Grupo Santo Domingo, which holds a 14% stake in SABMiller, has agreed to inject EUR100m in equity into Spanish real estate manager and developer Inmobiliaria Colonial. The Spanish firm is in the process of restructuring its debt. The capitalization will be at a maximum price of EUR0.50 per share comes with a number of conditions, including that the developer refinances a syndicated loan with a longer tenor. Colonial’s shares closed at EUR0.87 on Wednesday.
Category: Equity
Posted inDaily Brief
Gigante files for Office Depot Mexico IPO
Grupo Gigante has filed for an IPO of Office Depot de Mexico, mandating BBVA Bancomer and Credit Suisse. The all-secondary sale comes after Grupo Gigante took full control of the firm in June last year, buying the 50% of the Mexican retailer that it did not own from Office Depot for MXN8.77bn ($691m). Gigante took out a $342.9m bridge loan to fund the acquisition. It has repaid half of that, and plans to use funds raised in the IPO to repay the remainder. Office Depot Mexico, had an ebitda of $87.8m in the first 9 months last year, according to a regulatory filing. The firm, established in 1995, has retail outlets in Central America and Colombia as well as Mexico.
Posted inDaily Brief
Latam Airlines sells rump
BTG Pactual, Credicorp Capital and JPMorgan are due to close books tomorrow on a sale of the 10.3m shares unsold in Latam Airlines Group’s December rights offering. The deal could raise $156m, if all shares are sold at the $15.17 minimum price. That equals the sale price in the firm’s rights offering. In the December sale, the firm raised $784m when stockholders subscribed to 51.7m shares, 83% of the total available. The transaction was opened on Tuesday.
Posted inDaily Brief
Hopes high for share sales in 2014 despite fund outflows
After the busiest year for Latin American equity sales since 2010, some are optimistic about the year ahead. Despite outflows of $4.3bn in global EM equity funds tracked by EPFR in the two weeks to December 20 — and $15.6bn of outflows over the year — other investors have continued adding to their allocations, according to analysts at Barclays. Data from eight major emerging markets indicates total net foreign equity inflows of $23bn between August and December, a divergence likely attributable to the high proportion of retail accounts in the fund flow data, the investment bank says. “We interpret the total equity flows and equity fund flow data as meaning that retail-type foreign investor sales are being met by net purchases from other foreign investors,” says Barclays. “These could be private institutional, quasi-public, and private wealth buyers whose actions are difficult to capture in conventional fund flow data.” The analysis gives optimism after a busy year in the equity markets in Latin America, although one with middling performance: EM equity funds lost 1.77% of their value in the year to December 19 — those focused on LatAm lost 14.72%. Global small and mid-caps performed better, gaining 25.6%. “We are heading into the fifth year of very volatile market conditions. The window of opportunity for new issuers to hit the market has been narrow,” Fabio Nazari, head of ECM at BTG Pactual, tells LatinFianance. While these windows will test issuers from all regions, the particular challenges facing Brazil could offer opportunities for Mexican or Andean companies to raise capital. Companies from the region raised $33.93bn in 2013 through December 20, according to Dealogic, the most stock sold since 2010. The volume comes from 79 transactions, and is up from the $24.18bn raised in 2012 from 71 deals. Itau appeared to squeak in to the lead among bookrunners as of December 20, with $3.66bn. BTG Pactual was second with $3.46bn and Credit Suisse third with $3.4bn. BB S
Posted inDaily Brief
Latam Airlines bags $784m in capital raise
Latam Airlines closed its rights offering on December 19 to raise $784m, 83% of the total available. Stockholders subscribed to 51.7m shares — of 62m offered — at $15.17 each. The bulk of the unsubscribed rights corresponded to the Amaro Group. Latam Airlines says the unsold shares are likely to be sold into the market “as deemed opportune”. Most of the follow-on — 93% — was sold in local shares. ADRs represented 6% of the sale, and BDRs, 1%. The price, fixed in November, was a 7.5% discount to the weighted average price over the eight days before the deal was announced. The airline is raising funds for fleet enhancement and other purposes. JPMorgan was global coordinator and BTG Pactual and Credicorp joint bookrunners.
