Brazil Pharma plans to raise BRL600m ($316m) in an equity follow-on, it says. It does not specify the exact timing. The retail pharmaceutical operator notes that 86% of the offer will be primary shares. BTG Pactual is the lead manager, to be joined by additional banks. Brazil Pharma raised BRL465.75m in its IPO last year, done through Bradesco, BTG, and Morgan Stanley.
Category: Equity
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CPFL Files Renewables IPO
Brazilian power company CPFL has filed for the IPO of its CPFL Energias Renovaveis unit, according to regulatory documents. It plans to offer primary shares, as well as secondary shares owned by several investment funds, including those linked to Patria Investimentos and Bradesco. It does not indicate size or timing, though a filing this week sets up a mid-June launch. The market is expecting a deal for at least BRL1bn ($525m), given the issuer’s large funding needs. CPFL plans to use 80% of the funds raised to develop new projects, and the remainder for acquisitions. Bank of America Merrill Lynch and Itau are global coordinators, with Morgan Stanley, Bradesco and Banco do Brasil as bookrunners. The unit recorded pro-forma Ebitda of BRL377.5m in 2011. It has 46 small hydroelectric, biomass and wind generation projects in operation, with 850 megawatts of capacity. In addition, it has 30 projects under construction, totaling 885 megawatts, and 39 in development, totaling 3,092 megawatts. ECM bankers expect several filings in Brazil in the coming weeks, in order to price deals before the July-August holiday season.
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Logistics Operator Preps IPO
Brazil’s Vix Logistica has filed for an IPO, according to regulatory documents. The transportation and fleet rental specialist plans to sell primary shares, as well as secondary shares owned by the controlling Aguia Branca group. It does not indicate size or timing, though a filing this week implies a mid-June launch, and ECM bankers familiar with the issuer expect a deal of less than BRL500m ($263m). It is raising funds mostly for organic growth, and also to acquire real estate and for working capital. Vix booked BRL152m in Ebitda in 2011, and BRL154m in 2010. Banco do Brasil, Bradesco, BTG Pactual, Credit Suisse and Itau are managing the sale.
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Corfo Sells Down Essal Stake
Corporacion de Fomento de la Produccion (Corfo) has raised CLP42.65bn ($88m) from the sale of shares in water utility Essal in a public auction, it says. It sold 387.7m shares at CLP110 each, in a sale that cuts its 40% position to 5%. The sale is part of a plan across Chilean government-backed entities to raise funds to help the government fund earthquake repair costs, and was initially attempted in December. Corfo has also sold positions in Aguas Andinas, Essbio and Esval. Banchile and IMTrust managed the sale.
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Lupatech Advances Capital Increase
Shareholders of troubled Brazilian oil services company Lupatech have approved a BRL700m ($363m) capitalization plan, it says. Lupatech is to issue 87.5m-175m shares to raise BRL300m-BRL700m. Brazilian development bank BNDES and Petros, the employee pension fund of Brazil’s oil company Petrobras, in April agreed to put up BRL300m of the total capital sought, with the remainder to come from other shareholders, at BRL4.00 a share. Lupatech shares closed Monday at BRL4.15.
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BTG Plots Africa PE Fund
BTG Pactual’s private equity arm is preparing a fund of approximately $1bn to invest in Africa, according to a source with knowledge of the plan. The fund is expected to be ready within 6 months, collecting capital mostly from Brazilian institutional investors, and will be looking for opportunities in sectors including infrastructure, energy and agribusiness.
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Pinfra Preps Follow-on
Promotora y Operadora de Infraestructura (Pinfra) is preparing an equity follow-on, it says. The Mexican infrastructure firm plans a domestic and international offering of both primary and secondary shares, though the size remains to be defined. The prospectus estimates it could be worth 17%-19% of the company. Pinfra is raising funds for general corporate purposes, including Greenfield and brownfield construction. The secondary share sellers include members of the Penaloza family and various investment funds. JPMorgan, Credit Suisse, and Ixe have been named as managers, according to the prospectus. The timing remains to be determined. Pinfra shares closed Friday at MXP62.73 ($4.76).
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Steelmaker Launches FO
Colombia’s Acerias Paz del Rio has launched an equity follow-on, targeting COP271bn ($155m). The steelmaker controlled by Brazil’s Grupo Votorantim has set a COP30.00 share price for the 9.05bn shares on offer. The sale period closes May 25, with allocation by June 1. Most of the shares are expected to be bought by existing holders exercising their rights, with the remainder going to the open market. Proceeds are marked for repaying debt and funding investment in a mining program. Corredores Asociados is managing the sale. Votorantim owns 72% of Paz del Rio.
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Steelmaker Defines FO
Colombia’s Acerias Paz del Rio should raise COP271bn ($155m) from its equity follow-on, after setting a COP30.00 share price for the 9.05bn shares on offer, it says. The steelmaker controlled by Brazil’s Grupo Votorantim is expected to formally launch the deal as soon as today. Most of the shares are expected to be bought by existing holders exercising their rights, with the remainder going to the open market. Proceeds are marked for repaying debt. Corredores Asociados is managing the sale. Votorantim owns 72% of Paz del Rio.
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Carvajal Launches Packaging IPO
Colombia’s Carvajal Empaques has launched an IPO targeting COP212bn ($121m), setting a COP5,300 share price, it says. The Carvajal group’s maker of containers and packaging materials is offering sell 40m shares, or about 36% of itself, during an order period ending May 24, followed by final allocation by May 29. It plans to use the proceeds to repay debt. Corredores Asociados is managing.