Brookfield, Temasek said to team up for Thyssenkrupp elevator bid

FILE PHOTO - A Temasek logo is seen at the annual Temasek Review in Singapore July 7, 2016. REUTERS/Edgar Su

Canada’s Brookfield Asset Management has teamed up with Singapore state investor Temasek Holdings in the auction for Thyssenkrupp’s prized 15 billion euro ($16.6 billion) elevator division, two people familiar with the matter said on Friday.

The tie-up creates another powerful private equity consortium for the asset, which Thyssenkrupp plans to sell or list, ahead of a Jan. 13 deadline for binding bids.

Brookfield and Temasek both declined to comment.

Thyssenkrupp, under pressure after numerous profit warnings, needs to rake in cash by selling all or part of its elevator business, the world’s fourth-largest industry player and by far the group‘s most profitable asset.

Rival bidders for the unit include a consortium consisting of Blackstone, Carlyle and the Canadian Pension Plan Investment Board, sources previously said. Advent, Cinven and the Abu Dhabi Investment Authority have also teamed up for an offer.

Apart from Finland’s Kone, which could bid together with private equity firm CVC, Japan’s Hitachi is also in the race, the people, who did not wish to be identified, said.

Thyssenkrupp’s supervisory board will meet on Jan. 15 to discuss the auction’s progress and is expected to narrow the field of bidders, with only 2-3 to be short-listed for a final round of talks, the sources said.

The group has launched a dual-track process for the division, which could result in a sale or a listing, but chances for the latter are seen dwindling as proceeds from a partial flotation might not be sufficient.

Thyssenkrupp declined to comment.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.