Posted inWeb Articles
Hopes high for share sales in 2014 despite fund outflows
Renewed optimism in the wake of busiest year for Latin American equity sales since 2010
Posted inDaily Brief
Banco de Bogota Completes Follow-on
Banco de Bogota has completed the sale period for a COP1.3trn ($670m) equity follow-on, it says, upsizing to the maximum amount. The bank sold 20.6m shares at a COP63,000 per-share price set at the beginning of the sale period. The shares closed at COP66,780 Thursday. Banco de Bogota managed the sale itself. Parent Grupo Aval agreed to pay $646m for BBVA Panama in July, and in June Banco de Bogota agreed to buy Grupo Financiero Reformador in Guatemala through the Credomatic subsidiary for $411m. Aval is itself holding a COP2.41trn follow-on open through January 9, with some of the funds going toward its participation in Banco de Bogota’s sale.
Posted inDaily Brief
Itau Readies RE Fund for New SP Office
Itau is preparing to raise BRL727m ($312m) in Brazil’s fundo de investimento imobiliario (FII) market, according to the CVM. The Faria Lima 3.500 FII is a real estate fund owning a single office building asset in Sao Paulo – to be leased to Itau’s Itau BBA investment banking arm and other tenants. The marketing should begin in February, with order books closing in March. Itau is managing the transaction, administrated by its Intrag arm. The volume of FII issuance in 2013 should approach BRL9bn, Itau says in the offering materials, compared to BRL14bn in 2012.
Posted inDaily Brief
Aval Opens Follow-on
Colombia’s Grupo Aval has opened the subscription period for an equity follow-on targeting COP2.41trn ($1.25bn), according to regulatory documents. The financial group is offering 1.86bn common shares at COP1,300 each through January 9. Existing holders will be allowed to subscribe 0.14 shares per share held, and are expected to make up a large part of the sale. This is seen as driving the issuer’s choice to not use the SEC process for which it registered earlier this year, and opt for a more easily completed domestic deal, in which the issuer has better control over price. Corficolombiana is leading the transaction, joined by Casa de Bolsa, BTG Pactual, Citi, Credicorp, LarrainVial and Serfinco. Aval is funding a busy M&A agenda, having completed in April the purchase of BBVA’s Horizonte Colombian pension operation for $530m, and is working on closing the $411m purchase of Guatemala’s Reformador and the $646m purchase of BBVA Panama. Separately, Aval’s Banco de Bogota subsidiary is scheduled to close the books Wednesday on a COP1.0trn follow-on of its own. Aval is expected to use some of its proceeds to replace funds used to subscribe to the Banco de Bogota transaction.
Posted inDaily Brief
Aval Defines FO
Colombia’s Grupo Aval has set terms for what should be a COP2.41trn ($1.25bn) equity follow-on. The financial group plans to offer 1.86bn common shares at COP1,300 each. The common shares closed at COP1,280 Thursday. The issuer does not yet define the timing for the sale, though the price is typically set in Colombian ECM transactions immediately before the opening of the subscription period. Existing holders will be allowed to subscribe their rights, and are expected to make up a large part of the sale. This is seen as driving the issuer’s choice to not use the SEC process for which it registered earlier this year, and opt for a more easily completed local sale, in which the issuer has better control over price. Aval is funding a busy M&A agenda, having completed in April the purchase of BBVA’s Horizonte Colombian pension operation for $530m, and is working on closing the $411m purchase of Guatemala’s Reformador and the $646m purchase of BBVA Panama. Separately, Aval’s Banco de Bogota subsidiary is scheduled to complete a COP1.0trn follow-on of its own December 18. Aval is expected to use some of its proceeds to replace funds used to subscribe to the Banco de Bogota transaction.