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Business Times
5 days ago
- Business
- Business Times
Mitsubishi said in advanced talks on US$8 billion Aethon deal
[NEW YORK] Mitsubishi is in advanced talks to buy the assets of Aethon Energy Management for close to US$8 billion, sources familiar with the matter said, in what would be the Japanese conglomerate's biggest ever acquisition. Tokyo-based Mitsubishi could announce a deal with the US energy-focused investment firm in the next couple of months, according to the sources. Abu Dhabi National Oil Company (Adnoc) had also been considering a potential transaction involving Aethon, Bloomberg News reported in April. A deal would likely be structured as a purchase of Aethon's portfolio, which includes natural gas production operations and midstream assets, some of the sources said. While a deal is close, talks could still be delayed or falter, the sources said, asking not to be identified discussing confidential information. It's also possible another bidder could emerge for Aethon, the sources said. Representatives for Mitsubishi and Aethon declined to comment. A spokesperson for Adnoc did not respond to requests for comment. Dallas-based Aethon is among the most active drillers in the Haynesville shale basin that straddles East Texas and northern Louisiana. Aethon is close to several liquefied natural gas (LNG) export terminals along the Gulf Coast. Mitsubishi, one of Japan's major trading companies, is a key supplier of LNG and has a stake in a US export facility in Louisiana. Japan's government sees the artificial intelligence boom potentially lifting power demand over the next decade, and has urged the nation's private firms to invest in gas. An acquisition of Aethon would be the largest on record by Mitsubishi, Bloomberg-compiled data show, topping its purchase of a stake in a unit of Anglo American for almost US$5.4 billion in 2011. BLOOMBERG
Business Times
5 days ago
- Business
- Business Times
New World faces key test with bond interest payment due on June 16
[HONG KONG] New World Development, the distressed Hong Kong developer that's unsettled investors by delaying some debt payments, faces a critical test on Monday (Jun 16) when interest comes due on a US dollar bond. The company, controlled by the family empire of tycoon Henry Cheng, must pay US$5.05 million on the 5.875 per cent security, according to Bloomberg calculations. Investors are closely monitoring the deadline after the builder recently jolted creditors by using an option to defer coupon payments on four perpetual notes. The interest due Monday, however, is on a regular bond that doesn't carry such an option to push back payments. An event of default could be triggered if New World fails to honour the coupon within 14 days of the due date, according to an offering document seen by Bloomberg News. Generally in credit markets, it can sometimes take two to three days for US dollar bondholders to receive interest payments once they are initiated. New World, which is grappling with HK$210.9 billion (S$34 billion) of liabilities, has the highest debt burden of any major Hong Kong developer. Any signal of a possible default by the locally renowned builder could intensify concerns about sluggish real estate market conditions and possible spillover effects. New World did not immediately respond to a request for comment. A spokesperson said late last month that the company continues to manage its overall financial indebtedness while taking into account the current market volatility and continues to comply with its existing financial obligations. News over the weekend underscored New World's ability to bring in money, even if it has to resort to discounting homes to do so. The builder and its partners sold 138 apartments in a few hours at a new project in Hong Kong after offering reduced prices, a necessary step to prevent liquidity from worsening further. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up The builder has prioritised talks with banks for months to secure a HK$87.5 billion loan refinancing deal to ease its liquidity stress. Separately, it is also using one of its most valuable assets in Hong Kong – a harbour complex that houses luxury mall K11 Musea – to seek a new loan of as much as HK$15.6 billion. New World's bond in question has US$172 million in outstanding principal and is currently indicated at about 65 US cents on the US dollar, according to Bloomberg-compiled data. Investors became increasingly worried over New World's liquidity conditions last month after it opted not to redeem a perpetual security. Meanwhile, bondholders are growing frustrated with the level of its financial disclosure as it prioritises communication with banks during the loan talks. The firm has received written commitments for 87 per cent of its refinancing target as it races to complete the deal with more than 50 banks by the end of June, Bloomberg reported earlier. Debt adviser PJT Partners has warned bondholders that a liability management exercise for the securities would be the only way for New World to deal with debt maturities and preserve equity value. BLOOMBERG
