Yearly Archives: 2011
Posted inDaily Brief

Schincariol Shareholders Sue to Stop Sale

by LatinFinance

Schincariol Shareholders Sue to Stop Sale
Minority shareholders at Brazilian brewer Schincariol filed suit Tuesday to halt the sale of the 50.45% stake held by their cousins Alexandre and Adriano to Japanese brewery Kirin for BRL3.95bn ($2.52bn). Jose Augusto Schincariol, Daniela Schincariol and Gilberto Schincariol Junior, cousins of the two brothers and holders of the remaining 49.55% stake in Schincariol, are claiming right of first refusal on the basis of the company’s bylaws. This is according to Larissa Teixera Quattrini, head of corporate issues at law firm Teixeira, Martins & Advogados, which has been retained by the minority holders. However, this argument is open to debate as Kirin acquired the holding company not the opco, which is the entity that is named in the change of control clause and entitles the minority shareholders the right of first refusal. The holding company, which was bought in its entirety by Kirin, holds 50.45% of the outstanding shares of Schincariol. Teixera says the minority shareholders were excluded from negotiations between the majority shareholders and Kirin despite having informed the buyers about the relevant bylaw. “The minority shareholders have absolutely no details about how the deal took place,” she says. “There have been many precedents that corporate documents have to be observed.” A judge’s decision on whether to allow the deal to continue is expected within the next several days. The minority holders were themselves heard interested in acquiring the rest of Schincariol and had retained Morgan Stanley to advise them, but were thought to lack the financing. Kirin was unavailable for comment at press time.

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BNDES Provides BRL445.7m Wind Financing

by LatinFinance

Brazilian development bank BNDES has approved a BRL445.7m ($258.7m) financing package for 8 wind farms in Rio Grande do Sul. The 8 plants have a combined installed capacity of 150MW, requiring a BRL725.2m investment. The funds will go to three special purpose vehicles: Parques Eolicos Palmares (BRL153.6m), Ventos da Lagoa (BRL150.8m) and Ventos do Litoral Energia (BRL141.2m). All three are controlled by Enerfin do Brasil, a renewable energy subsidiary of Spanish infrastructure company Grupo Elecnor.

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EDP Secures BNDES Financing

by LatinFinance

Portuguese wind energy company EDP Renovaveis has secured a BRL228m ($146m) long-term debt facility from Brazilian development bank BNDES as it looks to finance its 70MW Tramandai wind farm in the State of Rio Grande do Sul. The project is the first wind farm to be installed by EDPR in Brazil and has a 20-year PPA with utility Eletrobras. In 2008, EDPR and Energias do Brasil purchased 100% of shares of Brazil’s Central Nacional da Energia Eolica (Cenareel). Although no financial information on the transaction was disclosed, EDP at the time valued Cenareel’s wind farms and projects at BRL51m.

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S&P Upgrades BBVA Uruguay

by LatinFinance

BBVA Uruguay had its credit rating upgraded to BB+ from BB by S&P following its upgrade of the sovereign. The stable outlook reflects S&P’s expectation that BBVA Uruguay will increase its intermediation activities in Uruguay, given the bank’s active management strategy. The agency expects the current policy mix, combined with an explicit policy goal of reducing Uruguay’s government exposure to foreign currency debt, could continue to reduce Uruguay’s vulnerabilities and provide additional policy flexibility to withstand external shocks.

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Allocations Limit Supply of Venezuela’s New 2031

by LatinFinance

Venezuela’s new $4.2bn 11.95% 2031 may be large, but the immediate impact of so much supply may be limited thanks to how the bonds were allocated. The sovereign followed its standard formula of pricing beforehand and sold he paper among a captive group of local buyers, but according to Barclays, about $2bn-$2.5bn of the offering may have been placed in the public banking sector, which is likely sell the bonds through the government’s FX platform Sitme. The private sector, which typically sells such issues immediately into the secondary, saw smaller tickets and allocations. This may be negative news for the Venezuelan private sector, but should be supportive for Venezuelan assets overall, the shop notes. “[The fact that] the new 31s will not be sold aggressively by local holders leaves the market vulnerable to further upside price action,” said an investor. The deal was lead by Deutsche Bank and the Russian entity Evrofinance Mosnarbank, which is partly owned by Venezuelan development fund Fonden. “The idea is to try to bring Russian investors to buy in the secondary,” says a banker. The bond was priced at par and essentially amortizes equally in August 2029, 2030 and 2031. The RegS bond matures on August 5 2031.

