Category: Equity

Macquarie’s Mexican real estate trust plans to return to the ECM, its CEO says, as it seeks funds to make additional acquisitions. “The plan is for this Fibra to be diversified, and have assets in office, industrial and retail. These sectors have a good potential for growth during the next 5-10 years,” Jaime Lara, CEO of the Macquarie fund, tells LatinFinance. Acquiring these properties will require a follow-on sale to replenish funds raised in December’s 14.95bn ($1.17bn) IPO, he explains, though the exact size and timing remain to be determined. The fund counts 244 properties, mostly in the industrial space, and is focusing on acquisitions in office and retail space. There is no specific target for the amount to be spent on acquisitions, though Lara notes they are looking at both large portfolio holders and individual property owners to approach. “There is currently a good amount of properties that are in private hands, by small-size and mid-size privately-controlled groups. At some point they will want to recycle capital to raise funds to continue growing,” Lara says of the retail space. The December transaction was LatAm’s largest-ever real estate IPO and drew 68% international participation. Along with Fibra Uno’s $1.7bn January follow-on – with 60% international participation – the deal showcases a new level of investor comfort that should allow the large funds to grow and the asset class to welcome new and more specialized entrants. Fibra Uno is also expected to bring a follow-on, what would be its fourth transaction, within the next 9-12 months.

Mexican private equity firm Ventura Capital Privado has launched a public tender for up to 56% of the shares of Maxcom, according to a prospectus, in a tag-along offer following its agreement to purchase the troubled Mexican telecom in December. The offer opened Monday and expires March 11. It will spend MXP2.90 ($0.23) per share on up to 250m CPO shares, and the equivalent price for each of up to 50m class A shares. It puts the total maximum cost at MXP764m. Banorte-Ixe is managing the process. As part of the deal agreed in December, Ventura will also buy a minimum of $22m in new shares through an equity capital raise, and Maxcom will hold a tender to exchange for its 11% 2014 bonds, of which there are $200m outstanding. The acquisition is contingent on successful tenders for both the shares and bonds. The CPO shares closed at MXP4.85 on Monday.

Grupo Sanborns has priced a MXP12.09bn ($950m) IPO, landing near the low end of the price range. Demand for the deal was heard to be about 2x. The retail operation being carved out of Carlos Slim’s Grupo Carso priced 431.7m shares, assuming a 15% greenshoe, at MXP28.00 each, versus a MXP27.00-MXP32.00 range. The sale had to overcome recent concerns about Carlos Slim companies, with crown jewel America Movil seeing possible losses at its Dutch investment KPN. That said, many on the buyside noted that Sanborns represents some of the top assets in Slim’s portfolio, with retailers likely among the biggest beneficiaries if Mexico’s economy lives up to strong forecasts. “This is a strong company and well known, but it may be similar to Cultiba. Valuations are rich in Mexico right now, and investors are very disciplined,” says an ECM banker away from the deal. Pepsi bottler Cultiba priced at the low end of its range last week in a $310m IPO. Sanborns is raising funds for expansion and working capital. It contains the iconic Sanborns stores, as well as other brands including Sears and Saks Fifth Avenue, located almost entirely in Mexico, with locations also in El Salvador and Panama. Inbursa and Credit Suisse were global coordinators, with Citi, Morgan Stanley and Santander serving as bookrunners. The deal was expected to leave Sanborns with an 18% free float, and Carso with 82% ownership. The sale is the last is a busy period for the region’s ECM, with other deals in the pipeline expected to wait for the 4Q financials window.