Baker McKenzie and Gibson Dunn have played key roles in KKR’s $5bn investment in a stake in Gulf Data Hub, one of the largest independent data centre platforms in the Middle East.
Gibson Dunn advised KKR on the investment while Baker McKenzie advised Gulf Data Hub (GDH).
The Gibson Dunn cross-border team was co-led by London corporate partners Federico Fruhbeck and Jakob Egle, and Abu Dhabi energy and M&A partner Renad Younes.
The team also included London partners Alice Brogi and Trinh Chubbock (projects and infrastructure), Penny Madden (litigation), Sandy Bhogal (tax), and Riyadh partner Mohamed A. Hasan (regulatory).
Bakers advised GDH on all aspects of the transaction with the core team led by Dubai corporate partner Abeer Jarrar alongside London corporate finance partner George Marshall, London TMT partner, David Hart and Sydney TMT partner Anne Petterd.
Goldman Sachs research forecasts a 160% growth in worldwide data centre power demand by 2030 – and KKR is positioning itself accordingly. As of last October, the private equity giant had invested more than $29bn across 22 investments in digital infrastructure companies, according to a press release. It also formed a $50bn partnership with Energy Capital Partners in October last year to accelerate the development of AI infrastructure.
H.I.G. Capital’s acquisition of Kantar Media
Bakers also advised opposite Simpson Thacher & Bartlett in H.I.G. Capital’s acquisition of Kantar Group’s market research division Kantar Media for approximately $1bn.
Kantar Group has been majority-owned by Bain Capital since British multinational WPP sold a 60% stake in 2019 in a deal that valued Kantar at $4bn.
A Simpson Thacher team led by London corporate partners James Howe and Lucy Gillett advised H.I.G on the deal. The team also included London tax partner Caleb McConnell, London banking partner Shahpur Kabraji, and New York executive compensation and employee benefits partner Laurence Moss.
Corporate partner Justin Hutchinson led the Bakers team advising Kantar Media. Hutchinson frequently advises Bain Capital and Kantar, including on the 2022 sale of Kantar Public to Trilantic Partners.
Constellation’s takeover of Calpine
Meanwhile in the US, Kirkland & Ellis, Latham & Watkins, and White & Case have steered Constellation’s $26.6bn takeover of Calpine in one the largest ever deals concluded in the energy production sector.
The offer consists of 50 million shares of Constellation stock and $4.5bn in cash plus the assumption of approximately $12.7bn of Calpine net debt. The shares are subject to an 18-month lock-up period – a condition which suggests that Calpine’s backers were keen to get the deal across the line.
Constellation is the United States’ leading nuclear power plant operator while Calpine is the country’s largest producer of electricity from natural gas and geothermal sources. The combined company will have nearly 60 gigawatts of capacity from zero- and low-emission sources.
Constellation’s stock has soared in recent weeks in anticipation of the announcement with a YTD increase of 43.2% at the time of writing.
Kirkland advised Constellation on the acquisition with a team spread across the firm’s New York and Texas offices led by corporate partners David Feirstein, Doug Bacon, Andy Calder, Zach Savrick and Alec Manzer. Further assistance is provided by energy regulatory partner Damien Lyster; executive compensation partners Stephen Jacobson and Karsten Busby; debt finance partners Rachael Lichman and Charlie Martin; and tax partners Dean Shulman and Mark Dundon.
Latham advised Calpine and the firm’s majority shareholder Energy Capital Partners (ECP). The Latham team is led by New York corporate partners David Kurzweil and Edmond Parhami. Kurzweil also played a key role when Latham advised ECP as leaders of an investment consortium that took Calpine private in a $17bn take-private deal in 2017 after the fund identified Calpine as an undervalued asset.
White & Case also advised Calpine. Its team was led by corporate partners Michael Shenberg in New York and Mingda Zhao and Emilio Grandio in Houston, alongside Morton Pierce and Ipek Candan Snyder in New York. The team also included employment, compensation and benefits partner Henrik Patel in New York; antitrust partner Rebecca Farrington in Washington DC. Also advising from New York were capital markets partners Joel Rubinstein, Jason Rocha, Gary Kashar, and Laura Katherine Mann; tax partner David Dreier; and debt finance partners Yehuda Rubel and David Bilkis.
Miller Homes’ acquisition of St Modwen Homes
In the housing sector, Slaughter and May, A&O Shearman, Latham, and Gateley Legal have all played key roles in Miller Homes’ acquisition of St Modwen Homes for a reported £215m.
The deal represents a partial exit for Blackstone who bought St Modwen Properties for £1.3bn in 2021. The private equity giant has been active in British housing of late, selling more than 3,000 shared homes to private pension fund Universities Superannuation Scheme for £405m in August and acquiring, alongside its joint venture partner Regis, 1,750 rental homes from Vistry in June.
Slaughter and May corporate partners Harry Bacon and Aleezeh Liaqat led the team advising St Modwen Group. The team also included real estate partners Jane Edwarde, Richard Keczkes, and senior counsel Simon Bartle.
A&O Shearman private equity partner Paul Dunbar led the team advising Miller Homes. Dunbar also led the team that saw Apollo Funds acquire Miller homes from Bridgepoint in 2022 while at his previous firm Sidley Austin.
A Gateley team led by partner and national head of residential development Callum Nuttall. Residential development partners Belinda Laurance and Ryan Ferguson advised on property and development sites, while corporate partner Max Moore led the team acting on corporate and all non-property aspects of the deal.
A Latham team led by antitrust and competition partners David Little and Jonathan Parker advised Apollo on the acquisition, including CMA clearance.
