Controller Eike Batista has sold 49.8m OGX shares, or a 1.54% stake, OGX says, meaning he has sold a position equal to 5.67% of the EBX group oil producer since March. He plans to sell at least another 5% of his current position, though he will keep his holding above 50.01%. “The sales are part of a continuous process of improving the capital structure, and have the objective of meeting certain financial obligations with EBX creditors,” OGX says. The sale of 49.8m shares would be worth BRL25m at Thursday’s BRL0.50 closing price. OGX bondholders are awaiting a restructuring offer, expected as soon as September, which could feature equity exchanged for debt. Investors representing at least half of OGX’s 2018 and 2022 bonds have formed a group, hiring Rothschild, Cleary Gottlieb and Pinheiro Neto to advise them. Analysts expect OGX to run out of cash this year, and see a restructuring offer as a likely outcome.
Category: Equity
Mall Developer Preps Fibra
Mexican developer Grupo Acosta Verde is preparing a new shopping mall-focused real estate fund for Mexico’s Fibra market, according to regulatory documents. The fund, to be known as Fibra Sendero, will start with 10 operating malls spread throughout five Mexican states, and aims to acquire land to develop six more. The size and timing remain to be determined. Sendero’s malls are focused on the middle and lower-middle classes, also known as C and D classes. BBVA and JPMorgan are global coordinators on the sale, with UBS also on the international portion and Banorte-Ixe managing the local portion. Sendero joins a Fibra from commercial developer Grupo Danhos in the pipeline targeting a September-October IPO. The most recent FIbra to price in Mexico, Fibra Shop, was also focused on malls and raised $437m-equivalent in July. The deal came at the bottom of the price range and had traded down 3.1% from the offering price as of Wednesday’s close.
Batista to Sell OSX Shares
Eike Batista plans sell up to $50m in shares of shipbuilder OSX Brasil, using proceeds from the sale to fulfill part of a $1bn put option, OSX says. The public sale would also serve to keep OSX’s free-float above a required 25% minimum. Batista will maintain his stake in the company above 50%. About $330m remains on the $1bn put option, which was part of OSX’s 2010 IPO, and can be exercised through March 2014.
Brazilian Educator Files IPO
Brazilian for-profit educational operator Ser Educacional has filed documents for an IPO likely to be attempted during the September-October window. The exact size and timing remain to be set for the transaction, which is to include primary shares and secondary shares sold by holders including founder and controller Janguie Diniz, according to regulatory documents. The educator focused on Brazil’s rapidly growing North and Northeast is raising funds for acquisitions and organic growth. Ser Educacional claims to be the biggest educator in these two regions, and booked BRL85m ($36m) 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. Fellow educator Anima Educacao is also expected to file soon. They would join a pipeline featuring IPOs from vehicle services companies Ouro Verde, Unidas and Sascar, and a follow-on from auto parts manufacturer Tupy.
Caixa Preps Petrobras FII
Brazil’s Caixa Ecnomica Federal is preparing a BRL789m ($332m) fundo de investimento imobiliario (FII) transaction, anchored by a property used by Petrobras, according to the CVM. The Cidade Nova FII will target 100% of a special purpose vehicle (SPV) holding the Edificio Cidade Nova building, home to the state oil company’s corporate training center. The transaction is contingent on raising enough funds to cover 100% of the SPV. The timing for the closing remains to be determined. Caixa is managing the sale itself.
Ventura Launches Maxcom Offer
Ventura Capital Privado has opened its offer for the outstanding shares of Maxcom Telecomunicaciones, according to regulatory documents, a part of the Mexican telecom’s bankruptcy process. In an offer that could total as much as MXP764m ($59m), the private equity firm is offering MXP0.97 per class A share, MXP2.90 per CPO share and MXP20.30 per ADS. Each ADS represents seven CPOs, and each CPO represents three A shares. The offer expires September 26. Maxcom filed last month for bankruptcy in the US, it says, advancing its debt restructuring plans. Holders representing more than 98% of the Mexican Telecom’s 11% 2014 bonds accepted the plan. Maxcom sees an emergence from Chapter 11 by “early fall.” Ventura has also agreed to put in $45m cash into Maxcom. All creditors will be paid in full under the its plan, except for the 2014 holders, who are to receive 2020 step-up notes plus cash for unpaid interest. Maxcom will issue up to $200m of the 2020s, which pay interest starting at 6% and step up to 8%. Lazard is advising Maxcom.
