LLX Logistica is looking at business opportunities or transactions involving its assets and securities, the company says. The firm posted a BRL14.6m ($6.68m) pre-tax loss in the first quarter, having fallen 25% year on year. The news from the Eike Batista-run firm follows a similar announcement from miner MMX Mineracao e Metalicos, which said Monday it was considering selling shares belonging to controlling shareholder Eike Batista or assets. Meanwhile, OSX raised BRL183m from the sale of 4.5m shares at BRL40.14, in an offering to shareholders with preemptive rights which closed Monday. The firm’s shares were up nearly 19% on the day Wednesday, closing at BRL1.59.
Category: Equity
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Caixa Nabs MXP12.5bn from Inbursa Offer
Mexico’s Grupo Financiero Inbursa’s all-secondary follow-on equity sale raised MXP12.5bn ($947m) Tuesday. CaixaBank sold 482m shares, including a 15% greenshoe, at MXP26 on Tuesday. That level was a 1.21% discount to Tuesday’s closing price, and matched the price at which Caixa sold a 3.7% stake in the firm to Carlos Slim’s Inmobiliaria Carso earlier this month. Details on investor demand were not available Tuesday evening. Credit Suisse, Inbursa and UBS were global coordinators, with BTG Pactual bookrunner on the international portion, and Citi and BBVA on the Mexican sale.
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ICA Postpones OMA Offer
Mexican construction firm Empresas ICA postponed a planned secondary offering of up to 95m shares in Grupo Aeroportuario del Centro Norte (OMA) Tuesday, citing volatile markets. OMA shares were trading at MXP37.97 at Monday’s close, nearly 20% down from their MXP47.09 level when ICA filed a shelf for the sale mid-May. The IPC has fallen around 10% over the same period. Investor demand was sufficient for OMA’s all-secondary follow-on to go ahead, but ICA decided to wait for a better price, LatinFinance understands. ICA holds its stake in OMA through subsidiary Aeroinvest. Bank of America Merrill Lynch, BBVA and Santander managed the sale.
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Vesta Trims Follow-On
Corporacion Inmobiliaria Vesta’s follow-on equity sale raised MXP2.49bn ($189m) Tuesday, less than planned after one secondary seller opted out. Investors bought close to 98m primary shares and 12.8m secondary shares at MXP22.5, a 4.9% discount to Vesta’s MXP23.67 closing price. The sale of secondary shares was smaller than the 44.5m initially planned, after the real estate investment arm of German savings bank Deka decided not to sell its stake. The rest of the secondary portion came from DEG, a private sector financing arm of German development bank KfW, which went ahead with its sale. Investors submitted orders for around twice the 110.7m shares that were sold. The follow-on was priced above the MXP19 where Vesta sold its $250m-equivalent IPO in July last year, but below the MXP25.49 where the stock was trading when Vesta announced the follow-on last month. Credit Suisse and Santander managed the transaction.
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Volatility hits Mexico as OMA, Vesta follow-ons knocked
Volatility hit Mexico’s equity markets this week as a follow-on equity sale was postponed and another cut in size following a drop in share prices amid the renewed turmoil.
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Inbursa, OMA, Vesta Follow-Ons Set to Price
Grupo Financiero Inbursa, Corporacion Inmobiliaria Vesta, and Grupo Aeroportuario del Centro Norte (OMA) are set to press ahead with MXP-denominated equity follow-ons today, despite worsening market conditions, say people familiar with the deals. Corporacion Inmobiliaria Vesta is targeting more than MXP4bn ($309m) from its follow-on, which is set to comprise 120m primary shares and 44.5m secondary shares, assuming a 15% greenshoe. The transaction would raise MXP41bn if the deal is executed with a greenshoe at Monday’s MXP25.1 closing price. Credit Suisse and Santander are managing the deal. Inbursa plans to close books and set the price on an all-secondary sale of shares belonging to CaixaBank. It will sell 482m shares, assuming the greenshoe is filled, which would generate MXP13.2bn at Monday’s MXP27.09 closing price. Credit Suisse, Inbursa and UBS are global coordinators, with BTG Pactual bookrunner on the international portion, and Citi and BBVA on the Mexican sale. OMA’s follow-on is also an all-secondary transaction. The Aeroinvest subsidiary of construction firm ICA is selling 95m OMA shares, assuming a 15% greenshoe. The deal would raise MXP3.6bn at Monday’s MXP37.97 closing price. The company expects to sell 57m shares internationally and 38m to Mexican investors. Bank of America Merrill Lynch and BBVA are managing the sale, joined by Barclays and Morgan Stanley on the international tranche and Santander on the domestic.
