Brazilian securities regulator (CVM) has turned down an appeal by Netherlands-based Mittal Steel and upheld a ruling that it must offer to buy out minority shareholders of Brazilian steel company Arcelor, which Mittal bought as part of its merger with rival Luxembourg-based steelmaker Arcelor. The ruling will add up to $4 billion to the cost of the $38.3 billion merger, according to Mittal which had appealed the decision last month on the basis that the merger is one of equals and not a takeover. The latest ruling is final unless Mittal and Arcelor Brasil appeal to Brazil’s federal court.
Category: Bonds
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Tenaris Agrees Sale Of 75% Dalmine Energie
Luxembourg-based Tenaris, the world’s largest steel tube producer, controlled by Argentina’s Techint, is to sell 75% of its stake in Italian energy provider Dalmine Energie to German energy sales company E.ON Sales and Trading for $50 million. Dalmine Energie is valued at $92 million. Dalmine Energie specializes in distributing electricity and natural gas to industrial and commercial clients in Italy.
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CAF Taps US Market For $200 Million
The Caracas-based Andean Development Corporation (CAF) tapped the US market for $250 million last week, increasing the issue up from an originally planned $200 million. The issue was twice oversubscribed. The bonds, which mature in 2017, offered a “highly competitive rate”, according to the Corporation and was bought by investors worldwide. The lead manager was Credit Suisse. Enrique García, president of CAF, commented that the issue was due to “the CAF’s permanent presence in the most demanding international scenarios” and was in line with the Corporation’s financial strategy “based on reducing costs and diversifying and broadening fund-raising sources on international financial markets”.
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Gol Pulls Share Offering
Low-cost Brazilian airline Gol has pulled its planned share offering, without offering an explanation. In May, Gol filed an application with securities regulator CVM to make a public offering of shares to domestic and foreign investors. Gol had planned to issue 2.5 billion of new, non-voting shares, as well as making a secondary offering of 14 billion preferred shares, worth around $460 million.
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Panama-Cabei Become Strategic Partners
Panama has advanced in its path towards joining the Central American Bank for Economic Integration (Cabei) by becoming a “strategic partner” of the Bank. Panama is looking to access financing opportunities to help with projects such as the widening of the Canal, stimulating growth in sectors such as tourism and energy, and improving human resource skills. Panama will become a non-regional member of Cabei and non-founding beneficiary before the end of the year with a contribution of $58.6 million.
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Brazil Regulator Rules Against Mittal
Brazilian securities and exchange commission, CVM, has ruled that Netherlands-based Mittal Steel must offer to buy out minority shareholders of Brazilian steel company Arcelor, which Mittal bought as part of its merger with rival Luxembourg-based steelmaker Arcelor. The ruling could add up to $4 billion to the cost of the $38.3 billion merger, according to Mittal which appealed the decision on the basis that the merger is one of equals and not a takeover.
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Braskem To Issue $230 Million Debt
Brazilian Braskem, Latin America’s largest petrochemicals manufacturer, has filed with the country’s securities commission (CVM) to issue $229 million-worth of local debt securities. The debentures will carry maturity of five years. The money raised it to pay short-term maturing debt and strengthen the company’s cash flow. Braskem recently posted second-quarter losses of $25 million, against profits of $200 million for the same period last year. The company has struggled this year in the face of the rising cost of raw materials needed and cheap imports from Asia.
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CAF Agrees Colombia Loans
The Andean Development Corporation (CAF) has agreed to loans totaling $250 million to Colombia to strengthen its institutions and competitiveness. The first of two loans is for $150 million, to go to the Program of Reforms for Competitive Insertion in International Markets, which aims to improve the country’s competitive insertion, opening up and adapting the financial platform, and upgrading technology. The second loan, for $100 million, covers the Consolidation Program for Constitutional Reform in the area of pensions.
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CAF Takes Out Local-currency Loan
The Andean Development Corporation (CAF) has taken out a local-currency bank loan, the first time it has arranged such a credit with a Latin American bank. The soles-denominated loan, worth $15.5 million and taken out with Peru’s BBVA Banco Continental, is for the purpose of offering Peruvian micro-financial institutions a new source of local-currency financing. CAF usually raises financing by issuing securities or via a foreign-currency bank loan from an international bank.
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Autoban To Issue $233 Million Local Securities
São Paulo-based highway maintenance company Autoban has been granted approval by Brazil’s securities market regulator, CVM, to issue $233 million of local debt securities. Autoban is planning to issue three series of debentures, the first maturing 2014 with an interest rate of IGP-M plus 10.65%, the second maturing 2013 and carrying the same interest rate and the third maturing 2012 and with an interest rate of 3.3% above the interbank CDI rate.