A second independent evaluation has low-balled the value of assets to be used in Enersis’ planned $8.02bn capital raise. IMTrust and Claro y Asociados, hired by the Chilean energy holdco at the behest of regulators, have determined that the assets parent Endesa plans to use to subscribe its share are worth $3.45bn-$3.62bn and $3.97bn-$3.91bn, respectively. This is lower than the $4.86bn claimed by Enersis, as was a $2.86bn-$3.41bn valuation arrived by a consultant hired by a group of Chilean pension funds that are minority holders and scoffed at the original proposal. Enersis board members are expected to evaluate both studies and call for a December shareholders meeting to vote on the deal which they are hoping to hold next year.
Category: Equity
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Harp Ups Marti Stake
Alfredo Harp, the controller of Mexican retailer Grupo Marti, has completed a MXP1.44bn ($111m) offer to buy up shares he does not own in the retailer. In the public offer, Harp got 122m shares, representing 16% of the company, at MXP11.80 each, just shy of the 17.5% he targeted. Banamex managed. Marti shares were at MXP11.80 Wednesday.
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Marfrig Joins FO Queue
Brazil’s Marfrig is preparing to raise BRL1.27bn ($626m) in fresh capital through an equity follow-on, it says. The highly indebted meatpacker does not indicate the number of shares to be sold, but plans to raise BRL1.1bn with the option of a 15% greenshoe. Controller MMS and 13% holder BNDESPar are expected to exercise their rights in the offering. “Despite the high dilution, we see the share offering as positive for Marfrig,” Barclays says. The shop sees net debt/Ebitda decreasing to 4.5x from 5.5x after the sale. Marfrig shares closed at BRL10.28 Wednesday. It joins peer Minerva, who is preparing to raise BRL473m in November.
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OSX Gets Piece of Eike Put
Eike Batista has injected BRL509m ($251m) in new equity into his OSX Brasil shipbuilding company, OSX says. The sale represents the first installment of a plan to raise $1bn in new capital for the company by March 2014, through the exercise of a put option agreed at the time of OSX’s 2010 IPO. Batista will pay BRL39.38 per share – equal to the IPO price adjusted for inflation – for 12.9m shares. OSX closed at BRL12.19 Wednesday. OSX plans to exercise half of the put option by March, raising $500m total, and add another $500m by March 2014.
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Pensions Claim Lower Value for Endesa Assets
The assets that Spain’s Endesa intends to use in a capital increase for its Enersis unit are worth $2.86bn- $3.41bn, a consulting firm hired by Chile’s pension funds says, less than the $4.86bn value proposed by Endesa. The assets are going into an $8.02bn capital increase for the Chilean energy group, a transaction that has raised concerns among pension funds and other minority holders, as well as regulators. The valuation used methodology that “corresponds to the value a third party would be willing to pay on the market” for the assets consultant Econsult says. At regulators’ behest, Enersis has hired local investment bank IM Trust and Claro y Asociados to act as its own independent appraisers for the assets, with results expected as soon as this week.
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Eike Ups MMX Position
Eike Batista raised his stake in iron ore producer MMX Mineracao e Metalicos to 46.41%, MMX says, through the purchase of 31m shares. The raise increases his position from 41%, and represents a value of BRL132 ($65m), based on Monday’s closing price of BRL4.25.
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Minerva Readies Follow-on
Brazilian beef producer Minerva is preparing to raise about $230m through an equity follow-on. It plans to offer 43m shares, assuming a 15% greenshoe, it says, in a sale that would raise BRL473m ($234m) at Monday’s BRL10.99 closing price. The sale is to include primary shares, as well as secondary shares to be sold by VDQ holdings. The meatpacker plans to begin meeting investors November 19 ahead of a November 29 expected pricing date. About 65% of the proceeds will be used for debt, and the remainder for acquisitions in the beef space in South America. BTG Pactual, Credit Suisse, HSBC and Morgan Stanley are managing the sale. “With Minerva currently sitting on a cash pile equivalent to all debt amortizations coming due by 2017, the equity offering should make Minerva’s liquidity situation/amortization profile even more comfortable,” Barclays says.
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Rossi Clinches Fresh Equity
Shareholders of Brazilian homebuilder Rossi have agreed to a BRL600m ($296m) capital raise. The rights offering includes 150m shares at BRL4.00 each. Rossi shares closed Monday at BRL4.75. In order to strengthen its capital position, Rossi is also negotiating covenants on multiple series of its domestic bonds.
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Cemex LatAm Sets Price Range
Cemex has set the price range for the IPO of its Cemex LatAm unit, it says, a transaction that would raise COP1.54trn ($857m) at the midpoint. In the carve-out of the Mexican Cement maker’s assets in Colombia, Panama, Costa Rica, Brazil, Guatemala, Nicaragua and El Salvador, it is offering 126m shares, including a 15% greenshoe, at COP11,000-13,500 each. Investor meetings are underway, with pricing expected the week of November 5. The setting of a price range – as opposed to a single fixed price given at the opening of the order period – is a new twist for a Colombian sale, as is the plan to split the shares in to local and 144a tranches at the time of pricing rather than in advance. Cemex LatAm posted $466m in Ebitda in the first nine months of 2012, up from $362m in the corresponding period in 2011. Bank of America Merrill Lynch, BBVA, Citi and Santander are managing the sale. The deal comes as part of a plan to sell assets to meet debt maturity payments. Cemex in September got creditors to extend to 2017-2018 more than $7.2bn in debt that had been due in 2014, and followed up with a $1.5bn bond sale earlier this month.
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Argos Readies Domestic Converts
Grupo Argos has authorized the sale of COP750m ($417m) in convertible bonds in Colombia’s domestic market, it says. The bonds are mandatorily convertible at any time into shares paying a preferred dividend, and can be issues in up to five tranches, with maturities of 2-5 years. The Colombian cement maker is able to cancel or defer the coupons of the bonds at its discretion, Fitch says in a report assigning a AA+ national scale rating. Bancolombia is managing the sale, for which the timing remains to be set.