Brazilian homebuilder Gafisa plans to issue shares to help finance the BRL359m ($177m) purchase of the remaining 20% stake in its Alphaville Urbanismo unit, it says. It will offer 70.25m shares, representing BRL150m at Wednesday’s BRL2.13 close, the most recent closing price. The company says it is defining the steps of the process, and will give additional details about the purchase in the future. 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.
Category: Equity
Miner Wraps up Share Placement
Dia Bras Exploration, a Toronto-listed Peruvian miner, has completed a CAD45m ($44m) share placement, it says. It sold a brokered portion of 2.6m common shares and a non-brokered portion of 12.4m common shares, done at CAD3.00 each. The non-brokered portion went to Arias Resources, an an existing shareholder which now owns 48.4% of Dia Bras. RBC led the sale, along with Continental Bolsa, Scotia, Credibolsa, Canaccord Genuity and Dundee Securities managed the brokered portion. Proceeds are marked for development of projects in Peru and Mexico.
Banco de Chile Readies Capitalization
Banco de Chile is set to raise CLP67.91bn ($145m) through a capital increase June 28, it says. The bank plans to issue 1.10bn shares at CLP62.00 each.
Caixa Preps RE Fund
Brazil’s Caixa Economica Federal has filed to raise a BRL200m-BRL300m ($99m-$198m) Fundo de Investimento Imobiliario (FII) real estate fund in Brazil’s domestic market, according to the CVM. The vehicle, which has an open-ended timeframe, will invest in real estate assets. The bank does not indicate the timing or expected return profile. Caixa is managing the sale itself, along with Rio Bravo Investments, who is also administrator.
Iochpe Gives up FO Plans
Brazilian commercial and light vehicle parts producer Iochpe-Maxion has postponed plans for a primary equity follow-on, it says, based on poor market conditions. The deal had not advanced to the stage of an official filing. Iochope says it has adequate funds on hand for its plans. The company has been busy expanding, including acquisitions in Mexico and the US last year. Its shares closed Wednesday at BRL24.70 ($12.17). A rough time for the Bovespa and other global indexes is challenging the plans of several issuers in the region. Bankers are skeptical about Brazilian IPOs targeting July pricing, with the largest follow-ons having the best chance of getting done.
Miner Puts up Equity for Acquisition
Peruvian miner Minsur plans to put in $300m worth of fresh equity capital into its Cumbres Andinas subsidiary, it says, to help finance the acquisition of a stake in the Marcobre copper project. After the transaction, Minsur will hold 99.96% of Cumbres’ shares. It is already seeking a $200m loan to help with the purchase. In April, Minsur agreed to acquire 70% of Marcobre from Hong Kong’s CST Mining for $505m.
Sura Adds JPM to Co-Investor List
Grupo de Inversiones Suramericana (Grupo Sura) has brought in JPMorgan as a co-investor in its Sura Asset Management Espana unit, for $178m, it says. The US bank gets a stake of “less than 5%” in the vehicle created last year to hold assets from the $3.76bn acquisition of pension and insurance businesses Sura acquired from ING. Grupo Bolivar, UBS, the IFC, General Atlantic and Bancolombia have previously bought in to Sura, to help fund its expansion. Sura brought in the co-investors as an equity follow-on to fund the deal fell short of a $2bn-equivelant target. JPMorgan’s entry price matches the price Sura paid ING, Bolsa y Renta says. Sura now holds 66% of the unit.
Cemig Confident on Taesa Share Sale: CFO
Brazil’s Transmissora Alianca de Energia Eletrica (Taesa) will brave market conditions and proceed with its planned equity sale of up to BRL2.0bn ($990m), despite a questionable new issuance market. “The deal is going forward and we believe in the attractiveness and interest of this company. There is no reason for postponing under current market conditions,” Luiz Rolla, CFO at Taesa parent Cemig, tells LatinFinance. Rolla says despite volatility in the market, the utilities sector is considered a high-growth, defensive sector with stable and predictable cash flows. “This is our case, with investors turning to the power industry during the crisis and flocking to utility stocks, as the dividend policy is stable and dividend yield has been high,” the official adds. Taesa officially registered the deal this week, and now awaits the 30-day approval period before launch. Taesa will offer its units in the sale, classified as a “Re-IPO,” given the illiquidity of its outstanding shares, consisting of one common and two preferred shares. It plans to set a price range at launch, according to its regulatory filing, as if it were an IPO. Proceeds are marked for acquisitions and projects. Bank of America Merrill Lynch, BTG Pactual, Banco do Brasil, Goldman Sachs and Santander are managing the sale. Ahead of the approval, Taesa plans to raise BRL1bn in 1-year domestic market bridge debt, with proceeds to be used to retire debt used in the purchase of a stake in Abengoa Brasil. Banco do Brasil, BTG Pactual and HSBC are managing. The European crisis has raised opportunities for consolidation, and Cemig officials say Taesa is prepared for more opportunities to acquire Brazilian assets owned by European companies, but decline to provide further details on M&A plans. “Our strategy of growth through acquisitions is a very strong tool used over the last 10 years and the results are there. We are always looking at how to maintain a high rate of growth through acquisitions,” says Cemig boa
Clothing Retailer Completes Share Repurchase
The controlling shareholder of Brazil’s Marisol has concluded a BRL201m ($99m) share repurchase, bringing its control to 98.8%, Marisol says. GFV Participacoes has acquired through a public auction 15.1m common shares and 50.8m preferred shares at BRL3.05 each, representing a 59.0% stake. The preferred shares closed at BRL3.00 Tuesday, and common shares at BRL3.04.
BNDESPar Plans Renova Investment
Brazil’s Renova Energia is negotiating with BNDESPar for an investment of as much as BRL315m ($154m) in the renewable developer, Renova says. The equity arm of Brazilian development bank BNDES would buy new shares at BRL28 each. The shares closed at 31.99 Monday. After shareholder approvals, Renova’s management board would evaluate an additional capital raise. Renova got a BRL297m loan from BNDES in October to support the construction of 5 wind farms in the state of Bahia.