Aug 2022
This edition of the Bermuda Public Companies Update summarises significant transactions involving Bermuda companies listed on the New York Stock Exchange and Nasdaq in the first half of 2022.
Global market update
After nearly two years of the COVID-19 pandemic, it started to look like global markets were recovering in late 2021. Unfortunately, 2022 has brought increasingly gloomy developments, such as higher-than-expected inflation worldwide, the conflict between Russia and Ukraine, a slowdown in China and rising central bank interest rates.
Among S&P 500 companies, market capitalisation on 30 June was down 21% from six months earlier and down 12% from 30 June 2021. Excluding the market capitalisation reductions driven by M&A activity, Bermuda-based companies saw a similar reduction in market capitalisation for H1 2022.
Bermuda companies update
Although the first half of the year was generally quiet for Bermuda-based companies listed on the NYSE and Nasdaq, it saw the completion of two substantial acquisitions. One of the larger transactions to close during this period resulted in the total number of Bermuda companies decreasing by one to a total of 61 New York–listed companies.
In January, Apollo Global Management (NYSE:APO) acquired the remaining 65% stake in Bermuda exempted company Athene Holding Ltd. (NYSE:ATH), one of the world’s leading retirement services companies, for US$7.2 billion. Following the merger, Conyers advised Athene Holding Ltd. on the successful reorganisation of its Bermuda subsidiaries. Conyers acted for the company with respect to all Bermuda legal aspects, including advising on the mechanics to effect the reorganisation, assisting with incorporating new subsidiaries and fulfilling all required regulatory approvals and notifications.
Originally announced in November 2020, the acquisition of IHS Markit Ltd. (NYSE:INFO) by S&P Global Inc. (NYSE: SPGI) was completed in February for US$45.4 billion. Conyers advised IHS Markit Ltd. on its merger with a subsidiary of S&P Global Inc., which created a leading information services provider with an enterprise value of approximately US$140 billion. IHS Markit is an excellent example of a public company that was able to leverage a Bermuda domicile for phenomenal growth. It had a US$4.5 billion valuation at its 2014 IPO, and 8 years later it sold for over 10 times that amount.
During the first half of 2022, Bermuda companies raised a total of US$18.1 billion and market capitalisation as of 30 June stood at US$190 billion. Sizeable equity offerings included:
- Triton International Limited (NYSE:TRTN) and TAL International Container Corporation co-issued US$597.6 million of notes in January.
- Enstar Group Limited (NasdaqGS:ESGR) raised approximately US$500 million through a notes offering in January.
- Brookfield Infrastructure Partners L.P. (NYSE:BIP) made offerings in April of US$160 million in regular notes and US$320 million in series 9 notes