Blackstone eyes Gates Corp
Investment fund Blackstone said on Friday it will buy US auto parts maker Gates Corp for US$5.4 billion from its Canadian owners. The deal is the second-largest private equity takeover so far this year, after Cerberus Capital’s US$9.1 billion agreement to merge its Albertson’s supermarket chain with rival Safeway. Blackstone said it had clinched the cash deal to buy all of Pinafore Holdings, the parent company of Gates owned by Canadian private-equity company Onex and the Canada Pension Plan Investment Board.
Cebu airport upgrades set
A consortium that includes India’s GMR Group has won a 17.52 billion peso (US$389.33 million) contract to upgrade the passenger terminal of the Philippines’ second airport, the government said yesterday. The GMR-Megawide consortium won a 25-year concession to the Mactan-Cebu International Airport that serves the central city of Cebu, the country’s second-largest after Manila, the transportation and communication department said. Over the next three to four years, GMR and its local partner are to renovate Mactan’s passenger terminal, build one for international flights, and operate the facility with an expected annual turnover of 8 million passengers.
Mexican carrier bankrupt
A Mexican judge has declared Mexicana de Aviacion, one of Latin America’s oldest airlines, bankrupt, and ordered the sale of its assets, a court said on Friday. The company, founded in 1921, suspended operations in August 2010 and was under bankruptcy protection, allowing it to negotiate with creditors and make restructuring plans. A district judge declared the company “in a state of bankruptcy” and ordered the sale of “rights and assets” to pay back lenders, the Federal Judicial Council said in a statement. Two subsidiaries, Click and Link, were also declared bankrupt.
Heineken sets investment
The Dutch brewer Heineken announced on Friday that it is investing US$100 million in its Haiti production plant that makes the popular lager Prestige. Heineken purchased the Haitian brewery in 2011, and owns 95 percent of Prestige’s brewer. The remaining 5 percent is held by Diageo Ireland, which makes Guinness stout. About one-fifth of the investment has funded the construction of a second 2,257m2 production line that opened in December last year in the same Port-au-Prince facility. The addition will allow the brewery to double output to 40,000 more cases every day.
Goldman boss nets raise
Goldman Sachs chairman and CEO Lloyd Blankfein’s total compensation rose by almost 50 percent to US$19.9 million last year, boosted by the value of his stock awards. The value of Blankfein’s stock awards more than doubled from US$5.3 million to US$11.3 million. Goldman’s stock rose 39 percent in 2013 as the bank’s profits climbed. The executive’s cash bonus also increased, climbing 11 percent to US$6.3 million. Blankfein has been chairman and CEO since 2006. The bank’s earnings rose about 9 percent last year as its investment banking revenues improved.