American, Mexican Team up for Hotel CCD
US hotel-focused private equity firm Brilla Group and Mexican real estate investor IGS are preparing a certificado de capital de desarrollo (CCD) transaction in Mexico’s domestic market, according to regulatory documents. The BRI-IGS fund created will invest in hotel assets throughout Mexico. The target size, to be reached through capital calls, remains to be determined. The fund plans to spend five years making investments and five years exiting. Investors are to receive the principal invested plus a 10% preferred return, with remaining profits divided 80%-20% between investors and the managers. The managers expect an 18% return overall. Actinver is managing the transaction, for which the timing remains unclear. The deal would be the first real estate CCD focused on hotels, and follows several hotel plays appearing in Mexico’s public equity markets, all to take advantage of the increasing domestic travel forested along with expected GDP growth.
Manufacturer Reboots Equity Plan
Brazil’s Tupy has restarted plans for an equity follow-on, according to the CVM, after postponing earlier this year a deal expected to raise as much as BRL1bn ($410m). The iron parts manufacturer plans to offer primary shares, as well as secondary shares owned by BNDES and the Previ and Telos pension funds. The exact target size and timing has not been indicated, though a refiling now would have it ready to hit the September-October window if market conditions allow. Banco do Brasil, Brasil Plural, BTG Pactual, Citi and Itau are managing the sale, with Brasil Plural added since the first attempt. Tupy is looking for funds to invest in expansion and in projects that will help lower its costs. The auto parts specialist operates in Brazil and Mexico, and booked BRL337m in Ebitda in 2012. There are several Brazilian deals in the pipeline hoping for a reduction in the volatility seen recently and the negative headlines surrounding Brazil’s economy. Airline Azul postponed its plans earlier this week. Vehicle services companies Ouro Verde, Unidas and Sascar have all filed for IPOs. Other debutants expected to file soon include education companies Grupo Ser, via BTG Pactual, Credit Suisse, Goldman Sachs and Santander, and Anima Educacao, with Bank of America Merrill Lynch and Itau.
CCU Sets Pricing Target
Chilean beverage company Compania Cervecerias Unidas (CCU) is expected to determine the price for its equity follow-on of up to CLP340bn ($660m) September 13. The issuer plans to close books on the portion of the transaction done through a bookbuilding operation September 12, according to regulatory documents, meaning the price should be disclosed September 13. The bookbuilding portion accounts for 22.6m of the 51m primary shares on offer, with the remaining 28.4m to be sold in a preferential rights period for existing holders open from September 13 to October 4. The 22.6m CCU shares sold in the first portion represent rights to shares waived by controller IRSA. IRSA, owned equally by Heineken and the Luksic family’s Quinenco vehicle, should control 60% of the company post-float, with the market holding the rest. The 51m shares would raise CLP354.71bn at Wednesday’s CLP6,955 closing price. CCU is raising funds for organic growth and acquisitions. The issuer has been meeting investors since this week. JPMorgan, Citi, Deutsche Bank, and Goldman Sachs are managing the international portion, which will include shares sold in the form of ADR. LarrainVial and BanChile are handling the local portion.
CCU Heard Meeting Investors
Compania Cervecerias Unidas (CCU) is meeting with equity investors this week, according to a person familiar with the preocess. The Chilean had previously hired JPMorgan, Citi, Deutsche Bank, and Goldman Sachs for an international portion of an equity follow-on, with LarrainVial and BanChile handling a local portion. The Chilean beverage company is working under an approval for a CLP340bn ($661m) equity capital raise to help fund expansion plans, and planned to issue 51m shares. The new funds are an important move for the Chilean beverage company, say people familiar with its plans, and will allow it to finance growth, including increasing production. CCU plans to invest CLP1.35bn through 2020, and is also preparing to tap the domestic bond markets. In April, CCU registered up to UF10m ($454m) in domestic bonds, a shelf to be used in the event of non-organic growth needs, according to a person familiar with the registration.