Argentina’s Banco Galicia is to issue $100m in new shares as part of its continuing debt restructuring plans. In a filing with the securities regulator, the bank set a guide price of ARS5.017 ($but said a definitive price will be decided the day before the subscription period, which runs from July 23.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
Gerdau Climbs Value Chain
Mario Longhi, president and CEO of Gerdau Ameristeel, notes the acquisition is consistent with Gerdau Ameristeel’s strategy to further diversify its product offering into high value added steel products, and believes the deal will generate annual pre-tax operating synergies in excess of $55m by the end of 2008. Also, the equity offering is expected to dilute 2007 and 2008 EPS. Moody’s and Fitch put Gerdau and Gerdau Ameristeel on review for downgrade yesterday noting that the deal could significantly increase Ameristeel’s leverage. “Were Ameristeel’s Debt/EBITDA to increase beyond 3.0x, its ratings could be downgraded multiple notches,” Moody’s noted.
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Andean Investment Forum
The first Andean Investment Forum will gather those public and private sector leaders, both international and regional, whose decisions shape the present and future of the Andean economy to discuss and debate investment opportunities in the region, the evolution of the financial markets, challenges and solutions in capital-raising for the corporate sector, and economic integration and growth.
Posted inDaily Brief
Fitch Downgrades Cemex
Fitch lowered Cemex’s issuer default rating to BBB-, the lowest notch in the investment grade category, from BBB, because of the increased leverage the company will take on to acquire Australia’s Rinker, for $14.4bn. The new rating will be applied to Cemex, Cemex España, and Rinker, which formerly had an A minus rating. “Cemex plans to fund the acquisition primarily with debt bringing the company’s pro forma EBITDA to 4.6X, versus 2.3X prior to the acquisition,” said Fitch in a release, adding it expects Cemex to bring its leverage down to below 4X by the end of 2007 using its free cashflow.
Posted inDaily Brief
Santana To Head Brazil Regulator
Maria Helena Santana, commissioner of the CVM, Brazil’s market regulator, was tapped by finance minister Guido Mantega to become the president of the commission, replacing Marcelo Trindade, who was expected to step down following a three-year term at the helm of the CVM. Before joining the regulator in 2006, Santana spent12 years at the Bovespa working alongside Raymundo Magliano Filho, the exchange’s president. Speaking on the sidelines of a conference a week ago, Santana told LatinFinance the CVM has recently upped its scrutiny of pre-IPO executive compensation packages and loans from underwriters. She will be the first woman to head Brazil’s market regulating agency.
Posted inWeb Articles
Latin American Banking Leadership Council
During the IDB and IMF annual meetings, LatinFinance gathers board members of the Latin American Banking Leadership Council for an afternoon to foster a greater level of discussion and interaction between senior banking executives active in the region.
Posted inWeb Articles
Brasil: Desempenho Extraordinário & Novas Classes de Ativos
O rápido crescimento econômico do Brasil e a inovação financeira associada estão gerando uma série de novos ativos, tanto financeiros – derivativos, títulos lastreados em ativos – como reais – commodities, bio-combustível e agronegócio. Por sua vez, isso está fomentando o crescimento da quantidade e do tipo de investidores internos, inclusive o rápido crescimento dos fundos hedge e das operações de private equity locais, bem como a maior participação de todos os tipos de investidores internacionais.
Posted inDaily Brief
Linklaters Appoints Bugg for Restructuring
Linklaters has appointed Tony Bugg as global head of restructuring and insolvency, with immediate effect. Bugg has been a partner at Linklaters since 1997. He replaces Robert Elliott, recently appointed global head of banking at the firm.
Posted inDaily Brief
Gerdau Buys Venezuela Producer Zisuca
Brazilian steel-maker Gerdau has agreed to pay $92.5m for Venezuelan steel producer Siderurgica Zuliana the company said in a note to the Brazilian regulator, CVM, Monday. The company has followed an aggressive strategy of acquisitions in recent years adding steel plants in the US, Mexico and Central America. This is Gerdau’s first investment in Venezuela, which has enjoyed economic growth of more than 10% in the past two years, the steelmaker points out.
Posted inDaily Brief
GAP’s Del Rio Heads To Abertis Airports
The departing CEO of Mexican airport operator Grupo Aeroportuario del Pacifico, Carlos del Rio, will become the new chief executive of Spanish firm Abertis Airports, according to a press release from GAP. Del Rio will remain part of GAP as a board member and as a member of the Operating Committee.