Itau has completed a tender offer to acquire all outstanding shares of Redecard, it says, allowing the Brazilian bank to delist the payment processor at a cost of BRL10.46bn ($5.17bn). Itau is buying up 299.0m shares at BRL35.00 per share, receiving about 90% participation. Prior to the process Itau held slightly more than 50% of Redecard. The buyback concludes a process initiated in February, with minority investors including Lazard Asset Management unsuccessfully fighting the valuation along the way. The bank plans to pay the tender offer with its own cash. Redecard went public in a 2007 IPO.
Category: Equity
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Enersis Targets 2013 Equity Raise
Spain’s Endesa hopes to complete a planned $8bn capital increase for its Enersis LatAm holdco in 1Q 2013, it says, and will put it to a shareholder vote in December. Enersis had hoped to have the vote this month when first announcing the process, but had to backtrack when investors raised concerns and regulators imposed conditions, including an independent evaluation. At issue was Endesa’s contribution with assets, rather than cash, and whether those assets were being valued correctly at $4.86bn. New independent valuations of the Endesa assets are expected to be ready by mid-October. Enersis plans to use proceeds from the capital increase, designed to streamline Endesa’s holdings in LatAm, to fund merger and acquisition opportunities, advance greenfield projects and buy minority interests.
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Energisa Wants Additional Equity
Facing BRL1.6bn ($792m) in investment needs in 2012-2014, Brazil’s Energisa plans to raise BRL300m-BRL500m in additional equity capital, it says. The electric distributor is analyzing the process and does not give details on timing. The funds would support its investment needs, as well as possible acquisitions.
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Mexichem Advances FO
Mexichem has received shareholder approval for the issuance of new stock, it says, paving the way for its planned equity follow-on. The transaction is awaiting launch, and expected to do so as soon as this month ahead of a likely October pricing. The Mexican industrial conglomerate’s approval covers an issue of 260m shares, an amount that would raise MXP16.06bn ($1.25bn) at Wednesday’s MXP61.77 closing price. Citi, HSBC, JPMorgan and Morgan Stanley are managing the transaction. The equity sale follows the raising of $1.15bn in the international bond market earlier this month. The offering of 10 and 30-year bonds received $17bn in orders.
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Mexican Specialist Plans CCD
Mexican investment shop Grupo Axis is preparing a transaction of up to MXP6.5bn ($508m) in Mexico’s certificado de capital de desarrollo (CCD) market, according to regulatory filings. The specialist investment bank and asset manager is preparing a fund that may make equity or credit investments across a broad group of setors. As has quickly become the trend in the CCD market following regulatory changes last year, the total amount should be reached through a series of capital calls. The documents do not detail the return structure, though the issuer says is targeting a return of more than 20%. Banamex is managing the sale. Founded in 1990, Axis has made investments in and done transactions for sectors including energy and telecommunications.
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Lupatech Readies Share Auction
Lupatech is preparing to sell up to BRL439m ($217m) in new shares, as part of a BRL700m capitalization plan agreed earlier this year, it says, and will set a date for a public auction as soon as it receives regulatory approval. The maker of parts for the oil industry is offering 109.8m shares at BRL4.00 each, a price agreed in April by its major shareholders. Shareholders BNDESPar and Petros are obliged to subscribe BRL184m, as well as pick up any additional unsold shares in the auction in order to achieve a minimum BRL300m size. Banco Votorantim is managing the process.
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Banco de Chile Seeks Equity
Banco de Chile is planning a capital increase of CLP250bn ($529m), it says. It will put the matter to a shareholder vote October 17. Its shares closed at CLP67.07 Thursday.
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Eike Backtracks on LLX Delist
Eike Batista has suspended a plan to delist his LLX Logistica port operator, EBX says in a statement. The billionaire had initially been looking at spending more than BRL600m ($297m) on the sale, offering up to BRL3.13 per share for all of the outstanding shares, when the idea was first proposed in July. However, an independent evaluation by Bank of America Merrill Lynch suggests BRL6.94-BRL7.63 would be fair. Ontario Teachers’ Pension Plan, the second-largest holder after EBX, had agreed to boost its stake in the company as part of the delisting offer. LLX closed Thursday at BRL3.13.
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Sura Considers Asset Management Float
Colombia’s Grupo de Inversiones Suramericana is considering floating its Sura Asset management unit, according to sources at the company. The timing and other details remain unclear, with the group still working on the integration of the pension assets it agreed to buy in late 2011 from HSBC. It paid $3.76bn for ING’s Latin American pension and insurance assets, funded through a COP3.5trn ($1.8bn) equity follow-on, and additional investment from Grupo Bolivar, UBS, the IFC, JPMorgan, General Atlantic and Bancolombia. CFO Ignacio Calle told LatinFinance last month that the group has its eye on European assets that may come up for sale going forward.
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Gafisa Considers Alphaville Float
Brazil’s Gafisa is considering floating its Alphaville unit, it says, as it weighs options to unlock value that it claims the market underestimates. The homebuilder would also consider selling a stake in the high-end subsidiary, of which it owns 80%. It has hired to Rothschild and Bain & Company to advise. Alphaville generated average returns of 46% per year during 2007-2011, with project launches quadrupling in that period to BRL972m ($481m). Gafisa bought 60% of the high-income housing unit in 2006, before adding another 20% in 2010. There had been concern the homebuilder lacked the funds to complete the acquisition, following a poor first quarter. The company turned down a buyout offer from Chicago real-estate magnate Sam Zell and Brazilian investment fund GP Investimentos in March. Gafisa shares closed at BRL4.47 Tuesday.