Greensill Sale Talks With Apollo-Backed Athene Are Stalled

Greensill Capital’s talks to sell parts of its operating business to Athene Holding Ltd. have stalled, according to people with knowledge of the matter.

The deal talks between Athene, an annuity seller backed by Apollo Global Management Inc., and Greensill have been held up by a breakdown in discussions with key technology supplier Taulia Inc., said the people, who asked not to be identified as the discussions are private.

Greensill Capital filed for administration in the U.K. on Monday, and Athene emerged as the only credible potential buyer after the supply-chain finance company’s swift collapse. The two sides have been in talks for at least a week, with Athene offering about $60 million for Greensill’s IT and intellectual property, according to court documents.

Representatives for Greensill and Apollo declined to comment. A Taulia representative confirmed the fintech company has been in conversations with Apollo as it explores buying parts of the Greensill business.

Taulia provided much of the front-end technology that enabled businesses to have their supply chains financed by Greensill. Talks between San Francisco-based Taulia and Athene are stalling over how clients that were funded by Greensill will be financed going forward, said some of the people. Losing a key technology supplier may make Greensill a less attractive target.

If Taulia doesn’t reach an agreement with Athene, it may face challenges transferring customers to different financing providers, some of the people said. Clients may need to go through lengthy know-your-customer procedures before receiving financing from alternative lenders.

“Following the recent, well-documented challenges faced by Greensill we have been working to ensure that our clients have continued choice over their funding source(s) and continuation of funding,” a Taulia spokesman said.

Taulia has sought to diversify its business beyond Greensill, and the firm signed a strategic alliance with JPMorgan Chase & Co. in April 2020. Taulia funded its notes exclusively through Greensill until 2019, and the vast majority of Greensill’s investment-grade funding deals come from Taulia, according to people familiar with the matter.

Chemicals firm Henkel AG is among companies that have been working with Taulia to fund their suppliers’ invoices. Taulia arranged the refinancing of their activities via Greensill.

While Greensill billed itself as a fintech, much of its front-end technology was handled by third parties. The firm said that much of its technology was focused on mitigating risk rather than dealing with businesses and their suppliers.

©2021 Bloomberg L.P.

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