Rich Lister Patrick Grove is ramping up preparations to list his Asia-focused TV shows and movies streaming business iflix on the Australian Securities Exchange, in a float that could value the company at more than $1 billion. 

Street Talk understands iflix has asked a handful of Australian investment banking teams to pitch for joint lead manager roles, with the view to having advisers mandated to work on the mooted float within weeks. 

The request for proposal asked investment banks to address a handful of issues including iflix's likely valuation as a listed company, the valuation methodology that could be used to sell the float, a marketing strategy and the best capital structure to list the business. 

It is understood equity capital markets teams from Goldman Sachs, UBS, Macquarie Capital, Citi and Credit Suisse were among investment banks asked to pitch for a JLM role. 

Should iflix - which is a competitor to Netflix in Asia - head to the ASX as planned, it would likely be one of the largest technology sector listings in Australia this year. 

The company describes itself as the world's leading entertainment service for emerging markets, targeting consumers in Malaysia, the Philippines, Thailand, Indonesia, Sri Lanka and Saudi Arabia, among other countries. It provides subscription video on demand - in much the same way Netflix or Stan does in Australia. 

Grove co-founded iflix and is the company's chairman. His investment firm, Catcha Group, also led a funding round for the company in 2015. 

iflix most recently raised equity last year, when it closed a $US133 million ($168 million) capital raising led by United States publisher and television station owner Hearst. The raising took its total capital raised to $US303 million and valued iflix at more than $700 million. (Grove's private Catcha Group holds the biggest stake). Its other shareholders include UK broadcaster Sky. 

It's expected to seek an even bigger valuation should it head to the ASX-boards as planned. The question is how much capital it would seek to raise - and whether existing shareholders would be able to sell down as part of the initial public offering. 

It is understood iflix told investment banks it was targeting a listing in the 2019 calendar year. 

While Grove has made his name as an investor in Asia-focused internet start-ups, he has also had success with ASX-listed companies. His Catcha Group was the biggest shareholder in online property portal iProperty Group, which was acquired by REA Group in 2016. 

iProperty Group listed at 25¢ a share in 2007 and was bought for $4 a share in February 2016. 

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There's a new half-billion-dollar agenda item for TPG Telecom and Vodafone Hutchison Australia's next meeting. 

Who owns the $470 million kitty created by TPG Telecom's decision to scrap its mooted 4G mobile network; TPG Telecom shareholders, or the combined Vodafone/TPG entity? 

And will the proposed merger need to be re-cut to take the loose $470 million into account? 

That's the question on fund managers' minds after TPG Telecom abandoned plans to build a 4G mobile network. The $G network build was pegged at $600 million, with $100 million already spent and another $30 million committed and unable to be recalled. 

The $600 million capital expenditure program - and presumably the mobile business that would have been the end result - were part of the finely tuned TPG Telecom/Vodafone merger, announced last August. 

The deal was predicated on an almost merger of equals type capital structure, where TPG Telecom shareholders would take a 49.9 per cent stake and Vodafone Hutchison Australia's two strategic investors would split the other 50.1 per cent. 

To make the numbers work, each entity would contribute about $2 billion debt on a proforma basis. And for the less burdened TPG Telecom, that would mean gearing up its balance sheet with a special dividend payable to existing investors. 

The exact value of the special dividend is contingent on a handful of factors including capex in the mobile business and a Singapore spin off - but fundies had it pegged at as much as $500 million. 

So could the special dividend be worth twice as much - or will Vodafone's investors want it going into the new entity as some form of compensation? 

It's an issue likely to be discussed between the two camps in coming months. 

Their first order of business is to ensure the merger passes muster with the Australian Competition and Consumer Commission, which has expressed concerns with the mooted tie-up and delayed its review process. The 4G network plan is likely to throw another element to the ACCC's informal review process, although analysts and fundies are split as to whether it'll end up working for or against the mooted merger. 

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There's nothing like an unexpected trading update to have fast money hedge funds picking through a scheme implementation agreement. 

