Brazil real estate company BR Properties says it has acquired Traviu Empreendimentos for BRL157m. A BR spokeswoman says the company is paying cash and that there were no outside financial advisors involved in the deal. Traviu’s logistics warehouses have a total of 339,548 square meters of gross leasable area, with average lease prices of BRL16-BRL18 per square meter per month, according to estimates by US-based real estate company CB Richard Ellis. In March, BR Properties raised BRL1.1bn at BRL13.0 per share through an IPO.
Category: Paywall
Posted inDaily Brief
Sonda Makes Second Buy of 2010
Acquisitive Chilean telecom Sonda says it is purchasing Mexico’s IT provider NextiraOne for $29m, its second acquisition so far this year. Chile’s Celfin Capital, which calculates that Sonda is paying 0.5x the target’s sales, sees it as a positive move. “The acquisition strengthens Sonda’s operation in Mexico, the second largest market in LatAm, and enhances its positioning as a major player in the area of IT systems, services, communications and security. We expect completion of the transaction soon following its current review by Mexican authorities,” the shop says. It adds that with this deal, Sonda could increase sales in Mexico to around $100m from about $36m. The acquisition of NextiraOne and the purchase of Telsinc of Brazil in April for $38m, are part of Sonda’s $500m investment plan for the next 2 years, announced in December.
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GEM Targets Argentina PE
London-based private equity firm Global Emerging Markets (GEM) is joining forces with Argentina’s Banco Hipotecario to set up a fund that is expected to raise as much as $250m, says Julio Marquez, head of LatAm at GEM. A first close is expected this year, Marquez tells LatinFinance. Of the total to be raised, GEM will contribute 10% and is also approaching investors who have participated in other GEM funds. Banco Hipotecario will not put in any money, says Marquez, but it will take charge of sourcing deal opportunities in Argentina. The fund will buy 25%-80% of companies in sectors like energy, agribusiness and consumer goods and does not intend to take 100% control. It will invest between $10m-$50m per transaction. Marquez says valuations are attractive in Argentina, where companies are much cheaper than comparables in Brazil. The latest Lavca Scorecard, an annual study that evaluates the operating environment for LatAm PE and venture capital, notes that Argentina fell to a 43 score in 2010 from 46 in 2009 (out of 100) “due to an increasingly complex and high-tax environment.” It adds that, “The perceptions of corruption in politics, along with bureaucracy and lack of a strong policy framework are also major hurdles for the country in regards to attracting investment.” Marquez expects the situation to change for the better once there is a change in the political regime. Argentina will hold presidential elections in 2011. GEM has about $3.4bn in assets under management.
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No Change Seen for Mexico Rates
Analysts expect Mexican rates to stay put. Morgan Stanley says Banxico is likely to once again keep the monetary policy rate unchanged at 4.50% today and throughout 2010. It adds that after a temporary increase early in the year, inflation has eased and seems on track to undershoot Banxico’s forecast path in coming quarters, based on consensus expectations. Barclays also expects the rate to remain unchanged until the end of the year and to then tighten to 5.25% in Q1 2011.
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IMF Praises Guatemala Economy
The IMF says it has concluded the third review of Guatemala’s economic performance under a program supported by an 18-month stand-by arrangement (SBA) approved in April. The SBA amount is $927.2m. With the completion of this review, about $865.4m is available for drawing. “Performance under the program has been strong. All end-December 2009 and end-March 2010 quantitative performance criteria were met comfortably, and inflation stayed within the inner consultation band agreed in the program. The 18-month SBA with the fund is expected to remain precautionary,” the IMF says.
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World Bank Taps Fonacot Head
The World Bank has appointed Jorge Familiar Calderon as vice president and corporate secretary. Familiar, a Mexican national, is CEO of the Instituto del Fondo Nacional para el Consumo de los Trabajadores (Fonacot), which has a $1bn loan portfolio. Familiar previously served on the World Bank’s board as executive director and alternate executive director for Mexico from 2004-2008. World Bank president Robert Zoellick says he will be the institution’s primary interlocutor between bank management and the executive directors. Familiar’s appointment, which follows an international search process, will be effective August 9.
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Codelco Rating Outlook Takes Hit
Moody’s has lowered the outlook on Codelco’s A1 rating to stable from positive. The agency cites the significant investments, of around $15bn, that the company will have to make over the next few years to maintain and increase copper production levels. It also says copper prices will remain volatile due to a slowing in Chinese imports.
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Fitch Brightens Petrotemex Outlook
Fitch has changed the outlook on Mexico-based Petrotemex’s BB+ rating to stable from negative to reflect the company’s increased cash generation and debt reduction in 2009. Petrotemex’s cashflow from operations for fiscal year 2009 was about $220m, up from $68m during 2008. The company’s total debt to Ebitda ratio for the last 12 months ended March 31 was 2.4x, an improvement from 3.3x during 2008, adds Fitch. Chemicals company Petrotemex is a subsidiary of Alfa, one of Mexico’s largest industrial conglomerates.
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Chile’s Senate Rejects Mining Tax Increase
Chile’s opposition-led senate has voted 17 to 15 against increasing taxes on miners. The ruling party has proposed increasing taxes from the current 4% to as much as 9%, depending on companies’ sales margins. With the increase, it expected to raise as much as $700m a year to fund post-quake reconstruction efforts, for which it estimates it will invest a total of $8.4bn over 4 years.
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Modal Fund Makes First Investment
The BRL500m FIP Oil and Gas PE fund of Brazil’s Banco Modal has acquired a minority stake in engineering firm Enesa Engenharia for BRL90m, its first investment. Enesa’s client roster includes Petrobras, CSN and Gerdau. The fund, established in May, plans to acquire mainly minority stakes in companies within the oil and gas sector over the next 4 years, investing between BRL50m-BRL100m per company. Among the fund’s shareholders are BNDESPar, Petrobras’ pension fund, the pension fund of Caixa Economica and the pension fund of Cia. Estadual de Energia Eletrica do Rio Grande do Sul.