BNDESPar has raised its stake in MPX Energia to 11.7% from 2.6% through the conversion of debentures, MPX says. The investment arm of BNDES converted 10.7m debentures into shares, giving it a 19.9m-share total stake. BNDESPar bought BRL600m ($297m) in the converts last year as part of a BRL1.37bn sale, in which Gavea Investimentos, controller Eike Batista and minority holders also bought in. The 3-year bonds pay the ICPA inflation rate plus 4.00%, and would be convertible at any time until maturity at BRL43.00 per share, meaning a BRL460m operation Thursday. The shares closed Thursday at BRL34.65.
Category: Equity
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Oi Boosts PT Position
Brazil’s Oi has raised its stake in Portugal Telecom (PT) to 10%, PT says. Between April 24 and May 24, Oi’s Telemar Norte Leste unit bought 25.1m shares, meaning it spent EUR77m ($95m) at Thursday’s EUR3.05 closing price. The increased holding means Oi reaches a milestone agreed in a deal initiated in 2010, in which PT bought a 25% stake in Oi.
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Carvajal Wraps up Packaging IPO
Colombia’s Carvajal Empaques has raised COP195.8bn ($104m) from its IPO, it says, allocating 36.9m shares at COP3,500 each. The unit of the Carvajal conglomerate picked a tricky time for the sale, given the volatility in global equity markets, and the total fell short of a COP212bn target. The IFC has bought COP27.22bn. About 56.4% went to Colombian institutions, the company says, with 29.6% to Colombian retail investors and 13.93% to foreigners. Corredores Asociados managed.
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Telefonica Mulls LatAm Listings
Telefonica will consider the listing of some of its Latin American businesses, it says, as part of a plan to raise funds that also includes a German listing and disposal of non-core assets. M&A bankers say the ground remains ripe for European companies to sell part or all of LatAm assets as they seek to raise cash, with large Latin American firms, as well as players from Asia, in prime position to scoop them up. Telefonica operates in Argentina, Brazil, Chile, Colombia, Mexico, Peru, Uruguay, Venezuala and Central America.
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BTG PE Makes Domestic Goods Investment
BTG Pactual’s private equity arm has agreed to acquire 40% of retailer Leader Participacoes for BRL665m ($334m), it says. Under the terms of the deal, BTG’s funds will pay BRL558m for a 35.88% position. Leader will then hold a rights offering, through which BTG will buy new shares worth another 6.42%. The deal also allows BTG to buy an additional 20%-30% during a 90-day period following the rights offering. Leader operates in the clothing and housewares sector. The transaction is subject to regulatory approval.
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Taesa Advances FO
Brazil’s Transmissora Alianca de Energia Eletrica (Taesa) has initiated the regulatory process for an equity follow-on, it says. Controller Cemig had planned to improve Taesa’s float and raise funds funds through the sale, which could reach BRL2bn ($1bn), since purchasing the assets from Italy’s Terna in 2009. The transmission company does not give the size or the timing of the all-primary share deal, to be managed by Bank of America Merrill Lynch, BTG Pactual, Banco do Brasil, Goldman Sachs and Santander. The proceeds will be used for investments and expansion. Taesa will offer its units in the sale, consisting of one common and two preferred shares. Taesa’s units closed at BRL65.50 Tuesday.
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Carvajal Seen Clinching Packing IPO
Colombia’s Carvajal Empaques was seeing demand for its IPO topping a COP180bn ($98m) minimum and likely reaching a COP212bn target, according to sources following the transaction. The Carvajal group’s maker of containers and packaging materials offered 40m shares, or about 36% of itself, at COP5,300 each, in a sale period open through last week. The extended order period, customary in Colombia, left Carvajal vulnerable to changes in market sentiment caused by global equity selloffs on euro concerns as well as Colombian events including the bombing attempt against former Interior Minister Fernando Londono. The IFC has bought COP27.22bn, Carvajal says. It plans to use the proceeds to repay debt. Corredores Asociados is managing. Separately, a follow-on from steelmaker Acerias Paz del Rio is heard fully subscribed, following the close of its order period last week.
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Cencosud Files ADS Sale
Chile’s Cencosud plans to sell up to $718m in ADS in an equity follow-on, according to a regulatory filing. It does not give the timing of the sale, representing 132m common shares, to be led by Credit Suise, JPMorgan, Morgan Stanley, UBS, Santander and BBVA. The supermarket operator is raising funds to pay down debt, and fund the acquisition of Jumbo Retail Argentina, in addition to general corporate purposes. Each ADS would be worth 3 common shares, and initially referenced by ADRs. The move comes under a a $2bn total capital increase approved last year. Cencosud has operations in Chile, Colombia, Peru, Argentina and Brazil. Its common shares closed at CLP2799 ($5.49) Monday.
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Pague Menos Readies IPO
Brazilian pharmacy chain Pague Menos has registered for an IPO, it says. It does not give the timing or size of the transaction, to be lead by Banco do Brasil, Credit Suisse, Itau and Santander. The sale includes both primary shares and secondary shares to be sold by members of the founding De Queiros family, and is expected to raise as much as BRL500m ($253m). The drugstore plans to spend 90% of the proceeds on opening new stores, and 10% to build distribution centers. The retailer founded in 1981 posted BRL232.2m in Ebitda in 2011, up from BRL144.5m in 2010. The company is also undergoing a BRL260m ($130m) local bond sale. A planned 2016 debenture pays the DI plus 1.19%. Proceeds are marked for working capital and improving the issuer’s debt profile. Banco do Brasil is managing the sale, done under the rule 476 restricted format.
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Vinci Offers Boost to PDG
Brazilian private equity firm Vinci Partners has offered to raise up to BRL800m ($404m) for PDG Realty, PDG says, to help shore up the homebuilder’s balance sheet as it faces cost overruns, project delays and increasing debt levels. Under the proposal, Vinci would raise BRL800m through the sale of warrants entitling each holder to one new share and one convertible debenture, at BRL4.02 each. This represents an 11.4% premium to Friday’s closing share price, Vinci says. The shares closed at BRL3.78 Monday. The debentures acquired under the plan could be converted after 4 years into one additional new share at a minimum of BRL6.00 per share. Vinci would contribute between 54.8% and 81.4% of the fresh capital under the plan and refrain from trading the new shares it acquired for 2 years. The firm says the preemptive rights of existing shareholders to subscribe to the transaction would be respected. PDG’s net debt was BRL5.1bn at the end of March, versus BRL3.2bn a year earlier.