Chile’s Enersis has opened the preferential subscription period for its equity capital increase, it says, the first phase of a process targeting a total of CLP2.84trn ($6.02bn). It has also started meeting investors on a US, European and LatAm roadshow. The holding vehicle for certain LatAm electricity sector units of Spain’s Endesa is offering 16.44bn shares at CLP173 each. The process is to eventually include the sale of ADRs in the US. During the preferential period, existing shareholders may buy 0.5 new shares per share already held, through March 26. JPMorgan, Celfin, BBVA, Santander, Larrain Vial, Banchile and Bank of America Merrill Lynch are managing. The controversial sale was approved in December, after months of back and forth with regulators and minority investors. Endesa plans to subscribe its portion of the transaction with its LatAm assets that don’t already belong to Enersis, and needed negotiations with Chilean pension funds and multiple outside evaluations to reach agreement on the assets’ value. The process will raise funds for acquisition opportunities and streamline Endesa’s operations in LatAm by placing all of its holdings under Enersis. Enersis shares closed at CLP179.78 Monday.
Category: Equity
Multiplan Timing Emerges
Brazil’s Multiplan is to begin investor meetings March 15 ahead of an equity follow-on targeting more than BRL550m ($279m), with pricing scheduled for April 4. To raise funds for growth, the mall operator is planning on selling 10.4m shares, assuming a 15% greenshoe, according to regulatory documents. This would indicate a BRL582m deal based on Monday’s BRL55.96 closing price. A 20% hot issue would also be possible. Bank of America Merrill Lynch, Bradesco, BTG Pactual, Credit Suisse and Itau are managing. Multiplan’s last widely-marketed visit to the ECM was in 2009, raising BRL670m, which it followed with a BRL122m accelerated bookbuild in 2010.
Sempra Energy to Float Mexican Unit
Sempra Mexico is planning to IPO, it says, in what would be the country’s first public equity offering in the energy sector. The size remains to be determined, but the carve-out sale should represent 15%-20% of its capital. Pricing has tentatively been scheduled for March 21, according to a prospectus. Citi, Credit Suisse and Deutsche Bank are managing the local and international portions, joined by BBVA Bancomer on the domestic tranche. The unit of US-based Sempra Energy specializing in gas transportation and distribution and electric generation is seeking funds for general corporate purposes, investments and expansion. The issuer raised MXP5.2bn ($412m) in 2018 and 2023 domestic bonds February 13, the first Mexican local bond deal by a non-government energy sector entity. In October, Sempra Mexico won a 25-year contract to build and operate a pair of gas pipelines in the state of Sonora, which should require a $1bn investment. Sempra operates five gas pipelines and a regasification terminal in Mexico, and derives about 60% of its revenues from CFE contracts.
Biosev Changes up Banks for Second IPO Attempt
Biosev has hired BTG Pactual, Banco do Brasil, Bradesco and JPMorgan to manage its next attempt at an IPO, according to a prospectus. The lineup keeps BdB, Bradesco and JPMorgan from last year’s try, while adding BTG and removing Banco Votorantim, Itau and Santander. The Brazilian sugar, ethanol and bioenergy unit of Louis Dreyfus Commodities still does not indicate size or timing. Biosev pulled a first attempt at a deal last year in July, after it was unable to get demand within its price range. It was targeting about $350m-$400m-equivalent.
Tupy Eyes April FO
Brazil’s Tupy is targeting an April pricing for its equity follow-on, according to a regulatory filing, following a roadshow that it expects to begin in March. The iron parts manufacturer plans to offer primary shares, as well as secondary shares offered by BNDES and the Previ and Telos pension funds. A size has not been indicated. Banco do Brasil, BTG Pactual, Citi and Itau are managing the sale.
MMX Adds to Rights Offer
MMX Mineracao e Metalicos has closed the latest stage of a rights offering, the Eike Batista-controlled miner says. It raised BRL181m ($92m) through the sale of 46m shares at BRL3.92 each. This follows the BRL774m raised in a previous round closed last month. Shares closed Wednesday at BRL3.16 each. Batista bought 31m shares in October, taking his position in the company to 46.4%.
Prudential Joins Fibra Pack
Prudential Real Estate Investors has added its name to those seeking a Fibra Mexican real estate trust, according to regulatory documents. The trust, to be known as Terra, will initially contain 132 industrial properties and 14 properties in development. The size of the transaction has not been determined. The issuer is targeting the week of March 19 for pricing. Proceeds would provide funds to repay debt and for working capital. Citi and HSBC are managing.
Uruguayan Farmer Gets Private Funds
Uruguay’s Union Agriculture Group has raised $110m in fresh equity through a private transaction, it says. The landowner and producer of crops and meat plans to use the proceeds for expansion. The buyers included new institutional investors and existing shareholders. Union has relied on private funds for financing, after finding entry into the public equity space tricky. It pulled an IPO targeting $200m in 2011.
Fibra Inn Revs Up
Mexico’s Fibra Inn has started investor education meetings for its IPO, according to people following the sale, ahead of pricing that could come as soon as the second week of March. The size and exact timing remain to be determined for what would be the second Hotel-based fund in Mexico’s Fibra real estate trust asset class. A size similar to the first, Fibra Hotel, is expected. The Fibra real estate fund put together by Hoteles Prisma includes eight Holiday Inn and Hampton Inn hotels, and will use proceeds from the IPO to buy more. Like Fibra Hotel, the properties offer a play on the steady growth expected for business travel between Mexico’s cities, rather than the more cyclical tourism industry. Actinver, Credit Suisse and Santander are managing. In December, Concentradora Fibra Hotelera raised MXP4.14bn ($318m) in for its Fibra Hotel IPO that drew 4x demand and went 44% to foreigners. The most recent Fibra transaction was the well-bid $1.7bn follow-on from Fibra Uno, which showcased the growing popularity of Fibras among the buyside.
Safra Readies FII
J Safra’s asset management arm is preparing a BRL201m ($103m) real estate fund for Brazil’s domestic Fundo de Investimento Imobiliario (FII) market, according to regulatory documents. The JS Real Estate Receibiveis Imobiliaros FII plans to invest in properties, as well as real estate-linked securities including Certificados de Recibiveis Imobiliarios (CRI) or Letras Hipotecarias (LH). The bank plans to begin meeting investors and taking orders Friday, and wrap up by early April. Safra is the administrator of the fund and will also manage the sale of the shares.