Straits Times
5 days ago
- Business
- Straits Times
HK property giant New World faces key test with bond interest payment due on June 16
New World, which is grappling with HK$210.9 billion (S$34.4 billion) of liabilities, has the highest debt burden of any major Hong Kong developer. PHOTO: BLOOMBERG HONG KONG – New World Development, the distressed Hong Kong property giant that's unsettled investors by delaying some debt payments, faces a critical test on June 16 when interest comes due on a US dollar bond. The company, controlled by the family empire of tycoon Henry Cheng, must pay the US$5.05 million (S$6.5 million) on the 5.875 per cent security, according to Bloomberg calculations. Investors are closely monitoring the deadline after the builder recently jolted creditors by using an option to defer coupon payments on four perpetual notes. The interest due on June 16, however, is on a regular bond that doesn't carry such an option to push back payments. An event of default could be triggered if New World fails to honor the coupon within 14 days of the due date, according to an offering document seen by Bloomberg News. Generally in credit markets, it can sometimes take two to three days for dollar bondholders to receive interest payments once they're initiated. New World, which is grappling with HK$210.9 billion (S$34.4 billion) of liabilities, has the highest debt burden of any major Hong Kong developer. Any signal of a possible default by the locally renowned builder could intensify concerns about sluggish real estate market conditions and possible spillover effects. New World didn't immediately respond to a request for comment. A spokesperson said late in May that the company continues to manage its overall financial indebtedness while taking into account the current market volatility and continues to comply with its existing financial obligations. News over the weekend underscored New World's ability to bring in money, even if it has to resort to discounting homes to do so. The builder and its partners sold 138 apartments in a few hours at a new project in Hong Kong after offering reduced prices, a necessary step to prevent liquidity from worsening further. The builder has prioritized talks with banks for months to secure a HK$87.5 billion loan refinancing deal to ease its liquidity stress. Separately, it is also using one of its most valuable assets in Hong Kong – a harbour complex that houses luxury mall K11 Musea – to seek a new loan of as much as HK$15.6 billion. New World's bond in question has US$172 million in outstanding principal and is currently indicated at about 65 cents on the dollar, according to Bloomberg-compiled data. Investors became increasingly worried over New World's liquidity conditions last month after it opted not to redeem a perpetual security. Meanwhile, bondholders are growing frustrated with the level of its financial disclosure as it prioritizes communication with banks during the loan talks. The firm has received written commitments for 87 per cent of its refinancing target as it races to complete the deal with more than 50 banks by the end of June, Bloomberg reported earlier. Debt adviser PJT Partners has warned bondholders that a liability management exercise for the securities would be the only way for New World to deal with debt maturities and preserve equity value. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Mint
5 days ago
- Business
- Mint
New World Faces Key Test With Bond Interest Payment Due Monday
(Bloomberg) -- New World Development Co., the distressed Hong Kong developer that's unsettled investors by delaying some debt payments, faces a critical test Monday when interest comes due on a dollar bond. The company, controlled by the family empire of tycoon Henry Cheng, must pay the $5.05 million on the 5.875% security, according to Bloomberg calculations. Investors are closely monitoring the deadline after the builder recently jolted creditors by using an option to defer coupon payments on four perpetual notes. The interest due Monday, however, is on a regular bond that doesn't carry such an option to push back payments. An event of default could be triggered if New World fails to honor the coupon within 14 days of the due date, according to an offering document seen by Bloomberg News. Generally in credit markets, it can sometimes take two to three days for dollar bondholders to receive interest payments once they're initiated. New World, which is grappling with HK$210.9 billion ($26.9 billion) of liabilities, has the highest debt burden of any major Hong Kong developer. Any signal of a possible default by the locally renowned builder could intensify concerns about sluggish real estate market conditions and possible spillover