street ended on a negative note in overnight trade.

Meanwhile, global oil benchmark Brent crude was trading 0.46% higher at $43.50 per barrel.

CaixaBank and Bankia to merge, creating Spain’s largest bank

• The deal terms will see CaixaBank offer 0.6845 of its shares for every Bankia share, according to a release published Friday.
• The newly created lender, which will keep the CaixaBank brand, will have assets of more than 664 billion euros ($786.7 billion), the companies said.

The boards of Spain's CaixaBank and state-owned Bankia have approved a merger plan between the two lenders, which will create the biggest bank in the country.

The deal terms will see CaixaBank offer 0.6845 of its shares for every Bankia share, according to a release published Friday. The newly created lender, which will keep the CaixaBank brand, will have assets of more than 664 billion euros ($786.7 billion), the companies said.

The merger plan still needs to be approved at the General Shareholders' Meetings of both companies.

"With this operation, we will become the leading Spanish bank at a time when it is more necessary than ever to create entities with a significant size, thus contributing to supporting the needs of families and companies, and to reinforcing the strength of the financial system," Bankia Executive Chairman Jose Ignacio Goirigolzarri said in a statement.

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COMPASS Pathways Prices Upsized IPO At $17/Shr, Above Expected Range

COMPASS Pathways plc announced the pricing of upsized initial public offering of 7.5 million American Depositary Shares or ADSs, representing 7.5 million ordinary shares at $17 per ADS for total gross proceeds of $127.5 million.

COMPASS Pathways has filed to sell 6.7 million ADSs in the offering at price expected to be between $14.00 and $16.00 per ADS, and the underwriters have an option for 30 days to purchase up to 1.005 million additional ADSs.

The ADSs are expected to begin trading on Nasdaq on September 18, 2020 under the ticker symbol “CMPS.” The offering is expected to close on or about September 22, 2020.

COMPASS has granted the underwriters a 30-day option to purchase up to an additional 1.125 million ADSs at the initial public offering price, less underwriting discounts and commissions.

Ericsson To Buy U.S. 5G Enterprise Solutions Provider Cradlepoint In $1.1 Bln Deal

Swedish telecom equipment maker Ericsson (ERIC) announced Friday its agreement to acquire US-based Cradlepoint for an enterprise value of $1.1 billion.

Cradlepoint is a provider of Wireless Edge WAN 4G and 5G Enterprise solutions. The acquisition is in line with Ericsson’s ongoing strategy of capturing market share in the rapidly expanding 5G Enterprise space.

The transaction expected to close before the end of the fourth quarter, 2020, subject to closing conditions. The purchase price, which is funded from Ericsson’s cash-in-hand, is paid in full on closing.

The acquisition complements Ericsson’s existing 5G Enterprise portfolio which includes Dedicated Networks and a global IoT platform.

Following the deal closure, Cradlepoint will become a subsidiary of Ericsson while continuing to operate under its existing brand. Cradlepoint’s more than 650 employees will remain within the company, headquartered in Boise, Idaho. It will be part of Ericsson’s Business Area Technologies & New Businesses.

In 2019, Cradlepoint’s sales were 1.2 billion Swedish kronor, with a gross margin of 61%.

Regarding its outlook, Ericsson said its operating margins are expected to be negatively impacted by approximately 1 percent in 2021 and 2022 – where half is related to amortization of intangible assets which arise from the acquisition.

Cradlepoint is expected to contribute to operating cash-flow starting in 2022.

Ericsson’s 2022 group financial targets remain unchanged.