And so it is at Eclipx Group where hedge funds are trawling over a document from King & Wood Mallesons for any sign that the company's $1.3 billion suitor, McMillan Shakespeare, may be softening or even readying to bail. 

Because what happened on Tuesday was irregular, to say the least.

Eclipx released a statement to shareholders that said its business, by and large, was performing well, but flagged weakness in two of its smaller business units. It said the 2019 financial year would be back-ended - which is always a bit of a worry for fund managers - and it was implementing a cost reduction program. 

McMillan Shakespeare - which only a couple of months ago was singing the praises of Eclipx and what its portfolio could do for McMillan's own shareholders - returned served with news that it would no longer be heading to court to approve the scheme documents on February 1. 

McMillan Shakespeare clearly has some reservations and cause for "further work", as the company puts it. Eclipx shares dropped 16.5 per cent. 

The good news for Eclipx shareholders is that things would have to get considerably worse for McMillan Shakespeare to walk away from the agreed deal without any break fee. 

On fundies' reading, there are two possible outs; time and earnings. 

The scheme as signed on November 8 needs to be implemented by April 30. While it has been delayed twice, there is still plenty of time for the parties to reach that date should they be motivated. 

The second - and under the material adverse change clause - would be if Eclipx's earnings fell off a cliff. And while there may be some signs of weakness, there is no sign that they would fall enough to give McMillan Shakespeare at out at this stage. 

Eclipx's earnings would need to drop more than 10 per cent compared to last year's numbers. And while that's a slightly tricky hurdle, given different corporate tax rates and a couple of other factors, it means they would have to drop below about $70 million. Analysts are expected to settle at about the $75 million to $80 million range following Tuesday's update. 

But it is still hard to get over the feeling that something isn't quite right about the whole situation; one that was supposed to be a slam dunk as far as M&A arb funds were concerned. They'll be watching closely for any further signs of cold feet. 

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Here's another auction that has been quietly bubbling along over the summer break. 

Street Talk understands Deutsche Bank is ready to ramp up efforts to sell privately-owned transportation business CF Asia Pacific. 

Sources said indicative and non-binding bids were due to Deutsche Bank just before the break, and bidders were told to expect a shortlist and a second round data room soon after Australia Day. 

The stated timetable has a handful of rail players and infrastructure funds back at their desks this week, ready to get a truckload of new documents as part of the second and final bidding phase. 

It's unclear who remains in the process. The business attracted preliminary interest from a couple of trade names and private equity firms, although it's hard to see exactly where the natural buyer sits.

Mid-market infrastructure firms were targeted earlier in the process, with an "infastructure-like" pitch, and asked to sign confidentiality agreements to progress into the data room.  

Sydney-based CF Asia Pacific provides transportation solutions to Australian rail operators and shippers, including locomotive and rolling stock, maintenance, repair and build/rebuild solutions. It was pitched with about $50 million a year in earnings and is majority owned by American family company Sasser Family Holdings.

It is expected to be worth about $500 million. 

Japan's Marubeni Corporation also has a 15 per cent stake, according to documents filed with the corporate regulator.

Street Talk first flagged the shareholders' strategic review and Deutsche Bank's role in December. 

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A united nations of lending banks is understood to have tipped in about $200 million to refinance Australian gas pipelines owner Epic Energy. 

Street Talk understands Epic Energy, which is best known as the owner of the Moomba to Adelaide Pipeline in South Australia, closed the debt deal after receiving commitments from Canadian banks CIBC and RBC, France's BNP Paribas and Japan's Mizuho. 

The four lenders are expected to contribute the bulk of the company's funding requirements.

It comes after Epic Energy and its adviser - understood to be RBC Capital Markets - ran a tender process, asking a bunch of local and offshore banks for their best bids based on the mooted price and terms. 

The new funding package replace one previously put together with the help of MUFG Bank - what was the Bank of Tokyo - a couple of years ago, and was earlier funded in a deal put together by Citi in 2013. 

The Citi deal helped QIC Ltd buy Epic's Moomba Adelaide Pipeline System from APA Group. APA needed to sell it so it could buy Hastings Diversified Utilities Fund.

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