effects. New World didn't immediately respond to a request for comment. A spokesperson said late last month that the company continues to manage its overall financial indebtedness while taking into account the current market volatility and continues to comply with its existing financial obligations. News over the weekend underscored New World's ability to bring in money, even if it has to resort to discounting homes to do so. The builder and its partners sold 138 apartments in a few hours at a new project in Hong Kong after offering reduced prices, a necessary step to prevent liquidity from worsening further. The builder has prioritized talks with banks for months to secure a HK$87.5 billion loan refinancing deal to ease its liquidity stress. Separately, it is also using one of its most valuable assets in Hong Kong — a harbor complex that houses luxury mall K11 Musea — to seek a new loan of as much as HK$15.6 billion. New World's bond in question has $172 million in outstanding principal and is currently indicated at about 65 cents on the dollar, according to Bloomberg-compiled data. Investors became increasingly worried over New World's liquidity conditions last month after it opted not to redeem a perpetual security. Meanwhile, bondholders are growing frustrated with the level of its financial disclosure as it prioritizes communication with banks during the loan talks. The firm has received written commitments for 87% of its refinancing target as it races to complete the deal with more than 50 banks by the end of June, Bloomberg reported earlier. Debt adviser PJT Partners Inc. has warned bondholders that a liability management exercise for the securities would be the only way for New World to deal with debt maturities and preserve equity value. --With assistance from Apple Ka Ying Li. More stories like this are available on
Economic Times
12-06-2025
- Business
- Economic Times
‘I need exposure to India' mood revs up block trades, IPO plans
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The South Asian nation saw $6.4 billion raised through share sales in May, the highest monthly total since December 2024, according to data compiled by Bloomberg. Block trades worth $5 billion were the biggest contributors, marking the busiest month for such deals since March last year. The momentum has carried into June, with at least 10 blocks raising $1.2 billion in the first week stocks are now positioned for more gains after the central bank on Friday delivered a bigger-than-expected interest rate cut and injected further liquidity into the banking system. This has supported a rally that's already underway, with the benchmark NSE Nifty 50 Index rebounding from its April lows, which were triggered by concerns over US President Donald Trump's broad tariffs.'Right now, investors are saying, 'I need exposure to India — and I need it fast,'' said Sunil Khaitan, a managing director leading financing in India at Goldman Sachs Group Inc. 'Block trades remain the quickest and most efficient way to get that exposure.'The recent torrent of deals stands in contrast to the lull earlier in 2025, when local deals cooled off after a record-breaking year. India even ceded its position to Hong Kong as the world's second-largest market for share sales in the first three months of the year, weighed down by an unexpected slowdown in economic growth and cautious corporate earnings of the largest recent block trades include British American Tobacco Plc's $1.5 billion sale of tobacco manufacturer ITC Ltd.'s shares, Singapore Telecommunications Ltd.'s $1.5 billion selldown of wireless carrier Bharti Airtel Ltd.'s stock and billionaire Rakesh Gangwal's $1.4 billion disposal of shares in IndiGo's parent company. Private equity firm Carlyle Group and South Korean automaker Hyundai Motor Co. were also among those paring their India flurry of activity with blocks appears to be spilling over to IPOs. HDB Financial Services Ltd. recently secured a nod from the securities regulator for a first-time sale that could raise $1.5 billion. Prudential Plc's Indian asset management venture is also nearing a filing for a listing expected to fetch as much as $1.2 billion, according to people familiar with the corporate earnings and decent economic growth provide a robust backdrop for deals, which could include billion-dollar IPOs later this year, said Samarth Jagnani, Morgan Stanley's head of global capital markets for India and Southeast Asia.'The second half will be better,' he the recovery, Indian deals remain well below last year's $66 billion record. Total share sales — including IPOs, placements and blocks — have raised $15.5 billion so far this year, 29% lower from the year-ago period, according to Bloomberg-compiled IPOs are also moving ahead with tamer valuations: Solar-pump maker Oswal Pumps Ltd. this week said its IPO was looking to raise 13.9 billion rupees ($162 million), lower than what it targeted last year.
