Alfredo Harp, the controller of Mexican retailer Grupo Marti, has launched an offer open through October 22 to purchase up to MXP1.58bn ($123m) in shares he does not own in the company, according to regulatory documents. The offer covers up to 133.9m shares, or 17.46% of the company, at a price of MXP11.80 each. The timing of the offer remains to be set. Banamex is managing. Marti shares were at MXP11.00 Thursday.
Category: Equity
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Rossi Close to Renegotiation, Capital Raise
Rossi Residencial is close to finalizing the renegotiation of covenants with Brazilian Securities for one of its domestic debt issuances, it says, and expects to finalize an equity capital raise in “the next few days.” Following adjusted covenants agreed with Bradesco, Caixa Economica Federal and BTG Pactual, the Brazilian developer is reworking those on bonds sold entirely to Brazilian Securities in order to back a sale of Certificados de Recebiveis Imobiliarios (CRI). Rossi is also preparing a private share subscription that could raise as much as BRL500m ($245m), closing this quarter.
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Peruvian Prices Retail IPO
Intercorp’s InRetail Peru unit has priced a $460m IPO, with the oversubscribed deal landing just below the midpoint. The sale is Peru’s largest new equity issue in six years and offers equity investors their first real crack at the consumer demand side of one of LatAm’s fastest-growing economies. The unit holding Intercorp’s retail assets including InkaFarma drugstores and Plaza Vea supermarkets priced 23m shares, assuming the exercise of a 15% greenshoe, at $20.00 each, the company says, versus a $19.00-$22.00 range. The base deal represents a 20% float. Investor concerns about size, liquidity, and use of proceeds mostly for greenfield were outweighed by the issuer’s being part of one of Peru’s strongest corporate group’s and operating in a very attractive industry. “It is difficult to find a such a scalable play on Peru,” says an EM equity portfolio manager looking at the transaction. Investors reported using regional consumer stocks including Cencosud, BR Malls and the Intercorp parent as starting points for the pricing. The transaction was made up entirely of a 144A/RegS sale, a change from the original plan to include a tranche representing up to 5% of the offer for domestic investors in Peru. InRetail is raising funds for expansion in areas including supermarkets, pharmacies and commercial centers. BTG Pactual, Citi, JPMorgan and Morgan Stanley managed the transaction. It is Peru’s largest equity sale since Hochschild Mining’s $577m 2006 IPO, according to Dealogic data, and the second Peruvian IPO this year following Andino Investment’s $43m debut.
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Pinfra Set for FO
Promotora y Operadora de Infraestructura (Pinfra) is scheduled to price an equity follow-on today and was heard late Wednesday with books covered. The Mexican infrastructure firm is selling 70.4m shares, including a 15% greenshoe, suggesting a MXP4.89bn ($381m) sale at Wednesday’s MXP69.51 closing price. About 70% of the shares are secondary shares to be sold by members of the Penaloza family and various investment funds, with primary proceeds going toward general corporate purposes, including greenfield and brownfield construction. The sale also aims to increase the liquidity of the issuer’s shares, which trade relatively infrequently. Pinfra had filed earlier this year aiming for a sale in the June-July window, but decided to wait until 4Q. Credit Suisse and JPMorgan are managing the international portion, and are joined by Banorte-Ixe on the domestic side. Founded in 1969 as Grupo Tribasa, Pinfra develops and operates road and port concessions and produces materials used in road construction. The sale is to be the first in a series of Mexican equity offerings following Santander Mexico’s $4bn IPO, with Mexichem scheduled for a $1.2bn-equivalent follow-on October 9 and Credito Real with a $200m-equivalent IPO October 16.
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La Polar Offer Tops $240m
Chile’s La Polar has raised CLP115.72bn ($244m) at the close of the primary phase of an equity capital raise Tuesday, it says. The retailer has sold 665m shares, with pricing set as the average price of the three days prior to the buyer’s subscription minus a 5% discount. This meant the shares were offered at CLP198.14 each during Tuesday’s final session. The shares closed at CLP220.17 in the market Wednesday. The retailer will offer the 85m remaining unsubscribed shares during a 7-day period beginning Friday. The offer raises funds to remodel stores in Chile and to expand in Colombia, and is done as part of a $900m restructuring agreement with creditors. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.
