CPFL Energias Renovaveis plans to try again to raise funds in the equity capital market after seeing better issuing conditions this year. The renewable energy generation unit of CPFL is looking to sell primary and secondary shares in an IPO to raise funds to develop its project pipeline, according to a regulatory filing. The timing and size remain to be determined, through the issuer was targeting up to BRL1bn ($488m) when it filed last year. BTG Pactual has been added to the bank lineup, joining Bank of America Merrill Lynch and Itau as global coordinators. Banco do Brasil, Bradesco and Morgan Stanley are bookrunners. The sale includes secondary shares to be sold by investors including funds managed by Patria Investimentos, Bradesco and BTG Pactual, as well as Roberto Sahade, a former official of Ersa, the precursor company to CPFL Renovaveis. The issuer has 5,550 megawatts in development or operation and booked Ebitda of BRL504m in 2012, up from BRL85m in 2011.
Category: Equity
Catalans to Slim Down Bank Stake
Grupo Financiero Inbursa is preparing a follow-on equity sale in which CaixaBank will sell some of its holdings in the Carlos Slim owned-bank, according to regulatory documents. The number of shares sold in the all-secondary transaction remains to be set, though the Barcelona-based lender says it is looking at the sale of 10% of the Mexican bank. A 10% position should be worth more than $1.4bn based on Inbursa’s MXP182bn ($14.66bn) market cap. Caixa owns 20% of Inbursa, having bought in to it in 2008. Documents filed Thursday don’t indicate the timing, though a filing this week likely sets the issuer up for a late June or July pricing. The deal is to include both international and Mexican tranches. Credit Suisse, Inbursa and UBS have been hired as global coordinators, with BTG Pactual as bookrunner on the international sale and Citi and BBVA joining on the Mexican portion. Caixa is raising funds to boost its Tier 1 capital.
Mexican Hotel Readies IPO
Mexico’s new ECM issuance pipeline is filling up rapidly, with Hoteles City preparing to become the latest Mexican to IPO. The operator of hotel chains including City Suites and City Express is planning a sale of primary and secondary shares in the US and international markets, according to a prospectus. The size and exact timing remain to be determined, though the documents suggest a June pricing at the soonest. Secondary share sellers include founders and company officials, as well as investors including Wamex the IFC and the IDB. Proceeds from the primary portion will be used for expansion. Bank of America Merrill Lynch, Citi and Morgan Stanley are managing the sale, joined by Actinver on the domestic tranche. Founded in 2003, City claims to have grown at an average of 34% per year since, reaching 71 hotels throughout Mexico at the end of last year, to make it Mexico’s third-largest operator. It booked MXP932m ($75m) revenue in 2012, up from MXP715m in 2011. City joins follow-ons from Inbursa and Fibra Hotel in Mexico’s ECM pipeline.
Mexico ECM pipeline refills
After a record start to 2013, Mexican equity issuers are reloading the pipeline.
Bradesco Injects Cash into MRV Unit
Brasdesco has agreed to make a BRL278m ($136m) equity investment in the Log Commercial Properties e
Participacoes unit of Brazil’s MRV, MRV says. The bank will buy 36.95m new shares. The proceeds will be used for Log’s investment plan to acquire commercial properties. MRV will have a 38% stake in Log going forward.
Pharmacy Wants Equity Boost
Chile’s Farmacias Ahumada is planning an equity capital raise, it says. The pharmacy operator has been approved to add 670m shares. The price remains to be set, though placing the full amount would raise CLP603bn ($1.24bn) if priced at Monday’s CLP900.00 closing price.
Fibra Hotel Plans Return ECM Visit
Concentradora Fibra Hotelera Mexicana is planning to return to the equity markets to raise more than MXP4.0bn ($324m). The hotel real estate fund owned by Grupo GDI and known as Fibra Hotel is planning to follow up its MXP4.14bn IPO in December with the follow-on sale of 170m primary shares, according to regulatory documents. Such a deal would raise MXP5.0bn at Friday’s MXP25.56 closing price, assuming a 15% greenshoe is included. The issuer is planning a May 30 pricing, with both domestic and international tranches. BBVA and JPMorgan are global coordinators, joined by Goldman Sachs on the international portion and Evercore and Banorte-Ixe on the domestic piece. Proceeds will be used for acquiring and developing additional properties, as well as for general corporate purposes. Fibra Hotel has been widely expected to hold a follow-on, following the successful pattern of Fibra Uno, the trust that was the pioneer of the Fibra real estate fund asset class and has been to the market three times to raise more than MXP34bn. FIbra Hotel’s IPO saw 4x demand and placed 44% of the shares abroad. The fund includes 39 operating Mexican hotels and 16 in development, under the Fiesta Inn, One and Camino Real brands, in 22 Mexican states. Fibra Hotel is the first equity issuer to file after a short lull in the Mexican market that followed a very active January-March period. Bankers expect several more deals to appear in the coming weeks.
ICA Looks to Trim Airport Stake
ICA is planning to raise as much as $400m from the sale of shares in Grupo Aeroportuario del Centro Norte (OMA), it says. The Mexican construction company’s Aeroinvest subsidiary has registered a shelf to sell as much as 100m shares, or a 25% stake, of the airport operator. A sale of the full amount would raise MXP4.709bn ($386m) if done at Thursday’s MXP47.09 closing price. Once approved by regulators, ICA could sell the shares at any time during a 3-year period.
Voto Cimentos IPO Adds Banks
Votorantim Cimentos has added a second tier of seven banks to its IPO expected to raise more than $5bn. Banco do Brasil, Banco Votorantim, Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and HSBC have joined as coordinators, according to a prospectus. BTG Pactual, Credit Suisse, Itau, JPMorgan and Morgan Stanley are the global coordinators on the transaction. The exact timing remains to be determined and a price range has not been set. The deal is expected to launch as soon as this month. SEC filings last month indicated a $5.4bn-equivalent size. Primary shares, as well as secondary shares sold by Votorantim Industrial, are on offer. Votorantim Cimentos plans to use half of the primary proceeds for organic expansion and acquisitions, 35% for working capital and 15% for investments to improve existing operations. The issuer has operations on five continents, including business in North Africa, India and China. In LatAm, it has stakes in operations in Argentina, Chile, Bolivia, Uruguay and Peru. It reported Ebitda of BRL3.07bn ($1.55bn) in 2012.
AmBev to Streamline Share Structure
Compania de Bebidas das Americas (AmBev) plans to convert all of its preferred and voting shares into a single class of voting shares, it says. The simplification would result in a new holding company, AmBev SA. The move is designed to simplify the shareholder structure, improve corporate governance, increase the liquidity of shares and increase the flexibility of the company to manage its capital structure. In the proposed transaction, holders will get five new AmBev SA shares for each preferred share or voting share. Holders of ADRs will get five AmBev SA ADRs for each ADR. The deal also includes an increase in the mandatory dividend payout to 40% of profit, up from 35% previously. The matter remains to be voted on by shareholders. AmBev does not indicate timing.