Chile’s Corpbanca has raised CLP97.71bn ($191m) through the sale of 15.63m shares to existing holders, it says. The amount is divided equally between the Santo Domingo family and the controlling Corp Group. Corp Group plans to subscribe additional shares equivalent to $148m within the next 12 days. The purchase is a part of a previously announced capital raise of up to 43m shares, or CLP269bn, to help fund the acquisition of Santander’s Colombian assets, agreed in December. The process is expected to be complete by the end of June.
Category: Equity
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Santander Mexico Begins IPO Manager Selection
Santander is heard to have named Deutsche Bank and UBS to manage the IPO of its Mexican unit, according to sources following the process, alongside Santander’s own ECM unit. Additional banks are expected to be added going forward. The transaction is expected this year, and seen raising more than $2bn to help shore up the Spanish parent’s balance sheet. Up to 25% of the bank could be floated. An official at the Mexican bank did not return a request for comment.
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Jamaican Bank Readies NY Listing
Jamaica’s National Commercial Bank (NCB) is planning to raise about $250m through an equity follow-on, representing its debut listing in New York. The bank, which currently trades in Jamaica and Trinidad, is raising funds for general corporate purposes, including organic growth and possible acquisitions. It does not yet indicate the timing of the deal, or the exact number of ADS to be sold. Part of the offer consists of secondary shares to be sold by vehicles belonging to Michael Lee-Chin, who owns 64% of NCB. JPMorgan and Macquarie are managing the sale. NCB has 39% of Jamaica’s bank market by assets. Its Jamaican shares closed Tuesday at JAD23.58 ($0.27).
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Brazilian Paper Producer Details Follow-on
Celulose Irani plans to sell both primary and secondary units in an upcoming equity follow-on, it says, hiring Itau and Credit Suisse to manage the sale. The maker of paper, packaging and resins is raising funds for its expansion plan, which involves increasing pulp and packaging material production capacity and obtaining the required infrastructure. Irani does not detail the amount of funds to be spent through 2015, but says additional bank loans, likely through BNDES will be necessary in addition to the equity sale. It previously communicated that it would sell additional units, each composed of 1 common and 4 preferred shares. The sale is seen almost as an IPO, given the relative illiquidity of the outstanding shares. It does not give an indication of size or timing. A launch this week, however, suggests a late June launch and July pricing, joining several other issuers looking to complete deals before the traditional July-August holiday period. Irani common shares closed at BRL1.41 ($0.69) Monday and preferred shares at BRL1.51.
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Brazilians Build Equity Pipeline Despite Market Woes
Brazil’s new equity issuance pipeline is growing even as its market deals with global volatility and disappointing economic indicators. The Bovespa rebounded a bit Monday after suffering in the previous week, and for some, sagging prices might represent attractive entry points. Despite the volatility, domestic structural changes still have investment banks optimistic about the possibilities. “Asset management in Brazil is maturing, and there is more of a risk profile for smaller-cap issuers. This is a positive. We lack in Brazil a lot of industries, such as services, not represented on the exchange. If there is a market for them it will be healthy,” Christian Egan, global head of equities at Itau, tells LatinFinance. As interest rates drop, fund managers must work harder to find returns, and he notes that local demand has topped 50% of the books on some deals. There is a universe of small companies in Brazil that previously lacked appetite from investors, he explains. Trends toward specialized and small cap funds abroad should ultimately mean greater foreign participation as well, Egan says. For the moment, however, Egan says investors will need to see productivity numbers improve, noting his bank expects growth to pick up in the second half. International investors, as always, should still be needed to drive large deals. “Even BTG Pactual is down 20% [from its IPO price in April]. That doesn’t foster a lot of confidence, so [new issuance] will be challenging,” says a New York-based portfolio manager reviewing some of the recently-announced transactions. Recent growth numbers weren’t great and there is concern again about bank lending, he adds, while on the positive side inflation appears to be under control and retail sales were better than expected. CPFL Renovaveis, Suzano and Brazil Pharma have recently filed deals that should come in towards the larger end of the scale. LDC Bioenergia, Vix Logistica, Manabi and Celulose Irani have also joined the pipeline in the
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IFC to Buy into Carvajal Spinoff
The IFC plans to invest in Colombia’s Carvajal Empaques, through its IPO closing this week, Carvajal says. It does not say how much the multilateral is investing, and neither party responded to a request for additional comment. The Carvajal group is spinning off the maker of containers and packaging materials in a COP212bn ($121m) transaction, by selling 40m shares at COP5,300 per share. The order period is scheduled to close Thursday, with final allocation by May 29. It plans to use the proceeds to repay debt. Corredores Asociados is managing.
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JBS Launches Vigor Exchange
Brazil’s JBS has launched a 1-for-1 exchange of up to 149.7m of its shares for new shares of its Vigor Alimentos dairy spinoff, it says. At a price of BRL7.96 per JBS share, the offer open through June 15 could be worth BRL1.17bn ($584m). Bradesco is advising JBS in the process. JBS shares closed at BRL5.87 Friday.
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Brazilian Paper Co Plans FO
Celulose Irani is preparing to raise funds through a follow-on equity sale, it says. The maker of paper, packaging and resins plans a primary and secondary sale of units, each composed of 1 common and 4 preferred shares. It does not give additional details, and a prospectus has not been filed. Irani common shares closed at BRL1.38 Thursday and preferred at BRL1.51.
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Developer Wraps Up RE CCD
Mexico’s Construtora Planigrupo has raised MXP2.475bn ($179m) through the sale of certificados de capital de desarrollo (CCD), it says, a final amount under the MXP2.75bn it had been estimating. The 2021 transaction creates a fund to acquire and develop new commercial centers throughout Mexico. As is customary in CCD transactions, the certificates priced at a nominal value of MXP100 each. About 60% of the funds raised are for developing centers, with the remainder to be used in acquiring new ones. Investors are to receive a return equal to 100% of their initial investment plus a 10% preferred return, with further proceeds divided 80% to investors and 20% to the manager. The transaction had originally been intended for the Fibra, or domestic REIT, market, but was moved to the CCD space on a technicality, without altering it significantly. Ixe managed the deal, with Goldman Sachs as structuring agent. US real estate-focused private equity investor Walton Street is co-investing $28m, according to the documents. Planigrupo’s is the second CCD of the year, following a MXP5bn raise by Mexico Retail Properties, a unit of US-based private equity manager Black Creek, for a fund targeting commercial and service-related real estate assets.
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Mining Project Looks to Bovespa
Manabi, a pre-operational Brazilian iron ore miner, is planning to IPO, it says. The company founded last year is seeking funds in an all-primary share offer to develop its Morro Pilar and Morro Escuro projects in the state of Minas Gerias. The size and timing remain to be defined, though a filing this week suggests a launch as soon as late June. Credit Suisse, Goldman Sachs and Itau are managing the sale.