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AMX Moves to Buy Remaining Telmex Shares

by LatinFinance

As the last step in an effort to get all of the Mexican billionaire Carlos Slim’s telecom operations under one roof, America Movil (AMX) plans to make a public offer for the 40.04% shares of Telmex it doesn’t own, spending up to MXP76.34bn ($6.51bn). AMX will offer MXP10.50 per share for the approximately 7.2m shares, representing what it says is an 11.1% premium over the average share price of the last 30 days, or a 2.7% premium to Monday’s MXP10.22 close. If successful, AMX would own all of the Telmex shares and de-list its former parent. The operation, which still must be approved by regulators, would complete the consolidation of Slim’s telecommunications holdings. Last year, America Movil acquired Telmex Internacional and Telmex holding company Carso Global Telecom, giving it about 60% of Telmex, in an operation involving stock and cash worth about $23bn.

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CAF Preps Local MXN Bonds

by LatinFinance

Regional development bank Corporacion Andina de Fomento (CAF) plans to issue up to MXP 1.5bn ($128m) in 3-year and 10-year bonds through lead BBVA Bancomer. The 3-year floater is expected to price at a spread over TIIE with the 10-year at a fixed rate. CAF has a global A1/A +/ A+ rating from Moody’s, S&P and Fitch respectively. The MXP bonds have yet to receive a local rating. CAF last came to market in June when it retapped its 3.75% 2016s for another $500m. The MXP bonds have an August 19 issue date.

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Carozzi Acquires Nutripro

by LatinFinance

Chilean food and agricultural products producer Empresas Carozzi announced it has acquired 100% of pet food maker Nutripro for CLP 37.6bn ($81.4m). The deal was privately negotiated. Nutripro generated sales of CLP 34.3bn in 2010. Carozzi says that, with the acquisition of Nutripro, it expects to generate pro forma revenues of $1.1bn in 2011. With the acquisition, Carozzi enters its sixteenth consumer category. According to Carozzi, the deal is part of its overall strategy to diversify its product portfolio.

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CCR Heard Sounding Investors

by LatinFinance

Brazilian toll-road operator road operator Companhia de Concessoes Rodoviarias (CCR) has been sounding out the US buyside through Bank of America Merrill Lynch (BAML), say investors. For now, the Brazilian toll-road operator is simply heard to be engaging accounts but with no solid deal talk. However, if it were to issue USD bonds, such a deal would mark the borrower’s debut in the international bonds markets, though it is no stranger to local debenture transactions. In May, its subsidiary Concessionaria do Rodoanel Oeste sold BRL500m in 2014 bonds paying 109.2% of the DI, and BRL550m in 2015 bonds paying 111.0% of the DI. Bradesco and HSBC managed the sale, rated Aa2 on a national scale. In 2009, CCR also priced a follow-on equity offering through Itau BBA, with BTG Pactual and BAML coming in as joint leads.

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Cemex Eases On ABS Price Talk

by LatinFinance

Price talk for Cemex’s new local asset backed bonds is being heard at 100bp-130bp over TIIE as the Mexican cement company prepares to raise up to MXN2.8bn ($239m) on August 4. Price talk is 50bp higher than TIIE+80bp whispers quoted to investors last month, but still at least 70bp below the minimum of TIIE + 200bp some investors had been seeking to participate. The bond is backed by account receivables and carries a tenor that is slightly over 4-years, with proceeds slated for debt refinancing. The new bonds are structured similarly to Cemex’s MXP2.2bn of account receivable backed bonds due December 2011 which were priced at TIIE + 250bp in 2009 and saw some MXP2.86bn in demand. Proceeds from the upcoming issue are partly going to refinance the existing 2011s and for working capital. The new bonds are expected to carry a local mxAAA rating. Ixe is sole lead.

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