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Mexico Targets 2014 MILA Membership
The Mexican Stock Exchange is targeting a 2014 inclusion into the Integrated Latin America Market (MILA), says Mexico Stock Exchange general director, Pedro Zorilla. “Mexico is serious about becoming a part of MILA and offers multiple asset classes and liquidity,” he says. Inclusion in the partnership is subject to legal adjustments and authorization of Mexican regulators – with approval expected as soon as this year, Zorilla says. MILA members – the Santiago Stock Exchange, Bolsa de Valores de Lima, and the Bolsa de Valores de Colombia – welcome Mexico’s inclusion. “If Mexico joins MILA it will add significant critical size. You have the Brazilian market as a big and liquid and respectable market and you will have MILA as an alternative. If you are an investor and look at LatAm you will have two clear alternatives to invest in,” says Juan Pablo Cordoba, CEO of the Colombian Stock Exchange. “Mexico is working on legal changes and we hope the process will be approved this year so we can start the process of integration next year,” adds Jose Antonio Martinez, CEO of the Santiago Stock exchange. Currently, MILA has 552 listed companies, with a stock market value of $703bn. All panelists spoke at the MILA Day in New York.
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MILA to Add Fixed Income
The Integrated Latin American Market (MILA) expects to include fixed income trading from 2015, say stock exchange heads. Similarities across equity issuances in different markets made it easier for MILA to begin as a joint share trading platform, between Chile, Colombia and Peru. “The fixed income markets are much more complex,” says Juan Pablo Cordoba, CEO of the Colombian Stock Exchange. Jose Antonio Martinez, CEO of the Santiago Stock Exchange, notes that the fixed income markets are more local and more sophisticated. The countries will have to standardize their debt markets, he says. “It’s a matter of having enough capacity to deal with it all at the same time,” says Lima Stock Exchange CEO Francis Stenning. All spoke at the MILA Day in New York.
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Vapores Moves Forward with Equity Raise
Chilean shipping and port operator Sudamericana de Vapores has filed for a $478m equity transaction, according to the SVS. The Grupo Luksic-controlled is looking to issue up to 6.45bn common shares, following shareholder approval earlier this year. It is raising funds to purchase new vessels and prepay a $260m loan from American Family Life Assurance Company. It also planned to use a loan of up to $140m with Bladex to prepay the debt. The timing remains to be set.
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Chileans Move to Join Equity Pipeline
Latam Airlines and Compania Cervecerias Unidas (CCU) have both hired banks to mange upcoming equity follow-ons. The recent volatility has dampened the hopes of Brazilian issuers and IPOs, but bankers remained confident about the prospects of follow-ons from well-known issuers, particularly from the underrepresented Andean markets. Latam previously indicated a $1bn raise through the issue of 63.5m shares. The carrier formed from the merger of Lan and Tam has selected BTG Pactual and JPMorgan as international bookrunners, according to people familiar with the process. BTG’s Celfin is on the Chilean domestic portion, with perhaps another Chilean to be named later. The airline is said to be planning Chilean, US ADR and Brazilian BDR portions. The timing for the sale remains to be determined. Proceeds are destined for fleet enhancement. Separately, CCU has named the banks for its planned CLP340bn ($660m) equity capital raise, it says. The Chilean has hired JPMorgan, Citi, Deutsche Bank, and Goldman Sachs for the international portion. LarrainVial and BanChile are handling the local portion. The beverage company plans to issue 51m shares and timing remains to be determined. The new funds will allow it to finance growth, including increasing production. CCU plans to invest CLP1.35bn through 2020. This week, the MXP11.0bn Inbursa follow-on sale of secondary shares owned by CaixaBank is up next in the pipeline, joined by the MXP4.0bn OMA sale of secondary shares owned by ICA and a MXP4.4bn follow-on from Vesta. All three are scheduled for Tuesday. Beyond that, the market is waiting for others to launch – with follow-ons from Grana y Montero and Banorte being the most likely to move ahead, bankers say.