Anima Educacao has set a target of more than BRL500m ($227m) for its IPO, scheduled to price October 24. The Brazilian for-profit education company plans to sell 21.1m primary shares and 4.1m secondary shares at BRL16.50-BRL22.00 each, according to a filing, meaning a BRL543m size at the midpoint if a 15% greenshoe is included. Secondary shares are being sold by a private equity fund linked to BR Investimentos, which bought into the company last year and holds a 30.5% stake. Anima is raising funds to expand organically and through acquisitions. Bank of America Merrill Lynch, HSBC and Itau are managing the sale. Anima booked BRL215m Ebitda in 1H 2013, up from BRL158m in 1H 2012. Its 2012 full-year Ebitda reached BRL324m, up from BRL254m in 2011. It appears Anima and fellow education company Ser are the only Brazilians proceeding with IPOs in the current issuing window, with vehicle services providers Sasacr, Unidas and Ouro Verde filed but not launched. Iron parts manufacturer Tupy is next up to issue, with a follow-on targeting more than BRL600m.
Category: Equity
Sanepar Targets Equity
Sanepar is preparing to raise BRL797m ($360m) in equity capital, it says. The waste water utility backed by the state of Parana plans to place 62.5m shares at BRL12.75 each. It does not yet indicate the timing of the transaction. Bradesco, BTG Pactual, Credit Suisse are working on the process. Sanepar is also on the process of placing BRL300m in domestic bonds.
Gener Targets Additional Funds
Shareholders of AES Gener have approved a $450m equity capital increase, the generator says. The Chilean is looking for proceeds to help fund projects. The move is likely part of an $800m target, according to remarks made by CEO Luis Felipe Ceron cited in wire and local press reports, with the remainder done in the DCM.
Interacciones Launches Re-IPO
Grupo Interacciones is targeting more than MXP4.0bn ($303m) in an equity transaction scheduled to price October 16. The Mexican specialist in public sector and infrastructure lending has a small and illiquid float, meaning the transaction is functioning as a re-IPO. The financial group anchored by Banco Interacciones is offering 30m primary shares and 30m secondary shares at MXP60.00-MXP69.00 each, meaning a MXP4.45bn deal at the midpoint if a 15% all-primary greenshoe is included. The issuer is raising proceeds to expand operations, specifically sub-sovereign and infrastructure lending. Secondary share sellers include controller Carlos Hank and members of his family. The lender expects a free float of at least 31%, with the Hank family taking its stake from 90% to below 70%. The group had MXP140.17bn in assets and the beginning of this year and booked MXP1.41bn in net income during 2012, up from MXP1.34bn in 2011. Barclays and Credit Suisse are global coordinators, with Banorte-Ixe and GBM as bookrunners on the domestic portion.
Mexicans Press Ahead with IPOs
The market backdrop that has challenged bond issuers appears not to deter ECM hopefuls, at least in Mexico, with Grupo Lala moving to price a MXP13.0bn ($990m) IPO October 15, followed by Grupo Interacciones the next day for MXP4.0bn. Lala, the dairy and food products company, is offering 444m primary shares at MXP23.50-MXP27.50, meaning a MXP13.02bn deal at the midpoint if a 15% greenshoe is included. The base deal would result in a 19% free float, with the controllers’ holding going from 69% to 56% after the IPO. Lala is seeking funds to repay bank debt and for its growth plans, which include investments in its existing capacities as well as possible acquisitions in Mexico, Central America and “new geographies.” JPMorgan is global coordinator on the transaction, and is joined by Morgan Stanley and BBVA as bookrunners and Santander, Inbursa, Banorte-Ixe and Banamex as co-managers. Lala joins a growing lineup of issuers hoping to get a deal done this month with 2Q financials and ahead of any market uncertainty later this year and in 2014. Next up in Mexico are the IPOs of Grupo Hoetelero Santa Fe and Fibra Danhos, both scheduled to price Tuesday. Fibra Sendero is the only Mexican issuer with papers filed that hasn’t launched. This contrasts with Brazil, where several issuers have been looking for an October pricing, but so far only a follow-on from Tupy and an IPO from Ser Educacional have set a pricing date.