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Camargo RE Wraps Up Buyback
Brazil’s Camargo Correa has concluded an offer to acquire outstanding shares of its Camargo Correa Desenvolvimento Imobiliario (CCDI) real estate unit, it says, spending BRL190m ($94m). The parent is to buy back 34.5m shares, at BRL5.52 per share, out of the 38.3m outstanding that represent a 33.85% float. The price represents an increase from the BRL4.70 it targeted when first announcing its intentions in March. Barclays managed the auction. Privately-held Camargo intends to delist CCDI. Camargo’s Intercement unit – holding assets acquired from Cimpor earlier this year – is considered as a candidate for an IPO in Brazil, according to ECM bankers.
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Peru Retail Builds IPO Book
InRetail Peru was heard with oversubscribed order books Tuesday ahead of today’s scheduled IPO pricing, targeting more than $400m. The unit of the Intercorp group operating retail assets including Inkapharma drugstores and Plaza Vea supermarkets is selling 20.05m shares at $19.00-$22.00 each, indicating a $411m size if done at the midpoint. The transaction is to be made up entirely of a New York sale, the issuer says, a change from the original plan to include a tranche representing up to 5% of the offer for domestic investors in Peru. In what is being called the first Peru IPO offering domestic consumer demand exposure, InRetail is raising funds for expansion at its different units. BTG Pactual, Citi, JPMorgan and Morgan Stanley are managing the transaction, likely to be Peru’s largest IPO since 2006. It would be the first sizeable Peruvian equity sale since a $265m follow-on from Pacasmayo in February.
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La Polar Rights Offer Hits Minimum
Chile’s La Polar reached a subscription level of CLP91.2bn ($193m) for its equity capital raise as of Friday, it says, topping the minimum threshold of CLP90bn. The retailer is targeting up to CLP120bn in the offer scheduled to close today. The price of subscription is equal to the average price of the three days prior to the buyer’s subscription minus a 5% discount, with a minimum price of CLP160 per sahre. Shares closed at CLP237 Monday. The retailer set aside nearly $1bn-equivalent in loan loss provisions last year amid accusations of fraud after the company arbitrarily overcharged its credit clients and is undergoing the capital increase as part of a $900m restructuring with creditors. Creditors recently granted an extension to October 29 to complete the equity sale. Celfin is managing the capital raise, and Lazard is the advisor on the restructuring.
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Mexican Lender Launches IPO
Mexico’s Credito Real has launched an IPO targeting MXP2.22bn-MXP2.63bn ($172m-$205m), according to regulatory documents, with pricing scheduled for October 16. The specialist in payroll, group microbusiness and durable goods loans plans to sell 101m shares at MXP22.00-MXP26.00 each, indicating an MXP2.43bn transaction if priced at the midpoint. A 15% greenshoe is also possible. About 73% of the deal is planned to be primary shares, with the remainder secondary shares to be sold by investors including Nexxus Capital – the largest holder with 18.3% – and Grupo Kon. The bank plans to place half the deal in Mexico and half internationally. Proceeds are for general corporate purposes and for expansion plans. Deutsche Bank and Barclays are managing the international portion, joined by Banorte-Ixe on the domestic tranche. Targeting Mexico’s underbanked lower and middle classes, Credito Real grew by 63% during 2009-2011, and booked revenue of MXP1.0bn in the 12 months to June 30. Founded in 1993, it has funded itself through investment such as Nexxus’, in 2007, and in the local debt markets. Last year it acquired payroll lender Credifel. The Mexican equity issuance pipeline is as active as it has been in years, with Pinfra set to price a $400m-equivalent follow-on Thursday and Mexichem a $1bn follow-on next week, all coming after a $4bn IPO from Santander Mexico last week.
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Chilean Completes Capital Raise
Chile’s Consorcio Financiero has raised $271m-equivalent to finance the expansion of its subsidiaries, it says. The resources, coming from the subscription of 25.6m shares, will be added to other resources to allow the financial holdco to distribute $425m to subsidiaries. It has earmarked $212m for its Consorcio Vida and CN Life life insurance units, Banking subsidiary Banco Consorcio is to receive $160m, its brokerage $37m and its insurance arm $16m. The company targets an IPO in 2016.