Brazil’s Brookfield Incorporacoes has raised BRL389m ($192m) through an equity rights offering, it says. The developer sold 127m shares at BRL3.06 per share in the offer closed last week. Shares closed at BRL3.51 Monday. The result represents nearly all of a BRL400m target.
Category: Equity
Posted inDaily Brief
CEDAE Plans Share Sale
Companhia Estadual de Aguas e Esgotos (Cedae) is preparing an IPO, according to regulatory documents. The Rio de Janeiro state water utility does not indicate the timing or the number of shares to be sold. The offer will include primary shares as well as secondary shares sold by the government. Proceeds are to be used to fund expansion and maintenance projects. Bank of America Merrill Lynch, Bradesco, BTG Pactual and Itau have been hired to manage. Cedae booked BRL842m ($417m) in Ebitda in 2011, down from BRL880m in 2010.
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RE Group Aims for Hotel Fibra
Mexico’s Grupo GDI is preparing a Fibra transaction that will create a fund holding hotel assets, according to regulatory documents. There were no size or timing details immediately available for the RIET-like transaction. The fund would include 30 operating Mexican hotels and four in development, including the Fiesta Inn, One and Camino Real brands. Proceeds would be used for acquiring and developing additional properties. BBVA and JPMorgan are global coordinators, with Evercore and Banorte-Ixe joining on the local portion. GDI specializes in hotels, malls and residential property development.
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Aliansce Mulls Follow-on
Brazilian shopping mall operator Aliansce plans to sell shares in a primary offering before the end of the year, the company said in a filing on Wednesday. It does not give any additional details regarding timing or size. It raised BRL673m ($370m) in a 2010 IPO.
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Equatorial Plans Celpa Capitalization
Brazil’s Equatorial Energia is planning a BRL1bn ($493m)equity follow-on, it says, in part to raise funds for newly-purchased Centrais Eletricas do Para (Celpa). It does not indicate the number of shares or timeline for the sale, to include primary shares and secondary shares sold by a fund linked to Equatorial controller Vinci Partners. Proceeds are for funding Celpa, possible acquisitions in distribution or generation assets, and for working capital. Bradesco, BTG Pactual, Goldman Sachs and Itau are managing. Equatorial agreed last month to buy 61.37% of heavily-indebted Celpa from Grupo Rede for BRL1.00, and is considering teaming up with CPFL Energia to buy all of Rede.
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Mexicans Bring Hotel Fibra
Hoteles Prisma is planning to raise funds in Mexico’s Fibra market, according to regulatory documents. The Mexican hotel operator is planning a fund into which it will put eight hotels operating under the Holiday Inn and Hampton Inn brands. It does not indicate the size, though market expectations are for a deal under $500m-equivalent. Proceeds from the REIT-like transaction will be used to purchase additional assets. Actinver is managing the sale. Fibra Uno is still the only transaction in the Fibra asset class so far – IPOing last year before holding a $700m follow-on in March – through several others are said to be in the pipeline and keen to file amid increasing enthusiasm for Mexican equity issuance.
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OGX to Get Batista Funds
Eike Batista has agreed to inject as much $1bn in to his OGX oil and gas company, OGX says. The billionaire has granted OGX a put option available through April 2014, which the company will evaluate using. Under the agreement, the OGX controller will buy shares at BRL6.30 ($3.10) each. OGX closed at BRL4.75 Thursday.
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Second Enersis Evaluation also Low
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.
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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.