Tag: Asset

Mirae Asset wins U.S. lawsuit against China’s Anbang on scrapped $5.8 billion hotel deal

SEOUL (Reuters) – South Korean investment bank Mirae Asset Daewoo Co Ltd said on Tuesday it won a U.S. court case against Anbang Insurance Group, after Mirae Asset affiliates scrapped a $5.8 billion deal to buy 15 U.S. hotels from Anbang.



a sign on the side of a building: A general view shows the headquarters of Anbang Insurance Group in Beijing


© Reuters/THOMAS PETER
A general view shows the headquarters of Anbang Insurance Group in Beijing

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But the coronavirus pandemic put several deals at risk this year, as the tourism industry was one of the hardest hit by global travel restrictions.

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Anbang had filed a suit saying Mirae Asset affiliates must fulfill their promised payment for the hotels, while Mirae affiliates filed a counterclaim that Anbang return the deposit, pay transaction costs, and related litigation costs, Mirae said in a regulatory filing on Tuesday.

A Delaware court on Monday rejected Anbang’s claims for payment and ruled Anbang should return the deposit and pay expenses of $3.685 million, according to the court document reviewed by Reuters.

Anbang has been liquidated and some of its assets have been revamped into a new entity called Dajia Insurance Group. A Dajia official could not be reached immediately.

Shares in Mirae Asset rose 6% in Seoul on Tuesday.

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast.)

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Mirae Asset wins U.S. lawsuit against China’s Anbang on scrapped $5.8 bln hotel deal

By Joyce Lee

SEOUL, Dec 1 (Reuters)South Korean investment bank Mirae Asset Daewoo Co Ltd 006800.KS and affiliates won a U.S. court case against Anbang Insurance Group, a court document showed, after Mirae scrapped a $5.8 billion deal after the start of the pandemic to buy 15 U.S. hotels from Anbang.

The case in Delaware, where many companies are registered, could set a precedent for deals that have seen valuations drop since the COVID-19 pandemic, as buyers no longer want to buy assets under the terms of agreements reached before.

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But Mirae did not close the deal on the scheduled April 2020 date, saying that Anbang’s representations and warranties were inaccurate and failed to satisfy conditions, which led Anbang to file the suit saying Mirae must fulfil its promised payment, the court document showed.

The Delaware Court of Chancery, presided by Vice Chancellor Travis Laster, found that the Anbang company that owns the hotels made extensive changes to its business because of COVID-19, such as employee layoffs, furloughs and closing amenities.

This led to a failure to meet a condition that business be “conducted in the ordinary course of business” and allowed Mirae to terminate the agreement, the court document said.

Mirae said in a regulatory filing on Tuesday that depending on whether the plaintiff appeals, it will respond through its legal representative.

Anbang has been liquidated and some of its assets have been placed in a new entity called Dajia Insurance Group. A Dajia official did not have an immediate response.

Shares in Mirae Asset closed up 6.5% in Seoul on Tuesday.

“Mirae won because Anbang did not meet conditions, but it had wanted to get out of the deal because investors weren’t gathering,” said an analyst, who declined to be identified to protect business relationships.

“The decision does remove short-term risk, although it may have unforeseen adverse effects should Mirae want to do deals in China.”

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast and Barbara Lewis.)

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Mirae Asset Wins U.S. Lawsuit Against China’s Anbang on Scrapped $5.8 Billion Hotel Deal | Investing News

SEOUL (Reuters) – South Korean investment bank Mirae Asset Daewoo Co Ltd said on Tuesday it won a U.S. court case against Anbang Insurance Group, after Mirae Asset affiliates scrapped a $5.8 billion deal to buy 15 U.S. hotels from Anbang.

A consortium led by Mirae agreed last year to buy the hotels from Anbang, which had been selling some of its overseas assets after the Chinese government took control of the troubled insurer in 2018.

But the coronavirus pandemic put several deals at risk this year, as the tourism industry was one of the hardest hit by global travel restrictions.

Anbang had filed a suit saying Mirae Asset affiliates must fulfill their promised payment for the hotels, while Mirae affiliates filed a counterclaim that Anbang return the deposit, pay transaction costs, and related litigation costs, Mirae said in a regulatory filing on Tuesday.

A Delaware court on Monday rejected Anbang’s claims for payment and ruled Anbang should return the deposit and pay expenses of $3.685 million, according to the court document reviewed by Reuters.

Anbang has been liquidated and some of its assets have been revamped into a new entity called Dajia Insurance Group. A Dajia official could not be reached immediately.

Shares in Mirae Asset rose 6% in Seoul on Tuesday.

(Reporting by Joyce Lee; Additional reporting by Cheng Leng in Beijing; Editing by Lincoln Feast.)

Copyright 2020 Thomson Reuters.

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Slate Asset Management Provides $75 Million Credit Facility to Largest Hotel Owner in Canada

TORONTO, Nov. 3, 2020 /PRNewswire/ — Slate Asset Management (“Slate”), a leading alternative asset management platform with a focus on real estate, announced today it has provided a $75 million non-revolving credit facility to InnVest Hotels LP (“InnVest”), the largest owner and operator of hotels in Canada.

(PRNewsfoto/Slate Asset Management)

The credit facility was provided to InnVest as part of Slate’s special situations strategy. Launched earlier this year, the strategy provides liquidity to members of Canada’s real estate industry, especially those impacted by COVID-19 induced market disruption. InnVest, the largest owner of hotels in Canada, holds over 80 hotels in its portfolio and its management team oversees the day-to-day activities for almost 70 hotels that it either owns or are owned by third parties. Largo Capital advised InnVest on this transaction.

“This is precisely what our special situations strategy has been designed to do,” said Doug Podd, Managing Director of Slate. “This strategy allows us to use Slate’s flexible capital, market knowledge and ability to structure creative financial solutions to provide best in class operators, such as InnVest, with working capital when they need it most, allowing operators to focus on their business.”

“We are pleased to complete our financing agreement with Slate, which along with cash on hand, the support from a number of our mortgage lenders and participation in Government programs, provides us with the needed liquidity to see InnVest through the COVID-19 pandemic,” said George Kosziwka, Chief Financial Officer of InnVest. “This credit facility provides us with incremental liquidity to continue operations and various renovation activities in this challenging economic environment. It is also a testament to Slate’s faith in our experienced management team that allows InnVest and its wonderful hotel employees to focus on delivering an exceptional experience for our guests.”

Slate’s special situations strategy is equipped to efficiently execute on a variety of financing agreements, including bridge and transitional lending solutions, acquisition and restructuring of impaired or non-performing loans and securities, as well as balance sheet stabilization where existing debt or equity is constrained.

About Slate Asset Management
Slate Asset Management is a leading real estate-focused alternative investment platform with approximately $6.5 billion in assets under management. Slate is a value-oriented manager and a significant sponsor of all of its private and publicly traded investment vehicles, which are tailored to the unique goals and objectives of its investors. The firm’s careful and selective investment approach creates long-term value with an emphasis on capital preservation and outsized returns. Slate is supported by exceptional people, flexible capital and a demonstrated ability to originate and execute on a wide range of compelling investment opportunities. Visit slateam.com to learn more.

For Further Information
Investor Relations
+1 416 644 4264
[email protected]

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