SMU Approves Capital Raise
Shareholders of Chilean retailer SMU have approved a capital increase that should bring in more than $500m, the retailer says. The plan is for CLP167.33bn ($335m) to come from controller Alvaro Saieh this year, and another CLP111.33bn at some point before October 2016. In total, SMU will sell 1.56bn shares at CLP178.9 each. The retailer is raising funds and selling assets to shore up finances, after it revealed in July reporting errors that showed it had breached debt covenants. SMU bondholders agreed in August to grant a waiver for the covenants, in exchange for a fee equivalent to 1.0% of the face value of their debt. SMU has also agreed to take out a subordinated credit for $300m before the end of the year and is working on the sale of $300m-$400m in non-core assets.
Oi, PT Ready Merger, Capital Raise
Portugal Telecom (PT) and Brazil’s Oi have agreed to merge, the two say, in a transaction that will hinge on the market providing a capital increase of at least BRL5bn ($2.28bn). The deal is motivated by synergies – though analysts are skeptical about the savings involved – and a simplification of Oi’s shareholding structure. In the transaction, PT shareholders will come away with 38% of the combined company, and Oi’s holders 62%. The new Brazil-based entity combining PT and four Oi vehicles is to have a single share class listed on the Novo Mercado, and be led by Oi CEO and former PT CEO Zenial Bava. The deal is contingent on a capital increase of BRL13.1bn-BRL14.1bn, consisting of BRL6.1bn in assets and BRL7.0bn-BRL8.0bn cash. Current shareholders of Oi controller Telemar Participacoes and a BTG Pactual investment vehicle have agreed to subscribe BRL2.0bn, leaving at least BRL5bn for the market to buy, likely in a transaction coming in 1H2014. The two parities estimate the merger should bring synergies of BRL5.5bn. The deal was somewhat expected given the pair’s existing association, Alex Pardellas, analyst at GCD Securities tells LatinFinance, though its speed was surprising. Synergies, liquidity and a better structure are the positives, he adds. “The structure is now much simpler. Telemar Participacoes had very high debts and Oi had to pay a dividend above its capacities,” he says. Pardellas notes a risk of the synergies being less than BRL5.5bn, and of the market’s appetite for the full capital raise. “The BRL5.5bn present value of synergies announced by the firms will be very difficult to realize, as some of the savings will be needed for customer retention and growth efforts,” Morningstar says in a report. The merger should create value, Morningstar says, but the shop’s “enthusiasm is tempered” by the planned rights issue, as European rights issues historically are priced at deep discounts. S&P put Oi’s BBB minus rating on negative watch due to worries about
Banco de Bogota Advances Share Sale
Banco de Bogota’s board has approved the issuance of COP1trn ($530m) in common shares, it says, to partly finance the recently announced acquisitions in Panama and Guatemala. The Colombian bank remains to set the timing and other details. The sale could be upsized by as much as 30%. 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 its Credomatic subsidiary for $411m. Aval also made initial filings earlier this year for an equity follow-on representing the debut of its US ADS shares, which could raise as much as $1bn, and has hired JPMorgan and Goldman Sachs.
Educator Opens Books on IPO
Ser Educacional has launched an IPO targeting more than BRL700m ($315m), with pricing scheduled for October 18. The Brazilian is offering 15.4m primary and 15.4m secondary shares at BRL19.50-BRL23.50 each, according to regulatory documents, meaning a BRL761m deal at the midpoint if a 15% greenshoe is included. The educator focused on Brazil’s rapidly growing North and Northeast is raising funds for acquisitions and organic growth. The sellers in the secondary portion include founder and controller Janguie Diniz. Ser Educacional claims to be the biggest educator in the two regions, and booked BRL85m in Ebitda in 1H 2013, up from 49m in 1H 2012, and BRL90m in all of 2012, up from BRL56m in 2011. BTG Pactual, Credit Suisse, Goldman Sachs and Santander are managing. Peer Anima Educacao has filed for an IPO and awaits a launch as soon as this week. Brazilian iron parts manufacturer Tupy is scheduled to price a follow-on October 16. Mexicans Grupo Hotelero Santa Fe and Fibra Danhos are next up in the region, scheduled to price IPOs October 8.
Alfa Aims for Sigma IPO
Mexico’s Grupo Alfa is considering an IPO for the Sigma Alimentos unit, it says, in line with what company officials previously indicated was in the company’s plans. The conglomerate does not give any indication of timing, but notes it is working with Citi, Goldman Sachs, Bank of America Merrill Lynch and Banorte-Ixe. In April of 2012, Alfa’s Alpek petrochemicals unit raised almost $800m in what was Mexico’s first IPO in nearly a year. Since then, however, the market has opened up, with seven IPOs so far this year, and two – Fibra Danhos and Hoteles Santa Fe – in the pipeline and scheduled to price next week.