☕️ Side stunner

Good morning.

It’s Friday and here’s your dose of venture envy: the relatively new kid in town, Side Stage Ventures, sealed a major win this week with Canva's acquisition of Leonardo.Ai, a generative AI startup that based on Capital Brief’s back of the envelope calcs is valued at over $300m.

Sources close to the deal told CB’s Brownen Clune that Side Stage opted for Canva shares over cash, betting on a long-term vision that might include a 2025 IPO exit for the design titan.

Partner Ben Grabiner told Clune they mainly see the deal as validation of their talent-spotting skills, which are already apparent just a year after closing their first $20 million fund.

🏆 LOI Subscriber #TBD

Market movers

Pacific Smiles’ shares shot up almost 7% after a new and juicy takeover bid from NDC BidCovv, an affiliate of National Dental Care centres, coming on top of Genesis Capital’s latest offer. The dental chain's stock has surged nearly 40% this year in the bidding war, with NDC’s $2.05 per share offer eclipsing Genesis’ $1.90.

Pacific Smiles' board is all in on NDC’s bid, saying it’s a better deal for shareholders than Genesis'. The scheme meeting is adjourned until 8 August.

The quick sync

• The Albanese government is preparing an overhaul of the nation’s spy agencies in wake of a classified report from former intelligence officials Heather Smith and Richard Maude.(Capital Brief)

• We must avoid dotcom-era policy mistakes when tackling AI, says Nobel Prize-winning economist Joseph Stiglitz. (Capital Brief)

• A government review is tipped to recommend a move away from the block funding that has underpinned a leading think tank, the Australian Strategic Policy Institute. (AFR)

• Regional Express was months behind on its payments to airports and other suppliers before it went into administration and ratepayers will likely have to foot the bill for out-of-pocket local councils. (AFR)

• Former Star Entertainment boss Robbie Cooke denies suggestions he acted without the full authority of the board and in a submission says he always put the interests of the business first. (The Australian)

Trading floor

M&A

• ACCC approved Louis Dreyfus Company's acquisition of Namoi Cotton, subject to divestments, and will rule on a rival bid by Olam Agri Holdings later this month. (Capital Brief)

• Amare Safety’s founder is retiring after nearly 40 years, and the Melbourne-based personal safety gear distributor is up for sale through PwC’s corporate finance team. (AFR)

• EY, the administrator for collapsed Rex Airlines, has fielded many inquiries, mostly from non-serious buyers; PAG's interest in acquiring the airline is fading unless no other buyers come forward. (The Australian)

• Billionaire Bill Ackman canceled the launch of his investment fund Pershing Square USA, initially aiming for a $25bn IPO but reducing the target to $2.5-$4bn last week. (Capital Brief)

• Crescent Capital is set to raise its bid for Pacific Smiles above $2 per share, after the board deemed Genesis Capital's $1.90 offer superior despite being lower. (AFR)

• Stonepeak, aided by JPMorgan and Macquarie Capital, is competing for a 40% stake in the $5bn Jemena energy business. (The Australian)

Capital Markets

• Sonic Healthcare is raising debt in the US private placement market to refinance existing debt, repay bank loans, and extend its debt maturity profile, with strong investor support. (Capital Brief)

• Eco Detection received a $10m investment from Capital Limited, which acquired a 22% stake, to advance its water quality monitoring technology. (AFR)

• The Clean Energy Finance Corporation is granting $40m to Splend to expand its zero-emissions EV fleet, building on a previous $20m that helped add 500 EVs. (Capital Brief)

• BlackRock-backed Akaysha Energy failed to raise $500m for its battery storage system, leading the company to maintain full ownership and invest additional funds itself. (AFR)

• Cerebras System has confidentially filed for an IPO with the US SEC as the US IPO market recovers, with fundraising nearly doubling this year to $30bn. (Capital Brief)

VC

• None

People moves

• Fortescue Metals appointed Indigenous leader, advocate, and lawyer Noel Pearson to its board as a non-executive director. (Capital Brief)

• Natalie Hannemann has left her role as Cbus chief of transformation less than a year into the job, with her departure effective immediately. (AFR)

• PwC Australia has appointed John Green as its first independent non-executive chair and Lisa Chung as an independent board member. (Capital Brief)

• NEXTDC CEO Craig Scroggie has joined Freelancer's board to boost growth, following a 9% revenue drop despite rising user and project numbers. (BNA)

The watercooler