Category: Economy & Policy

Spain-based Telefonica will start a roadshow tomorrow to try and convince shareholders of Portugal Telecom (PT) to accept its offer for a stake in Vivo Participacoes, confirms a source close to the potential buyer. “Telefonica has always said that its offer made is a fair one. Now it will explain this to the shareholders,” he says. Telefonica on May 6 offered to acquire a 50% stake in Brasilcel, the controlling shareholder of Vivo Participacoes, for EUR5.7bn in cash. PT rejected the offer, saying Vivo is part of long-term growth plans. Brasilcel, which has 60% of Vivo, is 50% owned by Telefonica and 50% by PT. Telefonica says it will launch a tender offer to buy all Vivo shares not held by Brasilcel, for EUR600m. This represents 11.1% of all ordinary shares and 3.8% of Vivo’s total capital stock, says Telefonica. The price per common share is equivalent to 80% of the value attributed to each share owned by Brasilcel. The offer expires June 6. Credit Suisse has said it believes the offer is positive for Vivo shareholders by establishing a reference price that is 2.4x higher than market.

Colombian development bank Bancoldex has sold COP382.4bn ($188.8m) in local bonds. The issue was done in 3 series. A COP203.3bn 18-month piece pays 0.89% over DTF, a COP110.6bn 24-month piece pays 1.00% over DTF and a COP68.5 36-month piece pays 1.15% over DTF. Total demand was COP562.9bn, according to the issuer. The notes are rated AAA by BRC Investor Services and Duff & Phelps. Proceeds will be used for working capital. Bancoldex self-led the sale.

Colombian development bank Bancoldex is planning to issue COP1trn ($492m) in 5-year local bonds pegged to the DTF. The notes are rated AAA by BRC Investor Services and Duff & Phelps. Proceeds will be used for working capital. Bancoldex will lead the sale itself.

Portugal Telecom (PT) has rejected Telefonica’s offer to acquire a 50% stake in Brasilcel, the controlling shareholder of Vivo Participacoes, for EUR5.7bn in cash. PT says Vivo is part of long-term growth plans. Brasilcel, which has 60% of Vivo, is 50% owned by Telefonica and 50% by PT. Telefonica says it will launch a tender offer to buy all Vivo shares not held by Brasilcel, for EUR600m. This represents 11.1% of all ordinary shares and 3.8% of Vivo’s total capital stock, says Telefonica. The price per common share is equivalent to 80% of the value attributed to each share owned by Brasilcel. The offer expires June 6. Credit Suisse says it sees the offer as positive for Vivo shareholders by establishing a reference price that is 2.4x higher than the current market price. “The Telefonica offer should be a positive catalyst for Vivo shares by underscoring their highly discounted valuation and the strategic value of Vivo to its controlling shareholders,” the shop says. Credit Suisse has an outperform rating on Vivo. Vivo’s common shares closed Tuesday at BRL58.30, up 34% on the day, according to the Bovespa.

BBVA Bancomer has raised MXP10bn from the sale of a 364-day CD, changing tack from a planned certificados bursatiles sale in Mexico’s local market. The interest on the CD is the TIIE benchmark rate, according to an official familiar with the transaction. The bank, rated AAA on a national scale, was originally planning to do a 3-year deal of around MXP2bn-MXP3bn, but opted to raise more at a shorter tenor.

NR Finance, an auto lender catering to Nissan and Renault buyers in Mexico, has sold MXP2bn in the domestic bond market. The 2012 bullet notes will pay the TIIE benchmark plus 95bp. Proceeds will support NR’s lending capabilities. The issue is the fifth from a MXP10bn 5-year shelf. BBVA Bancomer managed the sale, rated AA+/Aa1 on a national scale.

Santander’s Mexican unit recently raised MXP5bn from a domestic 3-year bond. The bank priced the issue at the TIIE benchmark plus 12bp. Proceeds from the deal rated AAA on a national scale support the bank’s liquidity positions. Santander and Banamex managed the sale.

Mexico’s Fonacot has raised MXP1.95bn through the sale of floating-rate bonds in the domestic market. The 2013s pay TIIE plus 40bp. The state-backed lender plans to use proceeds to add to its lending capability. Scotia and BBVA Bancomer managed the sale, rated AAA on a national scale.

Pemex is preparing to sell up to MXP20bn in bonds on Mexico’s domestic market. The state-owned oil company has the option to spread the amount between a new 4-year bond paying a spread over TIIE and reopening 2 series from a previous deal – a 9.1% of 2020 fixed-rate issue and a 4.2% of 2020 UDI-denominated deal. The sale is expected the week of May 17, according to bankers on it. Proceeds are marked for the refinancing of debt and capex. BBVA Bancomer, Banamex and HSBC are managing the sale, rated AAA on a national scale. In March, Pemex sold MXP5bn in the fixed-rate tranche and MXP2bn in the UDI notes. The MXP15bn deal also included MXP8bn in 5-year bonds paying TIIE plus 70bp. Demand for the 3-part offer reached MXP36bn.

Aeropuertos Argentina has raised $42m from a domestic bond sale. The airport operator sold $7m in 2013 bonds at Badlar plus 3.85bp, $29m in 11% of 2020 bonds and $6m in 10% bonds from a separate 2020 series. Proceeds from the sale will refinance $22m in bank loans and fund about $128m worth of capex, according to Moody’s. Banco Macro is managing the sale, rated Aa2 on a national scale.